Exam 15: Logistics, Distribution, and Transportation

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A major problem in a plant location decision based on the factor-rating system is that simple point-rating schemes do not account for the wide variance of costs that may occur within each factor used in the analysis.

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Facility location decisions are made using analytical techniques that are able to weigh a large number of different variables equally.

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Issues of product mix and capacity are strongly interconnected to the facility location decision.

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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.

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Cross-docking is an approach used in consolidation warehouses, where large shipments are broken down into small shipments for local delivery in an area.

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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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Size of the product, weight, and liquid or bulk can all be accommodated with this mode.

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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 costs should not be included in the analysis?

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Facility location analysis considers the competitive imperative of locating near the appropriate labor pool to take advantage of low wage costs and/or skill levels.

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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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An example of a positive business climate that might influence a facility location decision is increasing governmental costs and increasing property taxes.

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Facility location analysis considers the competitive imperative of locating near the appropriate labor pool to take advantage of high technical skills.

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

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Because the world is becoming more highly interconnected, the proximity of an important supplier's plants is not crucial in supporting lean production methods.

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Using the transportation method for solving the optimal shipping of a product from factories to warehouses, you should use

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Plant A is located at the (X, Y) coordinates of (100, 200) and has a volume of shipping of 500 units a day. Plant B is located at the (X, Y) coordinates of (150, 400) and has a volume of shipping of 200 units a day. Using the centroid method, which of the following is the X coordinate for the new plant location?

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Services typically have multiple site locations to maintain close contact with customers.

(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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DHL and United Parcel Service are transportation companies that are prohibited from functioning as third-party logistics companies the way Federal Express does.

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

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