XREF Setup Tips Needed Between Local (Project) to LAN (Production)

Pioneering the use of the beloved (and sometimes despised) XREF functionality in my current company, I would appreciate your experience.
Background:

For production drawing purposes, a subfolder named "XREF" contains contents referenced in a site plan drawing that resides in its root folder on our LAN.
This system works well.

For project purposes, I copy files from the LAN to my local drive (with automated backups generated). I understand there is a relative path option when setting up XREF's.
Is the above case one where this relative path option is desired?

Advice is appreciated on this and other suggestions on XREF file storage structure and/or XREF settings that will provide trouble-free usage.

Older now but still learning new tricks!

Clint Hill

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