Deciding where a company will locate its facilities constitutes a large part of the design of the supply chain. A basic trade off here is whether to centralize to gain economies of scale or decentralize to become more responsive by being closer to the customer. Companies must also consider a host of issues related to various characteristics of the local areas in which the facility may be situated. These include: –
Macro economic factors
Strategic factors
Quality of workers
Cost of workers
Cost of facilities
Availability of Infrastructure
Proximity to customers and the rest of the network
Tax effects
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