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In this figure, the principle of place similarity is shown where
Transportation Costs
Expenses associated with the movement of goods or materials from one location to another, including shipping, fuel, and labor costs.
Operating Costs
The expenses associated with the day-to-day running of a business, such as rent, utilities, and salaries, excluding the cost of goods sold.
Order Fulfillment Centre
is a specialized facility for processing and shipping orders to customers, handling the storage, picking, packing, and shipping of products.
Factor Weights
Numbers assigned to variables based on their importance, used in mathematical models and decision-making processes to reflect the relative significance of different factors.
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