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The demand for PlastiPharm's medical device bags has greatly increased on the East Coast of the United States, and the company is considering adding a
The demand for PlastiPharm's medical device bags has greatly increased on the East Coast of the United States, and the company is considering adding a warehouse in the region. Why would the company, whose plants are in the Intermountain West, California, and Texas, consider adding a warehouse so far from its production sites? How will this best benefit the company? Establishing a warehouse on the East Coast will help the company reduce the problem of traffic congestion because of its closer proximity to customers. Locating a warehouse in the right location on the East Coast near customers will reduce distance and improve service levels to customers. Having a warehouse on the East Coast will enable the company to store additional safety stock in case of emergency. A warehouse on the East Coast will allow the company to take advantage of lower labor and land costs
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