Question

What trade-offs are involved in deciding to have a single large, centrally located facility instead of...

What trade-offs are involved in deciding to have a single large, centrally located facility instead of several smaller, dispersed facilities?

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Answer #1

Multiple trade offs are involved in deciding to have a single large facility. A single large facility can help to save cost to a considerable extent. A single large facility will be more flexible and will always have the ability to handle wide range of products easily. Moreover, a single large facility always has the ability to attract more share in the market and helps to maintain very close relations with the suppliers.

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