As the number of facilities in a distribution network increases, profit tends to follow a curve that first declines, then rises.

Name: As the number of facilities in a distribution network increases, profit tends to follow a curve that first declines, then rises.
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As the number of facilities in a distribution network increases, profit tends to first rise due to increased market coverage and efficiency, then decline due to the rising costs of complexity and diminishing returns.

As the Number of Facilities in a Distribution Network Increases