Which of the following statements regarding "proximity" in the location decision is false?
A) Service organizations find that proximity to market is the most critical primary location factor.
B) Manufacturers want to be near customers when their product is bulky, heavy, or fragile.
C) Perishability of raw materials is a good reason for manufacturers to locate near the supplier, not the customer.
D) Reduction in bulk is a good reason for a manufacturer to locate near the supplier.
E) Clustering among fast food chains occurs because they need to be near their labor supply.

Question

Quizplus · Accepted Answer

Clustering among fast food chains occurs because they want to be near their customers, not their labor supply. Proximity to labor supply may be important for other types of industries, but not for fast food chains which have a high turnover rate for employees and can easily hire in the local market.

Which of the Following Statements Regarding "Proximity" in the Location