Question 1

The ________ method is popular because a wide variety of factors,from education to recreation to labor skills,can be objectively included.

Accepted Answer

factor-rating

Question 2

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?

Accepted Answer

A) Plant A,because it is cheaper than Plant B for all volumes over 8,000,000 units. 
B) Plant B,because it is cheaper than Plant A for all volumes over 8,000,000 units. 
C) Plant A,because it is cheaper than Plant B for all volumes. 
D) Plant B,because it has the lower variable cost per unit. 
E) Neither Plant A nor Plant B,because the crossover point is at 10 million units. 
A) Plant A,because it is cheaper than Plant B for all volumes over 8,000,000 units. 
B) Plant B,because it is cheaper than Plant A for all volumes over 8,000,000 units. 
C) Plant A,because it is cheaper than Plant B for all volumes. 
D) Plant B,because it has the lower variable cost per unit. 
E) Neither Plant A nor Plant B,because the crossover point is at 10 million units. A

Question 3

Geographic information systems can assist the location decision by:

Accepted Answer

A) automating center-of-gravity problems. 
B) computerizing factor-rating analysis. 
C) combining geography with demographic analysis. 
D) updating transportation method solutions. 
E) providing good Internet placement for virtual storefronts. 
A) automating center-of-gravity problems. 
B) computerizing factor-rating analysis. 
C) combining geography with demographic analysis. 
D) updating transportation method solutions. 
E) providing good Internet placement for virtual storefronts. C

Question 4

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?

Accepted Answer

Crossover is at 250,000 units.

Question 5

The location decisions of goods-producing firms will generally pay more attention to parking,access,and traffic counts than will service location decisions.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) government rules,attitudes,stability,incentives 
B) cultural and economic issues 
C) cost and availability of utilities 
D) zoning restrictions 
E) air,rail,highway,waterway systems 
A) government rules,attitudes,stability,incentives 
B) cultural and economic issues 
C) cost and availability of utilities 
D) zoning restrictions 
E) air,rail,highway,waterway systems

Question 7

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 8

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

Accepted Answer

A) government rules,attitudes,stability,incentives 
B) cultural and economic issues 
C) zoning regulations 
D) cost and availability of utilities 
E) proximity to raw materials and customers 
A) government rules,attitudes,stability,incentives 
B) cultural and economic issues 
C) zoning regulations 
D) cost and availability of utilities 
E) proximity to raw materials and customers

Question 9

Databases containing such variables as street maps,utilities,population age and income,and the software that analyzes such data for location decisions,are referred to as ________.

Accepted Answer

geographic

Question 10

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 11

Industrial location analysis typically attempts to:

Accepted Answer

A) minimize costs. 
B) maximize sales. 
C) focus more on human resources. 
D) avoid countries with strict environmental regulations. 
E) ignore exchange rates and currency risks. 
A) minimize costs. 
B) maximize sales. 
C) focus more on human resources. 
D) avoid countries with strict environmental regulations. 
E) ignore exchange rates and currency risks.

Question 12

Intangible costs include which of the following?

Accepted Answer

A) quality of prospective employees 
B) quality of education 
C) availability of public transportation 
D) all of the above 
E) none of the above 
A) quality of prospective employees 
B) quality of education 
C) availability of public transportation 
D) all of the above 
E) none 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

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 15

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 16

The ratio of labor cost per day to productivity,in units per day,is the labor cost per unit.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) purchasing power analysis 
B) linear programming 
C) queuing theory 
D) transportation method 
E) locational cost-volume analysis 
A) purchasing power analysis 
B) linear programming 
C) queuing theory 
D) transportation method 
E) locational cost-volume analysis

Question 18

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 19

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

Accepted Answer

A) True 
 B)False

Question 20

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 ________.

Accepted Answer

revenue or

Exam 8: Location Decisions

The ________ method is popular because a wide variety of factors,from education to recreation to labor skills,can be objectively included.

Geographic information systems can assist the location decision by:

The location decisions of goods-producing firms will generally pay more attention to parking,access,and traffic counts than will service location decisions.

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

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?

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

Databases containing such variables as street maps,utilities,population age and income,and the software that analyzes such data for location decisions,are referred to as ________.

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

Industrial location analysis typically attempts to:

Intangible costs include which of the following?

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?

The ratio of labor cost per day to productivity,in units per day,is the labor cost per unit.

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

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."

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 ________.

Operations and Productivity

The Global Environment and Operations Strategy

Managing Projects

Forecasting Demand

Product Design

Quality Management and International Standards

Process Design

Layout Decisions

Job Design and Work Measurement

Supply Chain Management

Managing Inventory

Aggregate Scheduling

Material Requirements Planning Mrpand Erp

Scheduling for the Short-Term

Jit,lean Operations,and the Toyota Production System

Maintenance and Reliability Decisions

Sustainability

Statistical Process Control

Capacity Planning

Supply Chain Modeling

Decision Modeling

Linear Programming Models

Transportation Modeling

Queuing Models

Learning Curves

Modeling with Simulation

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