Centralized facilities tend to minimize total transit distances,which likely results in minimum transportation cost.

Question

Quizplus · Accepted Answer

Centralized facilities, such as warehouses or distribution centers, are strategically located in areas that minimize total transit distances, which in turn reduces transportation costs. This is because products can be shipped directly from the centralized facility to multiple locations, rather than having to make multiple trips to different facilities.

Centralized Facilities Tend to Minimize Total Transit Distances,which Likely Results