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

The transportation model,when applied to location analysis:

Accepted Answer

A) minimizes total fixed costs. 
B) minimizes total production and transportation costs. 
C) minimizes total transportation costs. 
D) maximizes revenues. 
E) minimizes the movement of goods. 
A) minimizes total fixed costs. 
B) minimizes total production and transportation costs. 
C) minimizes total transportation costs. 
D) maximizes revenues. 
E) minimizes the movement of goods.

Question 3

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

Accepted Answer

Quality of life affects location decisio

Question 4

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).

Accepted Answer

The center of gravity,weighted

Question 5

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

Accepted Answer

A) they enjoy competition. 
B) location clustering near high traffic flows. 
C) low cost. 
D) availability of skilled labor. 
E) all of the above. 
A) they enjoy competition. 
B) location clustering near high traffic flows. 
C) low cost. 
D) availability of skilled labor. 
E) all of the above.

Question 6

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

Accepted Answer

A) traffic counts 
B) transportation model 
C) purchasing power 
D) proximity of markets 
E) clustering 
A) traffic counts 
B) transportation model 
C) purchasing power 
D) proximity of markets 
E) clustering

Question 7

Location decisions are based on many things,including costs,revenues,incentives,attitudes,and intangibles,but not on ethical considerations.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following workers is the most productive?

Accepted Answer

A) $50 wages,10 parts produced 
B) $10 wages,1 part produced 
C) $30 wages,5 parts produced 
D) $100 wages,21 parts produced 
E) $500 wages,100 parts produced 
A) $50 wages,10 parts produced 
B) $10 wages,1 part produced 
C) $30 wages,5 parts produced 
D) $100 wages,21 parts produced 
E) $500 wages,100 parts produced

Question 9

A contractor for the military is looking for a new location for a supply depot.The depot will supply four bases whose tonnage (demand)and map coordinates are shown below.If management wants the depot to have a central location,what should be its map coordinates?

Accepted Answer

The depot

Question 10

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.

Accepted Answer

C is clearly better than either A or B.T

Question 11

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?

Accepted Answer

At 30,000 units,Location A has total cos

Question 12

On the crossover chart where the costs of two or more location alternatives have been plotted,the quantity at which two cost curves cross is the quantity where:

Accepted Answer

A) fixed costs are equal for two alternative locations. 
B) variable costs are equal for two alternative locations. 
C) total costs are equal for all alternative locations. 
D) fixed costs equal variable costs for one location. 
E) total costs are equal for two alternative locations. 
A) fixed costs are equal for two alternative locations. 
B) variable costs are equal for two alternative locations. 
C) total costs are equal for all alternative locations. 
D) fixed costs equal variable costs for one location. 
E) total costs are equal for two alternative locations.

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

Among the following choices,an operations manager might best evaluate political risk of a country by looking at which type of country ranking?

Accepted Answer

A) based on competitiveness 
B) based on cost of doing business 
C) based on corruption 
D) based on magnitude of government social programs 
E) based on average duration between presidential/prime minister elections 
A) based on competitiveness 
B) based on cost of doing business 
C) based on corruption 
D) based on magnitude of government social programs 
E) based on average duration between presidential/prime minister elections

Question 15

A telecommunications firm is planning to lay fiber optic cable from several community college distance learning sites to a central studio,in such a way that the miles of cable are minimized.Some locations require more than one set of cables (these are the loads).Where should the studio be located to accomplish the objective?

Accepted Answer

This is a center-of-gravity pr

Question 16

The factor-rating method can consider both tangible and intangible costs.

Accepted Answer

A) True 
 B)False

Question 17

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?

Accepted Answer

The center should be

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

A school district is considering where in town to house its central office (The office must also be located at an existing school for cost reasons).If there are five schools in the district,with locations and size given in the following table,use the center-of-gravity method to determine at which school the central office should be placed to minimize the average distance between the office and students.

Accepted Answer

The total number of students is (2500 +

Question 20

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

Accepted Answer

A) assembly line balancing 
B) load-distance analysis 
C) center-of-gravity method 
D) linear programming 
E) locational cost-volume analysis 
A) assembly line balancing 
B) load-distance analysis 
C) center-of-gravity method 
D) linear programming 
E) locational cost-volume analysis

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.

The transportation model,when applied to location analysis:

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

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

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

Location decisions are based on many things,including costs,revenues,incentives,attitudes,and intangibles,but not on ethical considerations.

Which of the following workers is the most productive?

A contractor for the military is looking for a new location for a supply depot.The depot will supply four bases whose tonnage (demand)and map coordinates are shown below.If management wants the depot to have a central location,what should be its map coordinates?

On the crossover chart where the costs of two or more location alternatives have been plotted,the quantity at which two cost curves cross is the quantity where:

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

Among the following choices,an operations manager might best evaluate political risk of a country by looking at which type of country ranking?

The factor-rating method can consider both tangible and intangible costs.

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

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

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Managing Quality

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Human Resources,job Design,and Work Measurement

Supply Chain Management

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Material Requirements Planning Mrpand ERP

Short-Term Scheduling

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