Question 1

Factor rating is limited to quantitative information concerning location decisions.

Accepted Answer

A) True 
 B)False  False

Question 2

For manufacturing firms,two dominating factors in location analysis are abundance of energy and proximity to raw materials.

Accepted Answer

A) True 
 B)False  True

Question 3

Corruption in foreign locations can generally be viewed as an advantage in attracting companies to Canada.

Accepted Answer

A) True 
 B)False  False

Question 4

In location planning,the location of raw materials,the location of markets and labour factors are considered:

Accepted Answer

A)  regional factors. 
B)  community factors. 
C)  site-related factors. 
D)  the basis of negotiating government subsidies. 
E)  none of the choices are factors. 
A)  regional factors. 
B)  community factors. 
C)  site-related factors. 
D)  the basis of negotiating government subsidies. 
E)  none of the choices are factors.

Question 5

If the annual demand is 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 6

Taxes are an example of a community-related factor in location decisions.

Accepted Answer

A) True 
 B)False

Question 7

Determine the optimum location for a distribution centre to serve the following locations.Shipments to each location will be approximately equal.

Accepted Answer

The answer of Determine the optimum location for a distribution...

Question 8

Location decisions are basically one-time decisions that only pertain to newly formed organizations.

Accepted Answer

A) True 
 B)False

Question 9

The factor rating method of location planning uses a coordinate overlay to determine relative locations.

Accepted Answer

A) True 
 B)False

Question 10

What is the composite score for location C?

Accepted Answer

A)  69 
B)  72 
C)  75 
D)  79 
E)  82 
A)  69 
B)  72 
C)  75 
D)  79 
E)  82

Question 11

The centre of gravity method is useful in location planning for the location of a distribution centre.

Accepted Answer

A) True 
 B)False

Question 12

For agricultural companies,locating close to raw materials is typically a necessity.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) be indifferent between these locations. 
B) choose location A. 
C) choose location B. 
D) reject both locations. 
A) be indifferent between these locations. 
B) choose location A. 
C) choose location B. 
D) reject both locations.

Question 14

Which of the following is least likely to be a country (national)factor in location decisions?

Accepted Answer

A)  Location of raw materials 
B)  Markets 
C)  Government subsidies 
D)  Zoning/regulations 
E)  Labour factors 
A)  Location of raw materials 
B)  Markets 
C)  Government subsidies 
D)  Zoning/regulations 
E)  Labour factors

Question 15

What would the total annual costs be for the Phoenix location with an annual output of 10,000 units?

Accepted Answer

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

Question 16

New or small organizations often adopt an informal approach to location decisions.

Accepted Answer

A) True 
 B)False

Question 17

At what annual output would the company be indifferent between the two locations?

Accepted Answer

A)  60,000 units 
B)  15,000 units 
C)  10,000 units 
D)  20,000 units 
E)  4,000 units 
A)  60,000 units 
B)  15,000 units 
C)  10,000 units 
D)  20,000 units 
E)  4,000 units

Question 18

-What are total costs for site B for a quantity of 5,000 units per year?

Accepted Answer

The answer of  
-What are total costs for site...

Question 19

Which of the following are basic steps in the location decision process?
I.Identify important search parameters and factors
II.Gather information on appropriate sites
III.Visit short-listed sites
IV.Evaluate the alternatives and make a selection

Accepted Answer

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

Question 20

How many people would be living in the new chapter house at the point of indifference?

Accepted Answer

A)  20 
B)  30 
C)  40 
D)  50 
E)  60 
A)  20 
B)  30 
C)  40 
D)  50 
E)  60

Exam 8: A: Location Planning and Analysis

Factor rating is limited to quantitative information concerning location decisions.

For manufacturing firms,two dominating factors in location analysis are abundance of energy and proximity to raw materials.

Corruption in foreign locations can generally be viewed as an advantage in attracting companies to Canada.

In location planning,the location of raw materials,the location of markets and labour factors are considered:

If the annual demand is 20,000 units,what would be the cost advantage of the better location?

Taxes are an example of a community-related factor in location decisions.

Determine the optimum location for a distribution centre to serve the following locations.Shipments to each location will be approximately equal.

Location decisions are basically one-time decisions that only pertain to newly formed organizations.

The factor rating method of location planning uses a coordinate overlay to determine relative locations.

What is the composite score for location C?

The centre of gravity method is useful in location planning for the location of a distribution centre.

For agricultural companies,locating close to raw materials is typically a necessity.

Which of the following is least likely to be a country (national)factor in location decisions?

What would the total annual costs be for the Phoenix location with an annual output of 10,000 units?

New or small organizations often adopt an informal approach to location decisions.

At what annual output would the company be indifferent between the two locations?

-What are total costs for site B for a quantity of 5,000 units per year?

Which of the following are basic steps in the location decision process? I.Identify important search parameters and factors II.Gather information on appropriate sites III.Visit short-listed sites IV.Evaluate the alternatives and make a selection

How many people would be living in the new chapter house at the point of indifference?

Introduction to Operations Management

Competitiveness, Strategic Planning, and Productivity

Demand Forecasting

A: Product Design

B: Product Design

A: Strategic Capacity Planning

B: Strategic Capacity Planning

A: Process Design and Facility Layout

B: Process Design and Facility Layout

A: Design of Work Systems

B: Design of Work Systems

B: Location Planning and Analysis

Management of Quality

A: Statistical Quality Control

B: Statistical Quality Control

Supply Chain Management

Inventory Management

Aggregate Operations Planning

Material Requirements Planning and Enterprise Resource Planning

A: Just-In-Time and Lean Production

B: Just-In-Time and Lean Production

Job and Staff Scheduling

Project Management

A: Waiting-Line Analysis

B: Waiting-Line Analysis

Filters