Deck 9: Location and Layout

Question 1

Location factors can be divided into dominant and secondary factors.

Answer 1

True

Question 2

This clustering of competing firms can create an industrial ecosystem whereby facilities exchange or transfer wastes,recycle materials,and use each other's byproducts.

Answer 2

False

Question 3

An economic activity center is anything that consumes space.

Answer 3

True

Question 4

One dominant factor in locating manufacturing facilities is a proximity to markets.

Question 5

The absolute location is the placement of the center relative to other centers.

Question 6

Break-even analysis can help a manager compare location alternatives on the basis of qualitative factors.

Question 7

When outbound transportation costs are a dominant factor,manufacturing facilities should be located close to suppliers and resources.

Question 8

Euclidean distance is the distance between two points with a series of 90 degree turns.

Question 9

One dominant factor in locating service facilities is customer proximity.

Question 10

Layout planning involves decisions about the physical arrangement of economic activity centers within a facility.

Question 11

One of the advantages of building a new plant or moving to a new retail or office space is that the firm does not have to rely on production from a single plant.

Question 12

Secondary location factors are derived from competitive priorities.

Question 13

The load-distance method is a qualitative model used to evaluate locations.

Question 14

The transportation method is a quantitative approach that can help solve multiple-facility location problems.

Question 15

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.

Question 16

Facility location is the process of determining a geographic site for a firm's operations.

Question 17

A qualitative factor is one that can be evaluated in dollar terms,such as community attitudes or quality of life.

Question 18

One dominant factor in locating manufacturing facilities is a favorable labor climate.

Question 19

Location is one of the factors in determining how conveniently customers can carry on business with a firm.

Question 20

Critical mass refers to several competing firms clustering in one location to attract customers.

Question 21

One common performance criteria for layouts is materials handling.

Question 22

A product layout groups workstations according to function rather than arranging workstations in a linear path.

Question 23

In the fixed-position layout,the product is fixed in place,and the workers,tools,and equipment come to the product.

Question 24

The balance delay is the amount by which efficiency falls short of 100 percent.

Question 25

Immediate predecessors are the smallest units of work that can be performed independently.

Question 26

The space in a bank where customers line up for teller service is not an economic activity centre.

Question 27

Line balancing is the assignment of work to stations in a line so as to achieve the desired output rate with the smallest number of workstations.

Question 28

Paced lines require that inventory storage areas be placed between stations.

Question 29

A cell is two or more dissimilar workstations located close together through which a limited number of parts or models are processed with line flows.

Question 30

When volumes are high,an advantage of product layouts over process layouts is that less unproductive time is lost to changeovers and materials handling.

Question 31

A product layout generally has slower processing rates than a process layout.

Question 32

Layout flexibility means either that the facility remains desirable after significant changes occur or that it can be easily and inexpensively adapted in response to changes.

Question 33

One common performance criteria for layouts is capital investment.

Question 34

Many projects use a fixed-position layout.

Question 35

A REL chart reflects the qualitative judgments of managers and employees.

Question 36

A product layout is best for low-volume,high-variety production.

Question 37

A trip matrix is a plan that allocates space and indicates placement of each department.

Question 38

Relative to product layouts,an advantage of process layouts is that production planning and control is generally less difficult.

Question 39

A process layout is a layout in which workstations or departments are arranged in a linear path.

Question 40

Relative to product layouts,process layouts are less vulnerable to changes in product mix or new marketing strategies and are therefore more flexible.

Question 41

Which of the following usually is an advantage of on-site expansion,compared to building a new facility?

A)reduced construction time and costs
B)focused facility
C)simplified production control
D)reduced transportation cost

Question 42

Which one of the following statements about distance measures is best?

A)Rectilinear distance is the straight-line distance.
B)The Euclidean distance between two locations can never exceed the rectilinear distance.
C)Euclidean distance assumes that the trip between two points is made with a series of 90-degree turns.
D)Rectilinear distance always equals the actual travel distance.

Question 43

One disadvantage of flexible-flow layout is that production planning and control is more difficult.

Question 44

Locating work centres in a facility primarily depends on the absolute location within the facility;the location of work centre relative to other work centres is not a key consideration.

Question 45

The group of location factors found to be most important for new manufacturing plants,on the average,is

A)proximity to markets.
B)quality of life.
C)proximity to suppliers and resources.
D)favorable labor climate.

Question 46

Which one of the following statements about distance measures is best?

A)Euclidean distance is the straight-line distance.
B)The rectilinear distance between two locations can never exceed the Euclidean distance.
C)Euclidean distance equals the actual travel distance.
D)Euclidean distance assumes that the trip between two points is made with a series of 90-degree turns.

Question 47

An advantage of flexible-flow layouts over line-flow layouts is that the process is less vulnerable to changes in product mix.

Question 48

A mixed-model line produces several items belonging to the same family.

Question 49

Which of the following group of location factors was NOT found to dominate location decisions for new U.S.manufacturing plants?

A)proximity to the parent company's facilities
B)quality of life
C)proximity to competitor's facilities
D)favorable labor climate

Question 50

A layout that groups workstations or departments according to function is referred to as a flexible-flow layout.

Question 51

Which one of the following is usually an advantage of building a new facility,compared to on-site expansion?

A)reducing construction time and costs
B)keeping management together
C)reducing transportation costs
D)not splitting up operations

Question 52

A line-flow layout is an arrangement where the product is fixed in place,while workers,along with their tools and equipment,come to the product to work on it.

Question 53

When volumes are high,an advantage of line-flow layouts over flexible-flow layouts is that less unproductive time is lost to changeovers and material handling.

Question 54

Widgets,Inc.wishes to locate two new manufacturing facilities.Based on the following subjective criteria,where should the new facilities be located? (Excellent = 5,Very good = 4,Good = 3,Fair = 2,Poor = 1). Factor Evaluation by Location

A)B and D
B)A and D
C)C and D
D)D and E

Question 55

A preference matrix combines qualitative factors and quantitative scores to compare several sites being considered in a location decision.

Question 56

Which of the following statements on locating facilities in the service sector is best?

A)The factors that apply to manufacturing firms often also apply to service facilities,but the impact of the location on sales and customer satisfaction is an important addition.
B)Management should avoid locating facilities where competitors are already well established,as illustrated by new car showrooms.
C)Creating a "critical mass" is a strategy that avoids locating near competing firms.
D)"Site specific" factors are the main reason for locating warehousing and distribution operations near the customer.

Question 57

In order to attract the maximum number of customers,competing service businesses rarely locate close to each other.

Question 58

Proximity to customers is a more important factor in locating manufacturing facilities then it is for locating service facilities.

Question 59

Which of the following statements on locating new U.S.manufacturing plants is best?

A)A favorable labor climate is the most important factor for capital-intensive plants.
B)Labor climate is a function of wage rates,training requirements,attitudes toward work,worker productivity,and union strength.
C)Locating near markets is less important when the finished goods are bulky or heavy and outbound transportation rates are high.
D)The shift in new industrial jobs to non-urban regions,which is experienced in the United States,is not taking place in Japan and Europe.

Question 60

When volumes are high,an advantage of flexible-flow layouts over line-flow layouts is faster processing rates.

Question 61

Table 9.1
A single facility is needed to meet the demands of four markets.
The locations and demands of these four markets are shown below.

Use the information from Table 9.1.If the facility must be located at one of these four markets,which of the four locations is most desirable,assuming Euclidean distance?

A)A
B)B
C)C
D)D

Question 62

McKenna Restaurant wishes to open a new store.Based on the following subjective criteria,where should the new store be located? Factor Score by Location

A)A
B)B
C)C
D)D

Question 63

Table 9.4
Table 7.4 A company has determined the "demand points" and their relative locations as follows:
Coordinates

Using the information in Table 9.4.If a company desires to locate a manufacturing facility at the center of gravity,what would be the x- and y-coordinates of the facility?

A)x ≤ 14,y ≤ 14
B)x ≤ 14,y > 14
C)x ≤ 15,y ≤ 14
D)x ≤ 15,y > 15

Question 64

Table 9.1
A single facility is needed to meet the demands of four markets.
The locations and demands of these four markets are shown below.

Use the information from Table 9.1.If the facility must be located at one of these four markets,which of the four locations is most desirable,assuming rectilinear distance?

A)A
B)B
C)C
D)D

Question 65

Table 9.1
A single facility is needed to meet the demands of four markets.
The locations and demands of these four markets are shown below.

Use the information from Table 9.1.What are the x- and y-coordinates for the center of gravity?

A)x ≥ 6,y ≥ 7
B)x ≥ 6,y < 7
C)x < 6,y ≥ 7
D)x < 6,y < 7

Question 66

Sweet Candy,Inc.wishes to open two new stores.Based on the following subjective criteria,where should the new stores be located? Factor Score Evaluation by Location

A)A and B
B)B and C
C)B and D
D)B and E

Question 67

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. )

A)less than or equal to 4500
B)greater than 4500 but less than or equal to 5000
C)greater than 5000 but less than or equal to 5500
D)greater than 5500

Question 68

A company desires to locate a new facility.Based on preliminary analysis,the choice has been reduced to four locations: A,B,C,and D.These four locations were rated on a scale from 1 worst to 10 best on each of four criteria.Each criterion was also weighted to indicate its importance (i.e. ,the higher the weight,the more important).The list of ratings and weights follows. Factor Score Evaluation by Location
Based on weighted scores,where should the company locate its new facilities?

A)A
B)B
C)C
D)D

Question 69

The rectilinear distance between points A (15,25)and B (45,5)is

A)less than or equal to 35.
B)more than 35 but less than or equal to 40.
C)more than 40 but less than or equal to 45.
D)more than 45.

Question 70

The Hunan Restaurant wishes to locate a new facility.Based on the following subjective criteria,where should the new facility be located? (Very good=5,Good = 4,Fair = 3,Poor = 2,and Very poor = 1 Factor Score Evaluation by Location

A)A
B)B
C)C
D)D

Question 71

A single facility is needed to meet the demand of four regions depicted as follows: If the plant is located at A,what is the total load-distance score,assuming Euclidean distance?

A)less than or equal to 1000
B)more than 1000 but less than or equal to 1100
C)more than 1100 but less than or equal to 1200
D)more than 1200

Question 72

The Euclidean distance between points A (15,25)and B (45,5)is

A)less than or equal to 35.
B)more than 35 but less than or equal to 40.
C)more than 40 but less than or equal to 45.
D)more than 45.

Question 73

Table 9.2
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 9.2.If the plant is located at A,what is the total load-distance score,assuming rectilinear distance?

A)less than or equal to 1500
B)more than 1500 but less than or equal to 1600
C)more than 1600 but less than or equal to 1700
D)more than 1700

Question 74

Table 9.2
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 9.2.If the plant is located at the center of gravity,what is the load-distance score,assuming rectilinear distance?

A)less than or equal to 1500
B)more than 1500 but less than or equal to 1600
C)more than 1600 but less than or equal to 1700
D)more than 1700

Question 75

Pinkerton Company has four distribution centers located at the location coordinates given below. The monthly demand at each center is also given.Assume that management is considering locating its new plant at distribution center A.What is the load-distance score,assuming rectilinear distance?

A)less than 33,000
B)greater than 33,000 but less than 33,500
C)greater than 33,500 but less than 34,000
D)greater than 34,000

Question 76

Table 9.2
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 9.2.If the plant is located at the center of gravity,what is the load-distance score,assuming Euclidean distance?

A)less than or equal to 1300
B)more than 1300 but less than or equal to 1400
C)more than 1400 but less than or equal to 1500
D)more than 1500

Question 77

Table 9.3
A firm has the following demand forecasts for the five markets that it serves:

Use the information in Table 9.3.If the firm decides to locate the warehouse at point D,what is the total load-distance score? (Use rectilinear distance).

A)less than 400
B)between 401 and 450
C)between 451 and 500
D)more than 500

Question 78

Table 9.2
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 9.2.What are the x- and y-coordinates for the center of gravity?

A)x ≥ 14,y ≥ 15
B)x < 14,y ≥ 15
C)x <14,y < 15
D)x ≥ 14,y < 15

Question 79

The point has been reached where a biotechnology research and development company must expand by building a new facility.The search has been narrowed to four locations,all of which are acceptable to management.The assessment of these sites is being made on the basis of the six subjective location factors that follow.Management has agreed to use a five-point scale (Excellent = 5,Very good = 4,Good = 3,Fair = 2,Poor = 1)to quantify and compare their subjective opinions about the relative goodness of the sites).The weight reflects the importance of each factor in the decision. Factor Evaluation by Location
Calculate the weighted score for each alternative.Which location would you recommend?

A)A
B)B
C)C
D)D

Question 80

Table 9.3
A firm has the following demand forecasts for the five markets that it serves:

Use the information in Table 9.3.What is the center of gravity?

A)x ≤ 7,y ≤ 8
B)x > 7,y ≤ 8
C)x ≤ 7,y > 8
D)x > 7,y > 8