It Is Very Important That Long-Term Consequences Be Thought Through

question 52

Multiple Choice

It is very important that long-term consequences be thought through when making facility decisions,because

• A) network designers can use this fact to influence the role of the new facility and the focus of people working there.
• B) facilities last a long time and have an enduring impact on a firm's performance.
• C) it is astounding how often tax incentives drive the choice of location.
• D) the location of a facility has a significant impact on the extent and form of communication that develops in the supply chain network.
• E) the quality of life at selected facility locations has a significant impact on performance.

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Definitions:

Sales Period

The Sales Period is a specific timeframe during which a company focuses on selling a product or service, often aligning with marketing campaigns or seasonal demands.

Hockey Stick Phenomenon

A sudden and significant increase in activity, sales, or performance, often occurring after a period of flat or unremarkable performance.

Post-Ownership Costs

Expenses incurred after purchasing a product, including maintenance, repair, and operational costs, affecting the total cost of ownership.

Total Cost

The complete cost of production, including both fixed and variable costs.