This Type Of Plant Location

Posted by The New Economics Education

To determine the type of plant location, consider the following things:

1. Bound nature, when the product is produced using natural raw materials may not be moved so that people can not decide which company should be placed, such as gold mining plant, coal.
2. Based on history, when the hereditary location of the company in certain areas, such as batik area centered in Yogyakarta, Pekalongan and Solo.
3. Set by the government, so as not to disturb public order and safety, such as chemical plants is influenced by the economy, namely the availability of production factors.


In the analysis of the location of industry sectors, the strategy undertaken to focus on cost minimization, while the service sector, focused on maximizing revenue. This is because manufacturing companies argue that the costs tend to be very different among different locations, while service companies often argue that the location has an impact kepadan more income than expenses. Therefore, service companies, specific locations are often more affected than affecting fee income.

There are eight major components of volume and revenue services, namely:
1. Purchasing power in the region that can attract customers
2. Correspondence between service and corporate image with the demographics of the region can attract customers yag
3. Competition in the region
4. quality of competition
5. The uniqueness of the location of the company and competitors
6. Physical quality of the facility and surrounding businesses
7. Policy operations
8. Quality of management.

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