Which statement best describes the trade-off between proximity to raw material supply and customer reach for ABC's e-waste factory?

• A. Proximity to customers is more critical than access to raw materials.
• B. Location near urban residential areas is the sole determinant.
• C. Proximity to e-waste supply may matter more because raw material availability is essential, while customers can be served from farther away.
• D. Environmental regulations have no impact on location decisions.

Answer: (C)

The key idea is that for an e-waste recycling plant, securing a steady flow of raw material is the most critical input. E-waste is bulky, often dispersed, and the weight and volume make transport costs a major factor. Being close to where the e-waste is generated or collected helps keep these input costs down, reduces handling time, and lowers the risk of feedstock shortfalls that could halt production. Once the material is processed, the recycled outputs can be shipped to distant customers using established logistics networks, so proximity to customers is less crucial than having reliable, nearby access to supply.

So, locating near the source of e-waste makes sense because material availability drives production, while customers can be reached from farther away through distribution channels. The other ideas—that the location is determined solely by urban proximity or that environmental regulations don’t matter—don’t fit as well because feedstock access is the bottleneck, and regulations do influence where a facility can operate.