Question 1

A factory produces 2000 units a month. If design capacity is 3000 and efficiency is 80%, find utilization and effective capacity.

Accepted Answer

Output = Utilization ∗ Design Capacity g

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

Using GIS software, Home Depot only opens stores in areas where customers own big homes.

Accepted Answer

A) True 
 B)False

Question 4

The Theory of Constraints (TOC) strives to reduce the effect of constraints by:

Accepted Answer

A)  offloading work from constrained workstations. 
B)  increasing constrained workstation capability. 
C)  changing workstation order to reduce throughput time. 
D)  A and B 
E)  A, B, and C 
A)  offloading work from constrained workstations. 
B)  increasing constrained workstation capability. 
C)  changing workstation order to reduce throughput time. 
D)  A and B 
E)  A, B, and C

Question 5

On the crossover chart where the costs of two or more location alternatives have been plotted, the quantity at which two cost curves cross is the quantity where:

Accepted Answer

A)  fixed costs are equal for two alternative locations. 
B)  variable costs are equal for two alternative locations. 
C)  total costs are equal for all alternative locations. 
D)  fixed costs equal variable costs for one location. 
E)  total costs are equal for two alternative locations. 
A)  fixed costs are equal for two alternative locations. 
B)  variable costs are equal for two alternative locations. 
C)  total costs are equal for all alternative locations. 
D)  fixed costs equal variable costs for one location. 
E)  total costs are equal for two alternative locations.

Question 6

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

Accepted Answer

A)  government rules, attitudes, stability, incentives 
B)  cultural and economic issues 
C)  cost and availability of utilities 
D)  zoning restrictions 
E)  air, rail, highway, waterway systems 
A)  government rules, attitudes, stability, incentives 
B)  cultural and economic issues 
C)  cost and availability of utilities 
D)  zoning restrictions 
E)  air, rail, highway, waterway systems

Question 7

Geographic information systems can assist the location decision by:

Accepted Answer

A)  automating center-of-gravity problems. 
B)  computerizing factor-rating analysis. 
C)  combining geography with demographic analysis. 
D)  updating transportation method solutions. 
E)  providing good Internet placement for virtual storefronts. 
A)  automating center-of-gravity problems. 
B)  computerizing factor-rating analysis. 
C)  combining geography with demographic analysis. 
D)  updating transportation method solutions. 
E)  providing good Internet placement for virtual storefronts.

Question 8

Price changes are useful for matching the level of demand to the capacity of a facility.

Accepted Answer

A) True 
 B)False

Question 9

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. Identify the range over which each location is best.

Accepted Answer

A is cheapest from 0

Question 10

In "drum, buffer, rope," the ________ provides the pace of production.

Accepted Answer

The answer of In "drum, buffer, rope," the ________ provides...

Question 11

Currency risk is based on what assumption?

Accepted Answer

A)  Firms that do not continuously innovate will lose market share. 
B)  Values of foreign currencies continually rise and fall in most countries. 
C)  Changing product lines by reacting to every current trend may alienate the customer base. 
D)  The value of one dollar today is greater than the value of one dollar to be received one year from now. 
E)  The U.S. stock market fluctuates daily. 
A)  Firms that do not continuously innovate will lose market share. 
B)  Values of foreign currencies continually rise and fall in most countries. 
C)  Changing product lines by reacting to every current trend may alienate the customer base. 
D)  The value of one dollar today is greater than the value of one dollar to be received one year from now. 
E)  The U.S. stock market fluctuates daily.

Question 12

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 13

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 14

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

Question 15

Why is Singapore used as a cluster for computer hardware manufacturing?

Accepted Answer

A)  high traffic flows 
B)  venture capitalists located nearby 
C)  natural resources of land and climate 
D)  NAFTA 
E)  high technological penetration rates and per capita GDP 
A)  high traffic flows 
B)  venture capitalists located nearby 
C)  natural resources of land and climate 
D)  NAFTA 
E)  high technological penetration rates and per capita GDP

Question 16

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 17

Fabricators, Inc. wants to increase capacity by adding a new machine. The fixed costs for machine A are $90,000, and its variable cost is $15 per unit. The revenue is $23 per unit. What is the break-even point for machine A?

Accepted Answer

A)  $90,000 
B)  11,250 units 
C)  $11,250 
D)  15,000 units 
E)  3,193 units 
A)  $90,000 
B)  11,250 units 
C)  $11,250 
D)  15,000 units 
E)  3,193 units

Question 18

Distinguish between utilization and efficiency.

Accepted Answer

Both are ratios, not item counts. Both u

Question 19

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 20

A firm sells two products. Product R sells for $20; its variable cost is $12. Product S sells for $50; its variable cost is $15. Product R accounts for 30 percent of the firm's sales, while S accounts for 70 percent. The firm's fixed costs are $2 million annually. Calculate the firm's break-even point in dollars.

Accepted Answer

The contribution for product R is 40 per

Exam 8: Location Strategies

A factory produces 2000 units a month. If design capacity is 3000 and efficiency is 80%, find utilization and effective capacity.

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

Using GIS software, Home Depot only opens stores in areas where customers own big homes.

The Theory of Constraints (TOC) strives to reduce the effect of constraints by:

On the crossover chart where the costs of two or more location alternatives have been plotted, the quantity at which two cost curves cross is the quantity where:

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

Geographic information systems can assist the location decision by:

Price changes are useful for matching the level of demand to the capacity of a facility.

In "drum, buffer, rope," the ________ provides the pace of production.

Currency risk is based on what assumption?

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 ________.

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

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

Why is Singapore used as a cluster for computer hardware manufacturing?

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?

Fabricators, Inc. wants to increase capacity by adding a new machine. The fixed costs for machine A are $90,000, and its variable cost is $15 per unit. The revenue is $23 per unit. What is the break-even point for machine A?

Distinguish between utilization and efficiency.

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

Operations and Productivity

Operations Strategy in a Global Environment

Project Management

Forecasting

Design of Goods and Services

Managing Quality

Process Strategies

Human Resources, Job Design, and Work Measurement

Supply Chain Management

Inventory Management

Aggregate Planning and Sop

Material Requirements Planning Mrp and Erp

Short-Term Scheduling

Lean Operations

Maintenance and Reliability

Decision-Making Tools

Linear Programming

Transportation Models

Waiting-Line Models

Learning Curves

Simulation

Applying Analytics to Big Data in Operations Management

Filters