Exam 12: Location Planning and Analysis

A firm is trying to decide between two location alternatives,A and B.A would result in annual fixed costs of $60,000,labour costs of $7 per unit,material costs of $10 per unit,transportation costs of $15 per unit,and revenue per unit of $50.Location B would have annual fixed costs of $80,000,labour costs of $6 per unit,material costs of $9 per unit,transportation costs of $14 per unit,and revenue per unit of $48. (i)At an annual volume of 9,000,which would yield the higher profit? (ii)At what annual volume would management be indifferent between the two alternatives in terms of annual profits? (i)Profits @ 9,000 units a year: A = $102,000; B = $91,000 (ii)$18Q - $60,000 = $19Q - $80,000.Solving,Q = 20,000 units.

Which of the following statements concerning location analysis best typifies the situation for most location decisions?

The Centre of Gravity Method is a computer-based tool for collecting,storing,retrieving,and displaying location-dependent demographic data on maps.

11eab92b_c492_aadc_99e6_4d61b6eafb2f For what quantity would you be indifferent between selecting site B or site C?

A hardware distributor has regional warehouses at the locations shown below.The company wants to locate a new central distribution centre to serve this warehouse network. If weekly shipments to each warehouse will be approximately equal,what is the optimal location for the distribution centre?

In site selection,land costs may be secondary to other factors.

A factor that has caused problems for Canadian companies operating in foreign countries is:

The factor rating method of location planning uses a coordinate overlay to determine relative locations.

The method for evaluating location alternatives which minimizes shipping costs between multiple sending and receiving locations is:

The method for evaluating location alternatives based on comparing composite (weighted-average)scores of both quantitative and qualitative criteria is:

A clothing manufacturer produces clothing in five locations in the U.S.In a move to vertical integration,the company is planning a new fabric production plant which will supply fabric to all five clothing plants.The clothing plants have been located on a coordinate system as follows: If the shipments of fabric to each plant are equal,what is the optimal location for the fabric plant?

Phi Upsilon Nu,a student social organization,has two different locations under consideration for constructing a new chapter house.PhUN's president,a POM student,estimates that due to differing land costs,utility rates,etc.,both fixed and variable costs would be different for each of the proposed sites,as follows: How many people would be living in the new chapter house at the point of indifference?

An approach to locational analysis that includes both qualitative and quantitative considerations is:

11eab92b_c492_aadd_99e6_b15f07816b55 For what range of output would you prefer site A?

A hardware distributor has regional warehouses at the locations shown below.The company wants to locate a new central distribution centre to serve this warehouse network. Weekly shipments to each warehouse will be: WH1,100; WH2,150; WH3,120; WH4,150; and WH5,120.What is the optimal location of the distribution centre?

Determine the centre of gravity location for the destinations and shipping quantities shown below: 11eab92b_c492_5cb4_99e6_dbc4559cb32b

For manufacturing firms,two dominating factors in location analysis are abundance of energy and proximity to raw materials.

A manufacturing firm is considering two locations for a plant to produce a new product.The two locations have fixed and variable costs as follows: What would be the total annual costs at the point of indifference?

As a result of the factor rating analysis,a manager may sometimes reject all of the alternatives under consideration when the composite scores of all the alternatives are below the minimum threshold value.

Which of the following is not a Regional/Country labour factor in location decisions?