Facility location decisions have a long-term impact on a supply chain's performance because
A)it is very expensive to shut down a facility or move it to a different location.
B)it is not expensive to shut down a facility or move it to a different location.
C)it is advisable to shut down a facility or move it to a different location.
D)it is cost effective to shut down a facility or move it to a different location.

Question

Quizplus · Accepted Answer

Facility location decisions have a long-term impact on a supply chain's performance because it is very expensive to shut down a facility or move it to a different location. Companies have to consider factors such as the cost of building a new facility, the cost of labor, transportation costs, and the availability of resources before making a decision on where to locate their facilities. Once a facility is in place, it can be difficult and costly to move it to a different location. Therefore, careful consideration and planning are required when making facility location decisions.

Facility Location Decisions Have a Long-Term Impact on a Supply