APICS Certified in Logistics, Transportation and Distribution (CLTD) — Question 145

Which of the following methods is used for facility location selection based on the location of markets, the volume of goods shipped, and shipping costs?

Answer options

• A. Factor rating
• B. Center-of-gravity
• C. Break-even analysis
• D. Least cost

Correct answer: D

Explanation

The correct answer is D, Least cost, as it focuses on minimizing shipping expenses in relation to market locations and shipping volume. Factor rating and center-of-gravity are more about assessing multiple criteria and finding a central point, while break-even analysis is not specifically designed for location selection based on these factors.