Question 1

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

Accepted Answer

A) determine the evaluation criteria 
B) identify important factors 
C) develop location alternatives 
D) evaluate alternatives and make a selection 
E) request input regarding alternatives 
A) determine the evaluation criteria 
B) identify important factors 
C) develop location alternatives 
D) evaluate alternatives and make a selection 
E) request input regarding alternatives D

Question 2

If it is estimated that thirty 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.nor 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.nor Beta Blvd. 
E) become a virtual organization A

Question 3

If the amount of fabric shipped to each plant is equal, what is the optimal location for the fabric plant?

Accepted Answer

A) 5, 5 
B) 6, 4 
C) 4, 6 
D) 6, 2 
E) 5, 4 
A) 5, 5 
B) 6, 4 
C) 4, 6 
D) 6, 2 
E) 5, 4 B

Question 4

Advanced communications has aided globalization.

Accepted Answer

A) True 
 B)False

Question 5

If it is estimated that thirty persons will be living in this new chapter house, what would be the Skull's 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 6

A manager must decide between two location alternatives, Boston and Chicago.Boston would have annual fixed costs of $70,000, transportation costs of $60 per unit, and labor and material costs of $200 per unit.Chicago would have annual fixed costs of $90,000, transportation costs of $40 per unit, and labor and material costs of $170 per unit.Revenue will be $300 per unit.
(A) Which alternative would yield the higher profit for an annual demand of 3,000 units?
(B) Would the two locations yield the same profit at a certain volume? If so, at what volume would that be?

Accepted Answer

@#IMG-DLM& A) At a volume of 3,000 units

Question 7

The method for evaluating location alternatives which uses their total cost curves is:

Accepted Answer

A) cost-volume analysis 
B) transportation model analysis 
C) factor rating analysis 
D) linear regression analysis 
E) MODI analysis 
A) cost-volume analysis 
B) transportation model analysis 
C) factor rating analysis 
D) linear regression analysis 
E) MODI analysis

Question 8

The center of gravity method is a location planning technique that determines a composite score from weighted factor evaluation.

Accepted Answer

A) True 
 B)False

Question 9

One of the reasons for the importance of location decisions is its strategic importance to the supply chains.

Accepted Answer

A) True 
 B)False

Question 10

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 11

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 12

Location decisions are closely tied to an organization's strategies.

Accepted Answer

A) True 
 B)False

Question 13

The center of gravity method of location planning is accurate only when the quantities to be shipped to each location are equal.

Accepted Answer

A) True 
 B)False

Question 14

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:

Accepted Answer

A) be indifferent between these locations 
B) choose Akron 
C) choose Boston 
D) reject both locations 
E) build a plant in both cities 
A) be indifferent between these locations 
B) choose Akron 
C) choose Boston 
D) reject both locations 
E) build a plant in both cities

Question 15

Which of the following is not a location option that management can consider in location planning?

Accepted Answer

A) expand an existing facility 
B) add a new location 
C) relocate from one location to another 
D) do nothing 
E) All are possible options. 
A) expand an existing facility 
B) add a new location 
C) relocate from one location to another 
D) do nothing 
E) All are possible options.

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

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

Question 18

As a result of the factor rating analysis, a manager may sometimes reject all of the alternatives under consideration when the composite scores are below the minimum threshold value.

Accepted Answer

A) True 
 B)False

Question 19

Determine the optimum location for a distribution center 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 20

You can't make a mistake by locating where labor costs are low.

Accepted Answer

A) True 
 B)False

Exam 8: Location Planning and Analysis

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

If it is estimated that thirty persons will be living in this new chapter house, which location should the Skulls select?

If the amount of fabric shipped to each plant is equal, what is the optimal location for the fabric plant?

Advanced communications has aided globalization.

If it is estimated that thirty persons will be living in this new chapter house, what would be the Skull's annual cost savings by selecting the less costly location, rather than the more costly?

The method for evaluating location alternatives which uses their total cost curves is:

The center of gravity method is a location planning technique that determines a composite score from weighted factor evaluation.

One of the reasons for the importance of location decisions is its strategic importance to the supply chains.

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

If weekly shipments to each warehouse will be approximately equal, what is the optimal location for the distribution center?

Location decisions are closely tied to an organization's strategies.

The center of gravity method of location planning is accurate only when the quantities to be shipped to each location are equal.

Which of the following is not a location option that management can consider in location planning?

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

Nearness to raw materials would be most important to a .....

As a result of the factor rating analysis, a manager may sometimes reject all of the alternatives under consideration when the composite scores are below the minimum threshold value.

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

You can't make a mistake by locating where labor costs are low.

Introduction to Operations Management

Competitiveness, Strategy, and Productivity

Forecasting

Product and Service Design

Strategic Capacity Planning for Products and Services

Process Selection and Facility Layout

Work Design and Measurement

Management of Quality

Quality Control

Aggregate Planning and Master Scheduling

MRP and ERP

Inventory Management

Jit and Lean Operations

Supply Chain Management

Scheduling

Project Management

Management of Waiting Lines

Linear Programming

Extension 4: Reliability

Extension 5: Decision Theory

Extension 7: Learning Curves

Extension 8: The Transportation Model

Extension 10: Acceptance Sampling

Extension 14: Maintenance

Filters