Kfc Industry Study

KFC - FACILITY LOCATION AND LAYOUT

1.1 Facility Location:

Facility location, also known as location analysis, is a branch of operations research concerning itself with mathematical modeling and solution of problems concerning optimal placement of facilities in order to minimize transportation costs, avoid placing hazardous materials near housing, outperform competitors' facilities, etc.

Once a firm has decided to open a new facility OR relocate an existing facility,   it must decide the site where that facility should be located. The selection of location is most important for organization. The business commenced without proper location analysis may have the high risk chances and may not longer compete with other competitors.

1.2. KFC & Facility Location:

KFC Corporation, or KFC, founded and also known as Kentucky Fried Chicken is a chain of fast food restaurants based in Louisville, Kentucky. KFC is the third largest fast food chain with over 12,200 outlets in 99 countries. KFC has maintained its title, for the last 60 years, of being the chicken Experts. Opening the first KFC outlet in Gulshan-e- Iqbal in 1997. KFC wore the title of being the market leader in its industry. Serving delicious and hygienic food in a relaxing environment made KFC everyone’s favorite. Since then, KFC has been constantly introducing new products and opening new restaurants for its customers.

2. Factors That KFC Management Keep in Mind during Facility Location Analysis:

There are several factors that influence the Facility Location Decision

2.1. Proximity to Customers:

KFC Management during facility location analysis keeps in mind the proximity of target customers and target market, so that the target customer can be approached easily to outlets.

2.2. Business Climate:

It is another important factors determined by the KFC during the locations analysis. The location with favorable business environment is selected for the KFC by the management.

2.3. Total...