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A factory that makes hand tools is an example of what type of facility?

1) Raw material provider
2) Production facility
3) Distribution center
4) Transporter

1 Answer

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Final answer:

A factory that makes hand tools is a production facility. It is a place where raw materials are processed into finished goods, taking into account logistics and transportation costs as per location models like Alfred Weber's Least Cost Location Model.

Step-by-step explanation:

A factory that makes hand tools is an example of a production facility. Production facilities are places where raw materials are transformed into finished goods. In the context of industry location, production facilities take into consideration costs and logistics. If the finished product is cheaper to transport than the raw materials, then the manufacturing tends to be located near the raw material sources. This is a characteristic of bulk reducing industries. Conversely, if products are less expensive to transport, the manufacturing can be more flexible in location. Looking at Alfred Weber's Least Cost Location Model can help in understanding that the siting of these production facilities is also dictated by transportation costs, among other factors.

A factory that makes hand tools is an example of a production facility. Production facilities are where manufacturing takes place, transforming raw materials into finished products. In this case, the factory takes raw materials such as metal and plastic and uses machines and labor to produce hand tools.

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