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Major Factor is Warehousing Cost
i fully agree with the answers been added by experts..........thanks.
There are many factors affecting warehouses, from the above option it should be warehousing cost.
Determining the number: The optimum number will depend upon the nature of the product, the size and geographical spread of the market serviced by each warehouse, the current and potential sales in the territory, the extent of seasonality of demand if applicable, the level of peak demand, the trade patterns, the number of distributors/retail outlets to be serviced by each warehouse, the acceptable order-execution time, the possible speed of replenishment of stocks and the cost involved in operating warehouses. Future requirements and pattern of competition are also relevant in deciding the number and sizes of the warehouses.
According to me it should be the Warehousing cost.
a. capital expenditure for material handling equipment
wait more details from expert
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