Question 1

Which of the following methods best considers intangible costs related to a location decision?

Accepted Answer

A)  crossover methods 
B)  locational break-even analysis 
C)  factor-rating analysis 
D)  the transportation method 
E)  the assignment method 
A)  crossover methods 
B)  locational break-even analysis 
C)  factor-rating analysis 
D)  the transportation method 
E)  the assignment method C

Question 2

In location planning, environmental regulations, cost and availability of utilities, and taxes are

Accepted Answer

A)  global factors 
B)  country factors 
C)  regional/community factors 
D)  site-related factors 
E)  none of the above 
A)  global factors 
B)  country factors 
C)  regional/community factors 
D)  site-related factors 
E)  none of the above C

Question 3

__________ occurs when competing companies locate near each other because of a critical mass of information, talent, venture capital, or natural resources.

Accepted Answer

Clustering

Question 4

Every month, a distribution center will deliver 14,000 units to Retailer A at coordinates (20, 10), 12,000 units, to Retailer B at coordinates (30, -15), and 20,000 units to Retailer C at coordinates (4, 4). Assuming no constraints on location, at what coordinates should the distribution center be located (rounded to two decimal places)?

Accepted Answer

(15.65, 0.87), where 15.65 = [

Question 5

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

Accepted Answer

A)  child labor issues 
B)  sweatshop conditions 
C)  allegiance to the firm's current location 
D)  corruption 
E)  all of the above 
A)  child labor issues 
B)  sweatshop conditions 
C)  allegiance to the firm's current location 
D)  corruption 
E)  all of the above

Question 6

The center-of-gravity method is used primarily to determine what type of locations?

Accepted Answer

A)  service locations 
B)  manufacturing locations 
C)  distribution center locations 
D)  supplier locations 
E)  call center locations 
A)  service locations 
B)  manufacturing locations 
C)  distribution center locations 
D)  supplier locations 
E)  call center locations

Question 7

Which of these factors would be considered when making a location decision at the site level?

Accepted Answer

A)  government rules, attitudes, stability, incentives 
B)  cultural and economic issues 
C)  zoning regulations 
D)  cost and availability of utilities 
E)  proximity to raw materials and customers 
A)  government rules, attitudes, stability, incentives 
B)  cultural and economic issues 
C)  zoning regulations 
D)  cost and availability of utilities 
E)  proximity to raw materials and customers

Question 8

Industrial firms choose locations that minimize cost, but service firms look for locations with good demographics and traffic count because these variables are indicators of good __________.

Accepted Answer

revenue or

Question 9

Globalization of the location decision is the result of all of the following except

Accepted Answer

A)  market economics 
B)  higher quality of labor overseas 
C)  ease of capital flow between countries 
D)  high differences in labor costs 
E)  more rapid, reliable travel and shipping 
A)  market economics 
B)  higher quality of labor overseas 
C)  ease of capital flow between countries 
D)  high differences in labor costs 
E)  more rapid, reliable travel and shipping

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Which of the following was not a factor in determining the location of Intel's Arizona plant?

Accepted Answer

A)  skilled labor availability 
B)  U.S. laws to protect intellectual property 
C)  tax breaks from local and regional government 
D)  proximity to Intel's California headquarters 
E)  All of the above were key factors. 
A)  skilled labor availability 
B)  U.S. laws to protect intellectual property 
C)  tax breaks from local and regional government 
D)  proximity to Intel's California headquarters 
E)  All of the above were key factors.

Question 12

A location decision for a traditional department store (Macy's) would tend to have a(n)

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 13

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

Accepted Answer

A)  traffic counts 
B)  transportation method 
C)  purchasing power 
D)  proximity of markets 
E)  clustering 
A)  traffic counts 
B)  transportation method 
C)  purchasing power 
D)  proximity of markets 
E)  clustering

Question 14

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?
 Answer in a clear, convincing paragraph.

Accepted Answer

The fundamental objective is to maximize

Question 15

__________ and __________ are to key country success factors as __________ and __________ are to key region success factors.

Accepted Answer

A)  Cultural issues, location of markets; site size and cost, zoning restrictions 
B)  Exchange rates, labor availability; site size and cost, environmental impact 
C)  Labor cost, currency risk; land costs, proximity to customers 
D)  Land costs, proximity to customers; labor cost, air and rail systems 
E)  All of the above are accurate relationships. 
A)  Cultural issues, location of markets; site size and cost, zoning restrictions 
B)  Exchange rates, labor availability; site size and cost, environmental impact 
C)  Labor cost, currency risk; land costs, proximity to customers 
D)  Land costs, proximity to customers; labor cost, air and rail systems 
E)  All of the above are accurate relationships.

Question 16

What are the advantages and disadvantages of the use of factor-rating schemes?

Accepted Answer

Factor rating can handle a mix of quanti

Question 17

When firms build supply chains that include foreign firms, __________ and __________ are issues that raise ethical and legal concerns with operations managers.

Accepted Answer

The answer of When firms build supply chains that include...

Question 18

Identify those factors identified in the textbook as creating legal or ethical issues for operations mangers as they analyze location decisions.

Accepted Answer

The text identifies bribery, corruption,

Question 19

Which of the following is usually not one of the top considerations in choosing a country for a facility location?

Accepted Answer

A)  availability of labor and labor productivity 
B)  exchange rates 
C)  attitude of governmental units 
D)  zoning regulations 
E)  location of markets 
A)  availability of labor and labor productivity 
B)  exchange rates 
C)  attitude of governmental units 
D)  zoning regulations 
E)  location of markets

Question 20

Political risk, cultural issues, and exchange rates are among those __________ that affect which country will be selected for a location decision.

Accepted Answer

The answer of Political risk, cultural issues, and exchange rates...

Exam 10: Location Strategies

Which of the following methods best considers intangible costs related to a location decision?

In location planning, environmental regulations, cost and availability of utilities, and taxes are

__________ occurs when competing companies locate near each other because of a critical mass of information, talent, venture capital, or natural resources.

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

The center-of-gravity method is used primarily to determine what type of locations?

Which of these factors would be considered when making a location decision at the site level?

Industrial firms choose locations that minimize cost, but service firms look for locations with good demographics and traffic count because these variables are indicators of good __________.

Globalization of the location decision is the result of all of the following except

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

Which of the following was not a factor in determining the location of Intel's Arizona plant?

A location decision for a traditional department store (Macy's) would tend to have a(n)

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

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? Answer in a clear, convincing paragraph.

__________ and __________ are to key country success factors as __________ and __________ are to key region success factors.

What are the advantages and disadvantages of the use of factor-rating schemes?

When firms build supply chains that include foreign firms, __________ and __________ are issues that raise ethical and legal concerns with operations managers.

Identify those factors identified in the textbook as creating legal or ethical issues for operations mangers as they analyze location decisions.

Which of the following is usually not one of the top considerations in choosing a country for a facility location?

Political risk, cultural issues, and exchange rates are among those __________ that affect which country will be selected for a location decision.

Operations and Productivity

Operations Strategy in a Global Environment

Project Management

Forecasting

Design of Goods and Services

Managing Quality

Statistical Process Control

Process Strategy

Capacity and Constraint Management

Layout Strategies

Human Resources, Job Design, and Work Measurement

Supply-Chain Management

Outsourcing as a Supply-Chain Strategy

Inventory Management

Aggregate Planning

Material Requirements Planning MRP and ERP

Short-Term Scheduling

Just-In-Time and Lean Options

Maintenance and Reliability

Decision-Making Tools

Linear Programming

Transportation Models

Waiting-Line Models

Learning Curves

Simulation

Filters

and are to key country success factors as and are to key region success factors.

When firms build supply chains that include foreign firms, and are issues that raise ethical and legal concerns with operations managers.