There are two sites considered for locating a plant. The details are given below:

Items of Cost Cost Per Unit of Product at Various Stages Site-1 Site-2 Quantitative factors 1 Raw materials and other supplies ! 2,50,000 ! 2,30,000 2 Fuel and Power Z 70,000 Z 68,000 3 Water Z 15,000 Z 17,000 4 Labour and supervisor ! 2,60,000 ! 2,25,000 5 Land and building ! 22,00,000 ! 22,19,000 6 Distribution expense ! 2,50,000 ! 2,40,000 7 Freight incoming ! 2,10,000 ! 2,20,000 8 Taxes Z 14,000 Z 12,000 Qualitative factors 1 Community facilities Good Excellent 2 Housing facilities Very good Poor 3 Cost of living Normal High 4 Community attitude Good Encouraging Find the desirable site for locating the plant.

AppendixLO1