Question 1

Factor rating is limited to quantitative information concerning location decisions.

Accepted Answer

A) True 
 B)False

Question 2

A clothing manufacturer produces clothing in five locations in the United States. In a move to vertical integration, the company is planning a new fabric production plant that will supply fabric to all five clothing plants. The clothing plants have been located on a coordinate system as follows
 
Shipments of fabric to each plant vary per week as follows: plant A, 200 units; plant B, 400 units; plant C, 300 units; plant D, 300 units; and plant E, 200 units. What is the optimal location for the fabric plant?

Accepted Answer

A) 6.2, 3.0 
B) 6.0, 4.0 
C) 6.5, 5.3 
D) 5.6, 4.4 
E) 5.0, 3.0 
A) 6.2, 3.0 
B) 6.0, 4.0 
C) 6.5, 5.3 
D) 5.6, 4.4 
E) 5.0, 3.0

Question 3

A clothing manufacturer produces clothing in five locations in the United States. In a move to vertical integration, the company is planning a new fabric production plant that will supply fabric to all five clothing plants. The clothing plants have been located on a coordinate system as follows
 
If the amount of fabric shipped to each plant is equal, what is the optimal location for the fabric plant?

Accepted Answer

A) 5, 5 
B) 6, 4 
C) 4, 6 
D) 6, 2 
E) 5, 4 
A) 5, 5 
B) 6, 4 
C) 4, 6 
D) 6, 2 
E) 5, 4

Question 4

The fact that most types of firms are located in every section of the country suggests that in many cases, location decisions are not overly important; one location typically is as good as another.

Accepted Answer

A) True 
 B)False

Question 5

Some communities offer financial and other incentives to _____ new businesses.

Accepted Answer

A) tax 
B) attract 
C) marginalize 
D) incorporate 
E) zone 
A) tax 
B) attract 
C) marginalize 
D) incorporate 
E) zone

Question 6

The Skulls, a student social organization, has two different locations under consideration for constructing a new chapter house. The Skulls' president, a POM student, estimates that due to differing land costs, utility rates, etc., both fixed and variable costs would be different for each of the proposed sites, as follows
 
What would be total annual costs for either location at the point of indifference?

Accepted Answer

A) $13,000 
B) $13,350 
C) $9,000 
D) $17,000 
E) $19,200 
A) $13,000 
B) $13,350 
C) $9,000 
D) $17,000 
E) $19,200

Question 7

A hardware distributor has regional warehouses at the locations shown below. The company wants to locate a new central distribution center to serve this warehouse network.
 
Weekly shipments to each warehouse will be: WH1, 100; WH2, 150; WH3, 120; WH4, 150; and WH5, 120. What is the optimal location of the distribution center?

Accepted Answer

A) 5.1, 4.2 
B) 5.2, 4.0 
C) 5.1, 5.1 
D) 4.2, 5.1 
E) 4.9, 5.2 
A) 5.1, 4.2 
B) 5.2, 4.0 
C) 5.1, 5.1 
D) 4.2, 5.1 
E) 4.9, 5.2

Question 8

The center of gravity method is used to _____ travel time or shipping costs.

Accepted Answer

A) normalize 
B) eliminate 
C) average 
D) minimize 
E) document 
A) normalize 
B) eliminate 
C) average 
D) minimize 
E) document

Question 9

The method for evaluating location alternatives that uses their total-cost lines is

Accepted Answer

A) locational cost-profit-volume analysis. 
B) the transportation model. 
C) factor rating. 
D) geographic information system (GIS)analysis. 
E) the center-of-gravity method. 
A) locational cost-profit-volume analysis. 
B) the transportation model. 
C) factor rating. 
D) geographic information system (GIS)analysis. 
E) the center-of-gravity method.

Question 10

Cultural differences, customer preferences, labor, and resources are factors relating to

Accepted Answer

A) regional choices. 
B) site selection. 
C) zoning. 
D) product design. 
E) location decisions. 
A) regional choices. 
B) site selection. 
C) zoning. 
D) product design. 
E) location decisions.

Question 11

A strategy that emphasizes convenience for the customers would probably select a single very large facility.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is not an option in location planning?

Accepted Answer

A) expand globally 
B) expand an existing facility 
C) do nothing 
D) move locations 
E) add locations 
A) expand globally 
B) expand an existing facility 
C) do nothing 
D) move locations 
E) add locations

Question 13

A location analysis has been narrowed down to three locations. The critical factors, their weights, and the ratings for each location are shown below
 
If the decision rule is to select the location with the greatest composite score exceeding 80, management should choose

Accepted Answer

A) location A. 
B) location B. 
C) location C. 
D) either location B or location C. 
E) to reject all locations. 
A) location A. 
B) location B. 
C) location C. 
D) either location B or location C. 
E) to reject all locations.

Question 14

A manufacturing firm is considering two locations for a plant to produce a new product. The two locations have fixed and variable costs as follows
 
If the annual demand will be 20,000 units, what would be the cost advantage of the better location?

Accepted Answer

A) $20,000 
B) $460,000 
C) $480,000 
D) $80,000 
E) $60,000 
A) $20,000 
B) $460,000 
C) $480,000 
D) $80,000 
E) $60,000

Question 15

In location planning, the location of raw materials, the location of markets, and labor factors are

Accepted Answer

A) regional factors. 
B) community factors. 
C) site-related factors. 
D) national factors. 
E) minor considerations. 
A) regional factors. 
B) community factors. 
C) site-related factors. 
D) national factors. 
E) minor considerations.

Question 16

Which of the following circumstances would be least likely to lead to a need for a new location?

Accepted Answer

A) shifting of markets 
B) depletion of basic inputs 
C) growth in demand that is leading to greater utilization of existing capacity 
D) the need to expand into new markets 
E) the opportunity to take advantage of globalization trends 
A) shifting of markets 
B) depletion of basic inputs 
C) growth in demand that is leading to greater utilization of existing capacity 
D) the need to expand into new markets 
E) the opportunity to take advantage of globalization trends

Question 17

The Skulls, a student social organization, has two different locations under consideration for constructing a new chapter house. The Skulls' president, a POM student, estimates that due to differing land costs, utility rates, etc., both fixed and variable costs would be different for each of the proposed sites, as follows
 
If it is estimated that 30 persons will be living in this new chapter house, which location should the Skulls select?

Accepted Answer

A) Alpha Ave. 
B) Beta Blvd. 
C) either Alpha Ave. or Beta Blvd. 
D) reject both Alpha Ave. and Beta Blvd. 
E) become a virtual organization. 
A) Alpha Ave. 
B) Beta Blvd. 
C) either Alpha Ave. or Beta Blvd. 
D) reject both Alpha Ave. and Beta Blvd. 
E) become a virtual organization.

Question 18

A hardware distributor has regional warehouses at the locations shown below. The company wants to locate a new central distribution center to serve this warehouse network.
 
If weekly shipments to each warehouse will be approximately equal, what is the optimal location for the distribution center?

Accepted Answer

A) 5, 5 
B) 5, 4 
C) 4, 5 
D) 5, 6 
E) 6, 5 
A) 5, 5 
B) 5, 4 
C) 4, 5 
D) 5, 6 
E) 6, 5

Question 19

Location choice I has monthly fixed costs of $100,000 and per-unit variable costs of $10. Location choice J has monthly fixed costs of $150,000 and per-unit variable costs of $9. At what volume would these locations have equal total costs?

Accepted Answer

A) 30,000 units 
B) 25,000 units 
C) 40,000 units 
D) 50,000 units 
E) 60,000 units 
A) 30,000 units 
B) 25,000 units 
C) 40,000 units 
D) 50,000 units 
E) 60,000 units

Question 20

All of the following are benefits of globalizing operations except for?

Accepted Answer

A) unskilled labor 
B) expanding markets 
C) cost savings 
D) new ideas 
E) less restrictive regulations 
A) unskilled labor 
B) expanding markets 
C) cost savings 
D) new ideas 
E) less restrictive regulations

Factor rating is limited to quantitative information concerning location decisions.

The fact that most types of firms are located in every section of the country suggests that in many cases, location decisions are not overly important; one location typically is as good as another.

Some communities offer financial and other incentives to _____ new businesses.

The center of gravity method is used to _____ travel time or shipping costs.

The method for evaluating location alternatives that uses their total-cost lines is

Cultural differences, customer preferences, labor, and resources are factors relating to

A strategy that emphasizes convenience for the customers would probably select a single very large facility.

Which of the following is not an option in location planning?

A location analysis has been narrowed down to three locations. The critical factors, their weights, and the ratings for each location are shown below If the decision rule is to select the location with the greatest composite score exceeding 80, management should choose

A manufacturing firm is considering two locations for a plant to produce a new product. The two locations have fixed and variable costs as follows If the annual demand will be 20,000 units, what would be the cost advantage of the better location?

In location planning, the location of raw materials, the location of markets, and labor factors are

Which of the following circumstances would be least likely to lead to a need for a new location?

A hardware distributor has regional warehouses at the locations shown below. The company wants to locate a new central distribution center to serve this warehouse network. If weekly shipments to each warehouse will be approximately equal, what is the optimal location for the distribution center?

Location choice I has monthly fixed costs of $100,000 and per-unit variable costs of $10. Location choice J has monthly fixed costs of $150,000 and per-unit variable costs of $9. At what volume would these locations have equal total costs?

All of the following are benefits of globalizing operations except for?

Introduction to Operations Management

Competitiveness, Strategy, and Productivity

Forecasting

Product and Service Design

Strategic Capacity Planning for Products and Services

Process Selection and Facility Layout

Work Design and Measurement

Management of Quality

Quality Control

Aggregate Planning and Master Scheduling

Inventory Management

MRP and ERP

Jit and Lean Operations

Supply Chain Management

Scheduling

Project Management

Management of Waiting Lines

Linear Programming

Filters

Exam 8: Location Planning and Analysis

Factor rating is limited to quantitative information concerning location decisions.

The fact that most types of firms are located in every section of the country suggests that in many cases, location decisions are not overly important; one location typically is as good as another.

Some communities offer financial and other incentives to _____ new businesses.

The center of gravity method is used to _____ travel time or shipping costs.

The method for evaluating location alternatives that uses their total-cost lines is

Cultural differences, customer preferences, labor, and resources are factors relating to

A strategy that emphasizes convenience for the customers would probably select a single very large facility.

Which of the following is not an option in location planning?

A location analysis has been narrowed down to three locations. The critical factors, their weights, and the ratings for each location are shown below If the decision rule is to select the location with the greatest composite score exceeding 80, management should choose

A manufacturing firm is considering two locations for a plant to produce a new product. The two locations have fixed and variable costs as follows If the annual demand will be 20,000 units, what would be the cost advantage of the better location?

In location planning, the location of raw materials, the location of markets, and labor factors are

Which of the following circumstances would be least likely to lead to a need for a new location?

A hardware distributor has regional warehouses at the locations shown below. The company wants to locate a new central distribution center to serve this warehouse network. If weekly shipments to each warehouse will be approximately equal, what is the optimal location for the distribution center?

Location choice I has monthly fixed costs of $100,000 and per-unit variable costs of $10. Location choice J has monthly fixed costs of $150,000 and per-unit variable costs of $9. At what volume would these locations have equal total costs?

All of the following are benefits of globalizing operations except for?

Introduction to Operations Management

Competitiveness, Strategy, and Productivity

Forecasting

Product and Service Design

Strategic Capacity Planning for Products and Services

Process Selection and Facility Layout

Work Design and Measurement

Management of Quality

Quality Control

Aggregate Planning and Master Scheduling

Inventory Management

MRP and ERP

Jit and Lean Operations

Supply Chain Management

Scheduling

Project Management

Management of Waiting Lines

Linear Programming

Filters