Facilities planning

  • Raja G. Kasilingam

Abstract

Facilities planning addresses two major logistics decisions: facilities location and facilities layout. The first one is concerned with the selection of the best location(s) for establishing facilities based on cost or other criteria. A location may be a country, city or a specific location within a city. Facilities at the macro level may include warehouses, plants, stores, cross-docking facilities, terminals and customer sites. Micro level facilities are smaller components of a larger facility. For example, a factory may consist of a machine shop, paint shop and a welding shop. A machine shop may have milling machines, grinding machines and drilling machines. The second facilities planning decision is concerned with the optimal arrangement and layout of smaller facilities within a major facility in order to minimize material handling and related costs. The layout and location of facilities play a vital role in minimizing the total cost of logistics. The location of facilities has a huge impact on land and construction costs, local taxes and insurance, labor cost and availability and costs of transportation to or from other facilities. The layout of a facility typically has an impact on intrafacility logistics costs such as material handling costs and the cost of material handling equipment.

Keywords

Furnace Welding Transportation Income Milling 

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References

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Further Reading

  1. Buffa, E.S., Armour, G.C. and Vollmann, T.E. (1964) Allocating facilities with CRAFT. Harvard Business Review, 42, 136–159.Google Scholar
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  4. James, R.W. and Alcorn, P.A. (1991) A Guide to Facilities Planning, Prentice-Hall, Englewood Cliffs, NJ.Google Scholar
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Training Aids: Videotapes

  1. Penn State Audio-Visual Services, tel. (800) 826-0312Google Scholar
  2. Business Logistics Management Series: Location AnalysisGoogle Scholar
  3. Business Logistics Management Series: Location Techniques.Google Scholar

Copyright information

© Springer Science+Business Media Dordrecht 1998

Authors and Affiliations

  • Raja G. Kasilingam
    • 1
  1. 1.CSX TransportationJacksonvilleUSA

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