How to Choose an Appropriate Location for a Facility Plant

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1. Introduction There are many determinants and processes that a company has to go through in order to choose an appropriate location for a facility plant. This is a very crucial element to a company as the precise choice helps reduce costs and augment efficient procedures within the company. “A facility location, also known as location analysis, is a branch of operations research concerning itself with mathematical modelling and solution of problems concerning optimal placement of facilities in order to minimize transportation costs.” (http://en.wikipedia.org/wiki/Facility_location). Mercedes-Benz has chosen East London in South Africa as the location for a manufacturing plant in producing there new C-Class automobile. There are many criteria and procedures which take place in order to make sure the right location is chosen for the specific product. Mercedes-Benz as a company will be discussed as to what they are looking for in a facility location and the company as a whole, the importance in the facility location and why it is vital to the daily operations of a company such as Mercedes-Benz. The steps in the logistics network design as this shows what the greatest capacity of the facility would be. The choice of relocating a facility and the dynamics that goes with it. The reason Mercedes-Benz has chosen South Africa as a location for a manufacturing plant and why South Africa as a country. All these aspects are to be discussed below. 2. The company Mercedes-Benz Mercedes-Benz has always been a major player in the South African Market, offering people luxury vehicles, world renowned for safety and reliability whilst striving for excellence. With a large variety of differing automobiles, Mercedes-Benz has always had various cars to suit a large variety of customer’s needs. The prestige that goes along with owning a Mercedes-Benz is huge,

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