Introduction

Business systems utilize facilities like plant and machinery, warehouses etc., while performing the task of producing products and services a proper planning of these facilities would definitely reduce their cost of operation and maintenance. Plant location decisions are very important because they have direct bearing on factors like financial, employment and distribution patterns. In the long run, relocation may even benefit the organization. But, the relocation of the plant involves stoppage of production, and also cost for shifting the facilities to a new location. In addition to these things, it will introduce some inconvenience in the normal functioning of the business. Hence at the time of starting any industry, one should generate several alternate sites for locating the plant. After a critical analysis, it is the best site to be selected for commissioning the plant. Location of warehouses and other facilities are also having direct bearing on the operational performance of organization