One of the Objectives of Facility Location Analysis Is to Select

question 21

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 be excluded from the analysis?

• A) Historical costs
• B) Inbound distribution costs
• C) Land
• D) Construction
• E) Regional costs

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Definitions:

Motivation

The internal and external factors that stimulate desire and energy in people to be continually interested and committed to a job or subject.

Suboptimal Decision

A choice made that is not the best or most effective among the alternatives considered.

Transfer Pricing

The setting of prices for transactions between affiliated companies within the same multinational group, which can impact where profits are reported.

Market-Based

Pricing or decision-making strategies that are influenced primarily by market conditions and customer demand rather than internal cost considerations.