Which of the Following Statements on Locating Facilities in the Service

question 185

Multiple Choice

Which of the following statements on locating facilities in the service sector is best?

• A) The factors that apply to manufacturing firms often also apply to service facilities, but the impact of the location on sales and customer satisfaction is an important addition.
• B) Management should avoid locating facilities where competitors are already well established, as illustrated by new car showrooms.
• C) Creating a "critical mass" is a strategy that avoids locating near competing firms.
• D) "Site specific" factors are the main reason for locating warehousing and distribution operations near the customer.

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Definitions:

Break-Even Point

The point at which total costs and total revenues are equal, resulting in no net loss or gain.