Scenario - Jenkins and Jones Corporation
Michael Jenkins and Emma Jones started the Jenkins and Jones Corporation in 1976 in Kansas,USA.The initial goal of this company was to serve customers throughout the United States.Since the company's inception it has grown at an outstanding rate.It now serves online customers as well as customers in ten foreign nations.Jenkins and Jones is now looked at as the industry's benchmark company due to its superior supply chain management skills.Its practices and techniques are used by many other organizations in the industry to improve their own supply chain management skills.
-As the Jenkins and Jones Corporation continues to grow and expand,one of the strategic decisions it must face is that of location of its facilities.Which one of the following does not relate to the problem of location?
A)Minimum efficient scale in comparison to demand
B)Value-to-weight ratio
C)Fixed costs
D)Factor endowments of countries
E)Number of Internet users

Question

Quizplus · Accepted Answer

The number of Internet users does not relate to the problem of location, as it is not a factor that directly affects the location of the company's facilities. On the other hand, choices A, B, C, and D are all factors that need to be considered when making decisions about the location of facilities. Minimum efficient scale in comparison to demand, value-to-weight ratio, and fixed costs are all related to the economic feasibility of the location, while factor endowments of countries are related to the availability of resources and infrastructure in a specific location.