Question 1

Devaluation refers to ______.

Accepted Answer

A) reduction in the value of a currency 
B) drop in market value for a company 
C) reduction in the price of a product 
D) loss of market share for a product 
A) reduction in the value of a currency 
B) drop in market value for a company 
C) reduction in the price of a product 
D) loss of market share for a product A

Question 2

Which of the following is true with regard to factor rating method?

Accepted Answer

A) Rate the importance of each factor on a scale of 1 to 5 (with 1 being low and 5 being very highly important). 
B) Identify the one factor that is common to all locations. 
C) For each factor and each location,compute a score by summing the factor rating and the location rating. 
D) The location with the highest subjective rating is chosen. 
A) Rate the importance of each factor on a scale of 1 to 5 (with 1 being low and 5 being very highly important). 
B) Identify the one factor that is common to all locations. 
C) For each factor and each location,compute a score by summing the factor rating and the location rating. 
D) The location with the highest subjective rating is chosen. A

Question 3

Many ______ are not uncovered until the products reach the hands of consumers.

Accepted Answer

A) transportation Issues 
B) quality and safety issues 
C) currency and exchange rate risks 
D) import/export restrictions 
A) transportation Issues 
B) quality and safety issues 
C) currency and exchange rate risks 
D) import/export restrictions B

Question 4

Which of the following is NOT a relevant question for a firm in terms of sustainability?

Accepted Answer

A) Does the facility have access to fossil fuels? 
B) Does the facility have access to recycling opportunities for the company's waste? 
C) Does the facility meet all applicable environmental laws and regulations? 
D) Is the facility cost effective,given that the location is sustainable? 
A) Does the facility have access to fossil fuels? 
B) Does the facility have access to recycling opportunities for the company's waste? 
C) Does the facility meet all applicable environmental laws and regulations? 
D) Is the facility cost effective,given that the location is sustainable?

Question 5

Which of the following is NOT a key advantage of locating a plant in Mexico?

Accepted Answer

A) China's manufacturing wages are up to 30% lower than in Mexico. 
B) The North American Free Trade agreement makes it easier. 
C) Mexican manufacturers pay far less for natural gas than Chinese manufacturers. 
D) Mexican businesses are able to take advantage of reduced transportation costs. 
A) China's manufacturing wages are up to 30% lower than in Mexico. 
B) The North American Free Trade agreement makes it easier. 
C) Mexican manufacturers pay far less for natural gas than Chinese manufacturers. 
D) Mexican businesses are able to take advantage of reduced transportation costs.

Question 6

Trade agreements such as ______ have made it attractive to companies to locate abroad.

Accepted Answer

A) FICO 
B) GATT 
C) PATT 
D) WTA 
A) FICO 
B) GATT 
C) PATT 
D) WTA

Question 7

All of the following are critical success factors at Stage 3 of location decisions except ______.

Accepted Answer

A) size of site 
B) visibility and traffic patterns 
C) labor climate 
D) space to expand 
A) size of site 
B) visibility and traffic patterns 
C) labor climate 
D) space to expand

Question 8

The GIS method in location decisions stands for ______.

Accepted Answer

A) global information system 
B) geometric information system 
C) geographic information system 
D) global information service 
A) global information system 
B) geometric information system 
C) geographic information system 
D) global information service

Question 9

McDonald's and ______ have enjoyed remarkable long-term success operating around the world.

Accepted Answer

A) Kroger 
B) Kohl's 
C) Wal-Mart 
D) Whataburger 
A) Kroger 
B) Kohl's 
C) Wal-Mart 
D) Whataburger

Question 10

Clustering occurs where ______.

Accepted Answer

A) there is a concentration of critical resources in a particular region 
B) population is sparse 
C) there are not many consumers 
D) government requires production facilities to be located 
A) there is a concentration of critical resources in a particular region 
B) population is sparse 
C) there are not many consumers 
D) government requires production facilities to be located

Question 11

The center-of-gravity method assumes that distribution costs are a linear function of ______.

Accepted Answer

A) distance and quantity shipped 
B) weight of a product and quantity shipped 
C) distance and speed 
D) quantity shipped and speed 
A) distance and quantity shipped 
B) weight of a product and quantity shipped 
C) distance and speed 
D) quantity shipped and speed

Question 12

In reference to protection of private and intellectual property rights,IPRI stands for ______.

Accepted Answer

A) Intellectual Property Rights Index 
B) Internal Property Rights Index 
C) International Proprietary Reference Index 
D) International Property Rights Index 
A) Intellectual Property Rights Index 
B) Internal Property Rights Index 
C) International Proprietary Reference Index 
D) International Property Rights Index

Question 13

By performing a ______,we can find the location that has lowest total cost for a given volume range.

Accepted Answer

A) factor rating method 
B) breakeven analysis 
C) center-of-gravity method 
D) GIS method 
A) factor rating method 
B) breakeven analysis 
C) center-of-gravity method 
D) GIS method

Question 14

The objective in the last phase of the supply chain design and facility location process is to ______.

Accepted Answer

A) consider the availability of the necessary infrastructure 
B) determine the number of facilities needed for the supply chain 
C) come up with a final supply chain design that will maximize the profits for the company 
D) determine the role each facility would play in meeting the market requirements 
A) consider the availability of the necessary infrastructure 
B) determine the number of facilities needed for the supply chain 
C) come up with a final supply chain design that will maximize the profits for the company 
D) determine the role each facility would play in meeting the market requirements

Question 15

Mexico is poised to become the largest auto manufacturing location in the world,thanks to its ______.

Accepted Answer

A) infrastructure 
B) political environment 
C) liberal free trade policies 
D) legal system 
A) infrastructure 
B) political environment 
C) liberal free trade policies 
D) legal system

Question 16

Firms that focus on market growth often ______.

Accepted Answer

A) locate their facilities in reasonable proximity to the new market that they are planning to enter 
B) relocate the manufacturing plant to be closer to shifting market areas 
C) ensure that the product packaging is frequently redesigned to accommodate new markets 
D) identify new sources of raw materials closer to new markets 
A) locate their facilities in reasonable proximity to the new market that they are planning to enter 
B) relocate the manufacturing plant to be closer to shifting market areas 
C) ensure that the product packaging is frequently redesigned to accommodate new markets 
D) identify new sources of raw materials closer to new markets

Question 17

Many American companies have moved their headquarters abroad in order to escape ______.

Accepted Answer

A) property taxes 
B) tax rebates 
C) favorable tax rates 
D) financial incentives 
A) property taxes 
B) tax rebates 
C) favorable tax rates 
D) financial incentives

Question 18

Which of the following is associated with the need for cultural sensitivity by a company?

Accepted Answer

A) dealing with gender differences in labor practices 
B) promoting products that can be sold to consumers 
C) hiring women for certain factory jobs in some countries 
D) dealing with product specifications mandated by the local government 
A) dealing with gender differences in labor practices 
B) promoting products that can be sold to consumers 
C) hiring women for certain factory jobs in some countries 
D) dealing with product specifications mandated by the local government

Question 19

Which of the following is NOT an analytical method managers use to evaluate locations?

Accepted Answer

A) factor rating method 
B) breakeven analysis 
C) center-of-gravity method 
D) geometric analysis system 
A) factor rating method 
B) breakeven analysis 
C) center-of-gravity method 
D) geometric analysis system

Question 20

Total Cost = ______.

Accepted Answer

A) (Fixed Cost)x (Production Volume)+ (Variable Cost Per Unit) 
B) (Fixed Cost)+ (Production Volume)+ (Variable Cost Per Unit) 
C) (Fixed Cost)+ (Production Volume)x (Variable Cost Per Unit) 
D) (Fixed Cost)x (Production Volume)x (Variable Cost Per Unit) 
A) (Fixed Cost)x (Production Volume)+ (Variable Cost Per Unit) 
B) (Fixed Cost)+ (Production Volume)+ (Variable Cost Per Unit) 
C) (Fixed Cost)+ (Production Volume)x (Variable Cost Per Unit) 
D) (Fixed Cost)x (Production Volume)x (Variable Cost Per Unit)

Exam 10: Supply Chain Design and Location Planning

Devaluation refers to ______.

Which of the following is true with regard to factor rating method?

Many ______ are not uncovered until the products reach the hands of consumers.

Which of the following is NOT a relevant question for a firm in terms of sustainability?

Which of the following is NOT a key advantage of locating a plant in Mexico?

Trade agreements such as ______ have made it attractive to companies to locate abroad.

All of the following are critical success factors at Stage 3 of location decisions except ______.

The GIS method in location decisions stands for ______.

McDonald's and ______ have enjoyed remarkable long-term success operating around the world.

Clustering occurs where ______.

The center-of-gravity method assumes that distribution costs are a linear function of ______.

In reference to protection of private and intellectual property rights,IPRI stands for ______.

By performing a ______,we can find the location that has lowest total cost for a given volume range.

The objective in the last phase of the supply chain design and facility location process is to ______.

Mexico is poised to become the largest auto manufacturing location in the world,thanks to its ______.

Firms that focus on market growth often ______.

Many American companies have moved their headquarters abroad in order to escape ______.

Which of the following is associated with the need for cultural sensitivity by a company?

Which of the following is NOT an analytical method managers use to evaluate locations?

Total Cost = ______.

Introduction to Managing Global Operations and Supply Chains

Operations and Supply Chain Strategies

Project Management

Supplement: Project Management

Product and Service Innovations

Supplement: Reliability

Managing for Quality

Quality Improvement and Control Tools

Capacity Planning

Process Design and Layout Planning

Supplement: Tools for Analyzing, Designing, and Selecting Processes and Layouts

Supplier Management

Logistics Management

Demand Management and Customer Service

Demand Forecasting Methods

Lean Operations and Supply Chains

Inventory Management

Inventory Control Models

Sales and Operations Planning

Master Scheduling and Material Requirements Planning

Supplement: Capacity Requirements Planning, MRP II, ERP, and DRP

Detailed Scheduling

Linear Programming

The Transportation Models

Waiting Line Models

Simulation

Learning Curves

Decision-Making Tools

Filters