Exam 8: Location Strategies

Environmental Glass Products, Inc. wants to build a new centralized facility to receive household, commercial, and industrial glass for recycling. This center will be supplied by trucks coming from four "collection points," where recyclable glass is dropped off by individuals and businesses. The volume and the map coordinates for the four collection centers are shown below. Where should the collection center be located?

For a location decision, labor productivity may be important in isolation, but low wage rates are a more important criterion.

Explain the importance of a bottleneck operation in a production sequence.

Break-even analysis is a powerful analytical tool, but is useful only when the organization produces a single product.

Break-even analysis identifies the volume at which fixed costs and revenue are equal.

Service firms choose locations based mostly on the cost of a site.

A bread-making factory has the production process shown in the figure below. There are five operations in sequence. The product only needs to go through one of the parallel machines in each case where parallel machines exist. What is the bottleneck time per batch of this process?

Evaluating location alternatives by comparing their composite (weighted-average) scores involves which of the following?

The efficiency of a factory is 75% and its utilization 50%. If design capacity is 1000, find effective capacity.

The Academic Computing Center has five trainers available in its computer labs to provide training sessions to students. Assume that the design capacity of the system is 1900 students per semester and that effective capacity equals 90% of design capacity. If the number of students who actually got their orientation session is 1500, what is the utilization of the system?

The location analysis technique typically NOT employed by service organizations is:

Multiproduct break-even analysis calculates the ________ of each product, ________ it in proportion to each product's share of total sales.

An assembly line has 10 stations with times of 1, 2, 3, 4, …, 10, respectively. What is the bottleneck time?

Production and transportation costs are always considered in which of the following location decision methods?

What describes a system that stores and displays information that can be linked to a geographic location?

The ________ is used to determine the best pattern of shipments from several points of supply to several points of demand.

Industrial location analysis typically attempts to:

Governmental attitudes toward issues such as private property, intellectual property, zoning, pollution, and employment stability may change over time. What is the term associated with this phenomenon?

Of the four approaches to capacity expansion, the approach that "straddles" demand:

A fleet repair facility has the capacity to repair 800 trucks per month. However, due to scheduled maintenance of their equipment, management feels that they can repair no more than 600 trucks per month. Last month, two of the employees were absent several days each, and only 400 trucks were repaired. What are the utilization and efficiency of the repair shop?