Definition of plant location in Hindi // Computer Gyan Scope of operation management at micro level
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Plant location
It is the process of determining best location for a plant where maximum operating economy and effectiveness can be achieved.
The selection of place for locating a plant is one of the most important problems, which is faced by an entrepreneur while launching a new enterprise. once mistake is made in locating a plant, it becomes extremely difficult and costly to correct it, especially when large plants are concerned.
The need for searching a location for plant may arise in any of the following situation.
when the business is newly started.
when an expansion is planned and there is no possibility of expansion at current location
The volume of business or the extent of market necessitated the establishment of branches.
A lease contract expires and landlord does not renew the lease.
other social or economic reasons ; like inadequate labour supply, shifting of markets etc.
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