A Firm May Increase the Number of Facilities Beyond the Point

question 3

True/False

A firm may increase the number of facilities beyond the point that minimizes total logistics cost to improve the response time to its customers.

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Definitions:

Incentive Compensation

A form of payment designed to motivate and reward employees for exceeding specific performance goals.

Compensation

Payment or benefits provided to employees in exchange for their labor or services, including salaries, wages, and benefits packages.

Principal-agent Relationship

A dynamic between a principal, who delegates tasks, and an agent, who performs tasks on the principal's behalf, often leading to issues related to alignment of interests.

Decision Makers

Individuals or groups responsible for making choices that influence outcomes or the direction of a project, strategy, or organization.