Question 1

A location can only be described by its demographic attributes such as population and age groups.

Accepted Answer

A) True 
 B)False  False

Question 2

Statistical methods such as regression can be used to refine location decisions.

Accepted Answer

A) True 
 B)False  True

Question 3

Walmart is very famous in an industry where they are one of the lowest cost providers. How do you think Walmart selects the site for their next store?

Accepted Answer

Walmart likely uses a combination of demographic data, market research, and strategic analysis to select the site for their next store. They may look for areas with a high population density, low competition from other retailers, and a strong potential customer base. They may also consider factors such as proximity to major highways, access to public transportation, and the availability of suitable real estate. Additionally, Walmart may also consider the economic health of the area, local regulations and zoning laws, and the potential for growth and development in the surrounding area. Overall, Walmart's site selection process is likely a carefully planned and data-driven decision to ensure the success of their stores.

Question 4

Services and manufacturing location decisions only differ in terms of frequency, size of investment, and exit costs.

Accepted Answer

A) True 
 B)False

Question 5

Some of the important factors for business location decision making include all of the following except

Accepted Answer

A)  the frequency of the location decision 
B)  the size of the investment 
C)  the incentives offered by the local municipality 
D)  the location of the back office 
A)  the frequency of the location decision 
B)  the size of the investment 
C)  the incentives offered by the local municipality 
D)  the location of the back office

Question 6

Kim is considering two different locations for a new nail salon. She hires Jenny from MGMT 3121 as her operations manager. Jenny has identified the four factors listed in the following table as the basis for evaluation, and she has assigned weights as shown on the left. She has rated each location on each factor, on a 100-point scale, as shown on the right.
What is the score for the 34th St. and 3rd Ave. location?
 $$\begin{array} { | c | c | c | c | } 
\hline \text { Factor Description } & \text { Weight } & \begin{array} { r } 
\text { 23rd St. \& } \
\text { Lex. } \
\text { Ave. }
\end{array} & \begin{array} { r } 
\text { 34th St. \& 3rd } \
\text { Ave. }
\end{array} \
\hline \text { Average community income } & .20 & 30 & 20 \
\hline \text { Nearby restaurants } & .15 & 30 & 40 \
\hline \text { Availability of pub lic } \
\text { transportation } & .25 & 20 & 10 \
\hline \text { Labor cost } & .40 & 20 & 30 \
\hline
\end{array}$$

Accepted Answer

A)  25.40 
B)  23.50 
C)  24.50 
D)  100.00 
A)  25.40 
B)  23.50 
C)  24.50 
D)  100.00

Question 7

Advantages of locating a business online include the ability to display thousands of products and access to a global market.

Accepted Answer

A) True 
 B)False

Question 8

A location can be described in terms of

Accepted Answer

A)  its absolute description 
B)  its relative description 
C)  its physical and demographic attributes 
D)  all of the above 
A)  its absolute description 
B)  its relative description 
C)  its physical and demographic attributes 
D)  all of the above

Question 9

Geographic information systems can assist the location decision by doing all of the following except

Accepted Answer

A)  combining geography with demographic analysis 
B)  identifying customer segments 
C)  identifying key success factors 
D)  providing center of gravity analysis 
A)  combining geography with demographic analysis 
B)  identifying customer segments 
C)  identifying key success factors 
D)  providing center of gravity analysis

Question 10

The center of gravity method does not account for the

Accepted Answer

A)  combination of volume and delivery cost 
B)  distance to markets 
C)  volume of goods shipped to the markets 
D)  value of the goods shipped 
A)  combination of volume and delivery cost 
B)  distance to markets 
C)  volume of goods shipped to the markets 
D)  value of the goods shipped

Question 11

Pharmaceutical companies tend to locate near areas containing universities or its graduates because of

Accepted Answer

A)  cheap housing for the graduates 
B)  tax incentives offered by the universities 
C)  availability of a highly skilled labor pool 
D)  favorable foreign exchange rates 
A)  cheap housing for the graduates 
B)  tax incentives offered by the universities 
C)  availability of a highly skilled labor pool 
D)  favorable foreign exchange rates

Question 12

Locating a business online is always more profitable than a brick and mortar store because of lower overhead costs.

Accepted Answer

A) True 
 B)False

Question 13

Instead of comparing the total cost of Kim's proposed Midtown nail salon to her proposed Uptown nail salon, which of the following methods should be used to make a better comparison?

Accepted Answer

A)  break-even analysis 
B)  center of gravity method 
C)  fixed costs 
D)  variable costs 
A)  break-even analysis 
B)  center of gravity method 
C)  fixed costs 
D)  variable costs

Question 14

A manufacturing facility is considering two location alternatives, X and Y. At location X, fixed costs would be $5,000,000 per year and variable costs would be $0.30 per unit. At location Y, fixed costs would be $4,600,000 per year and variable costs would be $0.40 per unit. If annual demand is expected to be 10 million units, which location should be chosen?

Accepted Answer

A)  Plant X, because it is cheaper than Plant Y for all volumes. 
B)  Plant Y, because it is cheaper than Plant X for all volumes over 4,000,000 units. 
C)  Plant X, because it is cheaper than Plant Y for all volumes over 4,000,000 units. 
D)  Plant Y, because it has the lower variable cost per unit. 
A)  Plant X, because it is cheaper than Plant Y for all volumes. 
B)  Plant Y, because it is cheaper than Plant X for all volumes over 4,000,000 units. 
C)  Plant X, because it is cheaper than Plant Y for all volumes over 4,000,000 units. 
D)  Plant Y, because it has the lower variable cost per unit.

Question 15

Starbucks might choose new café locations largely based on customer feedback, not sophisticated models and site selection technology.

Accepted Answer

A) True 
 B)False

Question 16

A manufacturing firm finds a location using the center of gravity method but rejects that location because they are unable to efficiently transport the finished goods to market. The firm's action illustrates the link between __________ and location.

Accepted Answer

A)  proximity 
B)  clustering 
C)  infrastructure 
D)  globalization 
A)  proximity 
B)  clustering 
C)  infrastructure 
D)  globalization

Question 17

The center of gravity method balances distance, market size, and logistics costs to find the approximate best location that minimizes the total incremental cost of serving several markets from a distribution point.

Accepted Answer

A) True 
 B)False

Question 18

Pop-ups are temporary retail locations that help younger businesses attain market visibility.

Accepted Answer

A) True 
 B)False

Question 19

A manufacturing organization may typically employ which of the following location analysis techniques?

Accepted Answer

A)  trial and error method 
B)  linear regression 
C)  break-even analysis 
D)  demographic analysis 
A)  trial and error method 
B)  linear regression 
C)  break-even analysis 
D)  demographic analysis

Question 20

What are the differences and similarities (if any) between service location strategies and manufacturing location strategies?

Accepted Answer

Service location strategies and manufact

A location can only be described by its demographic attributes such as population and age groups.

Statistical methods such as regression can be used to refine location decisions.

Walmart is very famous in an industry where they are one of the lowest cost providers. How do you think Walmart selects the site for their next store?

Services and manufacturing location decisions only differ in terms of frequency, size of investment, and exit costs.

Some of the important factors for business location decision making include all of the following except

Advantages of locating a business online include the ability to display thousands of products and access to a global market.

A location can be described in terms of

Geographic information systems can assist the location decision by doing all of the following except

The center of gravity method does not account for the

Pharmaceutical companies tend to locate near areas containing universities or its graduates because of

Locating a business online is always more profitable than a brick and mortar store because of lower overhead costs.

Instead of comparing the total cost of Kim's proposed Midtown nail salon to her proposed Uptown nail salon, which of the following methods should be used to make a better comparison?

Starbucks might choose new café locations largely based on customer feedback, not sophisticated models and site selection technology.

A manufacturing firm finds a location using the center of gravity method but rejects that location because they are unable to efficiently transport the finished goods to market. The firm's action illustrates the link between __________ and location.

The center of gravity method balances distance, market size, and logistics costs to find the approximate best location that minimizes the total incremental cost of serving several markets from a distribution point.

Pop-ups are temporary retail locations that help younger businesses attain market visibility.

A manufacturing organization may typically employ which of the following location analysis techniques?

What are the differences and similarities (if any) between service location strategies and manufacturing location strategies?

Operations Management and You

Designing Products and Processes

Process and Service Design

Managing Processes

Forecasting

Capacity Planning

Managing Capacity

Managing Inventory

Managing Quality

Supply Chain Design

Managing Supply Chains

Working With Projects

Filters

Exam 12: Finding the Right Location

A location can only be described by its demographic attributes such as population and age groups.

Statistical methods such as regression can be used to refine location decisions.

Walmart is very famous in an industry where they are one of the lowest cost providers. How do you think Walmart selects the site for their next store?

Services and manufacturing location decisions only differ in terms of frequency, size of investment, and exit costs.

Some of the important factors for business location decision making include all of the following except

Advantages of locating a business online include the ability to display thousands of products and access to a global market.

A location can be described in terms of

Geographic information systems can assist the location decision by doing all of the following except

The center of gravity method does not account for the

Pharmaceutical companies tend to locate near areas containing universities or its graduates because of

Locating a business online is always more profitable than a brick and mortar store because of lower overhead costs.

Instead of comparing the total cost of Kim's proposed Midtown nail salon to her proposed Uptown nail salon, which of the following methods should be used to make a better comparison?

Starbucks might choose new café locations largely based on customer feedback, not sophisticated models and site selection technology.

A manufacturing firm finds a location using the center of gravity method but rejects that location because they are unable to efficiently transport the finished goods to market. The firm's action illustrates the link between __________ and location.

The center of gravity method balances distance, market size, and logistics costs to find the approximate best location that minimizes the total incremental cost of serving several markets from a distribution point.

Pop-ups are temporary retail locations that help younger businesses attain market visibility.

A manufacturing organization may typically employ which of the following location analysis techniques?

What are the differences and similarities (if any) between service location strategies and manufacturing location strategies?

Operations Management and You

Designing Products and Processes

Process and Service Design

Managing Processes

Forecasting

Capacity Planning

Managing Capacity

Managing Inventory

Managing Quality

Supply Chain Design

Managing Supply Chains

Working With Projects

Filters