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

Question

Quizplus · Accepted Answer

Tapering rates refer to a situation where transportation costs decrease as the distance between the facility and the source or the market decreases. This means that the optimal location for a facility is closer to either the source or the market. Therefore, tapering rates pull the location towards the source or the market, rather than pushing raw materials sources or pulling the facility towards the location.

What Is the Effect of Tapering Rates on Facility Location