Final answer:
Place utility in the supply chain is about ensuring products are available where needed, with strategies like Weber's Least Cost Location Model and bulk-gaining industry practices to minimize transportation costs and increase efficiency.
Step-by-step explanation:
The concept of place utility in the supply chain refers to the value added to products by having them available where they are needed. The supply chain seeks to enhance place utility by strategically locating factories and other facilities to optimize ease of access to materials and delivery routes. Location strategies informed by Alfred Weber's Least Cost Location Model and the concepts of bulk-gaining industries, like Coca-Cola, emphasize the importance of minimizing transportation costs and ensuring products are manufactured close to either their input materials or consumer markets to provide place utility.
Cities often provide the most significant examples of place utility in supply chains due to economies of scale and the concentration of customers and suppliers, which facilities such as sports stadiums and museums benefit from. The development of efficient transportation solutions, whether via uncrowded freeways, rail, or water transport, contributes greatly to creating this place utility.