Factors Responsible for plant Location choice

The physical factors associated with location of an enterprise can have a significant impact on the operations of an enterprise and its costs structure.  These factors can be qualitative as well as quantitative. Qualitative factors can be measured in terms of some qualitative   criteria namely adequate, good significant etc. Quantitative factors can be measured on cost or some other quantitative basis viz, labor material, housing, land, transport etc.

According or Dr. Visvesvariays, the decision of plant location should be based on nine Ms namely money material, Manpower, Market, Motive, Power, Management, Machinery, Means of communication and Momentum to an early start.  In general a plant should be located at a place where the inhabitants are interested in its success the product can be sold profitable and production costs in minimum.