Question 1

Location decisions of goods-producing companies often assume that costs are relatively constant for a given area; therefore,the revenue function is critical.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is NOT one of the predictive variables chosen by the profitability regression model used by La Quinta Inns?

Accepted Answer

A) the price of the inn 
B) median income levels 
C) the state population per inn 
D) the location of nearby colleges 
E) the number of inns in a region 
A) the price of the inn 
B) median income levels 
C) the state population per inn 
D) the location of nearby colleges 
E) the number of inns in a region

Question 3

Lists have been developed that rank countries on issues such as "competitiveness" and "corruption."

Accepted Answer

A) True 
 B)False

Question 4

The reason fast food restaurants often are found in close proximity to each other is:

Accepted Answer

A) they enjoy competition. 
B) location clustering near high traffic flows. 
C) low cost. 
D) availability of skilled labor. 
E) all of the above. 
A) they enjoy competition. 
B) location clustering near high traffic flows. 
C) low cost. 
D) availability of skilled labor. 
E) all of the above.

Question 5

Location A would result in annual fixed costs of $300,000 and variable costs of $55 per unit.Annual fixed costs at Location B are $600,000 with variable costs of $32 per unit.Sales volume is estimated to be 30,000 units per year.Which location has the lower cost at this volume? How large is its cost advantage? At what volume are the two facilities equal in cost?

Accepted Answer

At 30,000 units,Location A has total cos

Question 6

One reason for a firm locating near its competitors is the presence of a major resource it needs.

Accepted Answer

A) True 
 B)False

Question 7

In location decisions,intangible costs are easier to measure than tangible costs.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is among the eight determinants of revenue and volume for a service firm?

Accepted Answer

A) uniqueness of the firm's and the competitors' locations 
B) quality of the competition 
C) quality of management 
D) purchasing power of the customer-drawing area 
E) all of the above 
A) uniqueness of the firm's and the competitors' locations 
B) quality of the competition 
C) quality of management 
D) purchasing power of the customer-drawing area 
E) all of the above

Question 9

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

Accepted Answer

A) transportation method 
B) queuing theory 
C) correlation analysis and traffic counts 
D) simulation 
E) demographic analysis 
A) transportation method 
B) queuing theory 
C) correlation analysis and traffic counts 
D) simulation 
E) demographic analysis

Question 10

The ratio of labor cost per day to productivity,in units per day,is the labor cost per unit.

Accepted Answer

A) True 
 B)False

Question 11

Identify the four predictive variables chosen by the profitability regression model used by La Quinta Inns.Identify some that were tested but not included in the final model.

Accepted Answer

The variables are: (1)the price of the i

Question 12

Using the factor ratings shown below,determine which location alternative should be chosen on the basis of maximum composite score.

Accepted Answer

A is best (87.96),fo

Question 13

The ________ is a mathematical technique used for finding the best location for a single distribution point that services several stores or areas.

Accepted Answer

center-of-

Question 14

The ________ is used to determine the best pattern of shipments from several points of supply to several points of demand.

Accepted Answer

transporta

Question 15

What are the advantages and disadvantages of the use of the factor-rating method?

Accepted Answer

Factor rating can handle a mix of quanti

Question 16

What describes a system that stores and displays information that can be linked to a geographic location?

Accepted Answer

A) AIS 
B) LOC 
C) GLOC 
D) LIS 
E) GIS 
A) AIS 
B) LOC 
C) GLOC 
D) LIS 
E) GIS

Question 17

Which of the following statements regarding "proximity" in the location decision is FALSE?

Accepted Answer

A) Service organizations find that proximity to market is the most critical primary location factor. 
B) Manufacturers want to be near customers when their product is bulky,heavy,or fragile. 
C) Perishability of raw materials is a good reason for manufacturers to locate near the supplier,not the customer. 
D) Reduction in bulk is a good reason for a manufacturer to locate near the supplier. 
E) Clustering among fast food chains occurs because they need to be near their labor supply. 
A) Service organizations find that proximity to market is the most critical primary location factor. 
B) Manufacturers want to be near customers when their product is bulky,heavy,or fragile. 
C) Perishability of raw materials is a good reason for manufacturers to locate near the supplier,not the customer. 
D) Reduction in bulk is a good reason for a manufacturer to locate near the supplier. 
E) Clustering among fast food chains occurs because they need to be near their labor supply.

Question 18

The graphic approach to locational cost-volume analysis displays the range of volume over which each location is preferable.

Accepted Answer

A) True 
 B)False

Question 19

What kinds of location decisions are appropriate for the use of center-of-gravity analysis? What variable is being optimized in this analysis?

Accepted Answer

The center-of-gravity technique is appro

Question 20

A contractor for the military is looking for a new location for a supply depot.The depot will supply four bases whose tonnage (demand)and map coordinates are shown below.If management wants the depot to have a central location,what should be its map coordinates?

Accepted Answer

The depot

Exam 9: Location Strategies

Location decisions of goods-producing companies often assume that costs are relatively constant for a given area; therefore,the revenue function is critical.

Which of the following is NOT one of the predictive variables chosen by the profitability regression model used by La Quinta Inns?

Lists have been developed that rank countries on issues such as "competitiveness" and "corruption."

The reason fast food restaurants often are found in close proximity to each other is:

One reason for a firm locating near its competitors is the presence of a major resource it needs.

In location decisions,intangible costs are easier to measure than tangible costs.

Which of the following is among the eight determinants of revenue and volume for a service firm?

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

The ratio of labor cost per day to productivity,in units per day,is the labor cost per unit.

Identify the four predictive variables chosen by the profitability regression model used by La Quinta Inns.Identify some that were tested but not included in the final model.

Using the factor ratings shown below,determine which location alternative should be chosen on the basis of maximum composite score.

The ________ is a mathematical technique used for finding the best location for a single distribution point that services several stores or areas.

The ________ is used to determine the best pattern of shipments from several points of supply to several points of demand.

What are the advantages and disadvantages of the use of the factor-rating method?

What describes a system that stores and displays information that can be linked to a geographic location?

Which of the following statements regarding "proximity" in the location decision is FALSE?

The graphic approach to locational cost-volume analysis displays the range of volume over which each location is preferable.

What kinds of location decisions are appropriate for the use of center-of-gravity analysis? What variable is being optimized in this analysis?

A contractor for the military is looking for a new location for a supply depot.The depot will supply four bases whose tonnage (demand)and map coordinates are shown below.If management wants the depot to have a central location,what should be its map coordinates?

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Forecasting

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Process Strategy

Capacity and Constraint Management

Layout Strategies

Human Resources, job Design, and Work Measurement

Supply Chain Management

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Material Requirements Planning Mrpand Erp

Short-Term Scheduling

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