Deck 15: Location, Logistics, and Product Returns

Question 1

The use of foreign trade zones would likely involve which location decision consideration?

A) National competitiveness
B) Proximity to markets
C) Taxes and incentives
D) Regional trade agreements

Answer 1

C

Question 2

Choosing to locate in a country where the company would be given tax breaks for locating would likely involve which location decision consideration?

A) National competitiveness
B) Proximity to markets
C) Taxes and incentives
D) Regional trade agreements

Answer 2

C

Question 3

Choosing to manufacture in China to sell to Chinese customers would likely involve which location decision consideration?

A) National competitiveness
B) Proximity to markets
C) Proximity to suppliers
D) Land availability and cost

Answer 3

B

Question 4

Choosing a location while considering the ability to expand later would likely involve which location decision consideration?

A) National competitiveness
B) Regional trade agreements
C) Quality of life
D) Land availability and cost

Question 5

Employee well-being is an example of what location decision consideration?

A) Labor issues
B) Quality of life
C) Proximity to markets
D) Taxes and incentives

Question 6

Which U.S. state was listed as the most business friendly by a survey of 500 CEOs?

A) Texas
B) Nevada
C) North Carolina
D) California

Question 7

Having difficulty taking profits out of a country may be related to what location decision consideration?

A) Labor issues
B) Regional trade agreements
C) Currency exchange rate and stability
D) Taxes and incentives

Question 8

Choosing to locate in a country where employees would have access to world-class health care would likely involve which location decision consideration?

A) National competitiveness
B) Proximity to markets
C) Quality of life
D) Land availability and cost

Question 9

Logistics can be summarized by all of the following "rights" EXCEPT this:

A) Stuff
B) Price
C) Location
D) Time

Question 10

Choosing to locate near a cluster of component manufacturers would likely involve which location decision consideration?

A) National competitiveness
B) Proximity to markets
C) Proximity to suppliers
D) Land availability and cost

Question 11

Small businesses are enabled to compete on the global stage by all of the following EXCEPT this:

A) Increased trade barriers
B) Ease of access
C) Ample suppliers
D) Available communications

Question 12

Location decisions involve all of the following EXCEPT this:

A) Selecting a site
B) Identification of markets to be served by the facility
C) Researching potential locations
D) Negotiating employee benefits

Question 13

The most important elements in the definition of logistics are the following EXCEPT this:

A) Flow of goods
B) Flow of capital
C) Storage
D) Meeting requirements

Question 14

According to Numbeo's Quality of Life Index, the top country to live in, by quality of life considerations, is _______.

A) Switzerland
B) Germany
C) Sweden
D) the United States

Question 15

A notable challenge of relocating from a city to a suburban or rural area is _________.

A) finding a workforce
B) the high price of rural land
C) poor air quality
D) regional trade agreements

Question 16

The availability of inexpensive labor is related to what location decision consideration?

A) Labor issues
B) Regional trade agreements
C) Currency exchange rate and stability
D) Taxes and incentives

Question 17

A country's productivity rate has a significant impact on a country's

A) Role in climate change
B) National competitiveness
C) Mean wage rate
D) Ethical labor practices

Question 18

Silicon Valley, Wall Street, and Milan are examples of _______.

A) business centers
B) business monopolies
C) business conglomerates
D) business clusters

Question 19

Logistics management can be viewed as the combination of all of the following EXCEPT this:

A) Warehouse location planning
B) Transportation management
C) Product returns management
D) Marketing strategy management

Question 20

The top-rated country in 2015, according to the World Economic Forum, in terms of competitiveness was _______.

A) the United Kingdom
B) China
C) the United States
D) Switzerland

Question 21

There are three customer locations with x- and y-coordinates of (0, 0), (4, 3), and (1, 1), respectively. The customers have a projected shipment volume of 12, 20, and 18, respectively. Using the center-of-gravity technique, what is the x-coordinate of a facility to serve these customers (to two decimal places)?

A) 1.96
B) 1.56
C) 1.67
D) Cannot be determined from the information given

Question 22

The second step in the weighted-factor rating technique is to

A) Multiply each factor score by its weight and sum the weighted scores for each location
B) Identify all factors considered important to the facility location decision
C) Assign a weight to each factor
D) Assign a performance score to each factor for each location

Question 23

The fifth step in the weighted-factor rating technique is to

A) Multiply each factor score by its weight and sum the weighted scores for each location
B) Identify all factors considered important to the facility location decision
C) Select the location with the highest total weighted score
D) Assign a performance score to each factor for each location

Question 24

Typically, the weights assigned to factors in the weighted-factor rating technique should sum to _______.

A) 0
B) 1
C) 10
D) 100

Question 25

A company is considering Pittsburgh, Philadelphia, and Baltimore as candidate locations for a new facility. For the weighted-factor rating technique, the company is evaluating each location on three factors (distance to customers, labor costs, and utility costs). The factors are weighted 0.5, 0.3, and 0.2, respectively. Pittsburgh received scores of 90, 75, and 65 for the three factors. Philadelphia received scores of 85, 82, and 70. Baltimore received scores of 82, 85, and 75. Which of the three cities should be selected (ranked first by the weighted-factor rating technique?

A) Pittsburgh
B) Philadelphia
C) Baltimore
D) Cannot be determined from the information given

Question 26

A company is considering Pittsburgh, Philadelphia, and Baltimore as candidate locations for a new facility. For the weighted-factor rating technique, the company is evaluating each location on three factors (distance to customers, labor costs, and utility costs). The factors are weighted 0.5, 0.3, and 0.2, respectively. Pittsburgh received scores of 90, 75, and 65 for the three factors. Philadelphia received scores of 85, 82, and 70. Baltimore received scores of 82, 85, and 75. Which of the three cities is ranked third by the weighted-factor rating technique?

A) Pittsburgh
B) Philadelphia
C) Baltimore
D) Cannot be determined from the information given

Question 27

There are three customer locations with x- and y-coordinates of (12, 4), (11, 3), and (2, 2), respectively. The customers have a projected shipment volume of 20, 25, and 14, respectively. Using the center-of-gravity technique, what is the x-coordinate of a facility to serve these customers (to two decimal places)?

A) 8.33
B) 3.10
C) 9.20
D) Cannot be determined from the information given

Question 28

A company is considering Pittsburgh, Philadelphia, and Baltimore as candidate locations for a new facility. For the weighted-factor rating technique, the company is evaluating each location on three factors (distance to customers, labor costs, and utility costs). The factors are weighted 0.5, 0.3, and 0.2, respectively. Pittsburgh received scores of 90, 75, and 65 for the three factors. Philadelphia received scores of 85, 82, and 70. Baltimore received scores of 82, 85, and 75. Which of the three cities is ranked second by the weighted-factor rating technique?

A) Pittsburgh
B) Philadelphia
C) Baltimore
D) Cannot be determined from the information given

Question 29

There are three customer locations with x- and y-coordinates of (0, 0), (4, 3), and (1, 1), respectively. The customers have a projected shipment volume of 12, 20, and 18, respectively. Using the center-of-gravity technique, what is the y-coordinate of a facility to serve these customers (to two decimal places)?

A) 1.96
B) 1.56
C) 1.33
D) Cannot be determined from the information given

Question 30

A company is considering Pittsburgh, Philadelphia, and Baltimore as candidate locations for a new facility. For the weighted-factor rating technique, the company is evaluating each location on three factors (distance to customers, labor costs, and utility costs). The factors are weighted 0.5, 0.3, and 0.2, respectively. Pittsburgh received scores of 90, 75, and 65 for the three factors. Philadelphia received scores of 85, 82, and 70. Baltimore received scores of 82, 85, and 75. Which of the three factors is viewed as the most important?

A) Distance to customers
B) Labor costs
C) Utility costs
D) Cannot be determined from the information given

Question 31

In the U.S., which of the five basic modes of transportation is responsible for the largest volume (in tons) of domestic freight hauled?

A) Rail
B) Truck
C) Pipeline
D) Water

Question 32

The first step in the weighted-factor rating technique is to

A) Multiply each factor score by its weight and sum the weighted scores for each location
B) Identify all factors considered important to the facility location decision
C) Assign a weight to each factor
D) Assign a performance score to each factor for each location

Question 33

The objective of the center-of-gravity technique is to

A) Minimize customer satisfaction
B) Maximize project quality
C) Minimize total transportation costs
D) Maximize customer satisfaction

Question 34

The matching of one or more modes of transportation with the items to be shipped, needs of shippers/customers, and appropriate law is referred to as?

A) Transportation planning
B) Load planning
C) Load scheduling
D) Transportation scheduling

Question 35

There are three customer locations with x- and y-coordinates of (12, 4), (11, 3), and (2, 2), respectively. The customers have a projected shipment volume of 20, 25, and 14, respectively. Using the center-of-gravity technique, what is the y-coordinate of a facility to serve these customers (to two decimal places)?

A) 8.33
B) 3.10
C) 9.20
D) Cannot be determined from the information given

Question 36

The third step in the weighted-factor rating technique is to

A) Multiply each factor score by its weight and sum the weighted scores for each location
B) Identify all factors considered important to the facility location decision
C) Assign a weight to each factor
D) Assign a performance score to each factor for each location

Question 37

Which of the following is NOT considered one of the five basic modes of transportation?

A) Air
B) Telecommunications
C) Rail
D) Truck

Question 38

Which of the following is a popular location analysis software tool?

A) LandReg
B) PosLoc
C) AnySite
D) MapPoint

Question 39

There are how many basic modes of transportation?

A) 1
B) 2
C) 3
D) 5

Question 40

The fourth step in the weighted-factor rating technique is to

A) Multiply each factor score by its weight and sum the weighted scores for each location
B) Identify all factors considered important to the facility location decision
C) Select the location with the highest total weighted score
D) Assign a performance score to each factor for each location

Question 41

In the U.S., which of the five basic modes of transportation is responsible for the second-largest volume (in tons) of domestic freight hauled?

A) Rail
B) Truck
C) Pipeline
D) Water

Question 42

In the U.S., which of the five basic modes of transportation is responsible for the largest volume (in value) of domestic freight hauled?

A) Rail
B) Truck
C) Pipeline
D) Water

Question 43

Since World War II, rail freight transportation market share in the U.S. has _______.

A) increased
B) decreased
C) remained approximately the same
D) Rail transportation has no market share in the U.S.

Question 44

Approximately how many miles of railroad track are there in the U.S.?

A) 50,000
B) 150,000
C) 250,000
D) 1,000,000

Question 45

Small-item shippers will most likely prefer _______.

A) LTL carriers
B) TL carriers
C) both LTL and TL carriers
D) neither LTL nor TL carriers

Question 46

In the U.S., there are approximately how many TL carriers?

A) 5
B) 25
C) 1,000
D) 30,000

Question 47

Freight air transportation is generally

A) Inexpensive but good for long distances
B) Inexpensive but good for short distances
C) Expensive but good for long distances
D) Expensive but good for short distances

Question 48

In the U.S., which of the five basic modes of transportation is responsible for the second-largest volume (in value) of domestic freight hauled?

A) Rail
B) Truck
C) Pipeline
D) Water

Question 49

Which of the following statements is most likely to be true about shipping rates for a large shipment (per cwt)?

A) TL rates > LTL rates
B) TL rates = LTL rates
C) TL rates < LTL rates
D) There is no relationship between TL and LTL rates

Question 50

A truck carrier that moves mostly small packages taking up less than a truckload could likely be referred to as a(n) _______.

A) TL carrier
B) LTP carrier
C) LTL carrier
D) TP carrier

Question 51

A truck carrier that moves sufficient volume to fill an entire truck could likely be referred to as a(n) _______.

A) TL carrier
B) LTP carrier
C) LTL carrier
D) TP carrier

Question 52

In the U.S., which of the five basic modes of transportation has the highest ratio of value of freight handled to tons of freight handled?

A) Rail
B) Truck
C) Air
D) Water

Question 53

Which of the following cost relationships is true?

A) Rail > Air
B) Rail > Motor carrier
C) Rail < Motor carrier
D) Rail < Motor carrier and air

Question 54

The carrying of truck trailers on a railroad flatcar is referred to as _______.

A) TOFC
B) TRFC
C) TFC
D) TCFC

Question 55

A national railroad in the U.S. is referred to as _______.

A) Class 0
B) Class 1
C) Class 2
D) Class 3

Question 56

As of 2012, there are how many Class I railroad companies in the U.S.?

A) 1
B) 3
C) 7
D) 15

Question 57

An alternative name for truck-based transportation is _______.

A) motor carriers
B) long haul
C) carriage
D) blended

Question 58

Rail carriers are typically favorable for which shipping conditions?

A) Short distance and light shipments
B) Long distance and heavy/bulky shipments
C) Long distance and light shipments
D) Short distance and heavy/bulky shipments

Question 59

Coal is most likely to be shipped by which transportation mode?

A) Pipeline
B) Air
C) Motor carrier
D) Water carrier

Question 60

Shipping goods by water carrier is _______.

A) slow
B) fast
C) slow and inexpensive
D) fast and inexpensive

Question 61

As the number of warehouses used by a company in a market area increases, the system is said to become

A) More centralized
B) More decentralized
C) Both more centralized and decentralized
D) Neither more centralized nor more decentralized

Question 62

The relationship between the number of warehouses, system inventories, and customer service is referred to as _______.

A) risk pooling
B) risk aggregating
C) risk monitoring
D) risk division

Question 63

Increasing the number of warehouses should, according to the square root rule, have what effect on the total inventory in the system?

A) Decrease
B) Increase
C) Neither decrease nor increase
D) Cannot be determined from the information given

Question 64

Containerships that allow vehicles to drive directly on and off the ship are referred to as _______.

A) ROROs
B) RRs
C) ROOs
D) RORRs

Question 65

Piggyback service is also referred to as _______.

A) COCC
B) CFCC
C) COFC
D) CFOC

Question 66

The safeguarding of transportation systems is referred to by the term _______.

A) transportation redundancy
B) transportation security
C) transportation defense
D) transportation logistics

Question 67

A company currently maintains 12 warehouses with a stock of 6,000 units per warehouse. If the company centralizes their warehouses and uses 8 warehouses, what is the estimated stock in the proposed system?

A) 58,788 units
B) 6,708 units
C) 80,498 units
D) Cannot be determined from the information given

Question 68

A typical container is how long?

A) 5 feet
B) 20 feet
C) 60 feet
D) 100 feet

Question 69

A for-profit organization might run what kind of warehouse to provide services to other companies?

A) Private
B) Public
C) Incorporated
D) Crossdocked

Question 70

Which of the following items/products would most likely be transported by pipeline?

A) Component parts
B) Containers
C) Grain
D) Oil

Question 71

A public warehouse may provide the following services EXCEPT this:

A) Light assembly
B) Returns refurbishment
C) Breakbulk
D) Repackaging

Question 72

The receipt of bulk shipments which are then broken down and repackaged into outgoing orders in a warehouse is referred to as _______.

A) crossdocking
B) product shifting
C) part locking
D) crossfixing

Question 73

Valuable documents are most likely to be shipped by which transportation mode?

A) Pipeline
B) Air
C) Rail
D) Water carrier

Question 74

Reducing the number of warehouses should, according to the square root rule, have what effect on the total inventory in the system?

A) Decrease
B) Increase
C) Neither decrease nor increase
D) Cannot be determined from the information given

Question 75

The rule to estimate the effect of risk pooling is referred to as the _______.

A) asymptotic rule
B) exponential rule
C) square root rule
D) linear rule

Question 76

Bulk goods (grain, etc.) would most likely to be shipped by which transportation mode?

A) Pipeline
B) Air
C) Rail
D) Motor carrier

Question 77

A typical capacity for an oil supertanker would be approximately?

A) 500,000 barrels
B) 1,000,000 barrels
C) 2,000,000 barrels
D) 40,000,000 barrels

Question 78

A company currently maintains 10 warehouses with a stock of 1,000 units per warehouse. If the company centralizes their warehouses and uses 5 warehouses, what is the estimated stock in the proposed system?

A) 707 units
B) 7,072 units
C) 14,142 units
D) Cannot be determined from the information given

Question 79

Decentralized warehousing systems result in all of the following EXCEPT this:

A) Increased responsiveness
B) Increased delivery service levels
C) Decreased inventory costs
D) Increased operating costs

Question 80

Warehouses are typically used for all of the following activities EXCEPT this:

A) Storing purchases
B) Performing breakbulk activities
C) Processing raw materials
D) Performing assembly activities