Exam 8: Location Strategies

Industrial location analysis typically attempts to

FedEx schedules its aircraft using a ________ system,which it credits with reducing package mishandling and delay in transit.

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 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?

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

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

Which of the following statements regarding Starbucks Coffee is false?

Operations managers will need to consider ethical and social responsibility issues when location decisions involve

A clothing chain is considering two different locations for a new retail outlet.The organization has identified the four factors listed in the following table as the basis for evaluation,and has assigned weights as shown on the right side of this table.The manager has rated each location on each factor,on a 100-point basis (higher scores are better),as shown in the right-hand table. a.Calculate the composite score for each alternative location. b.Which site should be chosen? c.Are you concerned about the sensitivity and subjectivity of this solution? Comment.

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?

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?

Labour cost and labour availability often drive the location decision in the call centre industry.

Traffic counts and purchasing power analysis of drawing area are techniques associated with

Service firms choose locations based,in part,on the revenue potential of a site.

A small manufacturer is considering several locations for a new facility.They have identified four factors that they consider to be important for their location decision.They have decided to assign scores to the four factors,with a higher score indicating a more favorable location.Use the information in the following table to perform a factor rating to select the best location.

Which of the following is usually not one of the top considerations in choosing a country for a facility location?

Service location strategies and goods-producing location strategies rely on very different sets of assumptions.What are the assumptions associated with goods-producing locations? How do these assumptions lead to a location strategy?

Which of the following is most likely to affect the location decision of a service firm rather than a manufacturing firm?

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

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.Do the results surprise you in any way? Comment.