Question 1

________ cost is the cost that continues even if no units are produced.

Accepted Answer

The answer of ________ cost is the cost that continues...

Question 2

What is the impact of exchange rates on location decisions?

Accepted Answer

Exchange rates fluct

Question 3

Identify the four predictive variables chosen by the profitability regression model used by La Quinta Inns. Identify some that were tested but not included in the final model.

Accepted Answer

The variables are: (1) the price of the

Question 4

One drawback of GIS is that it cannot address elements such as crime incidence and ethnicity.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A)  locational cost-volume analysis. 
B)  a manufacturing location decision. 
C)  a retail or professional service location decision. 
D)  the factor-rating method. 
E)  the transportation model. 
A)  locational cost-volume analysis. 
B)  a manufacturing location decision. 
C)  a retail or professional service location decision. 
D)  the factor-rating method. 
E)  the transportation model.

Question 6

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

Accepted Answer

A)  government rules, attitudes, stability, incentives 
B)  cultural and economic issues 
C)  zoning restrictions 
D)  environmental impact issues 
E)  proximity to raw materials and customers 
A)  government rules, attitudes, stability, incentives 
B)  cultural and economic issues 
C)  zoning restrictions 
D)  environmental impact issues 
E)  proximity to raw materials and customers

Question 7

Capacity decisions are based on technological concerns, not demand forecasts.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following assumptions is NOT associated with strategies for goods-producing location decisions?

Accepted Answer

A)  Most major costs can be identified explicitly for each site. 
B)  Focus on identifiable costs. 
C)  High customer-contact issues are not critical. 
D)  Intangible costs can be evaluated. 
E)  Location is a major determinant of revenue. 
A)  Most major costs can be identified explicitly for each site. 
B)  Focus on identifiable costs. 
C)  High customer-contact issues are not critical. 
D)  Intangible costs can be evaluated. 
E)  Location is a major determinant of revenue.

Question 9

Consider the simple 3-station assembly line illustrated below, where the 2 machines at Station 1 are parallel, i.e., the product only needs to go through one of the 2 machines before proceeding to Station 2.   What is the throughput time of this process?

Accepted Answer

A)  12 min. 
B)  20 min. 
C)  38 min. 
D)  18 min. 
E)  58 min. 
A)  12 min. 
B)  20 min. 
C)  38 min. 
D)  18 min. 
E)  58 min.

Question 10

Net present value will be greater:

Accepted Answer

A)  as a fixed set of cash receipts occurs later rather than earlier. 
B)  if the future value of a cash flow is smaller. 
C)  for twelve monthly receipts of $100 each than for one end-of-year receipt of $1200. 
D)  for a 6% discount rate than for a 4% discount rate. 
E)  All of these are true. 
A)  as a fixed set of cash receipts occurs later rather than earlier. 
B)  if the future value of a cash flow is smaller. 
C)  for twelve monthly receipts of $100 each than for one end-of-year receipt of $1200. 
D)  for a 6% discount rate than for a 4% discount rate. 
E)  All of these are true.

Question 11

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

Accepted Answer

Throughput

Question 12

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 13

Design capacity is the theoretical average output of a system in a given period under ideal conditions.

Accepted Answer

A) True 
 B)False

Question 14

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 15

How is break-even analysis useful in the study of the capacity decision? What limitations does this analytical tool have in this application?

Accepted Answer

Break-even is defined as the volume for

Question 16

A work system has five stations that have process times of 5, 9, 14, 9, and 8. What is the bottleneck time?

Accepted Answer

A)  14 
B)  9 
C)  18 
D)  35 
E)  45 
A)  14 
B)  9 
C)  18 
D)  35 
E)  45

Question 17

Political risk, cultural issues, and exchange rates are among those ________ that affect which country will be selected for a location decision.

Accepted Answer

The answer of Political risk, cultural issues, and exchange rates...

Question 18

Identify the four major quantitative methods for solving location problems.

Accepted Answer

Factor-rating method, location

Question 19

The location decisions of service firms will generally pay more attention to parking, access, and traffic counts than will goods-producing location decisions.

Accepted Answer

A) True 
 B)False

Question 20

The ratio of labor cost per day to productivity, in units per day, is the labor cost per unit.

Accepted Answer

A) True 
 B)False

Exam 8: Location Strategies

________ cost is the cost that continues even if no units are produced.

What is the impact of exchange rates on location decisions?

Identify the four predictive variables chosen by the profitability regression model used by La Quinta Inns. Identify some that were tested but not included in the final model.

One drawback of GIS is that it cannot address elements such as crime incidence and ethnicity.

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

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

Capacity decisions are based on technological concerns, not demand forecasts.

Which of the following assumptions is NOT associated with strategies for goods-producing location decisions?

Consider the simple 3-station assembly line illustrated below, where the 2 machines at Station 1 are parallel, i.e., the product only needs to go through one of the 2 machines before proceeding to Station 2. What is the throughput time of this process?

Net present value will be greater:

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

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

Design capacity is the theoretical average output of a system in a given period under ideal conditions.

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

How is break-even analysis useful in the study of the capacity decision? What limitations does this analytical tool have in this application?

A work system has five stations that have process times of 5, 9, 14, 9, and 8. What is the bottleneck time?

Political risk, cultural issues, and exchange rates are among those ________ that affect which country will be selected for a location decision.

Identify the four major quantitative methods for solving location problems.

The location decisions of service firms will generally pay more attention to parking, access, and traffic counts than will goods-producing location decisions.

The ratio of labor cost per day to productivity, in units per day, is the labor cost per unit.

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

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