Exam 9: Operational Decision-Making Tools: Facility Location Models

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Facility location is often overlooked because it is not an important aspect of a firm's strategic plan.

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False

Which of the following is not a primary factor in location decisions for manufacturing plants?

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B

Service operations tend to make location decisions more frequently than manufacturing facilities.

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True

The centre of gravity technique outlines a method for identifying and weighing important location factors.

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Which of the following is a type of facility addressed by the facility location decision?

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The cost and availability of labour is an important factor in a location decision.

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A company is deciding where to locate a new warehouse that will receive shipments from three suppliers: 1,2,and 3.The locations of the suppliers (xi,yi)and the annual number of shipments from supplier i (Wi)are provided below: 1 2 3 X1 = 250 x2= 100 x3= 500 Y1 = 250 y2= 400 y3= 300 W1 = 240 W2=205 W3= 300 The coordinates for the new warehouse suggested by the centre of gravity method are

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Railroad access is frequently a factor in locating a manufacturing plant.

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A location's collection of physical support systems is known as its infrastructure.

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Which type of facility is large and expensive?

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A package delivery service wants to build a new distribution centre in Calgary,Alberta.The location of the centre needs to be in the vicinity of Deerfoot Trail,Highway 22 and the Calgary Airport.The following table provides the coordinates of these three sites and the number of weekly packages. Deerfoot Trail Highway 22 Airport X = 20 x = 26 x = 36 Y = 35 y = 13 y = 19 W = 16,000 W = 11,000 W = 8,000 The suggested coordinates for the new warehouse using the centre of gravity method are

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Service facilities are usually the largest and most expensive type of facility.

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A technique based on transport weight and distance used for locating a facility at the centre of movement in a geographic area is known as the

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The factors used to evaluate location of a manufacturing plant are usually different from the factors used in locating a service facility.

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One reason foreign firms locate facilities in North America is to reduce their supply chain costs.

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Transportation costs are generally a function of distance,weight,and time.

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Common location incentives include all of the following except

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Which of the following is not a facility location factor important in selecting a country?

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For a service operation being in the right place usually means being in a location that is convenient and easily accessible.

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Inadequate infrastructure at a given location increases supply chain costs and decreases customer service.

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