Exam 10: Location Strategies

A regional bookstore chain is about to build a distribution center that is centrally located for its eight retail outlets. It will most likely employ which of the following tools of analysis?

What describes a system that stores and displays information that can be linked to a geographic location?

Instead of comparing the salaries of Detroit autoworkers to foreign autoworkers to determine if Union labor prices are the cause of Detroit's financial woes, which of the following should be used?

Unfavorable exchange rates can offset other savings in a location decision.

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

A manufacturing firm finds a location that has a significant cost advantage over alternatives, but rejects that location because the educational infrastructure was insufficient to train the firm's workers in its special production technologies. The firm's action illustrates the link between __________ and location.

Using the factor ratings shown below, determine which location alternative should be chosen on the basis of maximum composite score. Location Factor Easy access 0.15 86 72 90 Parking facilities 0.20 72 77 91 Display area 0.18 86 90 90 Shopper (walking) traffic 0.21 94 86 80 Neighborhood wealth 0.16 99 89 81 Neighborhood safety 0.10 96 85 75

"Proximity" or closeness implies that a firm should locate "close" to something. What are the three kinds of proximity described in the text? What are the basic conditions under which each is appropriate? What kinds of firms are likely to use each of these?

How does the Starbucks Coffee case illustrate the general principles of service location strategy?

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

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 COG method to determine at which school the central office should be placed to minimize the average distance between the office and students. Location , Size (Enrollment) 5,5 2500 0,5 1000 0,0 10000 5,0 4500 2,1 7500

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 has assigned weights as shown on the right side of this table. The manager has rated each location on each factor, on a 100-point basis (higher scores are better), as shown in the right-hand table. 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. Factor Factor Description Weight 1 Average community income .40 2 Community growth potential .25 Availability of public 3 transportation .15 4 Labor cost .20 Barclay Chester 75 70 60 80 45 90 80 60

Governmental attitudes toward issues such as private property, intellectual property, zoning, pollution, and employment stability may change over time. The term associated with this phenomenon is

Which of the following worker characteristics would likely be least important for U.S. firms looking to open up call centers in different countries?

A jewelry store is more likely than a jewelry manufacturer to consider __________ in making a location decision.

Which of the following is among the eight determinants of revenue and volume for a service firm?

Which of the following statements regarding Starbucks Coffee is False?

A firm is seeking a new factory location, and is considering several countries worldwide. In some of these countries, child labor is prevalent; in others, working conditions and worker safety are inferior to conditions in the U.S. An operations manager paying attention to __________ will factor these issues into the location decision.

Location decisions of goods-producing companies often assume that costs are relatively constant for a given area; therefore, the revenue function is critical.

The location decisions of goods-producing firms will generally pay more attention to parking, access, and traffic counts than will service location decisions.