The centre-of-gravity method to find a location for a factory works by:
A) Locating near to the main customer
B) Locating near to the main supplier
C) Locating near to a cluster of suppliers
D) Locating in a place that minimises total transport costs to and from the location

Question

Quizplus · Accepted Answer

The centre-of-gravity method calculates the geographical centre of a group of customers, then identifies the location that minimizes the total shipping costs to and from that centre point. Therefore, the best choice is locating in a place that minimizes total transport costs to and from the location, which is option D.

The Centre-Of-Gravity Method to Find a Location for a Factory