Question 1

The transportation model calculates an optimal shipping system between a central facility and several outlying customers.

Accepted Answer

A) True 
 B)False

Question 2

In location planning,environmental regulations,cost and availability of utilities,and taxes are:

Accepted Answer

A) global factors. 
B) country factors. 
C) regional/community factors. 
D) site-related factors. 
E) none of the above. 
A) global factors. 
B) country factors. 
C) regional/community factors. 
D) site-related factors. 
E) none of the above.

Question 3

A regional bookstore chain wants to build a distribution center that is centrally located for its eight retail outlets.It will most likely employ which of the following tools of analysis?

Accepted Answer

A) assembly line balancing 
B) load-distance analysis 
C) center-of-gravity method 
D) linear programming 
E) locational cost-volume analysis 
A) assembly line balancing 
B) load-distance analysis 
C) center-of-gravity method 
D) linear programming 
E) locational cost-volume analysis

Question 4

The ________ method is popular because a wide variety of factors,from education to recreation to labor skills,can be objectively included.

Accepted Answer

The answer of The ________ method is popular because a...

Question 5

FedEx chose Memphis,Tennessee,for its central location,or "hub," primarily because of the incentives offered by the city of Memphis and the state of Tennessee.

Accepted Answer

A) True 
 B)False

Question 6

State the fundamental objective of a firm's location strategy.How is this basic objective carried out by industrial or goods-producing firms; how does that differ for service firms?

Accepted Answer

The fundamental objective is to maximize

Question 7

Manufacturers may want to locate close to their customers if the transportation of finished goods is expensive or difficult.

Accepted Answer

A) True 
 B)False

Question 8

Geographic information systems can assist the location decision by:

Accepted Answer

A) automating center-of-gravity problems. 
B) computerizing factor-rating analysis. 
C) combining geography with demographic analysis. 
D) updating transportation method solutions. 
E) providing good Internet placement for virtual storefronts. 
A) automating center-of-gravity problems. 
B) computerizing factor-rating analysis. 
C) combining geography with demographic analysis. 
D) updating transportation method solutions. 
E) providing good Internet placement for virtual storefronts.

Question 9

FedEx schedules its aircraft using a(n)________ system,which it credits with reducing package mishandling and delay in transit.

Accepted Answer

The answer of FedEx schedules its aircraft using a(n)________ system,which...

Question 10

Service firms choose locations based,in part,on the revenue potential of a site.

Accepted Answer

A) True 
 B)False

Question 11

A small manufacturer is considering several locations for a new facility.They have identified four factors that they consider to be important for their location decision.They have decided to assign scores to the four factors,with a higher score indicating a more favorable location.Use the information in the following table to perform a factor rating to select the best location.

Accepted Answer

Location B

Question 12

Intangible costs include which of the following?

Accepted Answer

A) quality of prospective employees 
B) quality of education 
C) availability of public transportation 
D) all of the above 
E) none of the above 
A) quality of prospective employees 
B) quality of education 
C) availability of public transportation 
D) all of the above 
E) none of the above

Question 13

A manager has received an analysis of several cities being considered for a new order fulfillment center (warehouse)for Shop at Home Network.The scores (scale is 10 points = best)are contained in the table below.
a.If the manager weights the factors equally,how would the locations be ranked?
b.If transportation costs and operating costs are given weights that are double the weights of the others,should the locations be ranked differently?

Accepted Answer

The locations are ranked W,Y,X

Question 14

Which of the following assumptions is NOT associated with strategies for goods-producing location decisions?

Accepted Answer

A) Most major costs can be identified explicitly for each site. 
B) Focus on identifiable costs. 
C) High customer-contact issues are critical. 
D) Intangible costs can be evaluated. 
E) Location is a major determinant of cost. 
A) Most major costs can be identified explicitly for each site. 
B) Focus on identifiable costs. 
C) High customer-contact issues are critical. 
D) Intangible costs can be evaluated. 
E) Location is a major determinant of cost.

Question 15

Which of the following workers is the most productive?

Accepted Answer

A) $50 wages,10 parts produced 
B) $10 wages,1 part produced 
C) $30 wages,5 parts produced 
D) $100 wages,21 parts produced 
E) $500 wages,100 parts produced 
A) $50 wages,10 parts produced 
B) $10 wages,1 part produced 
C) $30 wages,5 parts produced 
D) $100 wages,21 parts produced 
E) $500 wages,100 parts produced

Question 16

The owner of a millwork shop is considering three alternative locations for a new plant for building embossed-and-clad steel exterior doors for residences.Fixed and variable costs follow.Since the plant ships nationwide,revenue is assumed the same regardless of plant location.Identify the range over which each location is best.

Accepted Answer

A is cheapest from 0

Question 17

A employee produces 15 parts during a shift in which he made $90.What is the labor content of the product?

Accepted Answer

A) $90 
B) $5 
C) $6 
D) $0.167 
E) $1,350 
A) $90 
B) $5 
C) $6 
D) $0.167 
E) $1,350

Question 18

A highway contractor needs to locate a single supply point to provide road building materials to four projects.The four projects,which are all approximately the same magnitude,are located at the following coordinates.Coordinate units are in miles.
   a.What is the center of gravity?
b.If a single truck were sent from center-of-gravity to each project and back (four round trips),how many miles would be traveled? (Hint: use the Pythagorean Theorem C =   ).

Accepted Answer

a.The supply point should be a

Question 19

A clothing chain is considering two different locations for a new retail outlet.The organization has identified the four factors listed in the following table as the basis for evaluation,and it has assigned weights as shown.The manager has rated each location on each factor,on a 100-point basis (higher scores are better),as shown under the respective columns for Barclay and Chester.
a.Calculate the composite score for each alternative location.
b.Which site should be chosen?
c.Are you concerned about the sensitivity and subjectivity of this solution? Comment.

Accepted Answer

The higher rated site is Chester,74.5 to

Question 20

Evaluating location alternatives by comparing their composite (weighted-average)scores involves which of the following?

Accepted Answer

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

Exam 9: Location Strategies

The transportation model calculates an optimal shipping system between a central facility and several outlying customers.

In location planning,environmental regulations,cost and availability of utilities,and taxes are:

A regional bookstore chain wants to build a distribution center that is centrally located for its eight retail outlets.It will most likely employ which of the following tools of analysis?

The ________ method is popular because a wide variety of factors,from education to recreation to labor skills,can be objectively included.

FedEx chose Memphis,Tennessee,for its central location,or "hub," primarily because of the incentives offered by the city of Memphis and the state of Tennessee.

State the fundamental objective of a firm's location strategy.How is this basic objective carried out by industrial or goods-producing firms; how does that differ for service firms?

Manufacturers may want to locate close to their customers if the transportation of finished goods is expensive or difficult.

Geographic information systems can assist the location decision by:

FedEx schedules its aircraft using a(n)________ system,which it credits with reducing package mishandling and delay in transit.

Service firms choose locations based,in part,on the revenue potential of a site.

Intangible costs include which of the following?

Which of the following assumptions is NOT associated with strategies for goods-producing location decisions?

Which of the following workers is the most productive?

A employee produces 15 parts during a shift in which he made $90.What is the labor content of the product?

Evaluating location alternatives by comparing their composite (weighted-average)scores involves which of the following?

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

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