Summary Facility Location and Layout

Chapter 3:
Facility Location and
Layout

, Chapter Index

S. No Reference No Particulars Slide
From-To



1 Learning Objectives 3


2 Topic 1 Concept of Facility Location 4-10


3 Topic 2 Concept of Facility Layout 11-24


4 Topic 3 Service Facility Layouts 25-29


5 Let’s Sum Up 30

, Learning Objectives

 Explain the concept of facility location

 Discuss factors affecting facility location decisions

 Explain the procedures and techniques for selecting facility location

 Explain the concept of facility layout

 List the types of facility layouts

 Describe service facility layouts

, 1. Concept of Facility Location
 Facility location may be defined as a place where the facility will be set up for
producing goods or services. The need for location selection may arise under any of
the following conditions:

a. When a business is newly started.

b. When the existing business unit has outgrown its original facilities and
expansion is not possible; hence a new location has to be found.

c. When the volume of business or the extent of market necessitates th
establishment of branches.

d. When the lease expires and the landlord does not renew the lease.

e. Other social or economic reasons.