Stages of Plant Siting

Posted by The New Economics Education

To get the ideal location of the factory or the right, take a few steps that must be done, namely:

1. Determining regions (territorial), in which the plant should be established.
2. Determine the environmental community, the goal is to find out how people's attitudes towards the establishment of the factory plan, so we get the optimum location.
3. Choosing the best location, the alternative:

a. Big cities; this alternative is selected based on consideration of skilled labor when required in large amounts, depending on the facilities of the production process, stresses the importance of transportation and communication, a lot of labor problems, the expansion is difficult.

b. Edge of the city, this alternative is chosen based on consideration of employment if required semi skills, easy expansion rate, labor force close to the plant site, the minimum population, so there are not many environmental problems.

c. Outside the city, the basic considerations used when the plant is established requires vast land, the expansion rate is easy, it takes unskill workforce in large numbers, the products produced at high risk, and the standard minimum wage.

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