Exam 15: Logistics Distribution, and Transportation

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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.

(True/False)
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The objective of facility location analysis is to select the site with the lowest total cost.

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The text describes 14 "issues in facility location." Name as many of these as you can.(1) ________________________ (2) ________________________ (3) ________________________ (4) ________________________ (5) ________________________ (6) ________________________ (7) ________________________ (8) ________________________ (9) ________________________ (10) ________________________ (11) ________________________ (12) ________________________ (13) ________________________ (14) ________________________

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

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A free trade zone operates under different rules and laws than a foreign trade zone.

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The local government's willingness to invest in upgrading infrastructure to the levels required by a company is an important issue in a company's decision of where to locate a new facility.

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Which of the following is a criterion that influences manufacturing plant or warehouse facility location decisions?

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Name five of the six transportation modes discussed in the textbook.(1) ____________________ (2) ____________________ (3) ____________________ (4) ____________________ (5) ____________________

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A favorable business climate in facility location decision making might include government legislation of tax abatements.

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An important issue in facility location analysis is business climate.An unfavorable business climate could be indicated by which of the following?

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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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An example of a trading bloc is which of the following?

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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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What is the name for a group of countries that have agreed on a set of special arrangements governing the buying and selling of goods between member countries? ________________________

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In facility location decision making, the factor-rating system is based on linear programming.

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One of the objectives in facility location analysis is to select a site with the lowest total cost.Which of the following costs are hidden costs that should be included in the analysis?

(Multiple Choice)
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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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In which of the following situations should we not use the transportation method of linear programming?

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

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