The method for determining location alternatives which minimizes distribution costs is:
A)break-even analysis.
B)transportation method.
C)factor rating analysis.
D)linear regression.
E)centre of gravity method.

Question

Quizplus · Accepted Answer

The centre of gravity method is best for determining location alternatives which minimizes distribution costs because it takes into account the distance and weight of shipments to determine the optimal location. The method calculates the centre of gravity for all potential locations and identifies the location with the lowest transportation costs.

The Method for Determining Location Alternatives Which Minimizes Distribution Costs