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The third, crucial consideration for business planning, after service demand and
resource capacity, is the number of discrete locations where those resources must
be deployed in order to provide capacity to customers (wherever they actually are).
The location element in STEM is just a number (or
time series) which captures the scope of this characteristic, geographical diversity
just as a number of sites. It is not a visual construct and does not ‘pin
resources to a map’. The cost of these individual resources is assumed to
be the same, wherever they are located; from a financial perspective, what matters
is their number, not their specific location.
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