A manufacturing firm is considering two locations for a plant to produce a new product. The two locations have fixed and variable costs as follows: \[\begin{array} { l c c } \text { Location } & \mathrm { FC } \text { (annual) } & \mathrm { VC } \text { (per unit) } \\ \hline \text { Atlanta } & \$ 80,000 & \$ 20 \\ \text { Phoenix } & \$ 140,000 & \$ 16 \end{array}\] What would the total annual costs be for the Phoenix location with an annual output of 10,000 units?

A) $280,000 B) $140,000 C) $220,000 D) $300,000 E) $156,000 A) $280,000 B) $140,000 C) $220,000 D) $300,000 E) $156,000 D

A hardware distributor has regional warehouses at the locations shown below. The company wants to locate a new central distribution center to serve this warehouse network. \[\begin{array} { c c } \text { Location } & ( \mathrm { x } , \mathrm { y } ) \\ \hline \mathrm { A } & 2,3 \\ \mathrm {~B} & 3,7 \\ \mathrm { C } & 5,5 \\ \mathrm { D } & 7,3 \\ \mathrm { E } & 8,7 \end{array}\] Weekly shipments to each warehouse will be: WH1, 100; WH2, 150; WH3, 120; WH4, 150; and WH5, 120. What is the optimal location of the distribution center?

A) 5.1, 4.2 B) 5.2, 4.0 C) 5.1, 5.1 D) 4.2, 5.1 E) 4.9, 5.2 A) 5.1, 4.2 B) 5.2, 4.0 C) 5.1, 5.1 D) 4.2, 5.1 E) 4.9, 5.2

A manufacturing firm is considering two locations for a plant to produce a new product. The two locations have fixed and variable costs as follows: \[\begin{array} { l c c } \text { Location } & \text { FC (annual) } & \text { VC (per unit) } \\ \hline \text { Atlanta } & \$ 80,000 & \$ 20 \\ \text { Phoenix } & \$ 140,000 & \$ 16 \end{array}\] What would be the total annual costs at the point of indifference?

A) $300,000 B) $240,000 C) $380,000 D) $220,000 E) $760,000 A) $300,000 B) $240,000 C) $380,000 D) $220,000 E) $760,000

A location analysis has been narrowed down to three locations. The critical factors, their weights, and the ratings for each location are shown below: \[\begin{array} { l c c c c } & { \text { Location } } \\ \text { Factor } & \text { Wt. } & \text { A } & \text { B } & \text { C } \\ \hline \text { Labor Cost } & .4 & 70 & 80 & 90 \\ \text { Transportation Cost } & .2 & 80 & 80 & 60 \\ \text { Market Access } & .2 & 90 & 70 & 60 \\ \text { RawMaterials Cost } & .1 & 50 & 70 & 90 \\ \text { Utility Cost } & .1 & 80 & 90 & 70 \end{array}\] If the decision rule is to select the location with the greatest composite score exceeding 80, management should choose:

A) location A. B) location B. C) location C. D) either location B or location C. E) to reject all locations. A) location A. B) location B. C) location C. D) either location B or location C. E) to reject all locations.

Exam 11: Location Planning and Analysis

A manufacturing firm is considering two locations for a plant to produce a new product. The two locations have fixed and variable costs as follows: Location (annual) (per unit) Atlanta \ 80,000 \ 20 Phoenix \ 140,000 \ 16 What would the total annual costs be for the Phoenix location with an annual output of 10,000 units?

Free

(Multiple Choice)

4.8/5

(28)

Question 1

Correct Answer:

Verified

D

Advanced communications has aided globalization.

Free

(True/False)

4.8/5

(41)

Question 2

Correct Answer:

Verified

True

For service and retail stores, a prime factor in location analysis is customer access.

Free

(True/False)

4.9/5

(32)

Question 3

Correct Answer:

Verified

True

A hardware distributor has regional warehouses at the locations shown below. The company wants to locate a new central distribution center to serve this warehouse network. Location (,) 2,3 3,7 5,5 7,3 8,7 Weekly shipments to each warehouse will be: WH1, 100; WH2, 150; WH3, 120; WH4, 150; and WH5, 120. What is the optimal location of the distribution center?

(Multiple Choice)

4.8/5

(27)

Question 4

Which of the following is least important as a consideration for a firm at the beginning of a supply chain?

(Multiple Choice)

4.8/5

(36)

Question 5

For service organizations, the dominant factors in location analysis usually are market-related.

(True/False)

4.9/5

(37)

Question 6

Location choice I has monthly fixed costs of $100,000 and per-unit variable costs of $10. Location choice J has monthly fixed costs of $150,000 and per-unit variable costs of $9. At what volume would these locations have equal total costs?

(Multiple Choice)

4.9/5

(35)

Question 7

In general, managing global operations is made easier by and .

(Multiple Choice)

4.9/5

(27)

Question 8

Which of the following is the last step in the procedure for making location decisions?

(Multiple Choice)

4.9/5

(37)

Question 9

A strategy that emphasizes convenience for the customers would probably select a single very large facility.

(True/False)

4.9/5

(34)

Question 10

The Skulls, a student social organization, has two different locations under consideration for constructing a new chapter house. The Skulls' president, a POM student, estimates that due to differing land costs, utility rates, etc., both fixed and variable costs would be different for each of the proposed sites, as follows: Location Annual Fixed Variable Alpha Ave. \ 5,000 \ 200 perperson Beta Blvd. \ 8,000 \ 150 per person What would be the total annual costs for the Alpha Ave. location with 20 persons living there?

(Multiple Choice)

4.9/5

(34)

Question 11

Which statement best characterizes the objective ofa typical search for location alternatives?

(Multiple Choice)

4.8/5

(37)

Question 12

For service firms such as banks and supermarkets, location decisions are critical elements of __________ strategy.

(Multiple Choice)

4.8/5

(38)

Question 13

A location analysis has been narrowed down to two locations, Akron and Boston. The main factors in the decision will be the supply of raw materials, which has a weight of .50, transportation cost, which has a weight of .40, and labor cost, which has a weight of .10. The scores for raw materials, transportation, and labor are for Akron 60, 80, and 70, respectively; for Boston 70, 50, and 90, respectively. Given this information and a minimum acceptable composite score of 75, we can say that the manager should:

(Multiple Choice)

4.9/5

(38)

Question 14

Location decisions are basically one-time decisions usually made by new organizations.

(True/False)

4.8/5

(26)

Question 15

A manufacturing firm is considering two locations for a plant to produce a new product. The two locations have fixed and variable costs as follows: Location FC (annual) VC (per unit) Atlanta \ 80,000 \ 20 Phoenix \ 140,000 \ 16 What would be the total annual costs at the point of indifference?

(Multiple Choice)

4.8/5

(36)

Question 16

Locational cost-profit-volume analysis assumes: I. nonlinear variable costs. II.fixed costs that are constant over the range of possible output. III.accurate estimates regarding the required level of output. IV.multiple products.

(Multiple Choice)

4.9/5

(30)

Question 17

The fact that most types of firms are located in every section of the country suggests that in many cases, location decisions are not overly important; one location typically is as good as another.

(True/False)

4.9/5

(36)

Question 18

Retail businesses generally prefer locations that are not near other retailers, as this reduces their competition.

(True/False)

4.8/5

(31)

Question 19

A location analysis has been narrowed down to three locations. The critical factors, their weights, and the ratings for each location are shown below: Location Factor Wt. A B C Labor Cost .4 70 80 90 Transportation Cost .2 80 80 60 Market Access .2 90 70 60 RawMaterials Cost .1 50 70 90 Utility Cost .1 80 90 70 If the decision rule is to select the location with the greatest composite score exceeding 80, management should choose:

(Multiple Choice)

4.9/5

(40)

Question 20

Advanced communications has aided globalization.

For service and retail stores, a prime factor in location analysis is customer access.

Which of the following is least important as a consideration for a firm at the beginning of a supply chain?

For service organizations, the dominant factors in location analysis usually are market-related.

Location choice I has monthly fixed costs of $100,000 and per-unit variable costs of $10. Location choice J has monthly fixed costs of $150,000 and per-unit variable costs of $9. At what volume would these locations have equal total costs?

In general, managing global operations is made easier by and .

Which of the following is the last step in the procedure for making location decisions?

A strategy that emphasizes convenience for the customers would probably select a single very large facility.

Which statement best characterizes the objective ofa typical search for location alternatives?

For service firms such as banks and supermarkets, location decisions are critical elements of __________ strategy.

Location decisions are basically one-time decisions usually made by new organizations.

A manufacturing firm is considering two locations for a plant to produce a new product. The two locations have fixed and variable costs as follows: Location FC (annual) VC (per unit) Atlanta \ 80,000 \ 20 Phoenix \ 140,000 \ 16 What would be the total annual costs at the point of indifference?

Locational cost-profit-volume analysis assumes: I. nonlinear variable costs. II.fixed costs that are constant over the range of possible output. III.accurate estimates regarding the required level of output. IV.multiple products.

The fact that most types of firms are located in every section of the country suggests that in many cases, location decisions are not overly important; one location typically is as good as another.

Retail businesses generally prefer locations that are not near other retailers, as this reduces their competition.

Introduction to Operations Management

Competitiveness

Forecasting

Product and Service Design

RELIABILITY – Static

Strategic Capacity Planning for Products and Services

Decision Theory– Static

Process Selection and Facility Layout

Work Design and Measurement

learning curve– Static

The Transportation Model– Static

Management of Quality

Quality Control

Acceptance Sampling– Static

Aggregate Planning and Master Scheduling

MRP and ERP

Inventory Management

JIT and Lean Operations

Maintenance– Static

Supply Chain Management

Scheduling

Project Management

Management of Waiting Lines

Linear Programming

Filters

Exam 11: Location Planning and Analysis

Advanced communications has aided globalization.

For service and retail stores, a prime factor in location analysis is customer access.

Which of the following is least important as a consideration for a firm at the beginning of a supply chain?

For service organizations, the dominant factors in location analysis usually are market-related.

Location choice I has monthly fixed costs of $100,000 and per-unit variable costs of $10. Location choice J has monthly fixed costs of $150,000 and per-unit variable costs of $9. At what volume would these locations have equal total costs?

In general, managing global operations is made easier by __________ and __________.

Which of the following is the last step in the procedure for making location decisions?

A strategy that emphasizes convenience for the customers would probably select a single very large facility.

Which statement best characterizes the objective ofa typical search for location alternatives?

For service firms such as banks and supermarkets, location decisions are critical elements of __________ strategy.

Location decisions are basically one-time decisions usually made by new organizations.

A manufacturing firm is considering two locations for a plant to produce a new product. The two locations have fixed and variable costs as follows: Location FC (annual) VC (per unit) Atlanta \ 80,000 \ 20 Phoenix \ 140,000 \ 16 What would be the total annual costs at the point of indifference?

Locational cost-profit-volume analysis assumes: I. nonlinear variable costs. II.fixed costs that are constant over the range of possible output. III.accurate estimates regarding the required level of output. IV.multiple products.

The fact that most types of firms are located in every section of the country suggests that in many cases, location decisions are not overly important; one location typically is as good as another.

Retail businesses generally prefer locations that are not near other retailers, as this reduces their competition.

Introduction to Operations Management

Competitiveness

Forecasting

Product and Service Design

RELIABILITY – Static

Strategic Capacity Planning for Products and Services

Decision Theory– Static

Process Selection and Facility Layout

Work Design and Measurement

learning curve– Static

The Transportation Model– Static

Management of Quality

Quality Control

Acceptance Sampling– Static

Aggregate Planning and Master Scheduling

MRP and ERP

Inventory Management

JIT and Lean Operations

Maintenance– Static

Supply Chain Management

Scheduling

Project Management

Management of Waiting Lines

Linear Programming

Filters

In general, managing global operations is made easier by and .