Deck 9: Facility Location

Question 1

The processing point for a weight-gaining raw material ___________.
a.can be anywhere near the source and the market
b.should be near its source
c.should be near the final market
d.should be equidistant between the source and the market

Answer 1

should be near the final market

Question 2

Labor force ___________ is/are a key locational determinant as supply chains become more global in nature.
a.wage rates
b.size
c.skills
d.age

Answer 2

wage rates

Question 3

Which of the following statements is false?
a.Pure materials lose no weight in processing.
b.With weight-gaining products,the processing point should be close to the market.
c.Water is a requirement for the location of many facilities.
d.With weight-losing products,the processing point should be close to the market.

Answer 3

W ith weight-losing products ,the processing point should be close to the market .

Question 4

In 2010,the three most populous U.S.states were located in the West,Southwest,and ___________.
a.Northeast
b.Southeast
c.Midwest
d.Southwest

Question 5

The processing point for a weight-losing raw material ___________.
a.can be anywhere near the source and the market
b.should be near its source
c.should be near the final market
d.should be equidistant between the source and the market

Question 6

A locavore strategy ___________.
a.is based on the agglomeration concept
b.refers to purchasing locally grown or produced foods
c.focuses on hiring local workers
d.is associated with reducing inventory turnover

Question 7

Which of the following statements is false?
a.Countries with low labor costs often have a multitude of sweatshops.
b.There has been a decrease in maquiladoras in recent years.
c.A workforce's union status may be a key locational determinant for some organizations.
d.Expatriate work assignments can be costly.

Question 8

The initial focus in facility location is on a ___________.
a.city
b.county
c.state or province
d.region

Question 9

The text indicates that ___________ plans to open 500 new stores per year in China through 2020.
a.KFC
b.McDonald's
c.Subway
d.Starbucks

Question 10

What two countries account for approximately one-third of the world's population?
a.China and Indonesia
b.India and the United States
c.China and India
d.the United States and China

Question 11

___________ is the most popular location for nearsourcing among companies that do business in North America.
a.Canada
b.Mexico
c.Puerto Rico
d.Brazil

Question 12

A pure material is one that___________.
a.loses no weight in manufacturing
b.cannot be mixed with other materials
c.is soluble in water
d.comes from the ocean

Question 13

Right-to-work laws refer to a situation where ___________.
a.worker strikes are illegal
b.every person who wants a job is guaranteed a job
c.each state provides employment to those people receiving public assistance
d.an individual cannot be compelled to join a union as a condition of employment

Question 14

Over the past quarter century,discussion of natural resources and facility location has increasingly factored in ___________ considerations.
a.cost
b.supply chain
c.diversity
d.environmental

Question 15

What country's population is projected to grow from approximately 160 million in 2010 to nearly 260 million in 2033?
a.Indonesia
c.Nigeria
c.Russia
d.Ethiopia

Question 16

Which of the following statements is false?
a.The initial focus in facility location is on a region.
b.Because manufacturing plants and warehousing can be very expensive to lease or build,companies are hesitant to close them.
c.Poorly located facilities do not impact logistical effectiveness.
d.Poorly located facilities negatively impact logistical efficiency.

Question 17

The processing point for a pure material ___________.
a.should be closer to the source than to the market
b.should be closer to the market than to the source
c.can be anywhere in the world
d.can be anywhere near the source and the market

Question 18

Which of the following is not a key shortcoming of the sweatshops associated with the electronics industry?
a.violations of working hours
b.poor workplace ventilation
c.violations of wage agreements
d.discriminatory practices based on age

Question 19

___________ plants,which are located just south of the U.S.-Mexican border,provide much needed jobs to Mexican workers and allow for low-cost,duty-free production so long as all goods are exported from Mexico.
a.Industry cluster
b.Locavore
c.Maquiladora
d.Free trade zone

Question 20

___________ refers to companies that reconfigure their logistics networks to bring some production facilities closer to key consumer markets.
a.Nearsourcing
b.Outsourcing
c.Relocation
d.Locavore strategy

Question 21

Which of the following statements is false?
a.The accessibility of highway transportation often ranks as one of the most important criteria in facility location.
b.Transportation considerations are a key aspect of facility location decisions.
c.A poor facility location can increase transportation costs as well as negatively impact customer service.
d.Intermodal competition refers to the number of carriers within a particular mode of transportation.

Question 22

The state of Massachusetts provided ___________ with approximately $145 million in incentives to move its corporate headquarters to Boston.
a.Procter & Gamble
b.General Electric
c.Boeing
d.McDonald's

Question 23

From a business perspective,___________ taxes are analogous to the personal property taxes paid by individuals.
a.sales
b.real estate
c.inventory
d.corporate franchising

Question 24

Which of the following is not a possible reason for a facility closing?
a.eliminating redundant capacity in mergers and acquisitions
b.poor planning
c.insufficient volume of business
d.limited competition

Question 25

How does the weighted center-of-gravity approach to location analysis differ from the center-of-gravity approach to location analysis?
a.The weighted approach considers real estate taxes.
b.The weighted approach is less complicated.
c.The weighted approach considers shipment volume.
d.The weighted approach considers tapering rates.

Question 26

A brownfield is ___________.
a.a term for where crushed boxes are stored before recycling
b.a term that refers to a potential site that has no trees needing to be cleared before construction
c.a property for which use and redevelopment is complicated by past use
d.a property that has been excavated but not further developed

Question 27

The European Union's expansion into Central and Eastern European countries has resulted in the Czech Republic and ___________ becoming favored distribution sites because of their relatively central location.
a.Poland
b.Hungary
c.Switzerland
d.Austria

Question 28

The existence of transportation competition,whether intermodal or intramodal,tends to have ___________.
a.both cost and service benefits to a user
b.cost,but not service,benefits to a user
c.service,but not cost,benefits to a user
d.neither cost nor service benefits to a user

Question 29

Turnover rates for expatriate workers current run between ___________ and ___________ percent.
a.10; 20
b.15; 25
c.20; 40
d.25; 45

Question 30

With respect to commodity flows,logisticians are especially interested in ___________ and ___________.
a.what is being produced; where it is being shipped
b.how much is being produced; where it is being produced
c.how much is being produced; where it is being shipped
d.what is being produced; where it is being produced

Question 31

The center-of-gravity approach to location analysis minimizes ___________.
a.labor costs
b.warehousing costs
c.real estate taxes
d.distance to existing facilities

Question 32

The Worker Adjustment and Retraining Notification (WARN)Act mandates that employers give ___________ days' notice about plant closings and mass layoffs.
a.30
b.60
c.90
d.120

Question 33

___________ refers to the net advantages that can be gained by a sharing of common locations by various enterprises.
a.Supplier development
b.Coopetition
c.Supplier relationship management
d.Agglomeration

Question 34

The agglomeration concept is better known today as the ___________ concept.
a.nearsourcing
b.coopetition
c.industry cluster
d.supply chain management

Question 35

Supplier parks are a concept that developed around ___________ and their suppliers in Europe.
a.appliance makers
b.apparel makers
c.computer makers
d.automakers

Question 36

An expatriate refers to a person who ___________.
a.is sent to work in other countries for extended periods of time
b.holds dual citizenship
c.has been stripped of citizenship
d.is ineligible to work outside his/her home country

Question 37

One branding expert has argued that in the twenty-first century ___________ represents the leading reason why businesses locate in a particular area.
a.transportation considerations
b.quality-of-life considerations
c.labor considerations
d.natural resource consideration

Question 38

___________ has identified bureaucratic red tape as causing business to be diverted to Asian ports characterized by less bureaucratic red tape.
a.Thailand
b.China
c.Indonesia
d.Malaysia

Question 39

A free trade zone refers to an area ___________.
a.that is home to businesses that are owned and operated by large concentrations of a particular ethnic group
b.in which products can be stored,exhibited,or processed without being subjected to duties and quotas unless they enter the customs territory of the zone country
c.in which the federal government disregards all import and export quotas for products coming from,or destined to,"favored" nations
d.outside the legal jurisdiction of federal,state,and/or local governments

Question 40

Which of the following is not a site-specific (specialized)factor in facility location?
a.environment
b.zoning restrictions
c.weather
d.natural resources

Question 41

Retailers might add a distribution center when some of its stores can no longer consistently be supplied within two days by existing facilities.

Question 42

Over the past quarter century,discussion of natural resources and facility location has increasingly factored in environmental and sustainability considerations.

Question 43

An expatriate is a person who is not allowed to work outside his/her home country.

Question 44

Labor wage rates appear to be a key locational determinant as supply chains become more global in nature.

Question 45

Right-to-work laws mean that every person who wants a job is guaranteed a job.

Question 46

The processing point for a weight-gaining raw material should be close to the market.

Question 47

The processing point for a weight-losing raw material can be anywhere between the source and the market.

Question 48

A pure material is one that is totally water soluble.

Question 49

Inventory taxes have become increasingly difficult to collect in part because of a lack of agreement as to what is meant by inventory.

Question 50

Poorly located facilities,such as manufacturing plants and warehouses,negatively impact logistical effectiveness,but have little impact on logistical efficiency.

Question 51

A locavore strategy focuses on hiring local workers.

Question 52

Population can be viewed as both a market for goods and a potential source of labor.

Question 53

Sweatshops are organizations that exploit workers and that do not comply with fiscal and legal obligations toward employees.

Question 54

Population size is an irrelevant consideration in the facility location decision.

Question 55

Facility location is a logistics/supply chain activity that has evolved from a tactical decision to one of tremendous strategic importance in numerous organizations.

Question 56

Maquiladora plants have experienced a resurgence in recent years because of a focus on manufactured products that depend on fast time to market.

Question 57

A general rule of thumb is that the services received from business taxes represent only about 50 percent of the taxes that were paid.

Question 58

The initial focus in facility location is on a county.

Question 59

Agglomeration refers to companies reconfiguring their logistics networks to bring some production facilities closer to key consumer markets.

Question 60

China and India account for approximately one-third of the world's population.

Question 61

With respect to commodity flows,logisticians are especially interested in what is being produced and where it is being produced.

Question 62

Government considerations such as the relevant legal system,political stability,and protectionism are important when companies are thinking of facility location in non-domestic countries.

Question 63

The development and implementation of multicountry trade agreements has had profound impacts on trade patterns.

Question 64

Facility relocation is associated with business growth,while facility closing is associated with business contraction.

Question 65

The agglomeration concept is better known today as the supply chain management concept.

Question 66

Supplier parks refer to places where main component makers locate in specially created industrial complexes adjacent to assembly plants.

Question 67

The Worker Adjustment and Retraining Notification (WARN)Act mandates that employers give 90 days' notice about plant closings and mass layoffs.

Question 68

Free trade zones must be adjacent to a port or an airport.

Question 69

The idea behind a weighted center-of-gravity approach is that a prospective warehousing facility will be located closer to the existing sites with the greatest current demand.

Question 70

Intermodal competition refers to the number of carriers within a particular mode of transportation.

Question 71

Massachusetts provided General Electric with approximately $145 million in incentives to move its corporate headquarters to Boston.

Question 72

Quality of life considerations play a limited role in facility location decisions.

Question 73

A community can encourage or discourage business activity through changes in the zoning classifications of land.

Question 74

A poor facility location can increase transportation costs,but has minimal impact on customer service.

Question 75

The European Union's expansion into Central and Eastern European countries has seen Hungary become a favored distribution site because of its relatively central geographic location.

Question 76

Grid systems are important to locational analysis because they allow one to analyze spatial relationships with relatively simple mathematical tools.

Question 77

The human impact of facility closing should be a relatively low priority.

Question 78

Brownfields refer to a place where flattened cartons are stored until they are recycled.

Question 79

Centralized facilities tend to minimize total transit distances,which likely results in minimum transportation costs.

Question 80

Agglomeration refers to the net advantages that can be gained by a sharing of common locations by various enterprises.