Question 1

The __________ is a mathematical technique used for finding the best location for a single distribution point that services several stores or areas.

Accepted Answer

center-of-

Question 2

A farmers' cooperative association plans to build a new sugar mill in Southwestern Louisiana. The primary objective of the mill is to provide the farmers with a place to take their crop for processing that will reduce their transportation costs. The members of the co-op believe that the center-of-gravity method is appropriate for this objective. While there are over 200 sugar cane farms in the region, they are tightly clustered around six villages. Using the data below, use the center-of-gravity method to calculate the coordinates of the best location for this mill. On the grid below, plot the location of the six farm clusters and the calculated mill location. All mileage references use the city of Lake Charles as (0,0).
 $\begin{array}{|l|c|c|c|c|}
\hline\text { Village } & \text { Miles East of } & \text { Miles North of } & \text { Sugar Cane } \
 & \text { Lake Charles } & \text { Lake Charles } & \text { tonnage } \
\hline \text { Arceneaux } & 90 & 10 & 240,000 \
\hline \text { Boudreaux } & 140 & 60 & 320,000 \
\hline \text { Cancienne } & 20 & 70 & 450,000 \
\hline \text { Darbonne } & 50 & 20 & 120,000 \
\hline \text { Evangeline } & 100 & 80 & 60,000 \
\hline \text { Fontenot } & 10 & 120 & 140,000 \
\hline
\end{array}$

Accepted Answer

The center of gravity, weighted by the t

Question 3

Intangible costs include which of the following?

Accepted Answer

A)  quality of prospective employees 
B)  quality of education 
C)  availability of public transportation 
D)  all of the above 
E)  none of the above 
A)  quality of prospective employees 
B)  quality of education 
C)  availability of public transportation 
D)  all of the above 
E)  none of the above

Question 4

The center-of-gravity method does not take into consideration the

Accepted Answer

A)  location of markets 
B)  volume of goods shipped to the markets 
C)  value of the goods shipped 
D)  combination of volume and distance 
E)  center-of-gravity method considers none of the above 
A)  location of markets 
B)  volume of goods shipped to the markets 
C)  value of the goods shipped 
D)  combination of volume and distance 
E)  center-of-gravity method considers none of the above

Question 5

What kinds of location decisions are appropriate for use of center-of-gravity analysis?
 What variable is being optimized in this analysis?

Accepted Answer

The center-of-gravity technique is appro

Question 6

Which of these assumptions is not associated with strategies for goods-producing location decisions?

Accepted Answer

A)  Most major costs can be identified explicitly for each site. 
B)  Focus on identifiable cost. 
C)  High customer contact issues are critical. 
D)  Intangible costs can be evaluated. 
E)  Location is a major determinant of cost. 
A)  Most major costs can be identified explicitly for each site. 
B)  Focus on identifiable cost. 
C)  High customer contact issues are critical. 
D)  Intangible costs can be evaluated. 
E)  Location is a major determinant of cost.

Question 7

Is Starbucks Coffee a user of Geographic Information Systems?
 Support your answer with examples.

Accepted Answer

Starbucks is clearly a user of GIS. Data

Question 8

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

Question 9

In location decisions, intangible costs are easier to measure than tangible costs.

Accepted Answer

A) True 
 B)False

Question 10

A manufacturing firm is considering three potential locations for a new parts manufacturing facility. A consulting firm has assessed three sites based on the four factors supplied by management as critical to the location's success. Given the management-supplied factor weights and the consultant team scores, which location should be selected?
 Scores are based on 50 = best. Do the results surprise you in any way?
 Comment.
 $$\begin{array} { | l | c | c | c | c | } 
\hline & &  { \text { Location } } \
\hline \text { Factor } & \underline { \text { Weight } } & \underline { \underline { \mathrm { A } } } & \underline { \mathrm { B } } & \underline { \underline { \mathrm { C } } } \
\hline \text { Labor Climate } & 10 & 35 & 45 & 20 \
\hline \text { Taxes } & 30 & 30 & 40 & 40 \
\hline \text { Utilities } & 20 & 25 & 20 & 45 \
\hline \text { Wages } & 40 & 10 & 25 & 25 \
\hline
\end{array}$$

Accepted Answer

C is clearly better than either A or B.

Question 11

Traffic counts and purchasing power analysis of drawing area are techniques associated with

Accepted Answer

A)  locational break-even analysis 
B)  a manufacturing location decision 
C)  a retail or professional service location decision 
D)  the factor rating method 
E)  the transportation method 
A)  locational break-even analysis 
B)  a manufacturing location decision 
C)  a retail or professional service location decision 
D)  the factor rating method 
E)  the transportation method

Question 12

When __________, in addition to creativity and R&D investments, is critical to operations strategy, cost may cease to be the primary focus of location criteria.

Accepted Answer

The answer of When __________, in addition to creativity and...

Question 13

When innovation replaces cost as a firm's focus for location decisions, the presence of other state-of-the-art firms is a plus, not a negative, for the firm's competitiveness.

Accepted Answer

A) True 
 B)False

Question 14

A full-service restaurant is considering opening a new facility in a specific city. The table below shows its ratings of four factors at each of two potential sites. $$\begin{array} { | l | c | c | c | } 
\hline \text { Factor } & \text { Weight } & \text { Gary Mall } & \text { Belt Line } \
\hline \text { Affluence of local population } & .20 & 30 & 30 \
\hline \text { Traffic flow } & .40 & 50 & 20 \
\hline \text { Parking availability } & .20 & 30 & 40 \
\hline \text { Growth potential } & .20 & 10 & 30 \
\hline
\end{array}$$
The score for Gary Mall is __________ and the score for Belt Line is __________.

Accepted Answer

A)  120; 120 
B)  22; 24 
C)  18; 120 
D)  34; 28 
E)  none of the above 
A)  120; 120 
B)  22; 24 
C)  18; 120 
D)  34; 28 
E)  none of the above

Question 15

Tangible costs include which of the following?

Accepted Answer

A)  climatic conditions 
B)  availability of public transportation 
C)  taxes 
D)  quality and attitude of prospective employees 
E)  zoning regulations 
A)  climatic conditions 
B)  availability of public transportation 
C)  taxes 
D)  quality and attitude of prospective employees 
E)  zoning regulations

Question 16

A school district is considering four locations for a new high school. There are four factors the district is considering (Cost of land, distance to students, land size, and traffic flow). The district would like to compare results using two weighting systems. The first system would give each factor equal weight and the second would give the factors weights of .4, .2, .1, and .3 respectively. Fill in the missing information in the table and then use the factor rating method to determine which location is best for each weighting system.
 $$\begin{array} { | l | l | l | l | l | l | l | }  
\hline\text { Factor } & \text { W(1) } & \text { W(2) } & \text { A } & \text { B } & \text { C } & \text { D } \
\hline \text { Cost of Land } & \mathbf { 1 } & \mathbf { .4 } & 10 & 20 & 25 & 5 \
\hline \begin{array} { l } 
\text { Distance to } \
\text { Students }
\end{array} & \mathbf { 1 } & \mathbf { .2 } & 30 & 25 & 15 & 20 \
\hline \text { Land Size } & \mathbf { 1 } & \mathbf { .1 } & 5 & 10 & 20 & 40 \
\hline \text { Traffic Flow } & \mathbf { 1 } & \mathbf { .3 } & 20 & 5 & 15 & 30 \
\hline
\end{array}$$

Accepted Answer

Students should first fill in the W(1) a

Question 17

Why does FedEx use a "hub-and-spoke" airline network, rather than a "point-to-point" network?
 Describe FedEx's approach to choosing the airports that serve as its hubs.

Accepted Answer

The hub system is more centralized, and

Question 18

FedEx chose Memphis, Tennessee, for its central location, or "hub," primarily because of the incentives offered by the city of Memphis and the state of Tennessee.

Accepted Answer

A) True 
 B)False

Question 19

Why is Northern Mexico used as a cluster for electronics firms?

Accepted Answer

A)  high traffic flows 
B)  venture capitalists located nearby 
C)  natural resources of land and climate 
D)  NAFTA 
E)  high per capita GDP 
A)  high traffic flows 
B)  venture capitalists located nearby 
C)  natural resources of land and climate 
D)  NAFTA 
E)  high per capita GDP

Question 20

The __________ method is popular because a wide variety of factors, from education to recreation to labor skills, can be objectively included.

Accepted Answer

The answer of The __________ method is popular because a...

Exam 10: Location Strategies

The __________ is a mathematical technique used for finding the best location for a single distribution point that services several stores or areas.

Intangible costs include which of the following?

The center-of-gravity method does not take into consideration the

What kinds of location decisions are appropriate for use of center-of-gravity analysis? What variable is being optimized in this analysis?

Which of these assumptions is not associated with strategies for goods-producing location decisions?

Is Starbucks Coffee a user of Geographic Information Systems? Support your answer with examples.

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

In location decisions, intangible costs are easier to measure than tangible costs.

Traffic counts and purchasing power analysis of drawing area are techniques associated with

When __________, in addition to creativity and R&D investments, is critical to operations strategy, cost may cease to be the primary focus of location criteria.

When innovation replaces cost as a firm's focus for location decisions, the presence of other state-of-the-art firms is a plus, not a negative, for the firm's competitiveness.

Tangible costs include which of the following?

Why does FedEx use a "hub-and-spoke" airline network, rather than a "point-to-point" network? Describe FedEx's approach to choosing the airports that serve as its hubs.

FedEx chose Memphis, Tennessee, for its central location, or "hub," primarily because of the incentives offered by the city of Memphis and the state of Tennessee.

Why is Northern Mexico used as a cluster for electronics firms?

The __________ method is popular because a wide variety of factors, from education to recreation to labor skills, can be objectively included.

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

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