Which production model involves manufacturing in multiple locations closer to markets?

• A. Centralized Production
• B. Decentralized Production
• C. Six Sigma
• D. ISO 9000

Answer: (B)

Manufacturing in multiple locations close to markets is decentralized production. This approach places several facilities near different regional demand centers, which shortens transportation time, reduces lead times, and allows faster responsiveness and local customization. The trade-off is higher overhead from duplicating equipment and systems across sites, but the payoff is greater agility and lower shipping costs for each market. Centralized production, by contrast, concentrates manufacturing in one or a few sites to maximize scale, but it often means longer supply lines and slower response to regional needs. Six Sigma is a method aimed at reducing process defects and variation, and ISO 9000 relates to quality management system standards; neither directly specifies where to locate production. So the model involving multiple locations near markets is decentralized production.