One of the Objectives of Facility Location Analysis Is to Select

question 48

Multiple Choice

One of the objectives of facility location analysis is to select a site with the lowest total cost. Which of the following costs should not be included in the analysis?

• A) Outbound distribution costs
• B) Incidental costs
• C) Energy costs
• D) Hidden costs
• E) Taxes

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Definitions:

Residual Income

The amount of income that an individual has after all personal debts and expenses have been paid from his or her earnings.

Return On Investment

A financial metric used to evaluate the efficiency of an investment, calculated as net profit divided by the initial cost of investment.

Return On Investment

A financial metric used to evaluate the efficiency or profitability of an investment, calculated as net profit divided by the cost of investment.

Deferred Replacement

A decision to postpone the replacement of assets, often to manage costs or due to budget constraints, which may affect operational efficiency.