Asked by Nanda Fauzan Noufal on May 25, 2024
Verified
What is the effect of tapering rates on facility location?
A) It pushes the raw materials sources toward the location.
B) It pulls the facility toward the location.
C) It pulls the location toward the source or the market.
D) It makes the optimum location at the midpoint between raw material sources and the marketplace.
Tapering Rates
A monetary policy term referring to the gradual slowing of the rate of quantitative easing by a central bank to reduce the amount of new money introduced into the economy.
Facility Location
The process of determining the most appropriate geographical location for a company's operations, manufacturing, or distribution centers to optimize logistics and meet customer demand.
Optimum Location
The most favorable place for a business to operate, considering factors such as cost, accessibility, and market presence.
- Analyze the effects of tapering rates on facility location decisions.
Verified Answer
RJ
Ryley JohnsonMay 26, 2024
Final Answer :
C
Explanation :
Tapering rates refer to a situation where transportation costs decrease as the distance between the facility and the source or the market decreases. This means that the optimal location for a facility is closer to either the source or the market. Therefore, tapering rates pull the location towards the source or the market, rather than pushing raw materials sources or pulling the facility towards the location.
Learning Objectives
- Analyze the effects of tapering rates on facility location decisions.