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Module 1: Módulo 7: Introdução à Localização Instalações

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Location and Layout

Location essentially deals with where we want to locate the facilities.
Layout deals with how we locate the other facilities inside, once the location is chosen.


Location decisions are strategic in nature.
Location decisions mostly are qualitative in nature, even through several quantitative models are available for location.

Qualitative factors in making decisions about location:

Raw material - If we are looking at locating a manufacturing plant or a facility, which is raw material intensive, then it is customary to locate these near the places, where we have raw material is available.

Labor availability - Areas where labor is abundantly available and labor is not very costly.

Qualitative factors in making decisions about location:

Demand area - Location of facilities also happens near the demand areas, particularly retail stores, banks, etcetera are all located near the demand area.
Transportation - Locations are also made based on transportation decisions for example, near a sea port, depending on the amount of material that come in and have to be transported.
Government policies - Governments can give subsidy to locating certain types of industry in certain areas.


Quantitative models that are available for location.

p median model

The p-median problem is useful to model many real world situations such as the location of public or industrial facilities, warehouses and others.