Exam 8: Location Strategies

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?

Production and transportation costs are always considered in which of the following location decision methods?

The transportation method,when applied to location analysis

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

Identify those factors identified in the textbook as creating legal or ethical issues for operations mangers as they analyse location decisions.

LaQuinta Motor Inns has a competitive edge over its rivals because it

Which of these factors would be considered when making a location decision at the site level?

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

A manufacturing company is considering three expansion options.The first is to do nothing (Option A).The next is to leave the current plant open and also open a new larger plant (Option B).Finally they could close the existing plant and open the new,larger one (Option C).Given the VC and FC from the table below calculate the range for which each option minimizes cost.

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.

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 on the left.The manager has rated each location on each factor,on a 100-point basis,as shown on the right. What is the score for Chester?

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

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 centre-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 centre-of-gravity method to calculate the coordinates of the best location for this mill.On the grid below,plot the location of the six farm clusters and the calculated mill location.All mileage references use the city of Lake Charles as (0,0).

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

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

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

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

Which of the following methods best considers intangible costs related to a location decision?

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

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