Location of production

The site where production activities are located, as determined by a company in order to yield highest revenues for a product.

Production activity tends to be located where a company can be most productive and yield the highest revenues per unit of investment. An ideal location for production will include some or all of the following:

• Closeness to point of sale and raw materials.
• Proximity to skilled labour source.
• Room for expansion.
• Good communication links.