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J.D. Kirkham: Sheffield Business School, Sheffield Hallam University, Sheffield, UK
S.M. Richbell: Sheffield University Management School, Sheffield, UK
H.D. Watts: Department of Geography, University of Sheffield, Sheffield, UK
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Few decisions in our complex and interdependent society have a farther reaching or more profound impact than decisions to close a plant. Yet these decisions are made behind closed doors, beyond public scrutiny, based solely on corporate self interest and without regard to the enormous economic and social costs which such decisions can impose on others (Rothstein, 1986, p. 20).
A cigarette manufacturer... told us that its three UK plant managers were in effect locked in a room and told to come up with an agreed recommendation as to which one of their plants should close (Fothergill and Guy, 1990, p. 105)."
Introduction
Manufacturing firms needing to adjust to changes in the business environment may find it necessary to make two key decisions relating to facility location. The first decision is concerned with where an activity should be undertaken and this often involves the search for a new location for production capacity. The second is concerned with the selection of a plant for closure and is unique to multiplant firms. In a single plant firm, plant closure is usually associated withbusiness failure whereas, in a multiplant firm, plant closure may be a route to business success. As Gordus et al. (1981, p. 19) observe the failure of a single plant firm "is a very different matter from a situation where the consolidation of three facilities into one ... is perceived to be an optimal managementstrategy". The selection of a new site and the selection of a plant for closure are bothexamples of non-programmed decisions and most managers will have little experience of either opening or closing a plant.
The factors influencing the location of new facilities are well researched and are included in standard texts on operations management (for example, Chase and Aquilano, 1995, pp. 372-95; Dilworth, 1996,pp. 185-217; Krajewski and Ritzman, 1996,pp. 336-96; Vonderembse and White, 1991,pp. 204-27) and in specialist texts (Stafford, 1980; Schmenner, 1982; Love et al., 1988; Francis et al., 1992) but the factors influencing plant closure decisions appear to have received little attention (for exceptions, see a brief discussion in Longley...