if the locations are far from each other
Explanation:
A company may decide to take up such measures if
- the sites where the products are sold are very far from each other and the expenditure of distribution hampers profit.
- if it is viable to put up small manufacturing and distribution centers
- if the different products of a firm require different sort of manufacturing which is viable in different places and not in a centralized unit.
All of these stem from the logistic concern of the locations of operations being far enough from each other for these measures to come into play.