One of the Objectives of Facility Location Analysis Is to Select

question 46

Multiple Choice

One of the objectives of facility location analysis is to select a site with the lowest total cost. Which of the following are hidden costs that should be included in the analysis?

• A) Becoming less responsive to the customer
• B) Supplier costs
• C) Taxes
• D) Construction costs
• E) Product life cycle costs

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Definitions:

Functional Discount

A reduction in price given to channel members for performing specific roles or functions beneficial to the discount grantor.

Chain of Distribution

The pathway through which products or services move from the manufacturer or provider to the final consumer, including all intermediaries.

Price Discrimination

The practice of selling the same product or service at different prices to different customers, not based on costs.

Tying Agreement

A sales agreement where the sale of one product (the "tying" product) is conditioned on the purchase of a second, distinct product (the "tied" product).