Current Affairs · Operations Management
Consider the following statements regarding plant location strategies: Statement (I): White goods manufacturing companies have separate plants for color TVs, washing machines, microwave ovens, etc., to avoid confusion and bring about economies of scale. Statement (II): Pepsi and Coke have bottling plants scattered all over the country which cater to different regions to avoid confusion at the main manufacturing set-up rather than reducing overall transportation costs and the lead time for supplying goods in the markets. Find the correct code for the statements being correct or incorrect.
- 1Statements (I) and (II) are both incorrect.
- 2Statement (I) is correct, but (II) is incorrect.✓
- 3Statements (I) and (II) are both correct.
- 4Statement (I) is incorrect, but (II) is correct.
Correct answer
Statement (I) is correct, but (II) is incorrect.
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