AID12884: A small-scale industrial unit intends to select one of the three locations. The data on both tangible and intangible factors collected by the location analyst is given below

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Question: A small-scale industrial unit intends to select one of the three locations. The data on both tangible and intangible factors collected by the location analyst is given below:

 

ITEM

Site

 

 

A

B

C

(a)

Total Investment (Rs. ‘000)

250

315

250

(b)

Total Sales (Rs. ‘000)

340

390

350

(c)

Expenses on Raw Materials (Rs. ‘000)

85

100

120

(d)

Expenses on distribution (Rs. ‘000)

50

50

80

(e)

Expenses on Utilities (Rs. ‘000)

50

40

25

(f)

Salary and Wages (Rs. ‘000)

25

30

25

(g)

Community Facilities

Excellent

Good

Bad

(h)

Community Altitudes

Good

Fair

Very Good

(i)

Cost of Living

Extremely Low

Low

Normal

(j)

House facilities

Very Good

Good

Fair

Suggest:

a)  Best location on the basis of Tangible factors.

b)  Best location on the basis of Intangible factors.

c)  Best location on over-all basis.

And justify your selection in each.

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