Which advantage describes proximity to resources?

• A. Manufacturing near raw materials
• B. Manufacturing near skill bases
• C. Cost escalation from transport
• D. Environmental penalties

Answer: (A)

Proximity to resources is advantageous because being near raw materials cuts the distance those materials must travel, lowering transport costs and lead times. This helps reduce overall production costs, lowers inventory requirements, and improves scheduling and throughput since feedstock arrives more quickly and predictably. Being close to raw materials also decreases the risk of supply disruptions tied to long-distance logistics and reduces handling and damage costs from shorter material movements. The other options don’t describe this proximity to resources: near skill bases is about labor availability, not feedstock supply; cost escalation from transport is a drawback of distance; environmental penalties are potential costs and regulatory concerns, not advantages.