What is the effect of tapering rates on facility location?
A) pushes the raw materials sources toward the location
B) pulls the facility toward the location
C) pulls the location toward the source or the market
D) makes the optimum location at the midpoint between raw material sources and the marketplace

Question

Quizplus · Accepted Answer

Tapering rates refer to the decrease in transportation costs as distance decreases. This means that facilities will be pulled towards the source or the market, depending on which one is closer. As a result, the optimum location would be closer to either the source or the market, depending on which one has the greater effect on the overall transportation costs. Therefore, choice C is the best choice.

What Is the Effect of Tapering Rates on Facility Location