Question 1

The __________ method is popular because a wide variety of factors, from education to recreation to labor skills, can be objectively included.

Accepted Answer

The answer of The __________ method is popular because a...

Question 2

Which of the following is the best example of the proximity rule that, for service firms, proximity to market is the most important location factor?

Accepted Answer

A)  Soft drinks are bottled in many local plants, where carbonated water is added to proprietary syrups that may have been shipped long distances. 
B)  Few people will travel out-of state for a haircut. 
C)  Patients will travel very long distances to have their hernia surgeries performed at Shouldice Hospital. 
D)  Furniture makers choose to locate near the source of good hardwoods, even though it means locating near other furniture manufacturers. 
E)  Metal refiners (smelters) locate near mines to accomplish significant weight reduction near the metal's source. 
A)  Soft drinks are bottled in many local plants, where carbonated water is added to proprietary syrups that may have been shipped long distances. 
B)  Few people will travel out-of state for a haircut. 
C)  Patients will travel very long distances to have their hernia surgeries performed at Shouldice Hospital. 
D)  Furniture makers choose to locate near the source of good hardwoods, even though it means locating near other furniture manufacturers. 
E)  Metal refiners (smelters) locate near mines to accomplish significant weight reduction near the metal's source.

Question 3

Environmental Glass Products, Inc. wants to build a new centralized facility to receive household, commercial, and industrial glass for recycling. This center will be supplied by trucks coming from four "collection points," where recyclable glass is dropped off by individuals and businesses. The volume and the map coordinates for the four collection centers are shown below. Where should the collection center be located?

Accepted Answer

The center should be

Question 4

What are the advantages and disadvantages of the use of factor-rating schemes?

Accepted Answer

Factor rating can handle a mix of quanti

Question 5

Service firms choose locations based, in part, on the revenue potential of a site.

Accepted Answer

A) True 
 B)False

Question 6

A highway contractor needs to locate a single supply point to provide road building materials to four projects. The four projects, which are all approximately the same magnitude, are located at the following coordinates. Coordinate units are in miles.
   a. On the grid below, plot the locations of the four road-building sites. Properly label all points.
b. What is the center of gravity?
c. If a single truck were sent from center-of-gravity to each project and back (four round trips), how many miles would be traveled? (Hint: use the Pythagorean Theorem C =   ).
d. Add the calculated center of gravity to the grid.

Accepted Answer

a. Coordinates are (50, 10), (15, 60), (

Question 7

A firm is seeking a new factory location, and is considering several countries worldwide. In some of these countries, child labor is prevalent; in others, working conditions and worker safety are inferior to conditions in the U.S. An operations manager paying attention to __________ will factor these issues into the location decision.

Accepted Answer

A)  ethical and social responsibility issues 
B)  key success factors 
C)  factor-rating systems 
D)  geographic information systems 
E)  regression models 
A)  ethical and social responsibility issues 
B)  key success factors 
C)  factor-rating systems 
D)  geographic information systems 
E)  regression models

Question 8

The graphic approach to location break-even analysis displays the range of volume over which each location is preferable.

Accepted Answer

A) True 
 B)False

Question 9

The factor-rating method can consider both tangible and intangible costs.

Accepted Answer

A) True 
 B)False

Question 10

Why does FedEx use a "hub-and-spoke" airline network, rather than a "point-to-point" network? Describe FedEx's approach to choosing the airports that serve as its hubs.

Accepted Answer

The hub system is more centralized, and

Question 11

Which of these assumptions is not associated with strategies for goods-producing location decisions?

Accepted Answer

A)  Most major costs can be identified explicitly for each site. 
B)  Focus on identifiable cost. 
C)  High customer contact issues are critical. 
D)  Intangible costs can be evaluated. 
E)  Location is a major determinant of cost. 
A)  Most major costs can be identified explicitly for each site. 
B)  Focus on identifiable cost. 
C)  High customer contact issues are critical. 
D)  Intangible costs can be evaluated. 
E)  Location is a major determinant of cost.

Question 12

The owner of a millwork shop is considering three alternative locations for a new plant for building embossed-and-clad steel exterior doors for residences. Fixed and variable costs follow. Since the plant ships nationwide, revenue is assumed the same regardless of plant location. Plot the total cost lines in the chart provided below, and identify the range over which each location is best.

Accepted Answer

A is cheapest from 0

Question 13

A school district is considering where in town to house its central office (The office must also be located at an existing school for cost reasons). If there are five schools in the district, with locations and size given in the following table, use the COG method to determine at which school the central office should be placed to minimize the average distance between the office and students.

Accepted Answer

The total number of students is (2500+10

Question 14

Production and transportation costs are always considered in which of the following location decision methods?

Accepted Answer

A)  traffic counts 
B)  transportation method 
C)  purchasing power 
D)  proximity of markets 
E)  clustering 
A)  traffic counts 
B)  transportation method 
C)  purchasing power 
D)  proximity of markets 
E)  clustering

Question 15

Which of the following is most likely to affect the location decision of a service firm rather than a manufacturing firm?

Accepted Answer

A)  energy and utility costs 
B)  attitude toward unions 
C)  parking and access 
D)  cost of shipping finished goods 
E)  labor costs 
A)  energy and utility costs 
B)  attitude toward unions 
C)  parking and access 
D)  cost of shipping finished goods 
E)  labor costs

Question 16

Operations managers will need to consider ethical and social responsibility issues when location decisions involve

Accepted Answer

A)  child labor issues 
B)  sweatshop conditions 
C)  allegiance to the firm's current location 
D)  corruption 
E)  all of the above 
A)  child labor issues 
B)  sweatshop conditions 
C)  allegiance to the firm's current location 
D)  corruption 
E)  all of the above

Question 17

When firms build supply chains that include foreign firms, __________ and __________ are issues that raise ethical and legal concerns with operations managers.

Accepted Answer

The answer of When firms build supply chains that include...

Question 18

What is the impact of exchange rates on location decisions?

Accepted Answer

Exchange rates fluct

Question 19

East Texas Seasonings is preparing to build one processing center to serve its four sources of seasonings. The four source locations are at coordinates shown below. Also, the volume from each source is provided. What is the center of gravity?

Accepted Answer

A)  X = 28.125; Y = 31.25 
B)  X = 22000; Y = 24000 
C)  X = 27.5; Y = 40 
D)  center of gravity = 28 
E)  none of the above 
A)  X = 28.125; Y = 31.25 
B)  X = 22000; Y = 24000 
C)  X = 27.5; Y = 40 
D)  center of gravity = 28 
E)  none of the above

Question 20

__________ is a cost-volume analysis to make an economic comparison of location alternatives.

Accepted Answer

Locational

Exam 8: Location Strategies

The __________ method is popular because a wide variety of factors, from education to recreation to labor skills, can be objectively included.

Which of the following is the best example of the proximity rule that, for service firms, proximity to market is the most important location factor?

What are the advantages and disadvantages of the use of factor-rating schemes?

Service firms choose locations based, in part, on the revenue potential of a site.

The graphic approach to location break-even analysis displays the range of volume over which each location is preferable.

The factor-rating method can consider both tangible and intangible costs.

Why does FedEx use a "hub-and-spoke" airline network, rather than a "point-to-point" network? Describe FedEx's approach to choosing the airports that serve as its hubs.

Which of these assumptions is not associated with strategies for goods-producing location decisions?

Production and transportation costs are always considered in which of the following location decision methods?

Which of the following is most likely to affect the location decision of a service firm rather than a manufacturing firm?

Operations managers will need to consider ethical and social responsibility issues when location decisions involve

When firms build supply chains that include foreign firms, __________ and __________ are issues that raise ethical and legal concerns with operations managers.

What is the impact of exchange rates on location decisions?

East Texas Seasonings is preparing to build one processing center to serve its four sources of seasonings. The four source locations are at coordinates shown below. Also, the volume from each source is provided. What is the center of gravity?

__________ is a cost-volume analysis to make an economic comparison of location alternatives.

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

When firms build supply chains that include foreign firms, and are issues that raise ethical and legal concerns with operations managers.