Question 1

When a location evaluation includes both quantitative and qualitative inputs, a technique that can be used is:

Accepted Answer

A)  linear programming. 
B)  consumer surveys. 
C)  factor rating. 
D)  transportation models. 
E)  center of gravity methods. 
A)  linear programming. 
B)  consumer surveys. 
C)  factor rating. 
D)  transportation models. 
E)  center of gravity methods.

Question 2

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: $$\begin{array} { l c c } 
\text { Location } & \text { Annual Fixed } & \text { Variable } \
\hline \text { Alpha Ave. } & \$ 5,000 & \$ 200 \text { perperson } \
\text { Beta Blvd. } & \$ 8,000 & \$ 150 \text { perperson }
\end{array}$$ If it is estimated that 30 persons will be living in this new chapter house, which location should the Skulls select?

Accepted Answer

A)  Alpha AvE. 
B)  Beta Blvd. 
C)  either Alpha Ave. or Beta Blvd. 
D)  reject both Alpha Ave. and Beta Blvd. 
E)  become a virtual organization. 
A)  Alpha AvE. 
B)  Beta Blvd. 
C)  either Alpha Ave. or Beta Blvd. 
D)  reject both Alpha Ave. and Beta Blvd. 
E)  become a virtual organization.

Question 3

An example of a regional factor in location planning is the location of our markets (either existing or potential).

Accepted Answer

A) True 
 B)False

Question 4

A location analysis has been narrowed down to three locations. The critical factors, their weights, and the ratings for each location are shown below:  
What is the composite score for location B?

Accepted Answer

A)  76 
B)  75 
C)  78 
D)  74 
E)  76.33 
A)  76 
B)  75 
C)  78 
D)  74 
E)  76.33

Question 5

When service firms such as retailers or banks make growth-spurred location decisions, typically these involve:

Accepted Answer

A)  finding new sources of resources to replace exhausted ones. 
B)  adding new locations rather than expanding existing ones. 
C)  closing down existing locations and opening new ones elsewhere. 
D)  expanding existing locations rather than adding new ones. 
E)  downsizing existing locations and opening new ones elsewhere. 
A)  finding new sources of resources to replace exhausted ones. 
B)  adding new locations rather than expanding existing ones. 
C)  closing down existing locations and opening new ones elsewhere. 
D)  expanding existing locations rather than adding new ones. 
E)  downsizing existing locations and opening new ones elsewhere.

Question 6

Location choice I has monthly fixed costs of $100,000 and per-unit variable costs of $10. What would its total cost be at a monthly volume of 250 units?

Accepted Answer

A)  $105,200 
B)  $102,500 
C)  $100,250 
D)  $100,520 
E)  $105,500 
A)  $105,200 
B)  $102,500 
C)  $100,250 
D)  $100,520 
E)  $105,500

Question 7

Which of the following is a location option that management can consider in location planning?
I.	Expand an existing facility.
II.	Add a new location.
III.	Relocate from one location to another.
IV.	Do nothing.

Accepted Answer

A)  I and II only. 
B)  I and III only. 
C)  II and IV only. 
D)  I, II, and III only. 
E)  I, II, III, and IV. 
A)  I and II only. 
B)  I and III only. 
C)  II and IV only. 
D)  I, II, and III only. 
E)  I, II, III, and IV.

Question 8

Technology has made communication with global operations as easy as local communication.

Accepted Answer

A) True 
 B)False

Question 9

When making location decisions, nonprofit organizations differ from for-profit ones in seeking a balance between:

Accepted Answer

A)  profits and opportunities. 
B)  costs and revenues. 
C)  costs and customer servicE. 
D)  growth and stability. 
E)  stability and opportunity. 
A)  profits and opportunities. 
B)  costs and revenues. 
C)  costs and customer servicE. 
D)  growth and stability. 
E)  stability and opportunity.

Question 10

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: $$\begin{array} { l c c } 
\text { Location } & \mathrm { FC } \text { (annual) } & \mathrm { VC } \text { (per unit) } \
\hline \text { Atlanta } & \$ 80,000 & \$ 20 \
\text { Phoenix } & \$ 140,000 & \$ 16
\end{array}$$ If annual demand is estimated to be 20,000 units, which location should the company select?

Accepted Answer

A)  Atlanta 
B)  Phoenix 
C)  either Atlanta or Phoenix 
D)  reject both Atlanta and Phoenix 
E)  build at both locations 
A)  Atlanta 
B)  Phoenix 
C)  either Atlanta or Phoenix 
D)  reject both Atlanta and Phoenix 
E)  build at both locations

Question 11

Among the potential disadvantages of having global operations is/are:

Accepted Answer

A)  low labor productivity. 
B)  less restrictive environmental regulation. 
C)  lower wage costs. 
D)  proximity to global markets. 
E)  favorable liability laws. 
A)  low labor productivity. 
B)  less restrictive environmental regulation. 
C)  lower wage costs. 
D)  proximity to global markets. 
E)  favorable liability laws.

Question 12

A clothing manufacturer produces clothing in five locations in the United States. In a move to vertical integration, the company is planning a new fabric production plant that will supply fabric to all five clothing plants. The clothing plants have been located on a coordinate system as follows: $$\begin{array} { c c } 
\text { Location } & ( \mathrm { x } , \mathrm { y } ) \
\hline \mathrm { A } & 7,2 \
\mathrm {~B} & 4,7 \
\mathrm { C } & 5,5 \
\mathrm { D } & 6,2 \
\mathrm { E } & 8,4
\end{array}$$ Shipments of fabric to each plant vary per week as follows: plant A, 200 units; plant B, 400 units; plant C, 300 units; plant D, 300 units; and plant E, 200 units. What is the optimal location for the fabric plant?

Accepted Answer

A)  6.2, 3.0 
B)  6.0, 4.0 
C)  6.5, 5.3 
D)  5.6, 4.4 
E)  5.0, 3.0 
A)  6.2, 3.0 
B)  6.0, 4.0 
C)  6.5, 5.3 
D)  5.6, 4.4 
E)  5.0, 3.0

Question 13

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: $$\begin{array} { l c c } 
\text { Location } & F C \text { (annual) } & \text { VC (per unit) } \
\hline \text { Atlanta } & \$ 80,000 & \$ 20 \
\text { Phoenix } & \$ 140,000 & \$ 16
\end{array}$$
If the annual demand will be 20,000 units, what would be the cost advantage of the better location?

Accepted Answer

A)  $20,000 
B)  $460,000 
C)  $480,000 
D)  $80,000 
E)  $60,000 
A)  $20,000 
B)  $460,000 
C)  $480,000 
D)  $80,000 
E)  $60,000

Question 14

Retail businesses often engage in ____________, the tendency to locate in close proximity to one another.

Accepted Answer

A)  centering 
B)  strategizing 
C)  clustering 
D)  localcasting 
E)  macromarketing 
A)  centering 
B)  strategizing 
C)  clustering 
D)  localcasting 
E)  macromarketing

Question 15

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: $$\begin{array} { l c c } 
\text { Location } & \text { Annual Fixed } & \text { Variable } \
\hline \text { Alpha Ave. } & \$ 5,000 & \$ 200 \text { perperson } \
\text { Beta Blvd. } & \$ 8,000 & \$ 150 \text { perperson }
\end{array}$$ If it is estimated that 30 persons will be living in this new chapter house, what would be the Skulls' annual cost savings by selecting the less costly location, rather than the more costly?

Accepted Answer

A)  $0 
B)  $1,500 
C)  $200 
D)  $150 
E)  $350 
A)  $0 
B)  $1,500 
C)  $200 
D)  $150 
E)  $350

Question 16

Which of the following circumstances would be least likely to lead to a need for a new location?

Accepted Answer

A)  shifting of markets 
B)  depletion of basic inputs 
C)  growth in demand that is leading to greater utilization of existing capacity 
D)  the need to expand into new markets 
E)  the opportunity to take advantage of globalization trends 
A)  shifting of markets 
B)  depletion of basic inputs 
C)  growth in demand that is leading to greater utilization of existing capacity 
D)  the need to expand into new markets 
E)  the opportunity to take advantage of globalization trends

Question 17

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. $$\begin{array} { c c } 
\text { Location } & ( \mathrm { x } , \mathrm { y } ) \
\hline \mathrm { A } & 2,3 \
\mathrm {~B} & 3,7 \
\mathrm { C } & 5,5 \
\mathrm { D } & 7,3 \
\mathrm { E } & 8,7
\end{array}$$
If weekly shipments to each warehouse will be approximately equal, what is the optimal location for the distribution center?

Accepted Answer

A)  5, 5 
B)  5, 4 
C)  4, 5 
D)  5, 6 
E)  6, 5 
A)  5, 5 
B)  5, 4 
C)  4, 5 
D)  5, 6 
E)  6, 5

Question 18

The center of gravity method is used to _______ travel time or shipping costs.

Accepted Answer

A)  normalize 
B)  eliminate 
C)  average 
D)  minimize 
E)  document 
A)  normalize 
B)  eliminate 
C)  average 
D)  minimize 
E)  document

Question 19

Labor laws are an important site-related factor.

Accepted Answer

A) True 
 B)False

Question 20

Nearness to raw materials would be most important to a:

Accepted Answer

A)  grocery store. 
B)  tax preparation service. 
C)  manufacturing company. 
D)  post office. 
E)  hospital. 
A)  grocery store. 
B)  tax preparation service. 
C)  manufacturing company. 
D)  post office. 
E)  hospital.

When a location evaluation includes both quantitative and qualitative inputs, a technique that can be used is:

An example of a regional factor in location planning is the location of our markets (either existing or potential).

A location analysis has been narrowed down to three locations. The critical factors, their weights, and the ratings for each location are shown below: What is the composite score for location B?

When service firms such as retailers or banks make growth-spurred location decisions, typically these involve:

Location choice I has monthly fixed costs of $100,000 and per-unit variable costs of $10. What would its total cost be at a monthly volume of 250 units?

Which of the following is a location option that management can consider in location planning? I. Expand an existing facility. II. Add a new location. III. Relocate from one location to another. IV. Do nothing.

Technology has made communication with global operations as easy as local communication.

When making location decisions, nonprofit organizations differ from for-profit ones in seeking a balance between:

Among the potential disadvantages of having global operations is/are:

Retail businesses often engage in ____________, the tendency to locate in close proximity to one another.

Which of the following circumstances would be least likely to lead to a need for a new location?

The center of gravity method is used to _______ travel time or shipping costs.

Labor laws are an important site-related factor.

Nearness to raw materials would be most important to a:

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

When a location evaluation includes both quantitative and qualitative inputs, a technique that can be used is:

An example of a regional factor in location planning is the location of our markets (either existing or potential).

A location analysis has been narrowed down to three locations. The critical factors, their weights, and the ratings for each location are shown below: What is the composite score for location B?

When service firms such as retailers or banks make growth-spurred location decisions, typically these involve:

Location choice I has monthly fixed costs of $100,000 and per-unit variable costs of $10. What would its total cost be at a monthly volume of 250 units?

Which of the following is a location option that management can consider in location planning? I. Expand an existing facility. II. Add a new location. III. Relocate from one location to another. IV. Do nothing.

Technology has made communication with global operations as easy as local communication.

When making location decisions, nonprofit organizations differ from for-profit ones in seeking a balance between:

Among the potential disadvantages of having global operations is/are:

Retail businesses often engage in ____________, the tendency to locate in close proximity to one another.

Which of the following circumstances would be least likely to lead to a need for a new location?

The center of gravity method is used to _______ travel time or shipping costs.

Labor laws are an important site-related factor.

Nearness to raw materials would be most important to a:

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