Question 1

Identify the four major quantitative methods for solving location problems.

Accepted Answer

Factor-rating method, location

Question 2

The transportation method, when applied to location analysis

Accepted Answer

A)  minimizes total fixed costs 
B)  minimizes total production and transportation costs 
C)  minimizes total transportation costs 
D)  maximizes revenues 
E)  minimizes the movement of goods 
A)  minimizes total fixed costs 
B)  minimizes total production and transportation costs 
C)  minimizes total transportation costs 
D)  maximizes revenues 
E)  minimizes the movement of goods

Question 3

Which of the following statements regarding FedEx is true?

Accepted Answer

A)  Its hub in Memphis, Tennessee, was selected because of its low cost. 
B)  Memphis, Tennessee, is the only hub in the company's global flight network. 
C)  FedEx believes the hub system helps reduce mishandling and delays due to better controls. 
D)  FedEx uses a hub system in the U.S., but a city-to-city network in other countries. 
E)  Memphis is FedEx's only hub airport in the United States. 
A)  Its hub in Memphis, Tennessee, was selected because of its low cost. 
B)  Memphis, Tennessee, is the only hub in the company's global flight network. 
C)  FedEx believes the hub system helps reduce mishandling and delays due to better controls. 
D)  FedEx uses a hub system in the U.S., but a city-to-city network in other countries. 
E)  Memphis is FedEx's only hub airport in the United States.

Question 4

Is Starbucks Coffee a user of Geographic Information Systems? Support your answer with examples.

Accepted Answer

Starbucks is clearly a user of GIS. Data

Question 5

State the fundamental objective of a firm's location strategy. How is this basic objective carried out by industrial or goods-producing firms; how does that differ for service firms? Answer in a clear, convincing paragraph.

Accepted Answer

The fundamental objective is to maximize

Question 6

A manufacturing firm finds a location that has a significant cost advantage over alternatives, but rejects that location because the educational infrastructure was insufficient to train the firm's workers in its special production technologies. The firm's action illustrates the link between __________ and location.

Accepted Answer

A)  innovation 
B)  clustering 
C)  tax incentives 
D)  globalization 
E)  proximity 
A)  innovation 
B)  clustering 
C)  tax incentives 
D)  globalization 
E)  proximity

Question 7

Location A would result in annual fixed costs of $300,000 and variable costs of $55 per unit. Annual fixed costs at Location B are $600,000 with variable costs of $32 per unit. Sales volume is estimated to be 30,000 units per year. Which location has the lower cost at this volume? How large is its cost advantage? At what volume are the two facilities equal in cost?

Accepted Answer

At 30,000 units, Location A has total co

Question 8

__________ occurs when competing companies locate near each other because of a critical mass of information, talent, venture capital, or natural resources.

Accepted Answer

The answer of __________ occurs when competing companies locate near...

Question 9

Which of the following is not among the eight determinants of revenue and volume for a service firm?

Accepted Answer

A)  quality of the management 
B)  shipment cost of finished goods 
C)  purchasing power of the customer-drawing area 
D)  uniqueness of the firm's and the competitor's locations 
E)  competition in the area 
A)  quality of the management 
B)  shipment cost of finished goods 
C)  purchasing power of the customer-drawing area 
D)  uniqueness of the firm's and the competitor's locations 
E)  competition in the area

Question 10

When __________, in addition to creativity and R&D investments, is critical to operations strategy, cost may cease to be the primary focus of location criteria.

Accepted Answer

The answer of When __________, in addition to creativity and...

Question 11

Service location strategies and goods-producing location strategies rely on very different sets of assumptions. What are the assumptions associated with goods-producing locations? How do these assumptions lead to a location strategy?

Accepted Answer

The assumptions for goods-producing loca

Question 12

A telecommunications firm is planning to lay fiber optic cable from several community college distance learning sites to a central studio, in such a way that the miles of cable are minimized. Some locations require more than one set of cables (these are the loads). Where should the studio be located to accomplish the objective?

Accepted Answer

This is a center-of-gravity pr

Question 13

Databases containing such variables as street maps, utilities, population age and income, and the software that analyzes such data for location decisions, are referred to as __________.

Accepted Answer

Geographic

Question 14

A contractor for the military is looking for a new location for a supply depot. The depot will supply four bases whose tonnage (demand) and map coordinates are shown below. If management wants the depot to have a central location, what should be its map coordinates?

Accepted Answer

The depot should be

Question 15

Which of the following is among the eight determinants of revenue and volume for a service firm?

Accepted Answer

A)  uniqueness of the firm's and the competitor's locations 
B)  quality of the competition 
C)  quality of management 
D)  purchasing power of the customer-drawing area 
E)  all of the above 
A)  uniqueness of the firm's and the competitor's locations 
B)  quality of the competition 
C)  quality of management 
D)  purchasing power of the customer-drawing area 
E)  all of the above

Question 16

A regional bookstore chain is about to build a distribution center that is centrally located for its eight retail outlets. It will most likely employ which of the following tools of analysis?

Accepted Answer

A)  assembly line balancing 
B)  load-distance analysis 
C)  center-of-gravity model 
D)  linear programming 
E)  all of the above 
A)  assembly line balancing 
B)  load-distance analysis 
C)  center-of-gravity model 
D)  linear programming 
E)  all of the above

Question 17

Political risk, cultural issues, and exchange rates are among those __________ that affect which country will be selected for a location decision.

Accepted Answer

The answer of Political risk, cultural issues, and exchange rates...

Question 18

A manufacturing company is considering two alternative locations for a new facility. The fixed and variable costs for the two locations are found in the table below. For which volume of business would the two locations be equally attractive? If the company plans on producing 50,000 units, which location would be more attractive?

Accepted Answer

Crossover is at 250,000 units.

Question 19

Intangible costs include which of the following?

Accepted Answer

A)  quality of prospective employees 
B)  quality of education 
C)  availability of public transportation 
D)  all of the above 
E)  none of the above 
A)  quality of prospective employees 
B)  quality of education 
C)  availability of public transportation 
D)  all of the above 
E)  none of the above

Question 20

A employee produces 15 parts during a shift in which he made $90. The labor content of the product is

Accepted Answer

A)  $90 
B)  $5 
C)  $6 
D)  $.167 
E)  none of the above 
A)  $90 
B)  $5 
C)  $6 
D)  $.167 
E)  none of the above

Exam 8: Location Strategies

Identify the four major quantitative methods for solving location problems.

The transportation method, when applied to location analysis

Which of the following statements regarding FedEx is true?

Is Starbucks Coffee a user of Geographic Information Systems? Support your answer with examples.

State the fundamental objective of a firm's location strategy. How is this basic objective carried out by industrial or goods-producing firms; how does that differ for service firms? Answer in a clear, convincing paragraph.

__________ occurs when competing companies locate near each other because of a critical mass of information, talent, venture capital, or natural resources.

Which of the following is not among the eight determinants of revenue and volume for a service firm?

When __________, in addition to creativity and R&D investments, is critical to operations strategy, cost may cease to be the primary focus of location criteria.

Service location strategies and goods-producing location strategies rely on very different sets of assumptions. What are the assumptions associated with goods-producing locations? How do these assumptions lead to a location strategy?

Databases containing such variables as street maps, utilities, population age and income, and the software that analyzes such data for location decisions, are referred to as __________.

A contractor for the military is looking for a new location for a supply depot. The depot will supply four bases whose tonnage (demand) and map coordinates are shown below. If management wants the depot to have a central location, what should be its map coordinates?

Which of the following is among the eight determinants of revenue and volume for a service firm?

A regional bookstore chain is about to build a distribution center that is centrally located for its eight retail outlets. It will most likely employ which of the following tools of analysis?

Political risk, cultural issues, and exchange rates are among those __________ that affect which country will be selected for a location decision.

Intangible costs include which of the following?

A employee produces 15 parts during a shift in which he made $90. The labor content of the product is

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