Exam 9: Location Strategies

Suppose that a bus company is deciding where to locate its central hub.There are 6 possible destinations for the buses.Suppose that the center of town will be used as the reference for describing the possible destinations.A is located 5 miles South and 3 miles West.B is located 3 miles North and 2 miles East.C is located 1 mile South and 5 miles East.D is located 2 miles North and 3 miles West.E is located exactly in the center of town.F is located 10 miles North and 5 miles East.Assume that traffic to each destination will be equal.Where should the hub go so that travel time is minimized?

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.What is the center of gravity?

The transportation model,when applied to location analysis:

Governmental attitudes toward issues such as private property,intellectual property,zoning,pollution,and employment stability may change over time.What is the term associated with this phenomenon?

A farmers' cooperative association plans to build a new sugar mill in Southwestern Louisiana.The primary objective of the mill is to provide the farmers with a place to take their crop for processing that will reduce their transportation costs.The members of the co-op believe that the center-of-gravity method is appropriate for this objective.While there are over 200 sugar cane farms in the region,they are tightly clustered around six villages.Using the data below,use the center-of-gravity method to calculate the coordinates of the best location for this mill.All mileage references use the city of Lake Charles as (0,0).

Tangible costs include which of the following?

The center-of-gravity method finds the location of a centralized facility,such as a distribution center,that will maximize the organization's revenue.

When making a location decision at the country level,which of these would be considered?

A full-service restaurant is considering opening a new facility in a specific city.The table below shows its ratings of four factors at each of two potential sites. The score for Gary Mall is ________ and the score for Belt Line is ________.

Which of the following statements regarding FedEx is TRUE?

Currency risk is based on what assumption?

A county wants to build one centrally-located processing facility to serve the county's four recycling drop-off locations.The four drop-offs have characteristics as given in the table below.What is the approximate center of gravity of these four locations?

Environmental Glass Products,Inc.wants to build a new centralized facility to receive household,commercial,and industrial glass for recycling.This center will be supplied by trucks coming from four "collection points," where recyclable glass is dropped off by individuals and businesses.The volume and the map coordinates for the four collection centers are shown below.Where should the collection center be located?

A manufacturing company is considering two alternative locations for a new facility.The fixed and variable costs for the two locations are found in the table below.For which volume of business would the two locations be equally attractive? If the company plans on producing 50,000 units,which location would be more attractive?

FedEx chose Memphis,Tennessee,as its U.S.hub because:

Databases containing such variables as street maps,utilities,population age and income,and the software that analyzes such data for location decisions,are referred to as ________.

Why is "quality of life" an element of intangible costs associated with location decisions? Provide an example as part of your discussion.

________ occurs when competing companies locate near each other because of a critical mass of information,talent,venture capital,or natural resources.

________ costs are readily identifiable and can be measured with precision.

Which of the following statements regarding the center-of-gravity method is FALSE?