Calvert is contemplating building an aluminum smelting plant. The ratio of bauxite, the raw material from which aluminum is extracted, to aluminum is two to one. It takes two tons of bauxite to product one ton of usable aluminum. Calvert should locate his smelting plant close to
A) his customers.
B) the bauxite mine.
C) transportation.
D) an area with a suitable labor supply.

Question

Quizplus · Accepted Answer

Since the ratio of bauxite to aluminum is two to one, Calvert should locate his smelting plant close to the bauxite mine to minimize transportation costs and ensure a steady supply of raw material. Locating the plant close to customers, transportation or labor supply is not as critical as the proximity to the raw material source.

Calvert Is Contemplating Building an Aluminum Smelting Plant