Exam 15: Logistics Distribution, and Transportation

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

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C

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?

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D

Facility location analysis considers proximity to customers important to timeliness of deliveries.

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A company wants to determine where it should locate a new warehouse.It has 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 a practice used in the international shipping industry that facilitates port utilization.

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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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In a hub-and-spoke system, each warehouse in the system acts as a spoke.

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

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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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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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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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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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Name four methods of quantitative analysis that are useful in informing the facility location decision.(1) ____________________ (2) ____________________ (3) ____________________ (4) ____________________

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

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

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What weight should be given to environmental pollution control regulations that differ from location to location or from country to country in making facility location decisions?

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A favorable business climate in facility location decision making might include local government intervention to facilitate businesses locating in an area via subsidies.

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

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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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