Explain one advantage of locating the factory near transport links.

• A. It leads to higher land prices with no logistical benefits.
• B. Good transport links lower logistics costs and speed up movement of inputs and outputs.
• C. Transport links negatively affect delivery reliability.
• D. Transport links have no impact on production planning.

Answer: (B)

Proximity to transport links improves logistics efficiency: when a factory is near roads, rail, ports, or airports, the movement of inputs and outputs becomes faster and cheaper. This lowers transport costs per unit, shortens lead times, and makes scheduling more reliable. With materials arriving quickly and finished goods reaching customers sooner, the overall production flow is smoother and more responsive, which is a clear practical advantage. The other ideas don’t fit because transport networks typically enhance reliability and planning efficiency, and while land costs can rise near major hubs, the logistical benefits are the main reason such locations are attractive.