Typical location decisions

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