Two statements given below are labelled as Assertion (A) and Reason (R). Read the statements and answer the question that follows. Assertion (A) : Plant location is often oriented toward dominant factors such as raw material sources while warehouse location is definitely distribution oriented. Reason (R) : Plant location decision is driven by the competition and competitor while the warehouse location decision is exclusively driven by the cost considerations. Which of the following options is the correct?
Statement (A) is correct and statement (R) is not correct
A is correct, but R is incorrect. Plant locations may depend heavily on inputs such as raw materials, while warehouses serve distribution needs. Warehouse location is not determined exclusively by cost: delivery speed, customer-service requirements and access also matter.
| List-1 | List-II |
| (a) Selective distribution | → (i) Convenience items |
| (b) Intensive distribution | → (ii) Consignment, Franchise, symbiotic |
| (c) Exclusive distribution | → (iii) Specialty / high unit value items |
| (d) Special distribution | → (iv) Shopping items |