Question: your plastic production plant sources raw materials from a supplier...
Question details
Your plastic production plant sources raw materials from a supplier which transports things like cellulose, crude oil, etc. to be used to make plastic products. Because the supplier is geographically nearby, you are unwilling to switch to a different supplier due to savings from low transportation cost with current supplier. This is an example of
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Site specificity |
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Physical asset specificity |
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Transportation specificity |
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Dedicated asset |
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