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Locating distribution centers far out in the countryside is an environmental sustainability best practice.

a. True
b. False

1 Answer

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Final answer:

Locating distribution centers in the countryside is not always the best practice for environmental sustainability, as it must be balanced with supply chain efficiency and the costs associated with long-distance shipping.

Step-by-step explanation:

Locating distribution centers far out in the countryside is not necessarily an environmental sustainability best practice. Factors affecting the sustainability of a distribution center's location include minimizing transportation costs, reducing greenhouse gas emissions, and efficiently managing logistics. While one might think that distributing from the countryside could potentially lower a building's environmental impact due to reduced land costs and possible lower regulatory burdens, this is offset by the significant environmental costs associated with shipping finished goods over long distances, often through congested networks which increase costs and reduce profits. In fact, companies consider a range of factors when locating a new factory, including labor and capital costs, proximity to reliable suppliers and customers, transportation quality, and environmental regulation costs, which typically amount to only 1 to 2% of a large plant's total costs. The environmental costs are thus a minor factor compared to the overall efficiency of the supply chain, which can benefit more from proximity to transportation hubs and markets.

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