Logistics and supply chain involves many complex activities, which require optimal strategic decisions in order to operate efficiently and effective. Logistics managers are under considerable stress as the industry is constantly changing. Management must adjust and improve all activities carried out. Facility location is a crucial element of the supply chain and has a significant impact on the efficiency of many logistics activities. Facility location involves many aspects, such as the location of manufacturing plants, assembly locations as well as distribution centers. Facility location plays an important role in the success of logistics networks. Say no to plagiarism. Get a Custom Essay on “Why Violent Video Games Should Not Be Banned”? Get an Original Essay The importance of facility location is receiving a lot of attention these days, as businesses are quickly realizing the importance and the advantages of a successful installation location as well as the disadvantages involved in selecting an unsuccessful installation location. The main objective of logistics is to reduce costs, improve efficiency as well as customer service. Successful facility location decisions can lead to drastic cost reductions as well as improved customer service levels. An unsuccessful decision on the location of a facility can lead to inefficient operations and additional costs, which significantly affects the proficiency and efficiency of the operation as a whole. Logistics managers critically evaluate the performance of current facility locations. Changing technological conditions and increasing competition in the business environment have forced organizations to invest and focus on their logistics systems. Strategic decisions regarding the location of facilities such as factories, distribution centers and retailers have a significant impact on the profitability of supply chains. The first step in creating any supply chain is the geographic placement of production facilities, supply points and storage points. Facility location involves a commitment of resources to a long-term plan. The possible path by which the product reaches the end customer is determined after determining the size, number and location of the facilities. These decisions are of great importance to a company because they represent the basic strategy for accessing customer markets and will have a considerable impact on revenue, costs and service level. Keep in mind: this is just a sample. Get a custom paper now from our expert writers.Get a custom essay Well-planned location decisions enable efficient flow of materials through the distribution system and result in reduced costs and improved customer service.