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Question 8: A textile factory needs to be located. Raw materials are transported from Amako to Nimbia. Where should the factory be located to minimize costs?
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Step-by-step solution
3 stepsTo answer Question 8, we need to consider the source of raw materials and the cost of transportation. A textile factory primarily uses cotton as its raw material.
Identify the source of raw material.
Question 6 mentions "transporting cotton from Amako to a textile industry at Nimbia". This implies that Amako is a significant source of cotton.
Apply the criteria for factory location.
To minimize the cost of transporting raw materials, a factory should ideally be located close to the source of its primary raw material. Since Amako is identified as a source of cotton, locating the textile factory there would minimize the cost of bringing cotton to the factory.
Select the best option.
Based on Amako being a source of cotton, locating the textile factory in Amako would be the most efficient choice considering raw materials and transportation costs.
The final answer is .
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