Service location strategies and goods-producing location strategies rely on very different sets of assumptions. What are the assumptions associated with goods-producing locations? How do these assumptions lead to a location strategy?

The assumptions for goods-producing locations are: location is a major determinant of cost; most major costs can be identified explicitly for each site; low customer contact allows focus on the identifiable costs; and intangible cost can be objectively evaluated. On the basis of these assumptions, the location strategy for goods-producing firms is usually aimed at minimizing cost.