Final answer:
The location of a new plant depends on various factors, including labor costs, proximity to suppliers and customers, transportation networks, taxation, and the competence of the local government. The material movement relationship also plays a role in determining the location.
Step-by-step explanation:
The question is asking about the location of a new plant that supplies raw materials to existing plants and how it is influenced by the number of existing plants and the material movement relationship. When considering the location of a new plant, companies typically take into account several factors such as labor and financial capital costs, proximity to reliable suppliers and customers, transportation and communication networks, taxation, and the competence of the local government.
Regarding the material movement relationship, it refers to how materials are transported between the new plant and the existing plants. If the material movement is efficient and cost-effective, it can influence the decision on where to locate the new plant.