Question

"If a company has a product that is made at only one plant, and the critical location factor is minimizing the cost of distribution throughout North America, then the optimal factory location is on either the West or East coast rather than the U.S. interior"
a. true.
b. false

Answer 1

Answer:

a. true

Explanation:

• This will depend on the availability of the raw material and the labor force as a company needs to have a low cost and maximize its profits, which can only be done by placing itself in a most advantageous location that provides the least costs for the transportation and delivery of the final product.

• The company has to be located near the market also as to have a centralized system of distribution of the company can locate itself anywhere and can create a market for itself which involves the movement of the pole from all locations to the center.

• Thereby maintain a cheap and accessible supply of raw material and labor force. From where t can operate and spread itself in all directions.