Exam 13: Supply Chain Logistic Networks

An operations manager has narrowed down the search for a new plant for McIntosh Enterprises to three locations.Fixed and variable costs follow: Plot the total cost curves in the chart provided and identify the range over which each location would be best.Then use break-even analysis to calculate exactly the break-even quantity that defines each range. Which of the following statements is CORRECT?

Table 13.3 Durham Toy,Inc.has five distribution centers at the location coordinates given as follows.The monthly demand at each center is also given. -Use the information in Table 13.3.What are the x and y coordinates for the center of gravity?

Consider the location of four distribution centers,A,B,C,and D,with the following location coordinates and shipping requirements per week. Management is considering locating a new plant at the site of one of the four distribution centers.What is the load-distance score if the plant is located at distribution center A? (Use rectilinear distance. )

More than 80 percent of all relocations are within 10 miles of the first location,so usually the existing workforce is displaced.

Break-even analysis can help a manager compare location alternatives on the basis of quantitative factors that can be expressed in terms of total cost.

Critical mass is a situation whereby several competing firms cluster near one location,and thus attract more customers than the total number who would shop at the same stores in scattered locations.

Which of the following statements about locating facilities in the service sector is BEST?

A geographic information system contains demographic information.

A favorable labor climate might include all of the following EXCEPT:

Quality of life issues include:

Table 13.3 Durham Toy,Inc.has five distribution centers at the location coordinates given as follows.The monthly demand at each center is also given. -Use the information in Table 13.3.If the plant is located at the center of gravity,what is the load-distance score,assuming rectilinear distance?

The load-distance model is used to minimize the total:

Because Geographical Information System (GIS)tools are primarily quantitative in nature,a firm's managerial criteria,such as proximity to major metropolitan areas,are not able to be included in the GIS analysis.

Excel Products is planning a new warehouse to serve the Southeast.Locations A,B,and C are under consideration.Fixed and variable costs follow. Which of the following statements is BEST?

Five sources exist for the civet cat coffee favored by true coffee connoisseurs.The four processing centers for these coffee beans are scattered about the country,each with a different level of demand.The five sources all face different cost structures for transporting their beans,the prices in the table reflect a dollar cost per 50 pound bag of coffee beans.The total amounts supplied by each source and demanded by each destination are also shown in the table,and as luck would have it,the total supply equals the total demand.What is the optimal shipping scheme such that the total transportation cost is minimized?

Table 13.6 Union Fork,Inc.has five distribution centers located at the location coordinates given as follows.The demand at each center is also given. -Use the information in Table 13.6.What is the total load-distance score for the two plants if Plant 1 is located at the center of gravity serving distribution centers A,B,and C,and Plant 2 is located at the center of gravity serving D and E? (Assume rectilinear distance. )

A national firm has beef jerky processing facilities in Locations 1,2,3,and 4.They ship to central distributors (represented as A,B,C,and D)handling four regions of the country.The per-unit shipping costs between each possible combination of locations are shown in the following table. The processing facility locations are capable of monthly production (in tons)as follows: Location 1: 600 Location 2: 350 Location 3: 475 Location 4: 850 The central distributors have firm commitments for the following quantities: Distributor A: 650 Distributor B: 725 Distributor C: 400 Distributor D: 500 What is the lowest-cost shipping arrangement that can be made between the plant locations and distributors and what is the annual shipping cost?

Table 13.6 Union Fork,Inc.has five distribution centers located at the location coordinates given as follows.The demand at each center is also given. -Use the information in Table 13.6.If a plant is located at a center of gravity,what is the load-distance score,assuming rectilinear distance?

The Burdell Company has four distribution centers located at the location coordinates given as follows.The monthly demand at each center is also given. Management wants to build a new plant that would be located at the center of gravity of the four distribution centers.Which of the following options best represents the coordinates of the new plant location?

Which location shift would qualify as forward placement?