In terms of making a location decision,when fixed costs are substantial,the minimum efficient scale of production is high,and flexible manufacturing technologies are available,it makes sense to:

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When fixed costs are high and the minimum efficient scale of production is high, concentrating production at a few choice locations would be the most effective option. This would allow for economies of scale to be achieved and costs to be minimized. The availability of flexible manufacturing technologies would further enhance the efficiency at these chosen locations. Spreading production over many locations would increase costs and reduce efficiency. Manufacturing in every country in which the product is sold would be expensive and time-consuming. Outsourcing production to a third party would result in loss of control over quality and production processes. Dispersing distribution centers and maintaining higher minimum inventories would be less efficient and increase costs.

In Terms of Making a Location Decision,when Fixed Costs Are