Asked by Shubhansh Singh on May 21, 2024
Verified
Transportation costs increase as the number of facilities is increased.
Transportation Costs
Expenses associated with the movement of goods or materials from one location to another, including fuel, labor, and vehicle maintenance costs.
- Understand the connection between the quantity of facilities and the associated inventory and facility expenses.
Verified Answer
SS
Smarty SmartMay 24, 2024
Final Answer :
False
Explanation :
Increasing the number of facilities can actually lead to a decrease in transportation costs because goods are produced closer to the consumers, reducing the distance over which items need to be shipped.
Learning Objectives
- Understand the connection between the quantity of facilities and the associated inventory and facility expenses.
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