Deck 15: Logistics Distribution, and Transportation

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Question
A free trade zone operates under different rules and laws than a foreign trade zone.
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Question
Issues of product mix and capacity are strongly interconnected to the facility location decision.
Question
In facility location decision making, matching the educational and skill levels of the labor pool to a company's needs is even more important than the labor pool's willingness and ability to learn.
Question
Because the world is becoming more highly interconnected, the proximity of an important supplier's plants is not crucial in supporting lean production methods.
Question
A favorable business climate in facility location decision making might include local government intervention to facilitate businesses locating in an area via subsidies.
Question
In facility location decision making, the educational and skill levels of the labor pool must match the company's needs.
Question
A free trade zone is typically a closed facility into which foreign goods can be brought without being subject to the usual customs requirements.
Question
In facility location decision making, the factor-rating system is one of the least used general location techniques.
Question
Facility location analysis considers the competitive imperative of a favorable business climate as indicated by the presence of other companies in the same industry.
Question
Facility location analysis considers the competitive imperative of locating near the appropriate labor pool to take advantage of low wage costs and/or skill levels.
Question
A favorable business climate in facility location decision making might include government legislation of tax abatements.
Question
A favorable business climate in facility location decision making might include local government providing basic skill training for prospective members of the workforce.
Question
Facility location analysis considers proximity to customers important to timeliness of deliveries.
Question
Facility location analysis considers the competitive imperative of lowest total cost.
Question
An example of a positive business climate that might influence a facility location decision is increasing governmental costs and increasing property taxes.
Question
Quality of life in a host community is not a major factor in making the facility location decision.
Question
The local government's willingness to invest in upgrading infrastructure to the levels required by a company is an important issue in a company's decision of where to locate a new facility.
Question
Governmental barriers to enter and locate in many countries are increasing through restrictive protectionist legislation.
Question
The objective of facility location analysis is to select the site with the lowest total cost.
Question
Facility location analysis considers the competitive imperative of locating near the appropriate labor pool to take advantage of high technical skills.
Question
One of the objectives of facility location analysis is to select a site with the lowest total cost.Which of the following are hidden costs that should be included in the analysis?

A)Becoming less responsive to the customer
B)Supplier costs
C)Taxes
D)Construction costs
E)Product life cycle costs
Question
One of the objectives of facility location analysis is to select a site with the lowest total cost.Which of the following costs should not be included in the analysis?

A)Outbound distribution costs
B)Incidental costs
C)Energy costs
D)Hidden costs
E)Taxes
Question
One of the objectives of facility location analysis is to select a site with the lowest total cost.Which of the following costs should be excluded from the analysis?

A)Historical costs
B)Inbound distribution costs
C)Land
D)Construction
E)Regional costs
Question
Cross-docking is an approach used in consolidation warehouses, where large shipments are broken down into small shipments for local delivery in an area.
Question
A major problem in a plant location decision based on the factor-rating system is that simple point-rating schemes do not account for the wide variance of costs that may occur within each factor used in the analysis.
Question
One of the objectives in facility location analysis is to select a site with the lowest total cost.Which of the following costs are hidden costs that should be included in the analysis?

A)Infrastructure costs
B)Movement of preproduction material between locations
C)Taxes
D)Construction costs
E)Bribery costs
Question
An important issue in facility location analysis is business climate.An unfavorable business climate could be indicated by which of the following?

A)Similar-sized businesses nearby
B)The willingness of local politicians to provide favorable treatment for a consideration
C)The presence of other foreign companies in the case of international locations
D)The local presence of companies in the same industry
E)An established educational institution nearby
Question
The Association for Operations Management defines logistics as "the art and science of obtaining, producing, and distributing material and product in the proper place and in proper quantities."
Question
Which of the following is not a criterion that influences manufacturing plant or warehouse facility location decisions?

A)Government barriers
B)Trading blocs
C)Environmental regulation
D)Immigration rules
E)Local labor costs
Question
Facility location decisions are made using analytical techniques that are able to weigh a large number of different variables equally.
Question
A third-party logistics company is a firm that manages all or part of another company's product delivery operations.
Question
DHL and United Parcel Service are transportation companies that are prohibited from functioning as third-party logistics companies the way Federal Express does.
Question
In facility location decision making, the factor-rating system is based on linear programming.
Question
In a hub-and-spoke system, each warehouse in the system acts as a spoke.
Question
Services typically have multiple site locations to maintain close contact with customers.
Question
Which of the following is a not criterion that influences manufacturing plant or warehouse facility location decisions?

A)Suppliers
B)Free trade zones
C)Political risk
D)Gross national product
E)Tariffs and customs duties
Question
Hub-and-spoke systems combine the idea of consolidation and that of cross-docking.
Question
Which of the following is not a criterion that influences manufacturing plant or warehouse facility location decisions?

A)Proximity to customers
B)Historical cost
C)Infrastructure of a country
D)Quality of labor
E)Business climate
Question
Which of the following is a criterion that influences manufacturing plant or warehouse facility location decisions?

A)Proximity to customers
B)Corporate policy
C)Competitor's locations
D)Competitive advantage
E)Host-community politics
Question
Cross-docking is a practice used in the international shipping industry that facilitates port utilization.
Question
In which of the following situations should we not use the transportation method of linear programming?

A)To find a new site location for a plant
B)To minimize costs of shipping n units to m destinations
C)To maximize profits of shipping n units to m destinations
D)To determine which corner of a street intersection to locate a retail service facility
E)To locate a finished goods distribution warehouse
Question
How many free trade zones are there in the United States?

A)Less than 50
B)Less than 100
C)About 260
D)More than 412
E)About 310
Question
The centroid method for plant location uses which of the following data?

A)Volume of goods to be shipped between existing points
B)Inbound transportation costs
C)Transport times between facilities
D)Correlation matrix of existing facilities
E)Probabilities and payoffs
Question
Plant A is located at the (X, Y) coordinates of (200, 500) and has a volume of shipping of 400 units a day.Plant B is located at the (X, Y) coordinates of (300, 100) and has a volume of shipping of 300 units a day.Using the centroid method, which of the following is the X coordinate for the new plant location?

A)About 208
B)About 227
C)About 243
D)About 389
E)X coordinate cannot be computed from the data given.
Question
Very few products are moved without at least part of their journey being by which mode of transportation?

A)Highway
B)Rail
C)Water
D)Pipeline
E)Air
Question
Which of the following is a plant location methodology good for locating a single facility within a set of existing facilities based in distances and volumes of goods shipped?

A)Factor-rating systems
B)Centroid method
C)Decision trees
D)Linear programming
E)Regression analysis
Question
In the logistics-systems design matrix, volume, cost and speed of delivery are three variables (assume three levels: low, moderate or high) used to describe attributes of transportation modes.Air is associated with

A)moderate volume, moderate speed and high cost
B)low volume, high speed and high cost
C)high volume, moderate speed and low cost
D)low volume, high cost and low speed
E)high volume, high speed and high cost
Question
Plant A is located at the (X, Y) coordinates of (100, 200) and has a volume of shipping of 500 units a day.Plant B is located at the (X, Y) coordinates of (150, 400) and has a volume of shipping of 200 units a day.Using the centroid method, which of the following is the X coordinate for the new plant location?

A)About 100
B)About 114
C)About 130
D)About 150
E)X coordinate cannot be computed from the data given.
Question
In the logistics-systems design matrix, volume, cost and speed of delivery are three variables (assume three levels: low, moderate or high) used to describe attributes of transportation modes.Rail is associated with

A)moderate volume, moderate speed and high cost
B)moderate volume, high speed and high cost
C)high volume, moderate speed and low cost
D)low volume, high cost and low speed
E)high volume, high speed and high cost
Question
A company wants to determine where it should locate a new warehouse.It has two existing production plants and will have a volume of shipping of 150 units a day.Using the centroid method, which of the following are the X and Y coordinates for the new plant location?

A)(81, 117)
B)(88, 138)
C)(117, 102)
D)(76, 123)
E)X and Y coordinates cannot be computed from the data given.
Question
Suppose that using the centroid method you found the best location for a communications tower.The location happens to be in the middle of a pond.Then, you should locate the tower

A)at that location using water proof concrete and precast poles.
B)at the closest point outside the pond.
C)using some other method
D)after considering qualitative factors such as geography, roads and utilities to help find the exact location.
E)None of the above
Question
Using the transportation method for solving the optimal shipping a product from factories to warehouses, as per text, you should use

A)"≤" for constraints regarding factory capacity and "=" for constraints regarding demand at warehouses.
B)"≥" for constraints regarding factory capacity and "≤" for constraints regarding demand at warehouses.
C)"=" for constraints regarding factory capacity and "≥" for constraints regarding demand at warehouses.
D)"≥" for constraints regarding factory capacity and "=" for constraints regarding demand at warehouses.
E)None of the above
Question
Which of the following is not an infrastructure criteria used in facility location analysis?

A)Adequate school system
B)Adequate health care
C)Adequate transportation
D)Adequate low cost labor
E)Adequate public utility systems
Question
An example of a trading bloc is which of the following?

A)Central American Free Trade Agreement countries
B)Free trade zones
C)ISO-9000 companies
D)American Production and Inventory Control Society
E)Walmart and its suppliers
Question
What transportation mode has very high initial investment costs but gives a very low cost per mile for products that are highly specialized and require no packaging?

A)Highway
B)Rail
C)Water
D)Pipeline
E)Air
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Deck 15: Logistics Distribution, and Transportation
1
A free trade zone operates under different rules and laws than a foreign trade zone.
False
2
Issues of product mix and capacity are strongly interconnected to the facility location decision.
True
3
In facility location decision making, matching the educational and skill levels of the labor pool to a company's needs is even more important than the labor pool's willingness and ability to learn.
False
4
Because the world is becoming more highly interconnected, the proximity of an important supplier's plants is not crucial in supporting lean production methods.
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5
A favorable business climate in facility location decision making might include local government intervention to facilitate businesses locating in an area via subsidies.
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6
In facility location decision making, the educational and skill levels of the labor pool must match the company's needs.
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7
A free trade zone is typically a closed facility into which foreign goods can be brought without being subject to the usual customs requirements.
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8
In facility location decision making, the factor-rating system is one of the least used general location techniques.
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9
Facility location analysis considers the competitive imperative of a favorable business climate as indicated by the presence of other companies in the same industry.
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10
Facility location analysis considers the competitive imperative of locating near the appropriate labor pool to take advantage of low wage costs and/or skill levels.
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11
A favorable business climate in facility location decision making might include government legislation of tax abatements.
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12
A favorable business climate in facility location decision making might include local government providing basic skill training for prospective members of the workforce.
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13
Facility location analysis considers proximity to customers important to timeliness of deliveries.
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14
Facility location analysis considers the competitive imperative of lowest total cost.
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15
An example of a positive business climate that might influence a facility location decision is increasing governmental costs and increasing property taxes.
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16
Quality of life in a host community is not a major factor in making the facility location decision.
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17
The local government's willingness to invest in upgrading infrastructure to the levels required by a company is an important issue in a company's decision of where to locate a new facility.
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18
Governmental barriers to enter and locate in many countries are increasing through restrictive protectionist legislation.
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19
The objective of facility location analysis is to select the site with the lowest total cost.
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20
Facility location analysis considers the competitive imperative of locating near the appropriate labor pool to take advantage of high technical skills.
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21
One of the objectives of facility location analysis is to select a site with the lowest total cost.Which of the following are hidden costs that should be included in the analysis?

A)Becoming less responsive to the customer
B)Supplier costs
C)Taxes
D)Construction costs
E)Product life cycle costs
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k this deck
22
One of the objectives of facility location analysis is to select a site with the lowest total cost.Which of the following costs should not be included in the analysis?

A)Outbound distribution costs
B)Incidental costs
C)Energy costs
D)Hidden costs
E)Taxes
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k this deck
23
One of the objectives of facility location analysis is to select a site with the lowest total cost.Which of the following costs should be excluded from the analysis?

A)Historical costs
B)Inbound distribution costs
C)Land
D)Construction
E)Regional costs
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k this deck
24
Cross-docking is an approach used in consolidation warehouses, where large shipments are broken down into small shipments for local delivery in an area.
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k this deck
25
A major problem in a plant location decision based on the factor-rating system is that simple point-rating schemes do not account for the wide variance of costs that may occur within each factor used in the analysis.
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k this deck
26
One of the objectives in facility location analysis is to select a site with the lowest total cost.Which of the following costs are hidden costs that should be included in the analysis?

A)Infrastructure costs
B)Movement of preproduction material between locations
C)Taxes
D)Construction costs
E)Bribery costs
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Unlock for access to all 55 flashcards in this deck.
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k this deck
27
An important issue in facility location analysis is business climate.An unfavorable business climate could be indicated by which of the following?

A)Similar-sized businesses nearby
B)The willingness of local politicians to provide favorable treatment for a consideration
C)The presence of other foreign companies in the case of international locations
D)The local presence of companies in the same industry
E)An established educational institution nearby
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Unlock for access to all 55 flashcards in this deck.
Unlock Deck
k this deck
28
The Association for Operations Management defines logistics as "the art and science of obtaining, producing, and distributing material and product in the proper place and in proper quantities."
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Unlock for access to all 55 flashcards in this deck.
Unlock Deck
k this deck
29
Which of the following is not a criterion that influences manufacturing plant or warehouse facility location decisions?

A)Government barriers
B)Trading blocs
C)Environmental regulation
D)Immigration rules
E)Local labor costs
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Unlock for access to all 55 flashcards in this deck.
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k this deck
30
Facility location decisions are made using analytical techniques that are able to weigh a large number of different variables equally.
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k this deck
31
A third-party logistics company is a firm that manages all or part of another company's product delivery operations.
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k this deck
32
DHL and United Parcel Service are transportation companies that are prohibited from functioning as third-party logistics companies the way Federal Express does.
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k this deck
33
In facility location decision making, the factor-rating system is based on linear programming.
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34
In a hub-and-spoke system, each warehouse in the system acts as a spoke.
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35
Services typically have multiple site locations to maintain close contact with customers.
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k this deck
36
Which of the following is a not criterion that influences manufacturing plant or warehouse facility location decisions?

A)Suppliers
B)Free trade zones
C)Political risk
D)Gross national product
E)Tariffs and customs duties
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37
Hub-and-spoke systems combine the idea of consolidation and that of cross-docking.
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38
Which of the following is not a criterion that influences manufacturing plant or warehouse facility location decisions?

A)Proximity to customers
B)Historical cost
C)Infrastructure of a country
D)Quality of labor
E)Business climate
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k this deck
39
Which of the following is a criterion that influences manufacturing plant or warehouse facility location decisions?

A)Proximity to customers
B)Corporate policy
C)Competitor's locations
D)Competitive advantage
E)Host-community politics
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k this deck
40
Cross-docking is a practice used in the international shipping industry that facilitates port utilization.
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k this deck
41
In which of the following situations should we not use the transportation method of linear programming?

A)To find a new site location for a plant
B)To minimize costs of shipping n units to m destinations
C)To maximize profits of shipping n units to m destinations
D)To determine which corner of a street intersection to locate a retail service facility
E)To locate a finished goods distribution warehouse
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42
How many free trade zones are there in the United States?

A)Less than 50
B)Less than 100
C)About 260
D)More than 412
E)About 310
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k this deck
43
The centroid method for plant location uses which of the following data?

A)Volume of goods to be shipped between existing points
B)Inbound transportation costs
C)Transport times between facilities
D)Correlation matrix of existing facilities
E)Probabilities and payoffs
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Unlock for access to all 55 flashcards in this deck.
Unlock Deck
k this deck
44
Plant A is located at the (X, Y) coordinates of (200, 500) and has a volume of shipping of 400 units a day.Plant B is located at the (X, Y) coordinates of (300, 100) and has a volume of shipping of 300 units a day.Using the centroid method, which of the following is the X coordinate for the new plant location?

A)About 208
B)About 227
C)About 243
D)About 389
E)X coordinate cannot be computed from the data given.
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k this deck
45
Very few products are moved without at least part of their journey being by which mode of transportation?

A)Highway
B)Rail
C)Water
D)Pipeline
E)Air
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Unlock Deck
k this deck
46
Which of the following is a plant location methodology good for locating a single facility within a set of existing facilities based in distances and volumes of goods shipped?

A)Factor-rating systems
B)Centroid method
C)Decision trees
D)Linear programming
E)Regression analysis
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Unlock for access to all 55 flashcards in this deck.
Unlock Deck
k this deck
47
In the logistics-systems design matrix, volume, cost and speed of delivery are three variables (assume three levels: low, moderate or high) used to describe attributes of transportation modes.Air is associated with

A)moderate volume, moderate speed and high cost
B)low volume, high speed and high cost
C)high volume, moderate speed and low cost
D)low volume, high cost and low speed
E)high volume, high speed and high cost
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48
Plant A is located at the (X, Y) coordinates of (100, 200) and has a volume of shipping of 500 units a day.Plant B is located at the (X, Y) coordinates of (150, 400) and has a volume of shipping of 200 units a day.Using the centroid method, which of the following is the X coordinate for the new plant location?

A)About 100
B)About 114
C)About 130
D)About 150
E)X coordinate cannot be computed from the data given.
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k this deck
49
In the logistics-systems design matrix, volume, cost and speed of delivery are three variables (assume three levels: low, moderate or high) used to describe attributes of transportation modes.Rail is associated with

A)moderate volume, moderate speed and high cost
B)moderate volume, high speed and high cost
C)high volume, moderate speed and low cost
D)low volume, high cost and low speed
E)high volume, high speed and high cost
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Unlock Deck
k this deck
50
A company wants to determine where it should locate a new warehouse.It has two existing production plants and will have a volume of shipping of 150 units a day.Using the centroid method, which of the following are the X and Y coordinates for the new plant location?

A)(81, 117)
B)(88, 138)
C)(117, 102)
D)(76, 123)
E)X and Y coordinates cannot be computed from the data given.
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Unlock for access to all 55 flashcards in this deck.
Unlock Deck
k this deck
51
Suppose that using the centroid method you found the best location for a communications tower.The location happens to be in the middle of a pond.Then, you should locate the tower

A)at that location using water proof concrete and precast poles.
B)at the closest point outside the pond.
C)using some other method
D)after considering qualitative factors such as geography, roads and utilities to help find the exact location.
E)None of the above
Unlock Deck
Unlock for access to all 55 flashcards in this deck.
Unlock Deck
k this deck
52
Using the transportation method for solving the optimal shipping a product from factories to warehouses, as per text, you should use

A)"≤" for constraints regarding factory capacity and "=" for constraints regarding demand at warehouses.
B)"≥" for constraints regarding factory capacity and "≤" for constraints regarding demand at warehouses.
C)"=" for constraints regarding factory capacity and "≥" for constraints regarding demand at warehouses.
D)"≥" for constraints regarding factory capacity and "=" for constraints regarding demand at warehouses.
E)None of the above
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Unlock for access to all 55 flashcards in this deck.
Unlock Deck
k this deck
53
Which of the following is not an infrastructure criteria used in facility location analysis?

A)Adequate school system
B)Adequate health care
C)Adequate transportation
D)Adequate low cost labor
E)Adequate public utility systems
Unlock Deck
Unlock for access to all 55 flashcards in this deck.
Unlock Deck
k this deck
54
An example of a trading bloc is which of the following?

A)Central American Free Trade Agreement countries
B)Free trade zones
C)ISO-9000 companies
D)American Production and Inventory Control Society
E)Walmart and its suppliers
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Unlock for access to all 55 flashcards in this deck.
Unlock Deck
k this deck
55
What transportation mode has very high initial investment costs but gives a very low cost per mile for products that are highly specialized and require no packaging?

A)Highway
B)Rail
C)Water
D)Pipeline
E)Air
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locked card icon
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