Explain one factor influencing the location of ABC's e-waste factory.

• A. Product diversification concerns are the primary driver of site selection.
• B. Proximity to customers is always more important than raw material supply.
• C. Cost of land and local regulations always outweigh supply considerations.
• D. Access to large supplies of e-waste is likely a major location factor.

Answer: (D)

The key idea is that where a factory is located, especially for an e-waste recycling operation, is driven mainly by the availability of the input material. An e-waste plant needs a steady, enough flow of electronic waste to keep its machines running and to justify the investment. Being near large sources of e-waste cuts transport costs, speeds up the supply chain, and aligns with take-back programs and regulatory streams that generate waste. If input supplies aren’t reliable or sufficient, the plant can’t operate at scale, no matter what other advantages exist.

While factors like land cost, local regulations, or how close you are to customers matter, they don’t trump the necessity of securing ample feedstock. Proximity to customers is less critical for a recycling site focused on processing incoming waste than the ability to access that waste in the first place. And absolute statements about land costs or regulations outweighing supply considerations aren’t accurate, because without enough waste the facility won’t be viable. So the most important factor is access to large supplies of e-waste.