Question 1

Logistics is a fairly small part of the U.S. gross domestic product. In 2017, it accounted for only 2 percent of GDP.

Accepted Answer

A) True 
 B)False  False

Question 2

The centroid method for plant location uses which of the following data?

Accepted Answer

A)  Volume of goods to be shipped between existing points 
B)  Inbound transportation costs 
C)  Transport times between facilities 
D)  Correlation matrix of existing facilities 
E)  Probabilities and payoffs 
A)  Volume of goods to be shipped between existing points 
B)  Inbound transportation costs 
C)  Transport times between facilities 
D)  Correlation matrix of existing facilities 
E)  Probabilities and payoffs A

Question 3

An example of a trading bloc is which of the following?

Accepted Answer

A)  European Free Trade Association 
B)  Free trade zones 
C)  ISO-9000 companies 
D)  American Production and Inventory Control Society 
E)  Walmart and its suppliers 
A)  European Free Trade Association 
B)  Free trade zones 
C)  ISO-9000 companies 
D)  American Production and Inventory Control Society 
E)  Walmart and its suppliers A

Question 4

Which of the following is not a criterion that influences manufacturing plant or warehouse facility location decisions?

Accepted Answer

A)  Government barriers 
B)  Trading blocs 
C)  Environmental regulation 
D)  Immigration rules 
E)  Quality of labor 
A)  Government barriers 
B)  Trading blocs 
C)  Environmental regulation 
D)  Immigration rules 
E)  Quality of labor

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

In a hub-and-spoke system, each warehouse in the system acts as a spoke.

Accepted Answer

A) True 
 B)False

Question 7

Small, light, expensive items are most appropriate for this mode of transportation.

Accepted Answer

A)  Highway (truck) 
B)  Water (ship) 
C)  Air 
D)  Rail (trains) 
E)  Pipelines 
A)  Highway (truck) 
B)  Water (ship) 
C)  Air 
D)  Rail (trains) 
E)  Pipelines

Question 8

Very few products are moved without at least part of their journey being by which mode of transportation?

Accepted Answer

A)  Highway 
B)  Rail 
C)  Water 
D)  Pipeline 
E)  Air 
A)  Highway 
B)  Rail 
C)  Water 
D)  Pipeline 
E)  Air

Question 9

A favorable business climate in facility location decision making might include government legislation of tax abatements.

Accepted Answer

A) True 
 B)False

Question 10

Environmental regulations are about the same regardless of the location chosen.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A)  Factor-rating systems 
B)  Centroid method 
C)  Decision trees 
D)  Linear programming 
E)  Regression analysis 
A)  Factor-rating systems 
B)  Centroid method 
C)  Decision trees 
D)  Linear programming 
E)  Regression analysis

Question 12

One of the objectives in facility location analysis is to select a site with the lowest total cost. Which of the following costs are hidden costs that should be included in the analysis?

Accepted Answer

A)  Infrastructure costs 
B)  Movement of preproduction material between locations 
C)  Taxes 
D)  Construction costs 
E)  Bribery costs 
A)  Infrastructure costs 
B)  Movement of preproduction material between locations 
C)  Taxes 
D)  Construction costs 
E)  Bribery costs

Question 13

The objective of facility location analysis is to select the site with the lowest total cost.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is a criterion that influences manufacturing plant or warehouse facility location decisions?

Accepted Answer

A)  Proximity to customers 
B)  Corporate policy 
C)  Competitor's locations 
D)  Competitive advantage 
E)  Host-community politics 
A)  Proximity to customers 
B)  Corporate policy 
C)  Competitor's locations 
D)  Competitive advantage 
E)  Host-community politics

Question 15

Governmental barriers to enter and locate in many countries are increasing through restrictive protectionist legislation.

Accepted Answer

A) True 
 B)False

Question 16

A company wants to determine where it should locate a new warehouse. It has two existing production plants and will have a volume of shipping of 150 units a day. Using the centroid method, which of the following are the X and Y coordinates for the new plant location?

Accepted Answer

A)  (81, 117) 
B)  (88, 138) 
C)  (117, 102) 
D)  (76, 123) 
E)  X and Y coordinates cannot be computed from the data given. 
A)  (81, 117) 
B)  (88, 138) 
C)  (117, 102) 
D)  (76, 123) 
E)  X and Y coordinates cannot be computed from the data given.

Question 17

Suppose that using the centroid method you found the best location for a communications tower. The location happens to be in the middle of a pond. Then, you should locate the tower

Accepted Answer

A)  at that location using water proof concrete and precast poles. 
B)  at the closest point outside the pond. 
C)  using some other method. 
D)  after considering qualitative factors such as geography, roads and utilities to help find the exact location. 
E)  None of these choices are correct. 
A)  at that location using water proof concrete and precast poles. 
B)  at the closest point outside the pond. 
C)  using some other method. 
D)  after considering qualitative factors such as geography, roads and utilities to help find the exact location. 
E)  None of these choices are correct.

Question 18

In which of the following situations should we not use the transportation method of linear programming?

Accepted Answer

A)  To find a new site location for a plant 
B)  To minimize costs of shipping n units to m destinations 
C)  To maximize profits of shipping n units to m destinations 
D)  To determine which corner of a street intersection to locate a retail service facility 
E)  To locate a finished goods distribution warehouse 
A)  To find a new site location for a plant 
B)  To minimize costs of shipping n units to m destinations 
C)  To maximize profits of shipping n units to m destinations 
D)  To determine which corner of a street intersection to locate a retail service facility 
E)  To locate a finished goods distribution warehouse

Question 19

This is a fairly low-cost alternative, but transit times can be long and may be subject to variability.

Accepted Answer

A)  Highway (truck) 
B)  Water (ship) 
C)  Air 
D)  Rail (trains) 
E)  Pipelines 
A)  Highway (truck) 
B)  Water (ship) 
C)  Air 
D)  Rail (trains) 
E)  Pipelines

Question 20

Facility location analysis considers proximity to customers important to timeliness of deliveries.

Accepted Answer

A) True 
 B)False

Exam 15: Logistics, Distribution, and Transportation

Logistics is a fairly small part of the U.S. gross domestic product. In 2017, it accounted for only 2 percent of GDP.

The centroid method for plant location uses which of the following data?

An example of a trading bloc is which of the following?

Which of the following is not a criterion that influences manufacturing plant or warehouse facility location decisions?

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

In a hub-and-spoke system, each warehouse in the system acts as a spoke.

Small, light, expensive items are most appropriate for this mode of transportation.

Very few products are moved without at least part of their journey being by which mode of transportation?

A favorable business climate in facility location decision making might include government legislation of tax abatements.

Environmental regulations are about the same regardless of the location chosen.

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

One of the objectives in facility location analysis is to select a site with the lowest total cost. Which of the following costs are hidden costs that should be included in the analysis?

The objective of facility location analysis is to select the site with the lowest total cost.

Which of the following is a criterion that influences manufacturing plant or warehouse facility location decisions?

Governmental barriers to enter and locate in many countries are increasing through restrictive protectionist legislation.

A company wants to determine where it should locate a new warehouse. It has two existing production plants and will have a volume of shipping of 150 units a day. Using the centroid method, which of the following are the X and Y coordinates for the new plant location?

Suppose that using the centroid method you found the best location for a communications tower. The location happens to be in the middle of a pond. Then, you should locate the tower

In which of the following situations should we not use the transportation method of linear programming?

This is a fairly low-cost alternative, but transit times can be long and may be subject to variability.

Facility location analysis considers proximity to customers important to timeliness of deliveries.

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