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Why are mistakes made at the site selection stage so expensive?
ABecause moving a facility once production begins is costly
BBecause the site cannot be sold to any other business
CBecause taxes must be paid twice on any relocated plant
DBecause workers must be retrained after every decision
Answer & Solution
Correct answer: A. Because moving a facility once production begins is costly
1. Site selection is one of the earliest decisions in production and operations planning.
2. Once production has begun, moving a factory or service facility is difficult and costly.
3. That means an error cannot simply be corrected later, so the cost of the mistake persists.
4. Firms therefore weigh a number of factors carefully before committing to a location.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 10 "Achieving World-Class Operations Management", section 10.3 Location, Location, Location: Where Do We Make It?_
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