The case study states that $$historically$,$ a landlord would rent out a warehouse and leave the internal design and kitting out to the tenant. Logistics providers are increasingly looking to allocate their capital differently, rather than tying up large up$-$front amounts of working capital into racking, shelving and design.$$ However, post$-$pandemic, the loadshedding in South Africa caused big losses for food manufacturers, for example chicken producers, who struggled to maintain their cold chain. Due to the high cost of remodelling a warehouse to maintain the cold chain amidst loadshedding some food producers consider outsourcing their warehousing function to other warehouses with refrigeration facilities included.

Which one of the following options would favour the insourcing of the warehousing function at food producers to have sufficient and continuous refrigeration facilities during loadshedding?

When it costs the food producer less to add solar panels to their existing facilities to keep the items refrigerated during loadshedding

When there is additional refrigeration capacity available at a facility close$-$by whereby transportation costs are lowered

When the organisation can increase their production capacity by leasing additional refrigeration facilities

When the organisation$$s requirements for storing products are very stringent and the additional leased refrigeration facility can keep the food items between $2\backslash$deg C and $8\backslash$deg C