Question 1

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

Accepted Answer

The answer of ________ occurs when competing companies locate near...

Question 2

Tangible costs include which of the following?

Accepted Answer

A) climatic conditions 
B) availability of public transportation 
C) taxes 
D) quality and attitude of prospective employees 
E) zoning regulations 
A) climatic conditions 
B) availability of public transportation 
C) taxes 
D) quality and attitude of prospective employees 
E) zoning regulations

Question 3

"Proximity" or closeness implies that a firm should locate "close" to something.What are the three kinds of proximity described in the text? What are the basic conditions under which each is appropriate? What kinds of firms are likely to use each of these?

Accepted Answer

The three are proximity to markets,proxi

Question 4

Is Starbucks Coffee a user of Geographic Information Systems? Support your answer with examples.

Accepted Answer

Starbucks is clearly a user of GIS.Datab

Question 5

Which of the following statements regarding FedEx is true?

Accepted Answer

A) Its hub in Memphis,Tennessee,was selected because of its low cost. 
B) Memphis,Tennessee,is the only hub in the company's global flight network. 
C) FedEx believes the hub system helps reduce mishandling and delays due to better controls. 
D) FedEx uses a hub system in the United States,but a city-to-city network in other countries. 
E) Memphis is FedEx's only hub airport in the U.S. 
A) Its hub in Memphis,Tennessee,was selected because of its low cost. 
B) Memphis,Tennessee,is the only hub in the company's global flight network. 
C) FedEx believes the hub system helps reduce mishandling and delays due to better controls. 
D) FedEx uses a hub system in the United States,but a city-to-city network in other countries. 
E) Memphis is FedEx's only hub airport in the U.S.

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Identify the four major quantitative methods for solving location problems.

Accepted Answer

Factor-rating method,locationa

Question 8

The centre-of-gravity method does not take into consideration the

Accepted Answer

A) location of markets. 
B) volume of goods shipped to the markets. 
C) value of the goods shipped. 
D) combination of volume and distance. 
E) centre-of-gravity method considers none of the above 
A) location of markets. 
B) volume of goods shipped to the markets. 
C) value of the goods shipped. 
D) combination of volume and distance. 
E) centre-of-gravity method considers none of the above

Question 9

A school district is considering four locations for a new high school.There are four factors the district is considering (Cost of land,distance to students,land size,and traffic flow).The district would like to compare results using two weighting systems.The first system would give each factor equal weight and the second would give the factors weights of .4,.2,.1,and .3 respectively.Fill in the missing information in the table and then use the factor rating method to determine which location is best for each weighting system.

Accepted Answer

Students should first fill in the W(1)an

Question 10

A firm is seeking a new factory location,and is considering several countries worldwide.In some of these countries,child labour is prevalent;in others,working conditions and worker safety are inferior to conditions in the U.S.An operations manager paying attention to ________ will factor these issues into the location decision.

Accepted Answer

A) ethical and social responsibility issues 
B) key success factors 
C) factor-rating systems 
D) geographic information systems 
E) regression models 
A) ethical and social responsibility issues 
B) key success factors 
C) factor-rating systems 
D) geographic information systems 
E) regression models

Question 11

East Texas Seasonings is preparing to build one processing centre to serve its four sources of seasonings.The four source locations are at coordinates shown below.Also,the volume from each source is provided.
a.Calculate the volume-weighted centre of gravity.
b.Calculate the simple centre of gravity (all cities weighted equally).
c.Explain why the two calculations differ.

Accepted Answer

The weighted centre of gravity is locate

Question 12

Unfavorable exchange rates can offset other savings in a location decision.

Accepted Answer

A) True 
 B)False

Question 13

Generally,the objective of the location decision is to maximize the firm's profit.

Accepted Answer

A) True 
 B)False

Question 14

A grocery chain is deciding on where to locate its new distribution centre.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?

Accepted Answer

Since each store has the same demand the

Question 15

________ is a cost-volume analysis to make an economic comparison of location alternatives.

Accepted Answer

Locational

Question 16

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? Answer in a clear,convincing paragraph.

Accepted Answer

The fundamental objective is to maximize

Question 17

A location decision for a traditional department store (The Bay)would tend to have a(n)

Accepted Answer

A) cost focus. 
B) labour focus. 
C) revenue focus. 
D) environmental focus. 
E) education focus. 
A) cost focus. 
B) labour focus. 
C) revenue focus. 
D) environmental focus. 
E) education focus.

Question 18

Why does FedEx use a "hub-and-spoke" airline network,rather than a "point-to-point" network? Describe FedEx's approach to choosing the airports that serve as its hubs.

Accepted Answer

The hub system is more centralized,and a

Question 19

Labour cost per unit is also referred to as ________.

Accepted Answer

The answer of Labour cost per unit is also referred...

Question 20

Intangible costs include all of the following except

Accepted Answer

A) quality of prospective employees. 
B) quality of education. 
C) availability of public transportation. 
D) availability of health care. 
E) entry-level training for new employees. 
A) quality of prospective employees. 
B) quality of education. 
C) availability of public transportation. 
D) availability of health care. 
E) entry-level training for new employees.

Exam 8: Location Strategies

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

Tangible costs include which of the following?

"Proximity" or closeness implies that a firm should locate "close" to something.What are the three kinds of proximity described in the text? What are the basic conditions under which each is appropriate? What kinds of firms are likely to use each of these?

Is Starbucks Coffee a user of Geographic Information Systems? Support your answer with examples.

Which of the following statements regarding FedEx is true?

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

Identify the four major quantitative methods for solving location problems.

The centre-of-gravity method does not take into consideration the

Unfavorable exchange rates can offset other savings in a location decision.

Generally,the objective of the location decision is to maximize the firm's profit.

________ is a cost-volume analysis to make an economic comparison of location alternatives.

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? Answer in a clear,convincing paragraph.

A location decision for a traditional department store (The Bay)would tend to have a(n)

Why does FedEx use a "hub-and-spoke" airline network,rather than a "point-to-point" network? Describe FedEx's approach to choosing the airports that serve as its hubs.

Labour cost per unit is also referred to as ________.

Intangible costs include all of the following except

Operations and Productivity

Operations Strategy in a Global Environment

Project Management

Forecasting

Design of Goods and Services

Managing Quality

Statistical Process Control

Process Strategy and Sustainability

Capacity and Constraint Management

Layout Strategies

Human Resources,job Design,and Work Measurement

Supply-Chain Management

Outsourcing As a Supply-Chain Strategy

Inventory Management

Aggregate Planning

Material Requirements Planning Mrpand Erp

Short-Term Scheduling

Jit and Lean Operations

Maintenance and Reliability

Decision-Making Tools

Linear Programming

Transportation Models

Waiting-Line Models

Learning Curves

Simulation

Filters