Service location strategies and goods-producing location strategies rely on very different sets of assumptions. What are the assumptions associated with goods-producing locations? How do these assumptions lead to a location strategy?
What will be an ideal response?
The assumptions for goods-producing locations are: 1. location is a major determinant of cost; 2. most major costs can be identified explicitly for each site; 3 . low customer contact allows focus on the identifiable costs; and 4. intangible cost can be objectively evaluated. On the basis of these assumptions, the location strategy for goods-producing firms is usually aimed at minimizing cost.
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What will be an ideal response?