Decisions on Building Location
Where to locate is a decision that is made for every building, and it can have an important economic impact. In the short run, location affects initial capital investment costs; in the long run, location affects ongoing operations and profitability. Choosing a location is a complex decision that requires consideration of economic and noneconomic factors.
KeywordsSales Volume Alternative Location Building Location Economic Evaluation Method Unit Variable Cost
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- 1.Locational choices are treated in urban economics, regional economics, spatial economics, and decision analysis. Among the techniques for analyzing economic aspects of location is mathematical programming. Distribution linear programming techniques, for example, are used to allocate production and distribution among locations for cost minimization.Google Scholar
- 2.Principal repair services are broken down into units of service for the purpose of developing prices.Google Scholar
- 3.See section 17.3.1Google Scholar