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What Kinds of Location Decisions Are Appropriate for Use of Centre-Of-Gravity

question 142

Essay

What kinds of location decisions are appropriate for use of centre-of-gravity analysis? What variable is being optimized in this analysis?


Definitions:

Sales on Account

Transactions where goods or services are sold and payment is deferred, creating accounts receivable.

Merchandise

Goods bought and sold by retailers.

Cash Collections

The process of gathering monies that are owed to a business by its customers or clients.

Beginning Inventory

The value of goods available for sale at the start of an accounting period, prior to any purchases or production during the period.

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