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Supply Chain and Logistics Management Made Easy: Methods and Applications for Planning, Operations, Integration, Control and Improvement, and Network Design by Paul Myerson

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15. Facility Location Decision

As the saying goes, “In retail, the three most important factors for success are location, location, and location.” This is not only true in retail but also for manufacturers because it plays a major role in both the cost and service of the organization.

Unfortunately, it is usually not considered often enough in the case of manufacturers or, in many cases, in enough detail, and can potentially lead to catastrophe.

Location is a strategic, long-term decision in nature that is not easily changed in the short term and applies to raw material sourcing, manufacturing, distribution, and retail.

Strategically, the major goal or priority of the location decision for a manufacturer is to minimize cost, whereas retailers ...

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