Question 1

What is it called when competing companies locate next to each other? Why do they do this?

Accepted Answer

It is called clustering.In many cases,th

Question 2

A jewelry store is more likely than a jewelry manufacturer to consider ________ in making a location decision.

Accepted Answer

A) transportation costs 
B) cost of raw materials 
C) parking and access 
D) climate 
E) taxes 
A) transportation costs 
B) cost of raw materials 
C) parking and access 
D) climate 
E) taxes

Question 3

A full-service restaurant is considering opening a new facility in a specific city.The table below shows its ratings of four factors at each of two potential sites.   The score for Gary Mall is ________ and the score for Belt Line is ________.

Accepted Answer

A) 120;120 
B) 22;24 
C) 18;120 
D) 34;28 
E) 20;24 
A) 120;120 
B) 22;24 
C) 18;120 
D) 34;28 
E) 20;24

Question 4

Starbucks Coffee's approach to choosing new café locations is largely based on executive intuition,not sophisticated models and site selection technology.

Accepted Answer

A) True 
 B)False

Question 5

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 6

Operations managers will need to consider ethical and social responsibility issues when location decisions involve

Accepted Answer

A) child labour issues. 
B) sweatshop conditions. 
C) allegiance to the firm's current location. 
D) corruption. 
E) all of the above. 
A) child labour issues. 
B) sweatshop conditions. 
C) allegiance to the firm's current location. 
D) corruption. 
E) all of the above.

Question 7

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

Accepted Answer

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

Question 8

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 9

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

Accepted Answer

The answer of The ________ method is popular because a...

Question 10

Is Starbucks Coffee a user of Geographic Information Systems? Support your answer with examples.

Accepted Answer

Starbucks is clearly a user of GIS.Datab

Question 11

Which of the following is the best example of the proximity rule that,for service firms,proximity to market is the most important location factor?

Accepted Answer

A) Soft drinks are bottled in many local plants,where carbonated water is added to proprietary syrups that may have been shipped long distances. 
B) Few people will travel out of state for a haircut. 
C) Patients will travel very long distances to have their hernia surgeries performed at Shouldice Hospital. 
D) Furniture makers choose to locate near the source of good hardwoods,even though it means locating near other furniture manufacturers. 
E) Metal refiners (smelters)locate near mines to accomplish significant weight reduction near the metal's source. 
A) Soft drinks are bottled in many local plants,where carbonated water is added to proprietary syrups that may have been shipped long distances. 
B) Few people will travel out of state for a haircut. 
C) Patients will travel very long distances to have their hernia surgeries performed at Shouldice Hospital. 
D) Furniture makers choose to locate near the source of good hardwoods,even though it means locating near other furniture manufacturers. 
E) Metal refiners (smelters)locate near mines to accomplish significant weight reduction near the metal's source.

Question 12

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 13

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

Question 14

When firms build supply chains that include foreign firms,________ and ________ are issues that raise ethical and legal concerns with operations managers.

Accepted Answer

The answer of When firms build supply chains that include...

Question 15

Labour cost per unit is also referred to as ________.

Accepted Answer

The answer of Labour cost per unit is also referred...

Question 16

When ________,in addition to creativity and R&D investments,is critical to operations strategy,cost may cease to be the primary focus of location criteria.

Accepted Answer

The answer of When ________,in addition to creativity and R&D...

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

Service firms choose locations based,in part,on the revenue potential of a site.

Accepted Answer

A) True 
 B)False

Question 19

What is the role of labour productivity in location decisions? Why is it more important than low wages in location decisions?

Accepted Answer

Labour productivity is the number of uni

Question 20

Which of the following is most likely to affect the location strategy of a manufacturing firm?

Accepted Answer

A) appearance/image of the area 
B) utility costs 
C) purchasing power of drawing area 
D) competition in the area 
E) parking availability 
A) appearance/image of the area 
B) utility costs 
C) purchasing power of drawing area 
D) competition in the area 
E) parking availability

Exam 8: Location Strategies

What is it called when competing companies locate next to each other? Why do they do this?

A jewelry store is more likely than a jewelry manufacturer to consider ________ in making a location decision.

A full-service restaurant is considering opening a new facility in a specific city.The table below shows its ratings of four factors at each of two potential sites. The score for Gary Mall is ________ and the score for Belt Line is ________.

Starbucks Coffee's approach to choosing new café locations is largely based on executive intuition,not sophisticated models and site selection technology.

Operations managers will need to consider ethical and social responsibility issues when location decisions involve

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

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

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

Is Starbucks Coffee a user of Geographic Information Systems? Support your answer with examples.

Which of the following is the best example of the proximity rule that,for service firms,proximity to market is the most important location factor?

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

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

When firms build supply chains that include foreign firms,________ and ________ are issues that raise ethical and legal concerns with operations managers.

Labour cost per unit is also referred to as ________.

When ________,in addition to creativity and R&D investments,is critical to operations strategy,cost may cease to be the primary focus of location criteria.

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

Service firms choose locations based,in part,on the revenue potential of a site.

What is the role of labour productivity in location decisions? Why is it more important than low wages in location decisions?

Which of the following is most likely to affect the location strategy of a manufacturing firm?

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

A full-service restaurant is considering opening a new facility in a specific city.The table below shows its ratings of four factors at each of two potential sites. The score for Gary Mall is and the score for Belt Line is .

When firms build supply chains that include foreign firms, and are issues that raise ethical and legal concerns with operations managers.