Final answer:
Facility location decisions in supply chain network design involve determining the processes performed at each facility and are influenced by factors such as transportation, proximity to suppliers and customers, and labor and financial costs.
Step-by-step explanation:
Facility location decisions in supply chain network design involve determining the processes that are performed at each facility. These decisions are important as they impact factors such as transportation costs, access to suppliers and customers, labor and financial costs, and the overall profitability of the business.
For example, when selecting a location for a factory, factors like land cost, proximity to reliable suppliers and customers, transportation and communication infrastructure, taxes, and the competence of local government need to be considered. Additionally, Alfred Weber's Least Cost Location Model is often used to evaluate transportation costs and determine the optimal factory location based on these costs.
In summary, facility location decisions in supply chain network design play a crucial role in determining the processes performed at each facility and are influenced by various factors such as transportation, supplier and customer proximity, labor and financial costs, and government regulations.