Question

According to this week's reading about facility location, what types of products should be produced near the final markets due to weight-gaining in the production process?
a. Computer componentsb. Pillowsc. Soft drinksd. Forest products

Answer 1

Answer:

The answer is: C) Soft drinks

Explanation:

For this example we can use how the Coca Cola Company (we will call it C.C.C.) works around the world.  The C.C.C. headquarters produce only the basic syrup (main and key ingredient) for the manufacturing of Coke around the world. Then it delivers it to hundreds of different factories located around the world and owned by different corporations that are licensed to manufacture, produce and sell Coke in their specific markets.

They do this because it would be almost impossible for C.C.C. to manufacture and deliver Coke produced only in Atlanta to the rest of the world.  Due to its weight and volume the costs of transportation would be tremendous for every single bottle or can. Coke starts as a syrup and then they add water, sugar (sweeteners), carbonic gas, etc., and then they bottle it. All this is done to reduce logistics and transportation costs.