Question 1

Which of the following statements regarding locating demand sensitive businesses is false?

Accepted Answer

A)  Statistical methods such as linear regression are used to refine the choice of locations. 
B)  The location should be chosen based on demand. 
C)  GIS methods require the use of demographic information and the most current map information. 
D)  The factor rating method is one of the simplest methods to use. 
A)  Statistical methods such as linear regression are used to refine the choice of locations. 
B)  The location should be chosen based on demand. 
C)  GIS methods require the use of demographic information and the most current map information. 
D)  The factor rating method is one of the simplest methods to use.

Question 2

__________ and __________ are the first stages in the location decision process.

Accepted Answer

The answer of __________ and __________ are the first stages...

Question 3

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

Accepted Answer

A)  Service organizations find that proximity to market is the most critical success factor. 
B)  Clustering among financial firms occurs because they need to be near their highly skilled labor supply. 
C)  Perishability of raw materials is a good reason for manufacturers to locate near the customer and not their supplier. 
D)  Manufacturers want to be near customers when their product is bulky, heavy, or fragile. 
A)  Service organizations find that proximity to market is the most critical success factor. 
B)  Clustering among financial firms occurs because they need to be near their highly skilled labor supply. 
C)  Perishability of raw materials is a good reason for manufacturers to locate near the customer and not their supplier. 
D)  Manufacturers want to be near customers when their product is bulky, heavy, or fragile.

Question 4

In addition to costs, __________ should also play an important role in location decision making.

Accepted Answer

The answer of In addition to costs, __________ should also...

Question 5

Clustering is the best location strategy for service providers only.

Accepted Answer

A) True 
 B)False

Question 6

__________ are databases combining geographical data with demographic and business data.

Accepted Answer

The answer of __________ are databases combining geographical data with...

Question 7

Manufacturers with high distribution costs may want to locate close to their customers.

Accepted Answer

A) True 
 B)False

Question 8

A rigorous scenario analysis of foreign exchange rates, labor costs, infrastructural promises, and political conditions is required in foreign location choices.

Accepted Answer

A) True 
 B)False

Question 9

A manufacturing company is considering two alternative locations for a new facility. The fixed and variable costs for the two locations are presented in the following table. For which volume of business would the two locations be equally attractive? If the company plans on producing 100,000 units, which location would be more attractive?
 $$\begin{array} { | l | c | c | } 
\hline & \begin{array} { c } 
\text { Grand } \
\text { Rapid } \
s
\end{array} & \text { Ann Arbor } \
\hline \text { Fixed costs } & \$ 2,000,000 & \$ 2,500,000 \
\hline \text { Variable costs (\$ per unit) } & 30 & 25 \
\hline
\end{array}$$

Accepted Answer

To determine the volume of business at w

Question 10

The center of gravity method finds the best location of serving several markets from a distribution point by finding the center of the map.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following statements regarding Mercedes Benz is true?

Accepted Answer

A)  They chose to locate their manufacturing facilities according to the cheapest labor available. 
B)  They chose to locate their manufacturing facilities according to the cheapest raw materials available. 
C)  They chose to locate their manufacturing facilities to fit their brand image. 
D)  Their choice of manufacturing facilities was based on environmental concerns. 
A)  They chose to locate their manufacturing facilities according to the cheapest labor available. 
B)  They chose to locate their manufacturing facilities according to the cheapest raw materials available. 
C)  They chose to locate their manufacturing facilities to fit their brand image. 
D)  Their choice of manufacturing facilities was based on environmental concerns.

Question 12

Operations managers will need to consider ethical and social responsibility issues when location decisions involve

Accepted Answer

A)  corruption 
B)  child labor issues 
C)  spiritual or cultural issues 
D)  all of the above 
A)  corruption 
B)  child labor issues 
C)  spiritual or cultural issues 
D)  all of the above

Question 13

Recent trends in location analysis include

Accepted Answer

A)  clustering 
B)  outsourcing 
C)  cooperatives 
D)  downsizing 
A)  clustering 
B)  outsourcing 
C)  cooperatives 
D)  downsizing

Question 14

Co-location decisions by manufacturing firms are done for reasons of time, quality, inventory, communication, and ease of management.

Accepted Answer

A) True 
 B)False

Question 15

Break-even locational analysis is used only when

Accepted Answer

A)  Cost is the only factor. 
B)  Profit is the only factor. 
C)  Both cost and profit are factors. 
D)  Break-even analysis is not used in any of these situations. 
A)  Cost is the only factor. 
B)  Profit is the only factor. 
C)  Both cost and profit are factors. 
D)  Break-even analysis is not used in any of these situations.

Question 16

Pop-ups are permanent retail locations that take advantage of low rents.

Accepted Answer

A) True 
 B)False

Question 17

Location decisions should be made on the basis of labor costs and taxes only.

Accepted Answer

A) True 
 B)False

Question 18

Which location analysis model best accounts for intangible costs related to a location decision?

Accepted Answer

A)  the transportation method 
B)  factor rating analysis 
C)  locational break-even analysis 
D)  center of gravity method 
A)  the transportation method 
B)  factor rating analysis 
C)  locational break-even analysis 
D)  center of gravity method

Question 19

__________ occurs when competing companies locate near each other because of access to the same talent or natural resources.

Accepted Answer

The answer of __________ occurs when competing companies locate near...

Question 20

Political considerations do not affect site selection decisions.

Accepted Answer

A) True 
 B)False

Which of the following statements regarding locating demand sensitive businesses is false?

and are the first stages in the location decision process.

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

In addition to costs, __________ should also play an important role in location decision making.

Clustering is the best location strategy for service providers only.

__________ are databases combining geographical data with demographic and business data.

Manufacturers with high distribution costs may want to locate close to their customers.

A rigorous scenario analysis of foreign exchange rates, labor costs, infrastructural promises, and political conditions is required in foreign location choices.

The center of gravity method finds the best location of serving several markets from a distribution point by finding the center of the map.

Which of the following statements regarding Mercedes Benz is true?

Operations managers will need to consider ethical and social responsibility issues when location decisions involve

Recent trends in location analysis include

Co-location decisions by manufacturing firms are done for reasons of time, quality, inventory, communication, and ease of management.

Break-even locational analysis is used only when

Pop-ups are permanent retail locations that take advantage of low rents.

Location decisions should be made on the basis of labor costs and taxes only.

Which location analysis model best accounts for intangible costs related to a location decision?

__________ occurs when competing companies locate near each other because of access to the same talent or natural resources.

Political considerations do not affect site selection decisions.

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

Which of the following statements regarding locating demand sensitive businesses is false?

__________ and __________ are the first stages in the location decision process.

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

In addition to costs, __________ should also play an important role in location decision making.

Clustering is the best location strategy for service providers only.

__________ are databases combining geographical data with demographic and business data.

Manufacturers with high distribution costs may want to locate close to their customers.

A rigorous scenario analysis of foreign exchange rates, labor costs, infrastructural promises, and political conditions is required in foreign location choices.

The center of gravity method finds the best location of serving several markets from a distribution point by finding the center of the map.

Which of the following statements regarding Mercedes Benz is true?

Operations managers will need to consider ethical and social responsibility issues when location decisions involve

Recent trends in location analysis include

Co-location decisions by manufacturing firms are done for reasons of time, quality, inventory, communication, and ease of management.

Break-even locational analysis is used only when

Pop-ups are permanent retail locations that take advantage of low rents.

Location decisions should be made on the basis of labor costs and taxes only.

Which location analysis model best accounts for intangible costs related to a location decision?

__________ occurs when competing companies locate near each other because of access to the same talent or natural resources.

Political considerations do not affect site selection decisions.

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

and are the first stages in the location decision process.