Economics · Logistics and Supply Chain Management
Two statements given below are labeled as Assertion (A) and Reason (R). Read the statements and answer the question that follows. Assertion (A): Plant location is often oriented toward dominant factors such as raw material sources, while warehouse location is definitely distribution oriented. Reason (R): Plant location decision is driven by the competition and competitor, while the warehouse location decision is exclusively driven by cost considerations. Which of the following options is correct?
- 1Statement (R) is correct but statement (A) is incorrect
- 2Statement (A) is correct but statement (R) is incorrect✓
- 3Both statements are correct and statement (R) is not the correct explanation of statement (A)
- 4Both statements are correct and statement (R) is the correct explanation of statement (A)
Correct answer
Statement (A) is correct but statement (R) is incorrect
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