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| Topic: |
English
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| Number of pages / Number of words: |
5 / 1247 |
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Labor costs, for example, are often dictated by relatively long-term contracts. Also, plant capacities must often be taken as fixed in the short-term. Nevertheless, production quantities can often be altered in the intermediate term in response to changes in material costs and market demands.
Facility location decisions, on the other hand, are often fixed and difficult to change even in the intermediate term...
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The location of a multibillion-dollar automobile assembly plant cannot be changed as a result of changes in customer demands, transportation costs, or component prices. Modern distribution centers with millions of dollars of material handling equipment are also difficult, if not impossible, to relocate except in the long term...
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