Question 1

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

Accepted Answer

A) quality of management 
B) shipment cost of finished goods 
C) purchasing power of the customer-drawing area 
D) uniqueness of the firm's and the competitors' locations 
E) competition in the area 
A) quality of management 
B) shipment cost of finished goods 
C) purchasing power of the customer-drawing area 
D) uniqueness of the firm's and the competitors' locations 
E) competition in the area B

Question 2

A manager has received an analysis of several cities being considered for a new order fulfillment center (warehouse)for Shop at Home Network.The scores (scale is 10 points = best)are contained in the table below.
a.If the manager weights the factors equally,how would the locations be ranked?
b.If transportation costs and operating costs are given weights that are double the weights of the others,should the locations be ranked differently?

Accepted Answer

The locations are ranked W,Y,X,Z with equal weights;but W and Y tie for highest,and Z and X tie for lowest as revised.

Question 3

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-gravity method

Question 4

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 5

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?

Accepted Answer

The fundamental objective is to maximize

Question 6

La Quinta Inns has a competitive edge over its rivals because it:

Accepted Answer

A) uses regression analysis to determine which variables most influence profitability. 
B) has better television advertisements. 
C) picks larger locations than its rivals. 
D) builds only along interstate highways. 
E) consistently receives four-star ratings for its inns. 
A) uses regression analysis to determine which variables most influence profitability. 
B) has better television advertisements. 
C) picks larger locations than its rivals. 
D) builds only along interstate highways. 
E) consistently receives four-star ratings for its inns.

Question 7

Currency risk is based on what assumption?

Accepted Answer

A) Firms that do not continuously innovate will lose market share. 
B) Values of foreign currencies continually rise and fall in most countries. 
C) Changing product lines by reacting to every current trend may alienate the customer base. 
D) The value of one dollar today is greater than the value of one dollar to be received one year from now. 
E) The U.S.stock market fluctuates daily. 
A) Firms that do not continuously innovate will lose market share. 
B) Values of foreign currencies continually rise and fall in most countries. 
C) Changing product lines by reacting to every current trend may alienate the customer base. 
D) The value of one dollar today is greater than the value of one dollar to be received one year from now. 
E) The U.S.stock market fluctuates daily.

Question 8

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

Accepted Answer

A) corporate desires 
B) land/construction costs 
C) air,rail,highway,waterway systems 
D) zoning restrictions 
E) location of markets 
A) corporate desires 
B) land/construction costs 
C) air,rail,highway,waterway systems 
D) zoning restrictions 
E) location of markets

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

The owner of a millwork shop is considering three alternative locations for a new plant for building embossed-and-clad steel exterior doors for residences.Fixed and variable costs follow.Since the plant ships nationwide,revenue is assumed the same regardless of plant location.Identify the range over which each location is best.

Accepted Answer

A is cheapest from 0

Question 11

A location decision for a traditional department store (e.g. ,Macy's)would tend to have what type of focus?

Accepted Answer

A) cost focus 
B) labor focus 
C) revenue focus 
D) environmental focus 
E) education focus 
A) cost focus 
B) labor focus 
C) revenue focus 
D) environmental focus 
E) education focus

Question 12

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 13

Why does FedEx use a central hub airline network,rather than a "point-to-point" network? Describe FedEx's approach to choosing its superhub.

Accepted Answer

The hub system is more centralized,and a

Question 14

Evaluating location alternatives by comparing their composite (weighted-average)scores involves which of the following?

Accepted Answer

A) factor-rating analysis 
B) cost-volume analysis 
C) transportation model analysis 
D) linear regression analysis 
E) crossover analysis 
A) factor-rating analysis 
B) cost-volume analysis 
C) transportation model analysis 
D) linear regression analysis 
E) crossover analysis

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

The answer of FedEx schedules its aircraft using a(n)________ system,which...

Question 17

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

Accepted Answer

A) the city is in the center of the United States,geographically. 
B) the airport has relatively few hours of bad weather closures. 
C) it needed a means to reach cities to which it did not have direct flights. 
D) the firm believed that a hub system was superior to traditional city-to-city flight scheduling. 
E) All of the above are true. 
A) the city is in the center of the United States,geographically. 
B) the airport has relatively few hours of bad weather closures. 
C) it needed a means to reach cities to which it did not have direct flights. 
D) the firm believed that a hub system was superior to traditional city-to-city flight scheduling. 
E) All of the above are true.

Question 18

A manufacturing company preparing to build a new plant is considering three potential locations for it.The fixed and variable costs for the three alternative locations are presented below.
a.Complete a numeric locational cost-volume analysis.
b.Indicate over what range each of the alternatives A,B,C is the low-cost choice.
c.Is any alternative never preferred? Explain.

Accepted Answer

B is cheapest up to 125,000 un

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

Manufacturers may want to locate close to their customers if the transportation of finished goods is expensive or difficult.

Accepted Answer

A) True 
 B)False

Exam 8: Location Strategies

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

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

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

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?

La Quinta Inns has a competitive edge over its rivals because it:

Currency risk is based on what assumption?

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

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

A location decision for a traditional department store (e.g. ,Macy's)would tend to have what type of focus?

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

Why does FedEx use a central hub airline network,rather than a "point-to-point" network? Describe FedEx's approach to choosing its superhub.

Evaluating location alternatives by comparing their composite (weighted-average)scores involves which of the following?

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

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

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

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

Manufacturers may want to locate close to their customers if the transportation of finished goods is expensive or difficult.

Operations and Productivity

Operations Strategy in a Global Environment

Project Management

Forecasting

Design of Goods and Services

Managing Quality

Process Strategy

Layout Strategies

Human Resources,job Design,and Work Measurement

Supply Chain Management

Inventory Management

Aggregate Planning and Sop

Material Requirements Planning Mrpand ERP

Short-Term Scheduling

Lean Operations

Maintenance and Reliability

Sustainability in the Supply Chain

Statistical Process Control

Capacity and Constraint Management

Supply Chain Management Analytics

Decision-Making Tools

Linear Programming

Transportation Models

Waiting-Line Models

Learning Curves

Simulation

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