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Why might a business with several facilities consider how far apart to spread them?
ATo keep every facility inside one single city
BTo ensure each facility uses identical machinery
CTo maximize the coverage of its chosen market
DTo make each facility report to the same manager
Answer & Solution
Correct answer: C. To maximize the coverage of its chosen market
1. A firm with more than one facility has a choice about how widely to place them.
2. Facilities placed too close together serve the same customers twice.
3. Spreading them appropriately maximizes market coverage.
4. The location of competitors is a related consideration in the same decision.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 10 "Achieving World-Class Operations Management", section Marketing Factors_
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