Which of the following statements about facility location is most accurate?
A)Very few firms are still influenced by labour costs when making decisions about where to locate.
B)Recent changes in information technology have led firms to favour locations near major urban areas.
C)Manufacturers often seek to reduce time-to-market by locating facilities in areas with access to key modes of transportation.
D)No matter how large they become,most companies ultimately choose to locate major facilities within a few miles of the area in which they started business.

Question

Quizplus · Accepted Answer

This statement is the most accurate because it reflects a common practice among manufacturers to locate facilities near transportation hubs in order to reduce time-to-market for their products. While labour costs and proximity to major urban areas can also be factors in facility location decisions, they are not as universally applicable or significant as access to transportation. The fourth option about choosing to locate major facilities within a few miles of the area in which a company started business may be true in some cases, but is not as widely applicable or relevant to the factors that influence facility location decisions.

Which of the Following Statements About Facility Location Is Most