The best location for facilities depends on many
factors, for example:
• If an organisation wants fast delivery, it will use local
warehouses that are physically close to final customers;
• if it wants low costs, it will concentrate stocks in large,
centralised warehouses that are inevitably some
distance away from customers;
• if it imports and exports a lot of materials it might use
warehouses near to ports or rail terminals;
• if it manufactures goods, it will have a stock of finished
products near the factory