Exam 14: Location, Logistics, and Distribution

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

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What are the two "hidden costs" that are often overlooked in determining the total cost of a facility location decision? (1)__________________________________ (2)__________________________________

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The Association for Operations Management defines logistics as "the art and science of obtaining,producing,and distributing material and product in the proper place and in proper quantities."

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

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A company wants to determine where they should locate a new warehouse.They have 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?

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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.

(True/False)
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An example of a trading bloc is which of the following?

(Multiple Choice)
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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?

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What is a closed area or compound into which foreign goods can be brought without being subject to the normal customs requirements? ____________________

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Compare and contrast the factor-rating system and the transportation method of linear programming as used in facility location decisions.

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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 locating near the appropriate labor pool to take advantage of high technical skills.

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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.

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

(True/False)
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Three distribution centers,A,B,and C,are located at the following (X,Y)coordinates: A, (20,130);B, (180,0);and C, (200,200).A factory is to be constructed to distribute a new product through these warehouses.The expected annual volumes expected to be shipped through the three warehouses is forecast to be 20 million units through A,100 million through B and 50 million through C.Using the centroid method,approximately what should the coordinates of the new factory be? _________________

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

(True/False)
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In facility location decision-making the educational and skill levels of the labor pool must match the company's needs.

(True/False)
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