223 has been concluded that there
are no clear-cut best location, but rather there are several good locations, this is because each site option has
its strengths and weaknesses, so that it becomes a trade off decision. The basic fundamental objective in locating facilities is to minimize cost and maximize profit. Locating plants around a particular and existing industrial area helps to reduce cost of production. It will, therefore, no longer
be mandatory that electricity, water, telephone and other facilities are produced, because these might be there already.
B.5.1 Factors Influencing Plant Location There are several factors that influence the location of an organisation’s facilities, namely
(a)
Availability of Raw Materials: Location near the source of raw materials may help to reduce cost of production. b)
Government Policy: Government sometimes designate certain areas for locating all or some types of facilities. This is done either by fiat or persuasion through the introduction of incentives such as tax concessions or investment grants to firms that locate in certain areas. Through the creation of free trade zones/export processing
zones and investment codes, some governments in West Africa have been able to influence production facilities location. c)
Proximity to Market: This is particularly critical for organisations that produce delicate or perishable products or offer services. db Commercial and Social Infrastructure: This refers to facilities like transport, water,
electricity, telecommunications,
postal services, financial services, markets and schools. e)
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