When Outbound Transportation Costs Are a Dominant Factor, Manufacturing Facilities

question 165

True/False

When outbound transportation costs are a dominant factor, manufacturing facilities should be located close to suppliers and resources.

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Definitions:

Interest Rates

The percentage charged on borrowed money, reflecting the cost of borrowing or the rate earned on investments.

Market Price

The existing trade value of assets or services in the market.

Market Rate

The prevailing interest rate available in the marketplace for loans or the current price of a commodity, security, or currency.

Time to Maturity

The remaining period until a financial instrument, such as a bond, reaches its due date and the principal must be repaid.