Question 1

A employee produces 15 parts during a shift in which he made $90. The labor content of the product is

Accepted Answer

A)  $90 
B)  $5 
C)  $6 
D)  $.167 
E)  none of the above 
A)  $90 
B)  $5 
C)  $6 
D)  $.167 
E)  none of the above

Question 2

Identify the changes that have fostered globalization.

Accepted Answer

Changes that foster globalizat

Question 3

Which of the following is not among the eight determinants of revenue and volume for a service firm?

Accepted Answer

A)  quality of the management 
B)  shipment cost of finished goods 
C)  purchasing power of the customer-drawing area 
D)  uniqueness of the firm's and the competitor's locations 
E)  competition in the area 
A)  quality of the management 
B)  shipment cost of finished goods 
C)  purchasing power of the customer-drawing area 
D)  uniqueness of the firm's and the competitor's locations 
E)  competition in the area

Question 4

Evaluating location alternatives by comparing their composite (weighted-average) scores involves

Accepted Answer

A)  factor-rating analysis 
B)  cost-volume analysis 
C)  transportation model analysis 
D)  linear regression analysis 
E)  crossover analysis 
A)  factor-rating analysis 
B)  cost-volume analysis 
C)  transportation model analysis 
D)  linear regression analysis 
E)  crossover analysis

Question 5

The transportation method, when applied to location analysis

Accepted Answer

A)  minimizes total fixed costs 
B)  minimizes total production and transportation costs 
C)  minimizes total transportation costs 
D)  maximizes revenues 
E)  minimizes the movement of goods 
A)  minimizes total fixed costs 
B)  minimizes total production and transportation costs 
C)  minimizes total transportation costs 
D)  maximizes revenues 
E)  minimizes the movement of goods

Question 6

Which of the following is most likely to affect the location decision of a service firm rather than a manufacturing firm?

Accepted Answer

A)  energy and utility costs 
B)  attitude toward unions 
C)  parking and access 
D)  cost of shipping finished goods 
E)  labor costs 
A)  energy and utility costs 
B)  attitude toward unions 
C)  parking and access 
D)  cost of shipping finished goods 
E)  labor costs

Question 7

East Texas Seasonings is preparing to build one processing center to serve its four sources of seasonings. The four source locations are at coordinates shown below. Also, the volume from each source is provided.
a. Calculate the volume-weighted center of gravity.
b. Calculate the simple center of gravity (all cities weighted equally).
c. Explain why the two calculations differ.
 $$\begin{array} { | l | c | c | c | } 
\hline & \text { X-coordinate } & \text { Y-coordinate } & \text { Volume } \
\hline \text { Athens, Texas } & 30 & 40 & 100 \
\hline \text { Beaumont, Texas } & 20 & 15 & 400 \
\hline \text { Carthage, Texas } & 55 & 60 & 150 \
\hline \text { Denton, Texas } & 20 & 70 & 250 \
\hline
\end{array}$$

Accepted Answer

The weighted center of gravity is locate

Question 8

Generally, the objective of the location decision is to maximize the firm's profit.

Accepted Answer

A) True 
 B)False

Question 9

What is it called when competing companies locate next to each other?
 Why do they do this?

Accepted Answer

It is called clustering. In many cases,

Question 10

What is the role of labor productivity in location decisions?
 Why is it more important than low wages in location decisions?

Accepted Answer

Labor productivity is the number of unit

Question 11

Community attitudes, zoning restrictions, and quality of labor force are likely to be considered in which of the following location decision methods?

Accepted Answer

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

Question 12

FedEx schedules its aircraft using a __________ system, which it credits with reducing package mishandling and delay in transit.

Accepted Answer

The answer of FedEx schedules its aircraft using a __________...

Question 13

Lists have been developed that rank countries on issues such as "competitiveness" and "corruption."

Accepted Answer

A) True 
 B)False

Question 14

East Texas Seasonings is preparing to build one processing center to serve its four sources of seasonings. The four source locations are at coordinates shown below. Also, the volume from each source is provided. What is the center of gravity?
$$\begin{array} { | l | c | c | c | } 
\hline & \text { X-coordinate } & \text { Y-coordinate } & \text { Volume } \
\hline \text { Athens, Texas } & 30 & 30 & 150 \
\hline \text { Beaumont, Texas } & 20 & 10 & 350 \
\hline \text { Carthage, Texas } & 10 & 70 & 100 \
\hline \text { Denton, Texas } & 50 & 50 & 200 \
\hline
\end{array}$$

Accepted Answer

A)  X = 28.125; Y = 31.25 
B)  X = 22000; Y = 24000 
C)  X = 27.5; Y = 40 
D)  center of gravity = 28 
E)  none of the above 
A)  X = 28.125; Y = 31.25 
B)  X = 22000; Y = 24000 
C)  X = 27.5; Y = 40 
D)  center of gravity = 28 
E)  none of the above

Question 15

Labor cost per unit is also referred to as __________.

Accepted Answer

The answer of Labor cost per unit is also referred...

Question 16

The __________ is used to determine the best pattern of shipments from several points of supply to several points of demand.

Accepted Answer

transporta

Question 17

A location decision for an appliance manufacturer would tend to have a(n)

Accepted Answer

A)  cost focus 
B)  focus on finding very highly skilled technicians 
C)  revenue focus 
D)  environmental focus 
E)  education focus 
A)  cost focus 
B)  focus on finding very highly skilled technicians 
C)  revenue focus 
D)  environmental focus 
E)  education focus

Question 18

What is the impact of exchange rates on location decisions?

Accepted Answer

Exchange rates fluct

Question 19

Location analysis techniques typically employed by service organizations include

Accepted Answer

A)  factor rating method 
B)  center-of-gravity method 
C)  purchasing power analysis of area 
D)  traffic counts 
E)  all of the above 
A)  factor rating method 
B)  center-of-gravity method 
C)  purchasing power analysis of area 
D)  traffic counts 
E)  all of the above

Question 20

Consider the list of Key Success Factors in your textbook. Why do some items appear at the country level only, while others are present at both country and regional levels?
 Select one KSF as an example, and use it in your discussion.

Accepted Answer

A key success factor should appear where

Exam 10: Location Strategies

A employee produces 15 parts during a shift in which he made $90. The labor content of the product is

Identify the changes that have fostered globalization.

Which of the following is not among the eight determinants of revenue and volume for a service firm?

Evaluating location alternatives by comparing their composite (weighted-average) scores involves

The transportation method, when applied to location analysis

Which of the following is most likely to affect the location decision of a service firm rather than a manufacturing firm?

Generally, the objective of the location decision is to maximize the firm's profit.

What is it called when competing companies locate next to each other? Why do they do this?

What is the role of labor productivity in location decisions? Why is it more important than low wages in location decisions?

Community attitudes, zoning restrictions, and quality of labor force are likely to be considered in which of the following location decision methods?

FedEx schedules its aircraft using a __________ system, which it credits with reducing package mishandling and delay in transit.

Lists have been developed that rank countries on issues such as "competitiveness" and "corruption."

Labor cost per unit is also referred to as __________.

The __________ is used to determine the best pattern of shipments from several points of supply to several points of demand.

A location decision for an appliance manufacturer would tend to have a(n)

What is the impact of exchange rates on location decisions?

Location analysis techniques typically employed by service organizations include

Consider the list of Key Success Factors in your textbook. Why do some items appear at the country level only, while others are present at both country and regional levels? Select one KSF as an example, and use it in your discussion.

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