Final answer:
Warehouse location and size are crucial for a company's performance, with strategic placement near transportation hubs and in low-rent areas leading to cost savings and efficient distribution.
Step-by-step explanation:
The location and size of warehouses can significantly affect the performance of a firm. For companies like Grace Kennedy, having warehouses near uncrowded freeways and with access to rail or water transport can lower transportation costs and improve efficiency.
Large warehouses in low-rent locations, like those used by Amazon, lead to economies of scale, with highly computerized operations and low average costs per sale. Such strategic positioning allows for more cost-effective distribution and management of products, thereby enhancing the firm's overall performance.