Question 1

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

Accepted Answer

A) True 
 B)False  True

Question 2

Governmental attitudes toward issues such as private property,intellectual property,zoning,pollution,and employment stability may change over time.The term associated with this phenomenon is

Accepted Answer

A) bureaucratic risk. 
B) political risk. 
C) legislative risk. 
D) judicial risk. 
E) democratic risk. 
A) bureaucratic risk. 
B) political risk. 
C) legislative risk. 
D) judicial risk. 
E) democratic risk. B

Question 3

Which of the following statements regarding FedEx is true?

Accepted Answer

A) Its hub in Memphis,Tennessee,was selected because of its low cost. 
B) Memphis,Tennessee,is the only hub in the company's global flight network. 
C) FedEx believes the hub system helps reduce mishandling and delays due to better controls. 
D) FedEx uses a hub system in the United States,but a city-to-city network in other countries. 
E) Memphis is FedEx's only hub airport in the U.S. 
A) Its hub in Memphis,Tennessee,was selected because of its low cost. 
B) Memphis,Tennessee,is the only hub in the company's global flight network. 
C) FedEx believes the hub system helps reduce mishandling and delays due to better controls. 
D) FedEx uses a hub system in the United States,but a city-to-city network in other countries. 
E) Memphis is FedEx's only hub airport in the U.S. C

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

East Texas Seasonings is preparing to build one processing centre to serve its four sources of seasonings.The four source locations are at coordinates shown below.Also,the volume from each source is provided.
a.Calculate the volume-weighted centre of gravity.
b.Calculate the simple centre of gravity (all cities weighted equally).
c.Explain why the two calculations differ.

Accepted Answer

The weighted centre of gravity is locate

Question 6

Instead of comparing the salaries of Detroit autoworkers to foreign autoworkers to determine if Union labour prices are the cause of Detroit's financial woes,which of the following should be used?

Accepted Answer

A) labour content per vehicle 
B) labour productivity 
C) total production 
D) average productivity 
E) salary is the best comparison 
A) labour content per vehicle 
B) labour productivity 
C) total production 
D) average productivity 
E) salary is the best comparison

Question 7

A location decision for an appliance manufacturer would tend to have a(n)

Accepted Answer

A) cost focus. 
B) focus on finding very highly skilled technicians. 
C) revenue focus. 
D) environmental focus. 
E) education focus. 
A) cost focus. 
B) focus on finding very highly skilled technicians. 
C) revenue focus. 
D) environmental focus. 
E) education focus.

Question 8

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

Question 9

An employee produces 15 parts during a shift in which he made $90.The labour content of the product is

Accepted Answer

A) $90. 
B) $5. 
C) $6. 
D) $.167. 
E) $60. 
A) $90. 
B) $5. 
C) $6. 
D) $.167. 
E) $60.

Question 10

Which of the following statements regarding the centre-of-gravity method is false?

Accepted Answer

A) It is designed to minimize the maximum possible travel distance to any location. 
B) The optimal x- and y-coordinates are calculated separately. 
C) The optimal solution is unconstrained,so it could suggest a location in the middle of a body of water. 
D) The weights used are the quantity of goods moved to or from each location. 
E) The origin of the coordinate system and the scale used are arbitrary,just as long as the relative distances are correctly represented. 
A) It is designed to minimize the maximum possible travel distance to any location. 
B) The optimal x- and y-coordinates are calculated separately. 
C) The optimal solution is unconstrained,so it could suggest a location in the middle of a body of water. 
D) The weights used are the quantity of goods moved to or from each location. 
E) The origin of the coordinate system and the scale used are arbitrary,just as long as the relative distances are correctly represented.

Question 11

Every month,a distribution centre will deliver 14,000 units to Retailer A at coordinates (20,10),12,000 units,to Retailer B at coordinates (30,-15),and 20,000 units to Retailer C at coordinates (4,4).Assuming no constraints on location,at what coordinates should the distribution centre be located (rounded to two decimal places)?

Accepted Answer

(15.65,0.87),where 15.65 = [20

Question 12

The centre-of-gravity method finds the location of a centralized facility,such as a distribution centre,that will maximize the organization's revenue.

Accepted Answer

A) True 
 B)False

Question 13

________ and ________ are to key country success factors as ________ and ________ are to key region success factors.

Accepted Answer

A) Cultural issues;location of markets;site size and cost;zoning restrictions 
B) Exchange rates;labour availability;site size and cost;environmental impact 
C) Labour cost;currency risk;land costs;proximity to customers 
D) Land costs;proximity to customers;labour cost;air and rail systems 
E) Cultural issues;proximity to customers;environmental impact;zoning restrictions. 
A) Cultural issues;location of markets;site size and cost;zoning restrictions 
B) Exchange rates;labour availability;site size and cost;environmental impact 
C) Labour cost;currency risk;land costs;proximity to customers 
D) Land costs;proximity to customers;labour cost;air and rail systems 
E) Cultural issues;proximity to customers;environmental impact;zoning restrictions.

Question 14

Identify the four major quantitative methods for solving location problems.

Accepted Answer

Factor-rating method,locationa

Question 15

Generally,the objective of the location decision is to maximize the firm's profit.

Accepted Answer

A) True 
 B)False

Question 16

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 at which

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 17

Which of the following worker characteristics would likely be least important for U.S.firms looking to open up call centres in different countries?

Accepted Answer

A) willing to accept low wages 
B) have a high level of education 
C) speak English 
D) possess an in-depth knowledge of American popular culture 
E) are young 
A) willing to accept low wages 
B) have a high level of education 
C) speak English 
D) possess an in-depth knowledge of American popular culture 
E) are young

Question 18

A grocery chain is deciding on where to locate its new distribution centre.The new DC will serve four grocery stores,each with a demand of 10,000 units.If the coordinates of the stores are (112,108), (110,50), (40,85),and (10,25)where should the DC be located? Suppose now that each store instead had demand of 20,000 units.Where should the DC go in this case?

Accepted Answer

Since each store has the same demand the

Question 19

One reason for a firm locating near its competitors is the presence of a major resource it needs.

Accepted Answer

A) True 
 B)False

Question 20

What is the impact of exchange rates on location decisions?

Accepted Answer

Exchange rates fluct

Exam 8: Location Strategies

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

Governmental attitudes toward issues such as private property,intellectual property,zoning,pollution,and employment stability may change over time.The term associated with this phenomenon is

Which of the following statements regarding FedEx is true?

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

Instead of comparing the salaries of Detroit autoworkers to foreign autoworkers to determine if Union labour prices are the cause of Detroit's financial woes,which of the following should be used?

A location decision for an appliance manufacturer would tend to have a(n)

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 ________.

An employee produces 15 parts during a shift in which he made $90.The labour content of the product is

Which of the following statements regarding the centre-of-gravity method is false?

The centre-of-gravity method finds the location of a centralized facility,such as a distribution centre,that will maximize the organization's revenue.

________ and ________ are to key country success factors as ________ and ________ are to key region success factors.

Identify the four major quantitative methods for solving location problems.

Generally,the objective of the location decision is to maximize the firm's profit.

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 at which

Which of the following worker characteristics would likely be least important for U.S.firms looking to open up call centres in different countries?

One reason for a firm locating near its competitors is the presence of a major resource it needs.

What is the impact of exchange rates on location decisions?

Operations and Productivity

Operations Strategy in a Global Environment

Project Management

Forecasting

Sustainability in the Supply Chain and Design of Goods and Services

Managing Quality

Process Strategy and Sustainability

Layout Strategies

Human Resources,job Design,and Work Measurement

Supply-Chain Management

Inventory Management

Aggregate Planning

Material Requirements Planning Mrpand ERP

Short-Term Scheduling

Jit and Lean Operations

Maintenance and Reliability

Statistical Process Control

Capacity and Constraint Management

Supply Chain Management Analytics

Decision-Making Tools

Linear Programming

Transportation Models

Waiting-Line Models

Learning Curves

Simulation

Filters

and are to key country success factors as and are to key region success factors.