Question 1

Among the following choices, an operations manager might best evaluate political risk of a country by looking at which type of country ranking?

Accepted Answer

A)  based on competitiveness 
B)  based on cost of doing business 
C)  based on corruption 
D)  based on magnitude of government social programs 
E)  based on average duration between presidential/prime minister elections 
A)  based on competitiveness 
B)  based on cost of doing business 
C)  based on corruption 
D)  based on magnitude of government social programs 
E)  based on average duration between presidential/prime minister elections

Question 2

Tangible costs include which of the following?

Accepted Answer

A)  climatic conditions 
B)  availability of public transportation 
C)  taxes 
D)  quality and attitude of prospective employees 
E)  zoning regulations 
A)  climatic conditions 
B)  availability of public transportation 
C)  taxes 
D)  quality and attitude of prospective employees 
E)  zoning regulations

Question 3

In location decisions, intangible costs are easier to measure than tangible costs.

Accepted Answer

A) True 
 B)False

Question 4

The transportation model calculates an optimal shipping system between a central facility and several outlying customers.

Accepted Answer

A) True 
 B)False

Question 5

A manager has received an analysis of several cities being considered for a new order fulfillment center (warehouse) for Shop at Home Network. The scores (scale is 10 points = best) are contained in the table below.
a. If the manager weights the factors equally, how would the locations be ranked?
b. If transportation costs and operating costs are given weights that are double the weights of the others, should the locations be ranked differently?

Accepted Answer

The locations are ranked W, Y,

Question 6

A manufacturing firm is considering three potential locations for a new parts manufacturing facility. A consulting firm has assessed three sites based on the four factors supplied by management as critical to the location's success. Given the management-supplied factor weights and the consultant team scores, which location should be selected? Scores are based on 50 = best. Do the results surprise you in any way? Comment.

Accepted Answer

C is clearly better than either A or B.

Question 7

How do service facility location decisions differ from industrial location decisions in terms of the techniques used to analyze them?

Accepted Answer

Service location decisions tend to focus

Question 8

How does the Starbucks Coffee case illustrate the general principles of service location strategy?

Accepted Answer

Starbucks Coffee clearly selects sites o

Question 9

A full-service restaurant is considering opening a new facility in a specific city. The table below shows its ratings of four factors at each of two potential sites.   The score for Gary Mall is __________ and the score for Belt Line is __________.

Accepted Answer

A)  120; 120 
B)  22; 24 
C)  18; 120 
D)  34; 28 
E)  none of the above 
A)  120; 120 
B)  22; 24 
C)  18; 120 
D)  34; 28 
E)  none of the above

Question 10

The center-of-gravity method finds the location of a centralized facility, such as a distribution center, that will maximize the organization's revenue.

Accepted Answer

A) True 
 B)False

Question 11

Which of these factors would be considered when making a location decision at the site level?

Accepted Answer

A)  government rules, attitudes, stability, incentives 
B)  cultural and economic issues 
C)  zoning regulations 
D)  cost and availability of utilities 
E)  proximity to raw materials and customers 
A)  government rules, attitudes, stability, incentives 
B)  cultural and economic issues 
C)  zoning regulations 
D)  cost and availability of utilities 
E)  proximity to raw materials and customers

Question 12

Community attitudes, zoning restrictions, and quality of labor force are likely to be considered in which of the following location decision methods?

Accepted Answer

A)  transportation method 
B)  locational break-even analysis 
C)  center-of-gravity method 
D)  simulation 
E)  factor-rating method 
A)  transportation method 
B)  locational break-even analysis 
C)  center-of-gravity method 
D)  simulation 
E)  factor-rating method

Question 13

A location decision for an appliance manufacturer would tend to have a(n)

Accepted Answer

A)  cost focus 
B)  focus on finding very highly skilled technicians 
C)  revenue focus 
D)  environmental focus 
E)  education focus 
A)  cost focus 
B)  focus on finding very highly skilled technicians 
C)  revenue focus 
D)  environmental focus 
E)  education focus

Question 14

Motorola is in an industry where there are intense pressures to keep costs low. Why did Motorola reject a possible location that offered low manufacturing costs?

Accepted Answer

While there are pressures to keep costs

Question 15

When making a location decision at the country level, which of these would be considered?

Accepted Answer

A)  corporate desires 
B)  land/construction costs 
C)  air, rail, highway, waterway systems 
D)  zoning restrictions 
E)  location of markets 
A)  corporate desires 
B)  land/construction costs 
C)  air, rail, highway, waterway systems 
D)  zoning restrictions 
E)  location of markets

Question 16

Traffic counts and purchasing power analysis of drawing area are techniques associated with

Accepted Answer

A)  locational break-even analysis 
B)  a manufacturing location decision 
C)  a retail or professional service location decision 
D)  the factor rating method 
E)  the transportation method 
A)  locational break-even analysis 
B)  a manufacturing location decision 
C)  a retail or professional service location decision 
D)  the factor rating method 
E)  the transportation method

Question 17

Why is "quality of life" an element of intangible costs associated with location decisions? Provide an example as part of your discussion.

Accepted Answer

Quality of life affects location decisio

Question 18

The __________ is a mathematical technique used for finding the best location for a single distribution point that services several stores or areas.

Accepted Answer

center-of-

Question 19

What is the role of labor productivity in location decisions? Why is it more important than low wages in location decisions?

Accepted Answer

Labor productivity is the number of unit

Question 20

Globalization of the location decision is the result of all of the following except

Accepted Answer

A)  market economics 
B)  higher quality of labor overseas 
C)  ease of capital flow between countries 
D)  high differences in labor costs 
E)  more rapid, reliable travel and shipping 
A)  market economics 
B)  higher quality of labor overseas 
C)  ease of capital flow between countries 
D)  high differences in labor costs 
E)  more rapid, reliable travel and shipping

Exam 8: Location Strategies

Among the following choices, an operations manager might best evaluate political risk of a country by looking at which type of country ranking?

Tangible costs include which of the following?

In location decisions, intangible costs are easier to measure than tangible costs.

The transportation model calculates an optimal shipping system between a central facility and several outlying customers.

How do service facility location decisions differ from industrial location decisions in terms of the techniques used to analyze them?

How does the Starbucks Coffee case illustrate the general principles of service location strategy?

A full-service restaurant is considering opening a new facility in a specific city. The table below shows its ratings of four factors at each of two potential sites. The score for Gary Mall is __________ and the score for Belt Line is __________.

The center-of-gravity method finds the location of a centralized facility, such as a distribution center, that will maximize the organization's revenue.

Which of these factors would be considered when making a location decision at the site level?

Community attitudes, zoning restrictions, and quality of labor force are likely to be considered in which of the following location decision methods?

A location decision for an appliance manufacturer would tend to have a(n)

Motorola is in an industry where there are intense pressures to keep costs low. Why did Motorola reject a possible location that offered low manufacturing costs?

When making a location decision at the country level, which of these would be considered?

Traffic counts and purchasing power analysis of drawing area are techniques associated with

Why is "quality of life" an element of intangible costs associated with location decisions? Provide an example as part of your discussion.

The __________ is a mathematical technique used for finding the best location for a single distribution point that services several stores or areas.

What is the role of labor productivity in location decisions? Why is it more important than low wages in location decisions?

Globalization of the location decision is the result of all of the following except

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

A full-service restaurant is considering opening a new facility in a specific city. The table below shows its ratings of four factors at each of two potential sites. The score for Gary Mall is and the score for Belt Line is .