Question 1

Define variable costs. What special assumption is made about variable costs in the textbook?

Accepted Answer

Variable costs are those that

Question 2

The bottleneck time is always at least as long as the throughput time.

Accepted Answer

A) True 
 B)False

Question 3

FedEx chose Memphis, Tennessee, as its U.S. hub because:

Accepted Answer

A)  the city is in the center of the United States, geographically. 
B)  the airport has relatively few hours of bad weather closures. 
C)  it needed a means to reach cities to which it did not have direct flights. 
D)  the firm believed that a hub system was superior to traditional city-to-city flight scheduling. 
E)  All of these are true. 
A)  the city is in the center of the United States, geographically. 
B)  the airport has relatively few hours of bad weather closures. 
C)  it needed a means to reach cities to which it did not have direct flights. 
D)  the firm believed that a hub system was superior to traditional city-to-city flight scheduling. 
E)  All of these are true.

Question 4

________ analysis finds the point at which costs equal revenues.

Accepted Answer

The answer of ________ analysis finds the point at which...

Question 5

East Texas Seasonings is preparing to build one processing center to serve its four sources of seasonings. The four source locations are at coordinates shown below. Also, the volume from each source is provided. What is the center of gravity?

Accepted Answer

A)  X = 28.125; Y = 31.25 
B)  X = 32500; Y = 35000 
C)  X = 32.5; Y = 35 
D)  center of gravity = 28 
E)  X = 27.5; Y = 40 
A)  X = 28.125; Y = 31.25 
B)  X = 32500; Y = 35000 
C)  X = 32.5; Y = 35 
D)  center of gravity = 28 
E)  X = 27.5; Y = 40

Question 6

State the fundamental objective of a firm's location strategy. How is this basic objective carried out by industrial or goods-producing firms; how does that differ for service firms?

Accepted Answer

The fundamental objective is to maximize

Question 7

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. Assume 8 hours per day, 7 days per week, what is the weekly capacity of the process?

Accepted Answer

A)  96 batches 
B)  112 batches 
C)  67 batches 
D)  56 batches 
E)  84 batches 
A)  96 batches 
B)  112 batches 
C)  67 batches 
D)  56 batches 
E)  84 batches

Question 8

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 throughput time of this process?

Accepted Answer

A)  245 min. 
B)  515 min. 
C)  130 min. 
D)  240 min. 
E)  300 min. 
A)  245 min. 
B)  515 min. 
C)  130 min. 
D)  240 min. 
E)  300 min.

Question 9

Location decisions are often being based on which of the following?

Accepted Answer

A)  ports and rivers 
B)  rail hubs 
C)  interstate highways 
D)  airports 
E)  all of these 
A)  ports and rivers 
B)  rail hubs 
C)  interstate highways 
D)  airports 
E)  all of these

Question 10

Which of the following is a location analysis technique typically employed by a service organization?

Accepted Answer

A)  purchasing power analysis 
B)  linear programming 
C)  queuing theory 
D)  transportation method 
E)  locational cost-volume analysis 
A)  purchasing power analysis 
B)  linear programming 
C)  queuing theory 
D)  transportation method 
E)  locational cost-volume analysis

Question 11

An employee produces 10 parts during a shift in which he made $90. What is the labor content of the product?

Accepted Answer

A)  $9 
B)  $5 
C)  $6 
D)  $0.111 
E)  $900 
A)  $9 
B)  $5 
C)  $6 
D)  $0.111 
E)  $900

Question 12

The net present value of $10,000 to be received in exactly three years is considerably greater than $10,000.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is NOT among the eight determinants of revenue and volume for a service firm?

Accepted Answer

A)  quality of management 
B)  shipment cost of finished goods 
C)  purchasing power of the customer-drawing area 
D)  uniqueness of the firm's and the competitors' locations 
E)  competition in the area 
A)  quality of management 
B)  shipment cost of finished goods 
C)  purchasing power of the customer-drawing area 
D)  uniqueness of the firm's and the competitors' locations 
E)  competition in the area

Question 14

FedEx chose Memphis, Tennessee, for its central location, or "hub," primarily because of the incentives offered by the city of Memphis and the state of Tennessee.

Accepted Answer

A) True 
 B)False

Question 15

Intangible costs include which of the following?

Accepted Answer

A)  quality of prospective employees 
B)  quality of education 
C)  availability of public transportation 
D)  all of these 
E)  none of these 
A)  quality of prospective employees 
B)  quality of education 
C)  availability of public transportation 
D)  all of these 
E)  none of these

Question 16

A school district is considering four locations for a new high school. There are four factors the district is considering (cost of land, distance to students, land size, and traffic flow). The higher the factor score, the better. The district would like to compare results using two weighting systems. The first system would give each factor equal weight and the second would give the factors weights of .4, .2, .3, and .1 respectively. Use the factor rating method to determine which location is best for each weighting system. (Note that the weights for system 1 can be anything, as long as they're equal.)

Accepted Answer

Applying the factor rating met

Question 17

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 operation of this process?

Accepted Answer

A)  Mix 
B)  Proof 
C)  Bake 
D)  Cut 
E)  Pack 
A)  Mix 
B)  Proof 
C)  Bake 
D)  Cut 
E)  Pack

Question 18

A location decision for a traditional department store (e.g., Macy's) would tend to have what type of focus?

Accepted Answer

A)  cost focus 
B)  labor focus 
C)  revenue focus 
D)  environmental focus 
E)  education focus 
A)  cost focus 
B)  labor focus 
C)  revenue focus 
D)  environmental focus 
E)  education focus

Question 19

A manufacturing company preparing to build a new plant is considering three potential locations for it. The fixed and variable costs for the three alternative locations are presented below.
(a) Complete a numeric locational cost-volume analysis.
(b) Indicate over what range each of the alternatives A, B, C is the low-cost choice.
(c) Is any alternative never preferred? Explain.

Accepted Answer

B is cheapest up to 166,667 un

Question 20

One reason for a firm locating near its competitors is the presence of a major resource it needs.

Accepted Answer

A) True 
 B)False

Define variable costs. What special assumption is made about variable costs in the textbook?

The bottleneck time is always at least as long as the throughput time.

FedEx chose Memphis, Tennessee, as its U.S. hub because:

________ analysis finds the point at which costs equal revenues.

East Texas Seasonings is preparing to build one processing center to serve its four sources of seasonings. The four source locations are at coordinates shown below. Also, the volume from each source is provided. What is the center of gravity?

State the fundamental objective of a firm's location strategy. How is this basic objective carried out by industrial or goods-producing firms; how does that differ for service firms?

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 throughput time of this process?

Location decisions are often being based on which of the following?

Which of the following is a location analysis technique typically employed by a service organization?

An employee produces 10 parts during a shift in which he made $90. What is the labor content of the product?

The net present value of $10,000 to be received in exactly three years is considerably greater than $10,000.

Which of the following is NOT among the eight determinants of revenue and volume for a service firm?

FedEx chose Memphis, Tennessee, for its central location, or "hub," primarily because of the incentives offered by the city of Memphis and the state of Tennessee.

Intangible costs include which of the following?

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 operation of this process?

A location decision for a traditional department store (e.g., Macy's) would tend to have what type of focus?

One reason for a firm locating near its competitors is the presence of a major resource it needs.

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

Define variable costs. What special assumption is made about variable costs in the textbook?

The bottleneck time is always at least as long as the throughput time.

FedEx chose Memphis, Tennessee, as its U.S. hub because:

________ analysis finds the point at which costs equal revenues.

East Texas Seasonings is preparing to build one processing center to serve its four sources of seasonings. The four source locations are at coordinates shown below. Also, the volume from each source is provided. What is the center of gravity?

State the fundamental objective of a firm's location strategy. How is this basic objective carried out by industrial or goods-producing firms; how does that differ for service firms?

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 throughput time of this process?

Location decisions are often being based on which of the following?

Which of the following is a location analysis technique typically employed by a service organization?

An employee produces 10 parts during a shift in which he made $90. What is the labor content of the product?

The net present value of $10,000 to be received in exactly three years is considerably greater than $10,000.

Which of the following is NOT among the eight determinants of revenue and volume for a service firm?

FedEx chose Memphis, Tennessee, for its central location, or "hub," primarily because of the incentives offered by the city of Memphis and the state of Tennessee.

Intangible costs include which of the following?

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 operation of this process?

A location decision for a traditional department store (e.g., Macy's) would tend to have what type of focus?

One reason for a firm locating near its competitors is the presence of a major resource it needs.

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