The process of selecting a new facility location involves a series of following steps: 1. Identify the important location factors. 2. Rate each factor according to its relative importance, i.e., higher the ratings is indicative of prominent factor. 3. Assign each location according to the merits of the location for each factor. 4. Calculate the rating for each location by multiplying factor assigned to each location with basic factors considered. 5. Find the sum of product calculated for each factor and select best location having highest total score ILLUSTRATION 1: Let us assume that a new medical facility, Health-care, is to be located in Delhi. The location factors, factor rating and scores for two potential sites are shown in the following table. Which is the best location based on factor rating method? K1 PLANT LOCATION AND LAYOUT 35 Sl. No. Location factor Factor rating 1 2 3. 4. 5. Facility utilization Total patient per month Average time per emergency trip Land and construction costs Employee preferences Rating Location 1 3 4 4 5 6 3 5 Location 2 5 3 5 2 3