Exam 9: Location Strategies

As described in the book Aerotropolis,nowadays location decisions worldwide are often being based on what?

Community attitudes,zoning restrictions,and quality of labor force are likely to be considered in which of the following location decision methods?

What kinds of location decisions are appropriate for the use of locational cost-volume analysis? Write a brief paragraph explaining how the method can assist an operations manager in choosing among alternative sites in making a location decision.

Which of the following is NOT among the eight determinants of revenue and volume for a service firm?

Why does FedEx use a central hub airline network,rather than a "point-to-point" network? Describe FedEx's approach to choosing its superhub.

What is it called when competing companies locate next to each other? Why do they do this?

What is the role of labor productivity in location decisions?

A jewelry store is more likely than a jewelry manufacturer to consider ________ in making a location decision.

A telecommunications firm is planning to lay fiber optic cable from several community college distance learning sites to a central studio,in such a way that the miles of cable are minimized.Some locations require more than one set of cables (these are the loads).Where should the studio be located to accomplish the objective?

Industrial firms choose locations that minimize cost,but service firms look for locations with good demographics and traffic count because these variables are indicators of good ________.

A firm is considering two location alternatives.At location A,fixed costs would be $4,000,000 per year,and variable costs $0.30 per unit.At alternative B,fixed costs would be $3,600,000 per year,with variable costs of $0.35 per unit.If annual demand is expected to be 10 million units,which plant offers the lowest total cost?

Traffic counts and demographic analysis of drawing area are associated with:

A manufacturing firm is considering three potential locations for a new parts manufacturing facility.A consulting firm has assessed three sites based on the four factors supplied by management as critical to the location's success.Given the management-supplied factor weights and the consultant team scores,which location should be selected? Scores are based on 50 = best.

A clothing chain is considering two different locations for a new retail outlet.They have identified the four factors listed in the following table as the basis for evaluation,and have assigned weights as shown.The manager has rated each location on each factor,on a 100-point basis,as shown under the respective columns for Barclay and Chester. What is the score for Chester?

A small producer of music boxes wants to move to a larger facility.Two alternative facilities have been found.Site 1 has a fixed cost of $500,000 per year,with a variable cost of $25 per unit.Site 2 has a fixed cost of $800,000 per year,but a variable cost of $22 per unit. a.Write out the equation for total cost for each site. b.At what volume of output would the two locations have the same total cost? c.For what range of output would Site 1 be superior? d.For what range of output would Site 2 be superior?

Why is Northern Mexico used as a cluster for electronics firms?

An example of an intangible cost,as it relates to location decisions,is the quality of education.

A grocery chain is deciding on where to locate its new distribution center (DC).The new DC will serve four grocery stores,each with a demand of 10,000 units.If the coordinates of the stores are (112,108),(110,50),(40,85),and (10,25)where should the DC be located? Suppose now that each store instead had demand of 20,000 units.Where should the DC go in this case?

The factor-rating method can consider both tangible and intangible costs.

Labor cost per unit is also referred to as ________.