The right location will not guarantee success, but the wrong location will certainly guarantee failure. As a general rule, profit-oriented organizations base their decisions on profit potential, whereas nonprofit organizations strive to achieve a balance between cost and the level of customer service they provide.

In general, managers wiill have to consider at least four options in location planning: one is to expand an existing facility. Another is to add new locations while retaining exisiting ones, as is done in many retail operations. A third is to shut down at one location and relocate, and a fourth is simply to do nothing.

Read more over at Kaizen — Continuous improvement by small changes or download the PDF for this handout.

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