Question 1

The ratio of labor cost per day to productivity, in units per day, is the labor cost per unit.

Accepted Answer

A) True 
 B)False  True

Question 2

The __________ is used to determine the best pattern of shipments from several points of supply to several points of demand.

Accepted Answer

transportation method

Question 3

What is it called when competing companies locate next to each other? Why do they do this?

Accepted Answer

It is called clustering. In many cases, this occurs because of a critical mass of information, talent, venture capital, or natural resources. Alternately, clustering occurs because several firms close together create a larger total market than the same firms separated.

Question 4

On the crossover chart where the costs of two or more location alternatives have been plotted, the quantity at which two cost curves cross is the quantity at which

Accepted Answer

A)  fixed costs are equal for two alternative locations 
B)  variable costs are equal for two alternative locations 
C)  total costs are equal for all alternative locations 
D)  fixed costs equal variable costs for one location 
E)  total costs are equal for two alternative locations 
A)  fixed costs are equal for two alternative locations 
B)  variable costs are equal for two alternative locations 
C)  total costs are equal for all alternative locations 
D)  fixed costs equal variable costs for one location 
E)  total costs are equal for two alternative locations

Question 5

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

Accepted Answer

A)  locational cost-volume 
B)  factor-rating 
C)  transportation model 
D)  assignment method 
E)  make or buy analysis 
A)  locational cost-volume 
B)  factor-rating 
C)  transportation model 
D)  assignment method 
E)  make or buy analysis

Question 6

Instead of comparing the salaries of Detroit autoworkers to foreign autoworkers to determine if Union labor prices are the cause of Detroit's financial woes, which of the following should be used?

Accepted Answer

A)  labor content per vehicle 
B)  labor productivity 
C)  total production 
D)  A or B 
E)  None of the above, salary is the best comparison. 
A)  labor content per vehicle 
B)  labor productivity 
C)  total production 
D)  A or B 
E)  None of the above, salary is the best comparison.

Question 7

__________ and __________ are to key country success factors as __________ and __________ are to key region success factors.

Accepted Answer

A)  Cultural issues, location of markets; site size and cost, zoning restrictions 
B)  Exchange rates, labor availability; site size and cost, environmental impact 
C)  Labor cost, currency risk; land costs, proximity to customers 
D)  Land costs, proximity to customers; labor cost, air and rail systems 
E)  All of the above are accurate relationships. 
A)  Cultural issues, location of markets; site size and cost, zoning restrictions 
B)  Exchange rates, labor availability; site size and cost, environmental impact 
C)  Labor cost, currency risk; land costs, proximity to customers 
D)  Land costs, proximity to customers; labor cost, air and rail systems 
E)  All of the above are accurate relationships.

Question 8

Location decisions of goods-producing companies often assume that costs are relatively constant for a given area; therefore, the revenue function is critical.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following statements regarding Starbucks Coffee is false?

Accepted Answer

A)  The firm plans to open three new cafes per day around the world. 
B)  The firm uses GIS to evaluate every site decision. 
C)  The firm's cafes are exclusively in traditional settings: malls, tourist areas, and airports. 
D)  The firm places cafes into ever more innovative locations. 
E)  The firm put cafes in Japan, even though that country had no GIS data available. 
A)  The firm plans to open three new cafes per day around the world. 
B)  The firm uses GIS to evaluate every site decision. 
C)  The firm's cafes are exclusively in traditional settings: malls, tourist areas, and airports. 
D)  The firm places cafes into ever more innovative locations. 
E)  The firm put cafes in Japan, even though that country had no GIS data available.

Question 10

Using the factor ratings shown below, determine which location alternative should be chosen on the basis of maximum composite score.

Accepted Answer

A is best (87.96), f

Question 11

Which of the following statements regarding "proximity" in the location decision is false?

Accepted Answer

A)  Service organizations find that proximity to market is the most critical primary location factor. 
B)  Manufacturers want to be near customers when their product is bulky, heavy, or fragile. 
C)  Perishability of raw materials is a good reason for manufacturers to locate near the supplier, not the customer. 
D)  Reduction in bulk is a good reason for a manufacturer to locate near the supplier. 
E)  Clustering among fast food chains occurs because they need to be near their labor supply. 
A)  Service organizations find that proximity to market is the most critical primary location factor. 
B)  Manufacturers want to be near customers when their product is bulky, heavy, or fragile. 
C)  Perishability of raw materials is a good reason for manufacturers to locate near the supplier, not the customer. 
D)  Reduction in bulk is a good reason for a manufacturer to locate near the supplier. 
E)  Clustering among fast food chains occurs because they need to be near their labor supply.

Question 12

FedEx chose Memphis, Tennessee, for its central location, or "hub," primarily because of the incentives offered by the city of Memphis and the state of Tennessee.

Accepted Answer

A) True 
 B)False

Question 13

One reason for a firm locating near its competitors is the presence of a major resource it needs.

Accepted Answer

A) True 
 B)False

Question 14

Labor cost and labor availability often drive the location decision in the call center industry.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following methods best considers intangible costs related to a location decision?

Accepted Answer

A)  crossover methods 
B)  locational break-even analysis 
C)  factor-rating analysis 
D)  the transportation method 
E)  the assignment method 
A)  crossover methods 
B)  locational break-even analysis 
C)  factor-rating analysis 
D)  the transportation method 
E)  the assignment method

Question 16

Industrial location analysis typically attempts to

Accepted Answer

A)  minimize costs 
B)  maximize sales 
C)  focus more on human resources 
D)  avoid countries with strict environmental regulations 
E)  ignore exchange rates and currency risks 
A)  minimize costs 
B)  maximize sales 
C)  focus more on human resources 
D)  avoid countries with strict environmental regulations 
E)  ignore exchange rates and currency risks

Question 17

Identify five factors that affect location decisions at the site level.

Accepted Answer

Factors that affect location decisions a

Question 18

A school district is considering four locations for a new high school. There are four factors the district is considering (Cost of land, distance to students, land size, and traffic flow). The district would like to compare results using two weighting systems. The first system would give each factor equal weight and the second would give the factors weights of .4, .2, .1, and .3 respectively. Fill in the missing information in the table and then use the factor rating method to determine which location is best for each weighting system.

Accepted Answer

Students should first fill in the W(1) a

Question 19

Governmental attitudes toward issues such as private property, intellectual property, zoning, pollution, and employment stability may change over time. The term associated with this phenomenon is

Accepted Answer

A)  bureaucratic risk 
B)  political risk 
C)  legislative risk 
D)  judicial risk 
E)  democratic risk 
A)  bureaucratic risk 
B)  political risk 
C)  legislative risk 
D)  judicial risk 
E)  democratic risk

Question 20

A location decision for a traditional department store (Macy's) would tend to have a(n)

Accepted Answer

A)  cost focus 
B)  labor focus 
C)  revenue focus 
D)  environmental focus 
E)  education focus 
A)  cost focus 
B)  labor focus 
C)  revenue focus 
D)  environmental focus 
E)  education focus

Exam 8: Location Strategies

The ratio of labor cost per day to productivity, in units per day, is the labor cost per unit.

The __________ is used to determine the best pattern of shipments from several points of supply to several points of demand.

What is it called when competing companies locate next to each other? Why do they do this?

On the crossover chart where the costs of two or more location alternatives have been plotted, the quantity at which two cost curves cross is the quantity at which

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

Instead of comparing the salaries of Detroit autoworkers to foreign autoworkers to determine if Union labor prices are the cause of Detroit's financial woes, which of the following should be used?

__________ and __________ are to key country success factors as __________ and __________ are to key region success factors.

Location decisions of goods-producing companies often assume that costs are relatively constant for a given area; therefore, the revenue function is critical.

Which of the following statements regarding Starbucks Coffee is false?

Using the factor ratings shown below, determine which location alternative should be chosen on the basis of maximum composite score.

Which of the following statements regarding "proximity" in the location decision is false?

FedEx chose Memphis, Tennessee, for its central location, or "hub," primarily because of the incentives offered by the city of Memphis and the state of Tennessee.

One reason for a firm locating near its competitors is the presence of a major resource it needs.

Labor cost and labor availability often drive the location decision in the call center industry.

Which of the following methods best considers intangible costs related to a location decision?

Industrial location analysis typically attempts to

Identify five factors that affect location decisions at the site level.

Governmental attitudes toward issues such as private property, intellectual property, zoning, pollution, and employment stability may change over time. The term associated with this phenomenon is

A location decision for a traditional department store (Macy's) would tend to have a(n)

Operations and Productivity

Operations Strategy in a Global Environment

Project Management

Forecasting

Design of Goods and Services

Managing Quality

Process Strategy

Layout Strategies

Human Resources, Job Design, and Work Measurement

Supply-Chain Management

Inventory Management

Aggregate Planning

Material Requirements Planning Mrp and Erp

Short-Term Scheduling

Just-In-Time and Lean Options

Maintenance and Reliability

Statistical Tools for Managers

Acceptance Sampling

The Simplex Method of Linear Programming

The Modi and Vam Methods of Solving Transportation Problems

Vehicle Routing and Scheduling

Managing Quality

Process Strategy

Supply-Chain Management

Vehicle Routing and Scheduling

Filters

and are to key country success factors as and are to key region success factors.