One of the objectives of facility location analysis is to select a site with the lowest total cost. Which of the following costs should be excluded from the analysis?
A) Historical costs
B) Inbound distribution costs
C) Land
D) Construction
E) Regional costs

Question

Quizplus · Accepted Answer

Historical costs are past expenses and have no relevance to the decision-making process for facility location. Therefore, they should be excluded from the analysis. Inbound distribution costs, land, construction, and regional costs are all relevant factors to consider when determining the total cost of a facility location.

One of the Objectives of Facility Location Analysis Is to Select