Question 1

Which of the following is a location analysis technique typically employed by a service organization?

Accepted Answer

A) purchasing power analysis 
B) linear programming 
C) queuing theory 
D) transportation method 
E) locational cost-volume analysis 
A) purchasing power analysis 
B) linear programming 
C) queuing theory 
D) transportation method 
E) locational cost-volume analysis A

Question 2

On the crossover chart where the costs of two or more location alternatives have been plotted,the quantity at which two cost curves cross is the quantity at which:

Accepted Answer

A) fixed costs are equal for two alternative locations. 
B) variable costs are equal for two alternative locations. 
C) total costs are equal for all alternative locations. 
D) fixed costs equal variable costs for one location. 
E) total costs are equal for two alternative locations. 
A) fixed costs are equal for two alternative locations. 
B) variable costs are equal for two alternative locations. 
C) total costs are equal for all alternative locations. 
D) fixed costs equal variable costs for one location. 
E) total costs are equal for two alternative locations. E

Question 3

A manufacturing company preparing to build a new plant is considering three potential locations for it.The fixed and variable costs for the three alternative locations are presented below.
a.Complete a numeric locational cost-volume analysis.
b.Indicate over what range each of the alternatives A,B,C is the low-cost choice.
c.Is any alternative never preferred? Explain.

Accepted Answer

B is cheapest up to 125,000 units; C is cheapest after 166,667 units.A is cheapest in between.The B-C crossover is not relevant.Thus each alternative has an attractive range.

Question 4

A location decision for a traditional department store (e.g.,Macy's)would tend to have what type of focus?

Accepted Answer

A) cost focus 
B) labor focus 
C) revenue focus 
D) environmental focus 
E) education focus 
A) cost focus 
B) labor focus 
C) revenue focus 
D) environmental focus 
E) education focus

Question 5

________ and ________ are to key country success factors as ________ and ________ are to key region success factors.

Accepted Answer

A) Cultural issues,location of markets; site size and cost,zoning restrictions 
B) Exchange rates,labor availability; site size and cost,environmental impact 
C) Labor cost,currency risk; land costs,proximity to customers 
D) Land costs,proximity to customers; labor cost,air and rail systems 
E) All of the above are accurate relationships. 
A) Cultural issues,location of markets; site size and cost,zoning restrictions 
B) Exchange rates,labor availability; site size and cost,environmental impact 
C) Labor cost,currency risk; land costs,proximity to customers 
D) Land costs,proximity to customers; labor cost,air and rail systems 
E) All of the above are accurate relationships.

Question 6

Political risk,cultural issues,and exchange rates are among those ________ that affect which country will be selected for a location decision.

Accepted Answer

The answer of Political risk,cultural issues,and exchange rates are among...

Question 7

East Texas Seasonings is preparing to build one processing center to serve its four sources of seasonings.The four source locations are at coordinates shown below.Also,the volume from each source is provided.
a.Calculate the volume-weighted center of gravity.
b.Calculate the simple center of gravity (all cities weighted equally).
c.Explain why the two calculations differ.

Accepted Answer

The weighted center of gravity is locate

Question 8

For a location decision,labor productivity may be important in isolation,but low wage rates are a more important criterion.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is most likely to affect the location decision of a service firm rather than a manufacturing firm?

Accepted Answer

A) energy and utility costs 
B) attitude toward unions 
C) parking and access 
D) cost of shipping finished goods 
E) labor costs 
A) energy and utility costs 
B) attitude toward unions 
C) parking and access 
D) cost of shipping finished goods 
E) labor costs

Question 10

Industrial location analysis typically attempts to:

Accepted Answer

A) minimize costs. 
B) maximize sales. 
C) focus more on human resources. 
D) avoid countries with strict environmental regulations. 
E) ignore exchange rates and currency risks. 
A) minimize costs. 
B) maximize sales. 
C) focus more on human resources. 
D) avoid countries with strict environmental regulations. 
E) ignore exchange rates and currency risks.

Question 11

Traffic counts and purchasing power analysis of drawing area are techniques associated with:

Accepted Answer

A) locational cost-volume analysis. 
B) a manufacturing location decision. 
C) a retail or professional service location decision. 
D) the factor-rating method. 
E) the transportation model. 
A) locational cost-volume analysis. 
B) a manufacturing location decision. 
C) a retail or professional service location decision. 
D) the factor-rating method. 
E) the transportation model.

Question 12

A school district is considering four locations for a new high school.There are four factors the district is considering (cost of land,distance to students,land size,and traffic flow).The higher the factor score,the better.The district would like to compare results using two weighting systems.The first system would give each factor equal weight and the second would give the factors weights of .4,.2,.1,and .3 respectively.Use the factor rating method to determine which location is best for each weighting system.(Note that the weights for system 1 can be anything,as long as they're equal.)

Accepted Answer

Applying the factor rating met

Question 13

Identify five factors that have fostered globalization.

Accepted Answer

Globalization has taken place because of

Question 14

A school district is considering where in town to house its central office (The office must also be located at an existing school for cost reasons).If there are five schools in the district,with locations and size given in the following table,use the center-of-gravity method to determine at which school the central office should be placed to minimize the average distance between the office and students.

Accepted Answer

The total number of students is (2500 +

Question 15

Every month,a distribution center will deliver 14,000 units to Retailer A at coordinates (20,10),12,000 units to Retailer B at coordinates (30,-15),and 20,000 units to Retailer C at coordinates (4,4).Assuming no constraints on location,at what coordinates should the distribution center be located (rounded to two decimal places)?

Accepted Answer

(15.65,0.87),where 15.65 = [20

Question 16

What is an approach to location analysis that includes both qualitative and quantitative considerations?

Accepted Answer

A) locational cost-volume analysis 
B) factor-rating method 
C) transportation model 
D) center-of-gravity method 
E) make-or-buy analysis 
A) locational cost-volume analysis 
B) factor-rating method 
C) transportation model 
D) center-of-gravity method 
E) make-or-buy analysis

Question 17

Globalization of the location decision is the result of all EXCEPT which of the following?

Accepted Answer

A) market economics 
B) higher quality of labor overseas 
C) ease of capital flow between countries 
D) high differences in labor costs 
E) more rapid,reliable travel and shipping 
A) market economics 
B) higher quality of labor overseas 
C) ease of capital flow between countries 
D) high differences in labor costs 
E) more rapid,reliable travel and shipping

Question 18

"Proximity" or closeness implies that a firm should locate "close" to something.What are the three kinds of proximity described in the text? What are the basic conditions under which each is appropriate? What kinds of firms are likely to use each of these?

Accepted Answer

The three are proximity to markets,proxi

Question 19

A manufacturer of stamped metal auto parts has four parts factories in one city at the location coordinates shown below.Each coordinate unit represents a city block (roughly 100 meters).The yearly demand at each factory is also given.
   Management has decided to build a new sheet metal mill,to supply these factories,at a location central to these plants.What should be the map coordinates of the new plant?

Accepted Answer

The mill s

Question 20

The center-of-gravity method is used primarily to determine what type of locations?

Accepted Answer

A) service locations 
B) manufacturing locations 
C) distribution center locations 
D) supplier locations 
E) call center locations 
A) service locations 
B) manufacturing locations 
C) distribution center locations 
D) supplier locations 
E) call center locations

Exam 9: Location Strategies

Which of the following is a location analysis technique typically employed by a service organization?

On the crossover chart where the costs of two or more location alternatives have been plotted,the quantity at which two cost curves cross is the quantity at which:

A location decision for a traditional department store (e.g.,Macy's)would tend to have what type of focus?

________ and ________ are to key country success factors as ________ and ________ are to key region success factors.

Political risk,cultural issues,and exchange rates are among those ________ that affect which country will be selected for a location decision.

For a location decision,labor productivity may be important in isolation,but low wage rates are a more important criterion.

Which of the following is most likely to affect the location decision of a service firm rather than a manufacturing firm?

Industrial location analysis typically attempts to:

Traffic counts and purchasing power analysis of drawing area are techniques associated with:

Identify five factors that have fostered globalization.

What is an approach to location analysis that includes both qualitative and quantitative considerations?

Globalization of the location decision is the result of all EXCEPT which of the following?

"Proximity" or closeness implies that a firm should locate "close" to something.What are the three kinds of proximity described in the text? What are the basic conditions under which each is appropriate? What kinds of firms are likely to use each of these?

The center-of-gravity method is used primarily to determine what type of locations?

Operations and Productivity

Operations Strategy in a Global Environment

Project Management

Forecasting

Design of Goods and Services

Managing Quality

Process Strategy

Capacity and Constraint Management

Layout Strategies

Human Resources, job Design, and Work Measurement

Supply Chain Management

Inventory Management

Aggregate Planning and Sop

Material Requirements Planning Mrpand Erp

Short-Term Scheduling

Jit, tps, and Lean Operations

Maintenance and Reliability

Sustainability in the Supply Chain

Statistical Process Control

Supply Chain Management Analytics

Decision-Making Tools

Linear Programming

Transportation Models

Waiting-Line Models

Learning Curves

Simulation

Filters

and are to key country success factors as and are to key region success factors.