Deck 10: Supplement Operational Decision-Making Tools: Facility Location Models

Question 1

The factors used to evaluate location of a manufacturing plant are usually different from the factors used in locating a service facility.

Answer 1

True

Question 2

Service operations tend to make location decisions more frequently than manufacturing facilities.

Answer 2

True

Question 3

A location's collection of physical support systems is known as its infrastructure.

Answer 3

True

Question 4

One reason foreign firms locate facilities in the United States is to be closer to their customers.

Question 5

Which of the following is not a primary factor in location decisions for manufacturing plants?

A)proximity to raw materials
B)proximity to customers
C)proximity to different modes of transportation
D)proximity to significant labor pools

Question 6

Service facilities are usually the largest and most expensive type of facility.

Question 7

Facility location is often overlooked because it is not an important aspect of a firm's strategic plan.

Question 8

Which type of facility is large and expensive?

A)light-industry facilities
B)retail and service facilities
C)heavy-manufacturing facilities
D)medium-site facilities

Question 9

The factors used to evaluate location of a manufacturing plant are usually different from the factors used in locating a service facility.

Question 10

The load-distance technique evaluates different locations based on load and transport distance.

Question 11

Transportation costs are generally a function of distance,weight,and time.

Question 12

A technique based on transport weight and distance used for locating a facility at the center of movement in a geographic area is known as the

A)load-distance technique.
B)center of gravity technique.
C)location factor rating.
D)location factor technique.

Question 13

The cost and availability of labor is an important factor in a manufacturing facility location decision.

Question 14

Inadequate infrastructure at a given location increases supply chain costs and decreases customer service.

Question 15

Which of the following is not a facility location factor important in selecting a country?

A)Government stability
B)Export and import tariffs
C)Customer service
D)Culture

Question 16

Common location incentives include all of the following except

A)tax credits.
B)job training.
C)fixed exchange rates.
D)improvements to infrastructure.

Question 17

For a service operation to be in the right place usually means being in a location that is convenient and easily accessible.

Question 18

Which of the following is a type of facility addressed by the facility location decision?

A)heavy manufacturing
B)light manufacturing
C)retail and service facilities
D)All of these answer choices are correct.

Question 19

Railroad access is frequently a factor in locating a manufacturing plant.

Question 20

The center-of-gravity technique outlines a method for identifying and weighing important location factors.

Question 21

A company is deciding where to locate a new warehouse that will receive shipments from three suppliers: 1,2,and 3.The locations of the suppliers (xi,yi)and the annual number of shipments from supplier i (Wi)are provided below: The coordinates for the new warehouse suggested by the center of gravity method are

A)x = 311.4 and y = 309.4
B)x = 309.4 and y = 311.4
C)x = 291.2 and y =198.9
D)x = 193.2 and y = 219.4

Question 22

A package delivery service wants to build a new distribution center in Boise,Idaho.The location of the center needs to be in the vicinity of Interstate-84,Highway-55 and the Boise Airport.The following table provides the coordinates of these three sites and the number of weekly packages. The suggested coordinates for the new warehouse using the center of gravity method are

A)x = 36.0 and y = 35.0
B)x = 27.3 and y = 22.3
C)x = 25.54 and y =24.4
D)x = 27.5 and y = 35.5