What are the consequences of bad location decision in production of management?
Answers
Hello there!
Generally, a bad location decision may result to low sales and production. When the management or firm is far from its projected target market, it will be difficult to meet the market's demands.
Not only will this affect the sales but it will also affect the costs and expenses of the management for it needs more resources in meeting the market's demands.
Thus, the profit may decrease or the firm may have a net loss
I hope this will help you!
The consequences of bad location decision in the production of management are as follows:
Production department cannot hire the skillful labors to work effectively on the product business if they choose the bad location for the production.
The availability of the suppliers gets greatly reduced if a business chooses the bad location for the product development.
The transportation cost to deliver the product to the clients become high, and it will make the business owner spend a lot of unwanted money during the business making.