Question

A company is planning to set up one more manufacturing unit. It wants to find a location that is inexpensive without compromising production capacity. Which evaluation method should the company use?

A. Location break-even analysis
B. Transportation method
C. Center of gravity method
D. Factor rating method

Answer 1

The company should use the Factor rating method to find an inexpensive location without compromising production capacity.

Step-by-step explanation:

The evaluation method that the company should use to find an inexpensive location without compromising production capacity is the Factor rating method. The Factor rating method involves assigning weights to various factors such as cost, transportation, labor availability, infrastructure, and taxes, and then rating potential locations based on these factors. By using this method, the company can objectively compare different locations and choose the one that offers the best balance of cost and production capacity.