Which of the following factors is least likely to influence the choice of a facility location?
A. Availability of raw materials
B. Proximity to competitors
C. Transportation infrastructure
D. Labor cost and availability
Answer (2)
The factor least likely to influence the choice of a facility location is B. Proximity to competitors. Other factors like availability of raw materials, transportation infrastructure, and labor cost have more direct impacts on operations. These factors are crucial for ensuring efficiency and profitability.
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When deciding on a location for a facility, various factors can significantly impact the choice. Let's break down the mentioned options:
(A) Availability of raw materials : This is a crucial factor, especially for manufacturing industries. If the raw materials are readily available near the facility, it reduces transportation costs and ensures a steady supply, making it highly influential.
(B) Proximity to competitors : While being near competitors can have strategic advantages, such as gaining insights into the market or leveraging a skilled labor force, it is often less of a priority compared to other factors. Many businesses might prefer to avoid areas saturated with competitors to differentiate themselves and attract a unique customer base.
(C) Transportation infrastructure : Good transportation infrastructure, such as highways, railways, or ports, is vital for efficient movement of goods and people. This factor is crucial to ensure timely delivery and reduce logistical costs.
(D) Labor cost and availability : Access to a skilled and affordable workforce is essential for operational efficiency and cost management. This factor is particularly critical in labor-intensive industries.
Based on this analysis, the least likely factor to influence the choice of a facility location among the options provided is (B) Proximity to competitors . While still relevant, it generally carries less weight compared to factors like raw materials, transportation, and labor, which directly impact operational effectiveness and costs.
