Question 1

If the decisions rule is to select the location with the greatest composite score exceeding 80, management should choose:

Accepted Answer

A) location A 
B) location B 
C) location C 
D) either B or C 
E) to reject all locations 
A) location A 
B) location B 
C) location C 
D) either B or C 
E) to reject all locations

Question 2

What would be total annual costs for the Alpha Ave.location with twenty persons living there?

Accepted Answer

A) $5,400 
B) $4,000 
C) $5,000 
D) $7,000 
E) $9,000 
A) $5,400 
B) $4,000 
C) $5,000 
D) $7,000 
E) $9,000

Question 3

What is the composite score for location C?

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 4

Which of the following is least important as a consideration for a firm at the beginning of a supply chain?

Accepted Answer

A) Access to end consumers 
B) Access to resources 
C) Proximity to customers 
D) Access to transportation infrastructure 
E) Access to productive labor 
A) Access to end consumers 
B) Access to resources 
C) Proximity to customers 
D) Access to transportation infrastructure 
E) Access to productive labor

Question 5

A firm is trying to decide between two location alternatives, Albany and Baltimore.Albany would result in annual fixed costs of $60,000, labor costs of $7 per unit, material costs of $10 per unit, transportation costs of $15 per unit, and revenue per unit of $50.Baltimore would have annual fixed costs of $80,000, labor costs of $6 per unit, material costs of $9 per unit, transportation costs of $14 per unit, and revenue per unit of $48.
(A) At an annual volume of 9,000, which would yield the higher profit?
(B) At what annual volume would management be indifferent between the two alternatives in terms of annual profits?

Accepted Answer

@#IMG-DLM& A) At an annual volume of 9,0

Question 6

Retail businesses generally prefer locations that are not near other retailers, as this reduces their competition.

Accepted Answer

A) True 
 B)False

Question 7

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 8

Which statement best characterizes a typical search for location alternatives?

Accepted Answer

A) identify the best location choice 
B) minimize cost consequences 
C) maximize associated profits 
D) locate near markets 
E) identify acceptable locations 
A) identify the best location choice 
B) minimize cost consequences 
C) maximize associated profits 
D) locate near markets 
E) identify acceptable locations

Question 9

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 10

The method for evaluating location alternatives which uses their composite (weighted-average) scores 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 11

A one-hour photo processing machine in a Wal-Mart store is an example of a _________.

Accepted Answer

A) micro-factory 
B) downsize strategy 
C) diversified strategy 
D) lean production system 
E) falling price strategy 
A) micro-factory 
B) downsize strategy 
C) diversified strategy 
D) lean production system 
E) falling price strategy

Question 12

For service organizations, the dominant factors in location analysis usually are market-related.

Accepted Answer

A) True 
 B)False

Question 13

The lower cost of foreign labor is often offset by lower levels of productivity.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A) regional factors 
B) community factors 
C) site-related factors 
D) national factors 
E) minor considerations 
A) regional factors 
B) community factors 
C) site-related factors 
D) national factors 
E) minor considerations

Question 15

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 16

Some communities offer financial and other incentives to ______ new businesses.

Accepted Answer

A) Tax 
B) Attract 
C) Marginalize 
D) Incorporate 
E) Zone 
A) Tax 
B) Attract 
C) Marginalize 
D) Incorporate 
E) Zone

Question 17

An approach to location analysis that can include both qualitative and quantitative considerations is:

Accepted Answer

A) location cost-volume 
B) factor rating 
C) transportation model 
D) expected value (net present value) 
E) financial analysis 
A) location cost-volume 
B) factor rating 
C) transportation model 
D) expected value (net present value) 
E) financial analysis

Question 18

A "micro-factory" is a small, automated facility with a narrow product focus located near major markets.

Accepted Answer

A) True 
 B)False

Question 19

If the selection criteria is to be the greatest composite score, management should choose:

Accepted Answer

A) location A 
B) location B 
C) location C 
D) either B or C 
E) to reject all locations 
A) location A 
B) location B 
C) location C 
D) either B or C 
E) to reject all locations

Question 20

The center of gravity method is used to _______ travel time, distance and costs.

Accepted Answer

A) Normalize 
B) Eliminate 
C) Average 
D) Minimize 
E) Document 
A) Normalize 
B) Eliminate 
C) Average 
D) Minimize 
E) Document

Exam 8: Location Planning and Analysis

If the decisions rule is to select the location with the greatest composite score exceeding 80, management should choose:

What would be total annual costs for the Alpha Ave.location with twenty persons living there?

What is the composite score for location C?

Which of the following is least important as a consideration for a firm at the beginning of a supply chain?

Retail businesses generally prefer locations that are not near other retailers, as this reduces their competition.

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 statement best characterizes a typical search for location alternatives?

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

The method for evaluating location alternatives which uses their composite (weighted-average) scores is:

A one-hour photo processing machine in a Wal-Mart store is an example of a _________.

For service organizations, the dominant factors in location analysis usually are market-related.

The lower cost of foreign labor is often offset by lower levels of productivity.

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

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

Some communities offer financial and other incentives to ______ new businesses.

An approach to location analysis that can include both qualitative and quantitative considerations is:

A "micro-factory" is a small, automated facility with a narrow product focus located near major markets.

If the selection criteria is to be the greatest composite score, management should choose:

The center of gravity method is used to _______ travel time, distance and costs.

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