Exam 11: Global Location Decisions

Use the breakeven model to determine which of the statements below is TRUE according to the information provided in the table relating to three different locations considered for a new manufacturing facility.

Which of the following is a critical issue in sustainable development?

A firm is planning to open a bicycle store and is using the weighted-factor rating model, to decide which site should be selected.Using the data from the table below, the firm should locate the store in Reno.

Volatile currency exchange rates do not have an impact on location decisions.

Access to global markets and corporate networks makes the role of location less important as a source of competitive advantage.

The first step in the weighted-factor rating technique is to:

Your organization is considering building a new automobile manufacturing plant.The company is considering building their facility in either China or Tennessee (USA). China is a rapidly expanding economic market, Tennessee is situated in a more mature market in which other car manufacturers are already located. Using this limited information and your knowledge of these two options, China and Tennessee, provide THREE reasonable arguments for each option that relate to supply chain management.

Facility location has a short-term impact on the firm's supply chains.

What are the three levels of any location decision?

Locating research and development, component manufacturing, assembly operations, marketing, and other associated businesses in one area can improve the supply chain, technology sharing, and information sharing.

Lovely Tee is looking to open a new fulfillment center as part of their expanding network to meet faster delivery needed for their prime customers in Arizona.To assist the company in deciding where to locate this new fulfillment center, three sites have been identified with the information shown below.Use the weighted-factor rating model to answer the questions below. a.What are the scores for each location? b.Which location should be chosen?

A country that imposes high tariffs encourages foreign-based companies to import goods.

A firm wanting to import items duty free and then use the component for local production of a product that is then exported would most likely utilize a(n):

While the development and proliferation of the Internet and web-based commerce has not completely eliminated the relevancy of facility locations, because of the Internet, the speed of delivery and cost in serving the customer are no longer factors in determining the strategic location of an organization's facilities.

Facility location decisions can affect the efficiency and effectiveness of managing supply chains, the level of service provided to customers, and a firm's overall competitive advantage.

Which of the following would be considered a quality of life factor?

Business clusters provide the competitive environment that promotes increasing innovation and profitability.

Which of the following is a factor in choosing a location?

A company is considering Denver, Seattle, and Portland as candidate locations for a new facility.For the weighted-factor rating technique, the company is evaluating each location on three factors (distance to customers, labor costs, and utility costs).The factors are weighted 0.5, 0.3, and 0.2, respectively.Denver received scores of 90, 77, and 65 for the three factors.Seattle received scores of 87, 82, and 70.Portland received scores of 84, 86, and 75.Which of the three cities is ranked second by the weighted-factor rating technique?

Once a decision on locating a facility is made, it is ________ to move or shut down that facility.