Posts are expected to be at least 300 words in length, well-written, APA formatt

Question

Posts are expected to be at least 300 words in length, well-written, APA formatted, meaningfully add to the conversation about the given topic, and incorporate material from the text and other sources into your original post and responses.

Transportation Models

In situations where a transportation or assignment model shows that a specific factory or location should not be utilized, due to the high cost associated with the location, should the location be shut down? Should cost be the only factor considered in making a decision of this type? What would you recommend?

Explanation / Answer

No, I do not believe that cost should be the only factor when we need to consider a transportation factory or a particular location and there can be a number of factors to promote this thinking. First of all the method of transportation can play a huge role, just because one form of transportation does not provide the optimized pathway to achieve the required purpose, we should not make decisions using just a single factor alone but how this factor is either exaggerated or can be reduced by the introduction of other different implementations. Secondly, if we do not use a location, while there needs to be an interconnection between the different plants spread across the country, it will end up increasing the cost of the entire system more, especially if a business generates enough business from the locations that could benefit from the presence of the particular plant. Thirdly, for a business, while cost is the most important factor, it is not the end of all reason. For determining the resourcefulness of a plant we should also consider its strategic value for the entire system and not just one aspect of it.

Following these reasons, we can say that the best option for the company should be a change of the preferred mode of logistics, change of routes, value of placement and the factor of interconnectivity between the other areas and then determine the value of the plant and then search for alternatives to any given aspect to create the possible strategy for this purpose.

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