Question

Millennium, Inc, a leading producer of environmentally friendly cleaning agents is looking for a site for a new production facility. The company is mainly focusing on sites that are close to major highways and rail hubs and are not too far from some major population centers. This suggests that an important location consideration for Millennium is:________
a. quality of life.
b. access to cheap land.
c. reducing time to market.
d. access to low cost labor.

Answer 1

Answer:

c. reducing time to market

Explanation:

While deciding upon production facility, an enterprise has to take into consideration the following factors:

1. Infrastructure: This refers to location of the site with regard to transportation, utilities and the associated costs. This means the location should be such that, the transportation of inputs and products should be convenient i.e well connected by roads and railways.
2. Access to supply chain and customers: The production facility should be easily accessible to suppliers for transport of inputs.
3. Availability of labor : Labor is a factor of production and thus the location of production facility should be near to place where the laborers are available.

In the given case, the company deals in environmental friendly cleaning agents and is looking for the ideal site for it's production process. It is essential that the production facility be well connected with the market for inputs required for production.

Hence it is evident that the important location consideration for the company is reducing the time to market since rail hubs and highways connectivity reduces such time and transportation cost as well.