The center-of-gravity method of determining a facility location:
A)Requires that demand be estimated in terms of the dollar sales revenue in each market.
B)Requires that cost be measured in dollars of transportation cost.
C)Does not require that qualitative factors be considered in location decisions.
D)Evaluates all production and logistics costs,and other costs such as taxes.

Question

Quizplus · Accepted Answer

The center-of-gravity method primarily focuses on minimizing the distance to various points of interest (such as supply points, markets, or materials), which inherently does not require the consideration of qualitative factors in location decisions. This method is quantitative, using coordinates and volumes to find an optimal location based on distance and quantity metrics.

The Center-Of-Gravity Method of Determining a Facility Location