major problem in a plant location decision based on the factor-rating system is that simple point-rating schemes do not account for the wide variance of costs that may occur within each factor used in the analysis.

Question

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Simple point-rating systems do not take into account the potential variation in costs that can occur within each factor used in the decision-making process, which can result in biased or inaccurate evaluations.

Major Problem in a Plant Location Decision Based on the Factor-Rating