| Centroid Method | A technique for locating single facilities that considers the existing facilities, the distances between them, and the volume of goods to be shipped.
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| Factor-Rating System | An approach for selecting a facility location by combining a diverse set of factors. Point scales are developed for each criterion. Each potential site is then evaluated on each criterion and the points are combined to calculate a rating for the site.
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| Free Trade Zones | A closed facility (under the supervision of government customs officials) into which foreign goods can be brought without being subject to the payment of normal import duties.
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| Trading Bloc | A group of countries that agrees on a set of special arrangements governing the trading of goods between member countries. Companies may locate in places affected by the agreement to take advantage of new market opportunities.
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| Transportation Method | A special linear programming method that is useful for solving problems involving transporting products from several sources to several destinations.
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