A company ships from its manufacturing facilities directly to its warehouses. If the number of warehouses increases, transportation costs between manufacturing facilities and warehouses most likely will:

Question

Quizplus · Accepted Answer

When the number of warehouses increases, the distance between the manufacturing facilities and warehouses increases. This increase in distance leads to an increase in transportation costs, as more fuel and resources are required to transport goods over longer distances. Therefore, transportation costs most likely will increase.

A Company Ships from Its Manufacturing Facilities Directly to Its