Exam 15: Logistics, Distribution, and Transportation

One of the objectives of facility location analysis is to select a site with the lowest total cost. Which of the following costs should be excluded from the analysis?

Cross-docking is a practice used in the international shipping industry that facilitates port utilization.

A free trade zone operates under different rules and laws than a foreign trade zone.

Plant A is located at the (X, Y) coordinates of (200, 500) and has a volume of shipping of 400 units a day. Plant B is located at the (X, Y) coordinates of (300, 100) and has a volume of shipping of 300 units a day. Using the centroid method, which of the following is the X coordinate for the new plant location?

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

No packaging is needed and the costs per mile are low with this mode.

Large areas of the world are not directly accessible with this mode.

Logistics is the process of coordinating and moving material and other resources from one country to another.

A favorable business climate in facility location decision making might include local government providing basic skill training for prospective members of the workforce.

Facility location analysis considers the competitive imperative of lowest total cost.

In facility location decision making, the factor-rating system is one of the least used general location techniques.

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.

In the logistics-systems design matrix, volume, cost and speed of delivery are three variables (assume three levels: low, moderate or high) used to describe attributes of transportation modes. Air is associated with

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?

Hub-and-spoke systems combine the idea of consolidation and that of cross-docking.

An important issue in facility location analysis is business climate. An unfavorable business climate could be indicated by which of the following?

How many free trade zones are there in the United States?

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

In the logistics-systems design matrix, volume, cost and speed of delivery are three variables (assume three levels: low, moderate or high) used to describe attributes of transportation modes. Rail is associated with

In facility location decision making, the educational and skill levels of the labor pool must match the company's needs.