When would a business choose to locate near the source of the raw material?
A)The company requires an important raw material that is difficult to transport.
B)The company requires an important raw material that is expensive to transport.
C)The company keeps its inventory of an important raw material low to keep costs down and counts on quick deliveries from suppliers.
D)All of the above

Question

Quizplus · Accepted Answer

A company may choose to locate near the source of the raw material if the material is difficult or expensive to transport, as it may be more cost-effective to have the material readily available close by. Additionally, if the company keeps low inventory levels of the raw material and relies on quick deliveries, being located near the source can ensure a steady supply. Therefore, all of the options given could be reasons for a business to choose to locate near the source of the raw material.

When Would a Business Choose to Locate near the Source