Question 1

The basic break-even model can be modified to handle more than one product. This extension of the basic model requires:

Accepted Answer

A)  price and sales volume for each product. 
B)  price and variable cost for each product, and the percent of sales that each product represents. 
C)  that the firm have very low fixed costs. 
D)  that the ratio of variable cost to price be the same for all products. 
E)  sales volume for each product. 
A)  price and sales volume for each product. 
B)  price and variable cost for each product, and the percent of sales that each product represents. 
C)  that the firm have very low fixed costs. 
D)  that the ratio of variable cost to price be the same for all products. 
E)  sales volume for each product.

Question 2

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 3

A small producer of music boxes wants to move to a larger facility. Two alternative facilities have been found. Site 1 has a fixed cost of $50,000 per year, with a variable cost of $15 per unit. Site 2 has a fixed cost of $80,000 per year, but a variable cost of $11 per unit.
(a) Write out the equation for total cost for each site.
(b) At what volume of output would the two locations have the same total cost?
(c) For what range of output would Site 1 be superior?
(d) For what range of output would Site 2 be superior?

Accepted Answer

(a) The equation for the total cost at s

Question 4

A jewelry store is more likely than a jewelry manufacturer to consider ________ in making a location decision.

Accepted Answer

A)  transportation costs 
B)  cost of raw materials 
C)  appearance/image of the location 
D)  quality of life 
E)  taxes 
A)  transportation costs 
B)  cost of raw materials 
C)  appearance/image of the location 
D)  quality of life 
E)  taxes

Question 5

Utilization will typically be lower than efficiency because:

Accepted Answer

A)  effective capacity is less than design capacity. 
B)  effective capacity is greater than design capacity. 
C)  effective capacity equals design capacity. 
D)  expected output is less than actual output. 
E)  expected output is less than rated capacity. 
A)  effective capacity is less than design capacity. 
B)  effective capacity is greater than design capacity. 
C)  effective capacity equals design capacity. 
D)  expected output is less than actual output. 
E)  expected output is less than rated capacity.

Question 6

Effective capacity is typically lower than design capacity.

Accepted Answer

A) True 
 B)False

Question 7

Globalization of the location decision is the result of all EXCEPT which of the following?

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

Question 8

Utilization is the number of units a facility can hold, receive, store, or produce in a period of time.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is the best example of the proximity rule that, for service firms, proximity to market is the most important location factor?

Accepted Answer

A)  Soft drinks are bottled in many local plants, where carbonated water is added to proprietary syrups that may have been shipped long distances. 
B)  Few people will travel out of state for a routine haircut. 
C)  Patients will travel very long distances to have their hernia surgeries performed at Shouldice Hospital. 
D)  Furniture makers choose to locate near the source of good hardwoods, even though it means locating near other furniture manufacturers. 
E)  Metal refiners (smelters) locate near mines to accomplish significant weight reduction near the metal's source. 
A)  Soft drinks are bottled in many local plants, where carbonated water is added to proprietary syrups that may have been shipped long distances. 
B)  Few people will travel out of state for a routine haircut. 
C)  Patients will travel very long distances to have their hernia surgeries performed at Shouldice Hospital. 
D)  Furniture makers choose to locate near the source of good hardwoods, even though it means locating near other furniture manufacturers. 
E)  Metal refiners (smelters) locate near mines to accomplish significant weight reduction near the metal's source.

Question 10

The theory of constraints is a body of knowledge that deals with anything that limits an organization's ability to achieve its goals.

Accepted Answer

A) True 
 B)False

Question 11

Identify five factors that have fostered globalization.

Accepted Answer

Globalization has taken place because of

Question 12

Effective capacity is the:

Accepted Answer

A)  maximum output of a system in a given period. 
B)  capacity a firm expects to achieve given the current operating constraints. 
C)  average output that can be achieved under ideal conditions. 
D)  minimum usable capacity of a particular facility. 
E)  sum of all of the organization's inputs. 
A)  maximum output of a system in a given period. 
B)  capacity a firm expects to achieve given the current operating constraints. 
C)  average output that can be achieved under ideal conditions. 
D)  minimum usable capacity of a particular facility. 
E)  sum of all of the organization's inputs.

Question 13

The transportation model, 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.

The basic break-even model can be modified to handle more than one product. This extension of the basic model requires:

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

A jewelry store is more likely than a jewelry manufacturer to consider ________ in making a location decision.

Utilization will typically be lower than efficiency because:

Effective capacity is typically lower than design capacity.

Globalization of the location decision is the result of all EXCEPT which of the following?

Utilization is the number of units a facility can hold, receive, store, or produce in a period of time.

Which of the following is the best example of the proximity rule that, for service firms, proximity to market is the most important location factor?

The theory of constraints is a body of knowledge that deals with anything that limits an organization's ability to achieve its goals.

Identify five factors that have fostered globalization.

Effective capacity is the:

The transportation model, when applied to location analysis:

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

Exam 8: Location Strategies

The basic break-even model can be modified to handle more than one product. This extension of the basic model requires:

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

A jewelry store is more likely than a jewelry manufacturer to consider ________ in making a location decision.

Utilization will typically be lower than efficiency because:

Effective capacity is typically lower than design capacity.

Globalization of the location decision is the result of all EXCEPT which of the following?

Utilization is the number of units a facility can hold, receive, store, or produce in a period of time.

Which of the following is the best example of the proximity rule that, for service firms, proximity to market is the most important location factor?

The theory of constraints is a body of knowledge that deals with anything that limits an organization's ability to achieve its goals.

Identify five factors that have fostered globalization.

Effective capacity is the:

The transportation model, when applied to location analysis:

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