A company most likely would consider moving a portion of its manufacturing to a second location to:

A company most likely would consider moving a portion of its manufacturing to a second location to:
A . improve competitive advantage through cost control.
B . avoid manufacturing downtime due to material shortages.
C . maximize security for customer shipments.
D . minimize the impact of natural disasters.

View Answer

Answer: D

Explanation:

A company would consider moving a portion of its manufacturing to a second location to minimize the impact of natural disasters. This strategy, known as geographical diversification, helps ensure continuity of operations by spreading risk across different locations. If one site is affected by a natural disaster, the other location can continue to operate, thus minimizing downtime and ensuring a steady supply to customers.

Improving competitive advantage through cost control is more associated with outsourcing or offshoring to lower-cost regions.

Avoiding manufacturing downtime due to material shortages typically involves supply chain optimization rather than relocating manufacturing.

Maximizing security for customer shipments pertains to logistics and transportation security measures, not manufacturing location.

Reference: Chopra, S., & Meindl, P. (2016). "Supply Chain Management: Strategy, Planning, and Operation." Sheffi, Y. (2005). "The Resilient Enterprise: Overcoming Vulnerability for Competitive Advantage."