Exam 14: Location, Logistics, and Distribution

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According to the text, an important decision for multinational companies is the nation in which to locate the home base for each business. Which of the following business activities does not happen at the business's home base?

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Not among the factors related to infrastructure in making facility location decisions is which of the following?

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A free trade zone is typically a closed facility into which foreign goods can be brought without being subject to the usual customs requirements.

(True/False)
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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.

(True/False)
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Facility location analysis considers the competitive imperative of a favorable business climate as indicated by the presence of other companies in the same industry.

(True/False)
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Governmental barriers to enter and locate in many countries are increasing through restrictive protectionist legislation.

(True/False)
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In which of the following situations should we not use the transportation method of linear programming?

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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?

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Which of the following is not an infrastructure criteria used in facility location analysis?

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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?

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Which of the following is a plant location methodology that is good for locating a single facility within a set of existing facilities based in distances and volumes of goods shipped?

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A favorable business climate in facility location decision making might include local government intervention to facilitate businesses locating in an area via subsidies.

(True/False)
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A free trade zone operates under different rules and laws than a foreign trade zone.

(True/False)
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A favorable business climate in facility location decision making might include government legislation of tax abatements.

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Quality of life in a host community is not a major factor in making the facility location decision.

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As per the discussion on FedEx, the vision of the firm is and driver for comprehensive technology strategy is

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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.

(True/False)
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Using the transportation method for solving the optimal shipping a product from factories to warehouses, as per text, you should use

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A third-party logistics company is a firm that manages all or part of another company's product delivery operations.

(True/False)
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Which of the following is not a criterion that influences manufacturing plant or warehouse facility location decisions?

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