Question 1

BMW,Mercedes-Benz,Lexus,and Acura have all built plants in North America because ______.

Accepted Answer

A) of tax incentives 
B) they want to enhance their local market opportunities 
C) of lower labor costs 
D) of the establishment of European Union 
A) of tax incentives 
B) they want to enhance their local market opportunities 
C) of lower labor costs 
D) of the establishment of European Union

Question 2

Which of the following is NOT a decision that has to do with supply chains?

Accepted Answer

A) what and how much of a product to produce at each stage of the supply chain process 
B) how much inventory is to be held at each stage 
C) how and what type of information should be shared among supply chain partners 
D) what price to be charged for products 
A) what and how much of a product to produce at each stage of the supply chain process 
B) how much inventory is to be held at each stage 
C) how and what type of information should be shared among supply chain partners 
D) what price to be charged for products

Question 3

Which of the following is NOT associated with a grouping of firms in a particular location?

Accepted Answer

A) It is referred to as clustering. 
B) It often occurs when there is a concentration of critical resources in a particular region. 
C) Firms are located where there is a large talent pool of scientists and engineers. 
D) It contributes to the notion of sustainability. 
A) It is referred to as clustering. 
B) It often occurs when there is a concentration of critical resources in a particular region. 
C) Firms are located where there is a large talent pool of scientists and engineers. 
D) It contributes to the notion of sustainability.

Question 4

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

Accepted Answer

A) Is the facility in the right location for protecting natural resources? 
B) Does the facility have an efficient transportation infrastructure that can help minimize transportation activities in order to reduce carbon emissions? 
C) Does the facility have access to renewable energy sources,such as wind and solar energy? 
D) Is the product priced appropriately for its target market? 
A) Is the facility in the right location for protecting natural resources? 
B) Does the facility have an efficient transportation infrastructure that can help minimize transportation activities in order to reduce carbon emissions? 
C) Does the facility have access to renewable energy sources,such as wind and solar energy? 
D) Is the product priced appropriately for its target market?

Question 5

Which of the following is true of the center-of-gravity method used to evaluate a location?

Accepted Answer

A) It is a qualitative technique. 
B) It assumes that distribution costs are a linear function of only the distance and the quantity shipped. 
C) It makes use of satellite and geographic positioning systems. 
D) It ignores distribution costs. 
A) It is a qualitative technique. 
B) It assumes that distribution costs are a linear function of only the distance and the quantity shipped. 
C) It makes use of satellite and geographic positioning systems. 
D) It ignores distribution costs.

Question 6

The ability of an organization to transfer its earnings to another country is an example of ______.

Accepted Answer

A) environmental factors 
B) political factors influencing location decisions 
C) commerce restrictions 
D) technological factors 
A) environmental factors 
B) political factors influencing location decisions 
C) commerce restrictions 
D) technological factors

Question 7

For location decisions,in contrast to service companies manufacturing firms generally look for ______.

Accepted Answer

A) revenues 
B) cost minimization 
C) volumes sold 
D) traffic volumes and patterns 
A) revenues 
B) cost minimization 
C) volumes sold 
D) traffic volumes and patterns

Question 8

Which of the following is NOT a consequence faced by Detroit as a result of foreign competition and outsourcing?

Accepted Answer

A) a serious budget deficit 
B) declining services 
C) high levels of unemployment 
D) alarming levels of industrial pollution 
A) a serious budget deficit 
B) declining services 
C) high levels of unemployment 
D) alarming levels of industrial pollution

Question 9

Companies such as GM,GE,and Motorola have facilities in China and India mainly because of the ______.

Accepted Answer

A) tax incentives 
B) well-established Infrastructure 
C) lower labor costs 
D) availability of natural resources 
A) tax incentives 
B) well-established Infrastructure 
C) lower labor costs 
D) availability of natural resources

Question 10

If customer requirements vary,the firm would need ______.

Accepted Answer

A) a few large consolidated facilities 
B) several smaller localized facilities 
C) a few smaller localized facilities 
D) several large consolidated facilities 
A) a few large consolidated facilities 
B) several smaller localized facilities 
C) a few smaller localized facilities 
D) several large consolidated facilities

Question 11

Location decisions are ______.

Accepted Answer

A) nonsequential 
B) made in four stages 
C) made in six steps 
D) sequential 
A) nonsequential 
B) made in four stages 
C) made in six steps 
D) sequential

Question 12

Which of the following is NOT a critical success factor associated with the decision to locate on a particular site?

Accepted Answer

A) size of site 
B) proximity to raw materials 
C) construction and land costs 
D) zoning and environmental restrictions 
A) size of site 
B) proximity to raw materials 
C) construction and land costs 
D) zoning and environmental restrictions

Question 13

______ is an innovation hub for firms in the pharmaceutical industry.

Accepted Answer

A) Sweden 
B) United States 
C) Finland 
D) Australia 
A) Sweden 
B) United States 
C) Finland 
D) Australia

Question 14

A firm has no control over ______ factors that influence supply chain and location decisions.

Accepted Answer

A) technological 
B) environmental 
C) internal 
D) infrastructural 
A) technological 
B) environmental 
C) internal 
D) infrastructural

Question 15

When we use breakeven analysis to find a location for a manufacturing facility,we take into account ______.

Accepted Answer

A) revenues 
B) profits 
C) costs 
D) production quality 
A) revenues 
B) profits 
C) costs 
D) production quality

Question 16

Which of the following is NOT a step in the supply chain design and location decision-making process?

Accepted Answer

A) Design the supply chain. 
B) Determine the configuration of regional facilities. 
C) Identify the market for its products. 
D) Select potential sites for locating facilities. 
A) Design the supply chain. 
B) Determine the configuration of regional facilities. 
C) Identify the market for its products. 
D) Select potential sites for locating facilities.

Question 17

The second input to supply chain design is ______.

Accepted Answer

A) the firm's operational strategy 
B) the forecast of the potential global competition that is likely to exist in each of the firm's markets 
C) the firm's competitive strategy 
D) the identification of any internal constraints on its available capital 
A) the firm's operational strategy 
B) the forecast of the potential global competition that is likely to exist in each of the firm's markets 
C) the firm's competitive strategy 
D) the identification of any internal constraints on its available capital

Question 18

Which of the following is NOT a consequence faced by companies that relocate their facilities?

Accepted Answer

A) relocation costs 
B) bad publicity 
C) drop in market share 
D) loss of goodwill from consumers 
A) relocation costs 
B) bad publicity 
C) drop in market share 
D) loss of goodwill from consumers

Question 19

In Step 2 of breakeven analysis,plot the ______ on the vertical axis and the ______ on the horizontal axis.

Accepted Answer

A) fixed costs,variable costs 
B) total costs,annual production volume 
C) annual production volume,variable costs 
D) variable costs,fixed costs 
A) fixed costs,variable costs 
B) total costs,annual production volume 
C) annual production volume,variable costs 
D) variable costs,fixed costs

Question 20

Which of the following is considered to be an exchange rate risk?

Accepted Answer

A) devaluation 
B) loss of market share 
C) failure of supplier to deliver 
D) obsolescence 
A) devaluation 
B) loss of market share 
C) failure of supplier to deliver 
D) obsolescence

Exam 10: Supply Chain Design and Location Planning

BMW,Mercedes-Benz,Lexus,and Acura have all built plants in North America because ______.

Which of the following is NOT a decision that has to do with supply chains?

Which of the following is NOT associated with a grouping of firms in a particular location?

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

Which of the following is true of the center-of-gravity method used to evaluate a location?

The ability of an organization to transfer its earnings to another country is an example of ______.

For location decisions,in contrast to service companies manufacturing firms generally look for ______.

Which of the following is NOT a consequence faced by Detroit as a result of foreign competition and outsourcing?

Companies such as GM,GE,and Motorola have facilities in China and India mainly because of the ______.

If customer requirements vary,the firm would need ______.

Location decisions are ______.

Which of the following is NOT a critical success factor associated with the decision to locate on a particular site?

______ is an innovation hub for firms in the pharmaceutical industry.

A firm has no control over ______ factors that influence supply chain and location decisions.

When we use breakeven analysis to find a location for a manufacturing facility,we take into account ______.

Which of the following is NOT a step in the supply chain design and location decision-making process?

The second input to supply chain design is ______.

Which of the following is NOT a consequence faced by companies that relocate their facilities?

In Step 2 of breakeven analysis,plot the ______ on the vertical axis and the ______ on the horizontal axis.

Which of the following is considered to be an exchange rate risk?

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

In Step 2 of breakeven analysis,plot the on the vertical axis and the on the horizontal axis.