APICS Certified in Logistics, Transportation and Distribution (CLTD) — Question 81

Which of the following facility location techniques is equivalent to a break-even point?

Answer options

• A. Weighted-factor rating method
• B. transportation problem model
• C. Cost volume analysis
• D. Center-of-gravity method

Correct answer: C

Explanation

The correct answer is C, Cost volume analysis, as it helps determine the break-even point where total costs equal total revenue. The other methods listed, such as the Weighted-factor rating method and Center-of-gravity method, focus on different aspects of facility location and do not directly relate to break-even analysis.