Exam 11: Facilities Planning: Location and Layout

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Opportunity costs are the costs of choosing options that are optimal.

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Which is not a component of facilities planning?

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The cost of improving the office layout is $27,000 to be treated as a one-time expense.The office manager does not have any way of estimating improved profits resulting from quality changes but says that the new layout will save time and miles of walking for the 40 office employees.She estimates that the new layout will cut the amount of walking for the average employee by 100 miles per year.How much will the layout improvement be worth?

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What markets want to buy is known as

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Eleven million containers are shipped into the United States every year and traditionally about 98 percent of these containers are inspected.

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Facility layout precedes equipment selection.For example,buy the house and then furnish it.

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The comparison among strategic location alternatives is equivalent to measuring the ratios of the cost estimates for the different intangible and tangible cost factors.This is a way of measuring relative advantage.Each ratio portrays opportunities to improve.The numerators and denominators are equivalent to the utilities of different options.

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To rent,buy,or build requires specialists who know domestic (and sometimes) international real estate markets.

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For facilities planning regarding location and layout,strategic thinking is essential to gain suboptimization.

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Suppliers benefit from small production runs which can be delivered in small batches which reduce their levels of inventory.

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Which of the following location criteria are not important to customers of service systems?

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Technological information and knowledge of real process details are required to reach good decisions.

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Trade agreements and country laws are increasingly important in reaching global location decisions.

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Give three reasons why the plants in a TM might produce units at different costs.

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Auto assembly plants benefit from inventory reduction and location is a factor.

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The dimension of community attitude is a good instance of a tangible factor which can be measured in a precise and nonambiguous way.

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How can the many tangible and intangible costs be brought together in a unified way?

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Location factors can be dealt with in both qualitative and quantitative fashions.

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Suboptimization is best described as

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Strategic thinking is essential to avoid suboptimization.

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