As the number of facilities in a supply chain increases,total facility costs

A) decrease.
B) increase.
C) increase to a point and then decrease.
D) decrease to a point and then increase.

Question

As the number of facilities in a supply chain increases,total facility costsA) decrease.B) increase.C) increase to a point and then decrease.D) decrease to a point and then increase.

Ayesha Tahir · Accepted Answer

Final Answer : B, Explanation :  As the number of facilities in a supply chain increases, the total facility costs also increase. This is because each facility incurs its own fixed and variable costs, such as rent, utilities, labor, and maintenance. Therefore, as more facilities are added, the total costs will also increase.

As the number of facilities in a supply chain increases,total facility costs

A) decrease.
B) increase.
C) increase to a point and then decrease.
D) decrease to a point and then increase.

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