Question 1

Describe the theory of constraints in a sentence.

Accepted Answer

The theory of constraints is t

Question 2

A firm that increases capacity at the beginning of each period to stay ahead of demand uses the ________ approach.

Accepted Answer

A)  lead with an incremental expansion 
B)  lead with a one-step expansion 
C)  lag with an incremental expansion 
D)  lag with a one-step expansion 
E)  straddle 
A)  lead with an incremental expansion 
B)  lead with a one-step expansion 
C)  lag with an incremental expansion 
D)  lag with a one-step expansion 
E)  straddle

Question 3

The staff training center at a large regional hospital provides training sessions in CPR to all employees. Assume that the capacity of this training system was designed to be 2000 employees per year. Since the training center was first put in use, the program has become more complex, so that 1500 now represents the most employees that can be trained per year. In the past year, 1350 employees were trained. Calculate the efficiency and the utilization of this system.

Accepted Answer

Efficiency = 1350 /

Question 4

A clothing chain is considering two different locations for a new retail outlet. The organization has identified the four factors listed in the following table as the basis for evaluation, and it has assigned weights as shown. The manager has rated each location on each factor, on a 100-point basis (higher scores are better), as shown under the respective columns for Barclay and Chester.
a. Calculate the composite score for each alternative location.
b. Which site should be chosen?
c. Are you concerned about the sensitivity and subjectivity of this solution? Comment.

Accepted Answer

The higher rated site is Barclay, 77.25

Question 5

Which of the following statements regarding "proximity" in the location decision is FALSE?

Accepted Answer

A)  Service organizations find that proximity to suppliers is the most critical primary location factor. 
B)  Manufacturers want to be near customers when their product is bulky, heavy, or fragile. 
C)  Perishability of raw materials is a good reason for manufacturers to locate near the supplier, not the customer. 
D)  Reduction in bulk during production is a good reason for a manufacturer to locate near the supplier. 
E)  Clustering among fast-food chains occurs because they need to be near high traffic flows. 
A)  Service organizations find that proximity to suppliers is the most critical primary location factor. 
B)  Manufacturers want to be near customers when their product is bulky, heavy, or fragile. 
C)  Perishability of raw materials is a good reason for manufacturers to locate near the supplier, not the customer. 
D)  Reduction in bulk during production is a good reason for a manufacturer to locate near the supplier. 
E)  Clustering among fast-food chains occurs because they need to be near high traffic flows.

Question 6

Which of the following is an approach to location analysis that includes both qualitative and quantitative considerations?

Accepted Answer

A)  locational cost-volume analysis 
B)  factor-rating method 
C)  transportation model 
D)  center-of-gravity method 
E)  make-or-buy analysis 
A)  locational cost-volume analysis 
B)  factor-rating method 
C)  transportation model 
D)  center-of-gravity method 
E)  make-or-buy analysis

Question 7

Describe how EMV might be used to analyze a capacity decision.

Accepted Answer

The EMV for each capacity decision (perh

Question 8

A firm is considering adding a second secretary to answer phone calls and make appointments. The cost of the secretary will be $15/hour and she will work 200 hours each month. If each new client adds $800 of profit to the firm, how many clients must the secretary arrange for the firm to break even?

Accepted Answer

BEP= 15(20

Question 9

The transportation model calculates an optimal shipping system between several points of supply and several outlying customers.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is most likely to affect the location strategy of a manufacturing firm?

Accepted Answer

A)  appearance/image of the area 
B)  utility costs 
C)  purchasing power of drawing area 
D)  competition in the area 
E)  parking availability 
A)  appearance/image of the area 
B)  utility costs 
C)  purchasing power of drawing area 
D)  competition in the area 
E)  parking availability

Question 11

A retailer is considering building a large store. If the local economy experiences expansion, the firm expects the store to earn a $2,000,000 profit next year. If the local economy experiences a contraction, the firm expects the store to lose $400,000 next year. Analysts estimate a 30% chance for the local economy to experience an expansion next year (hence a 70% chance for contraction). What is the expected monetary value (EMV) of building the large store?

Accepted Answer

A)  $880,000 
B)  $320,000 
C)  $2,000,000 
D)  $80,000 
E)  $1,520,000 
A)  $880,000 
B)  $320,000 
C)  $2,000,000 
D)  $80,000 
E)  $1,520,000

Question 12

Which of the following workers is the most productive?

Accepted Answer

A)  $50 wages, 10 parts produced 
B)  $10 wages, 1 part produced 
C)  $30 wages, 5 parts produced 
D)  $100 wages, 21 parts produced 
E)  $500 wages, 110 parts produced 
A)  $50 wages, 10 parts produced 
B)  $10 wages, 1 part produced 
C)  $30 wages, 5 parts produced 
D)  $100 wages, 21 parts produced 
E)  $500 wages, 110 parts produced

Question 13

Identify, in proper sequence, the steps in the process of recognizing and managing constraints.

Accepted Answer

The five-step process of the theory of c

Question 14

Labor cost per unit is also referred to as ________.

Accepted Answer

The answer of Labor cost per unit is also referred...

Question 15

Possible states of nature found in capacity EMV problems are future demands or market favorability.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A)  corporate desires 
B)  land/construction costs 
C)  air, rail, highway, waterway systems 
D)  zoning restrictions 
E)  location of markets 
A)  corporate desires 
B)  land/construction costs 
C)  air, rail, highway, waterway systems 
D)  zoning restrictions 
E)  location of markets

Question 17

A school district is considering where in town to house its central office (the office must also be located at an existing school for cost reasons). If there are five schools in the district, with locations and size given in the following table, use the center-of-gravity method to determine at which school the central office should be placed to minimize the average distance between the office and students.

Accepted Answer

The total number of students is (2500 +

Question 18

A firm is considering two location alternatives. At location A, fixed costs would be $4,000,000 per year, and variable costs $0.30 per unit. At alternative B, fixed costs would be $3,600,000 per year, with variable costs of $0.34 per unit. If annual demand is expected to be 9 million units, which plant offers the lowest total cost?

Accepted Answer

A)  Plant A, because it is cheaper than Plant B for all volumes below 10,000,000 units. 
B)  Plant B, because it is cheaper than Plant A for all volumes below 10,000,000 units. 
C)  Plant A, because it is cheaper than Plant B for all volumes. 
D)  Plant B, because it has the lower variable cost per unit. 
E)  Neither Plant A nor Plant B, because the crossover point is at 9 million units. 
A)  Plant A, because it is cheaper than Plant B for all volumes below 10,000,000 units. 
B)  Plant B, because it is cheaper than Plant A for all volumes below 10,000,000 units. 
C)  Plant A, because it is cheaper than Plant B for all volumes. 
D)  Plant B, because it has the lower variable cost per unit. 
E)  Neither Plant A nor Plant B, because the crossover point is at 9 million units.

Question 19

Which of the following represents an aggressive approach to demand management in the service sector when demand and capacity are not particularly well matched?

Accepted Answer

A)  lower resort hotel room prices on Wednesdays 
B)  appointments 
C)  reservations 
D)  first-come, first-served rule 
E)  none of these 
A)  lower resort hotel room prices on Wednesdays 
B)  appointments 
C)  reservations 
D)  first-come, first-served rule 
E)  none of these

Question 20

Manufacturers may want to locate close to their customers if the transportation of finished goods is expensive or difficult.

Accepted Answer

A) True 
 B)False

Describe the theory of constraints in a sentence.

A firm that increases capacity at the beginning of each period to stay ahead of demand uses the ________ approach.

Which of the following statements regarding "proximity" in the location decision is FALSE?

Which of the following is an approach to location analysis that includes both qualitative and quantitative considerations?

Describe how EMV might be used to analyze a capacity decision.

A firm is considering adding a second secretary to answer phone calls and make appointments. The cost of the secretary will be $15/hour and she will work 200 hours each month. If each new client adds $800 of profit to the firm, how many clients must the secretary arrange for the firm to break even?

The transportation model calculates an optimal shipping system between several points of supply and several outlying customers.

Which of the following is most likely to affect the location strategy of a manufacturing firm?

Which of the following workers is the most productive?

Identify, in proper sequence, the steps in the process of recognizing and managing constraints.

Labor cost per unit is also referred to as ________.

Possible states of nature found in capacity EMV problems are future demands or market favorability.

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

Which of the following represents an aggressive approach to demand management in the service sector when demand and capacity are not particularly well matched?

Manufacturers may want to locate close to their customers if the transportation of finished goods is expensive or difficult.

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

Describe the theory of constraints in a sentence.

A firm that increases capacity at the beginning of each period to stay ahead of demand uses the ________ approach.

Which of the following statements regarding "proximity" in the location decision is FALSE?

Which of the following is an approach to location analysis that includes both qualitative and quantitative considerations?

Describe how EMV might be used to analyze a capacity decision.

A firm is considering adding a second secretary to answer phone calls and make appointments. The cost of the secretary will be $15/hour and she will work 200 hours each month. If each new client adds $800 of profit to the firm, how many clients must the secretary arrange for the firm to break even?

The transportation model calculates an optimal shipping system between several points of supply and several outlying customers.

Which of the following is most likely to affect the location strategy of a manufacturing firm?

Which of the following workers is the most productive?

Identify, in proper sequence, the steps in the process of recognizing and managing constraints.

Labor cost per unit is also referred to as ________.

Possible states of nature found in capacity EMV problems are future demands or market favorability.

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

Which of the following represents an aggressive approach to demand management in the service sector when demand and capacity are not particularly well matched?

Manufacturers may want to locate close to their customers if the transportation of finished goods is expensive or difficult.

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