Country factors Region factors Local factors
Government rules, attitudes, political risk, incentives
Culture & economy
Market location
Labor availability, attitudes, productivity, and cost
Availability of supplies, communications, energy
Exchange rates and currency risks
Attractiveness of region (culture, taxes, climate, etc.)
Labor, availability & costs
Costs and availability of utilities
Environmental regulations of state and town
Government incentives
Proximity to raw materials & customers
Land/construction costs
Site size and cost
Air, rail, highway, and waterway systems
Zoning restrictions
Nearness of services / supplies needed Environmental impact issues
Source: adapted from: Heizer/Render - Principles of Operations Management, 5th Edition, and Operations Management, 7th Edition, New York: Prentice Hall.
Factors Affecting Location Decisions