Which of the following statements regarding proximity in the location decision is false?
A) Service organizations find that proximity to market is the most critical success factor.
B) Clustering among financial firms occurs because they need to be near their highly skilled labor supply.
C) Perishability of raw materials is a good reason for manufacturers to locate near the customer and not their supplier.
D) Manufacturers want to be near customers when their product is bulky, heavy, or fragile.

Question

Quizplus · Accepted Answer

The statement that perishability of raw materials is a good reason for manufacturers to locate near the customer and not their supplier is false. Perishable raw materials need to be transported quickly and efficiently, and locating near the customer instead of the supplier could result in delays and increased transportation costs. Manufacturers typically locate near their suppliers to minimize transportation costs and ensure a reliable supply chain.

Which of the Following Statements Regarding Proximity in the Location