Apart from location and cost of land, what other factors would be considered when deciding the...

Apart from location and cost of land, what other factors would be considered when deciding the construction of a new warehouse? (Hint: answers should be based on Macro and Micro factors when it comes to determining the warehouse location.) (10marks.)

PS: I know one factor in macro and micro.

Macro - Market Positioned Strategy

Micro - Building Codes and regulations

Solutions

Expert Solution

Different factors are as below while deciding the selection of location for a warehouse-

Micro factors =

Nearness to the market= It is important to analyze for the location of the warehouse as if the warehouse is located far from the market, a lot of costs will be incurred in transportation

Marketing strategy of the company= The marketing strategy of the organization also plays a significant role in the election of location. The company may look to serve various markets from a single warehouse or there may be many warehouses servicing a certain market.

Cost of transportation= This is an important consideration as if the transportation is quite high, the lower cost of land will lose its significant

Availability of the manpower= It has to be taken into consideration while deciding the location of the warehouse. There must be sufficient and talent workforce near to the selected location

Local infrastructure= The connectivity to the highways, condition of water, electric supply and roads will also be important factors

Macro factors=

Local taxes = the government also imposes some taxes on the warehouses so this will also determine the selection of the location of the warehouse

Availability of the material= All the required materials and other resources should be present near to the location

Government support= Whether there are some sort of incentives provided by the government to build the warehouse

keosha answered 1 year ago

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