Tariffs,economies of scale and aggregate factor costs mostly affect which of the four Global Network Design Decisions?
A)Phase I - Supply Chain Strategy
B)Phase II - Regional Facility Configuration
C)Phase III - Desirable Sites
D)Phase IV - Location Choices

Question

Quizplus · Accepted Answer

Tariffs will affect the regional facility configuration decision as companies will have to decide on the optimal location for their production facilities to avoid high tariff costs. Economies of scale will also impact this decision as companies will need to determine the optimal size and number of facilities to achieve the desired level of production efficiency. Aggregate factor costs will also be a factor in this decision as companies will need to consider the labor and other costs associated with operating facilities in different regions. Overall, the regional facility configuration decision is heavily impacted by factors such as tariffs, economies of scale, and aggregate factor costs.

Tariffs,economies of Scale and Aggregate Factor Costs Mostly Affect Which