A firm may increase the number of facilities beyond the point that minimizes total logistics cost to improve the response time to its customers.

Question

Quizplus · Accepted Answer

Increasing the number of facilities can allow a firm to be closer to its customers, which can improve response times. This may come at the cost of slightly higher logistics costs overall, but the trade-off can be worth it depending on the importance of fast response times to the firm's customers.

A Firm May Increase the Number of Facilities Beyond the Point