When a blanket rate structure is used,which factor is eliminated as a locational determinant?
A) inventory costs
B) transportation rate
C) raw material sources
D) market sources

Question

Quizplus · Accepted Answer

When a blanket rate structure is used, transportation rate is predetermined and fixed regardless of the origin or destination location. Therefore, transportation rate is eliminated as a locational determinant. However, factors such as inventory costs, raw material sources, and market sources may still be considered when determining optimal locations for a business.

When a Blanket Rate Structure Is Used,which Factor Is Eliminated