Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

As a facility location consultant, would you advise a client wanting to locate a retail service facility differently than you would advise a client wanting to locate an on-line stock trading operation? Explain.

Accepted Answer

A retail service facility requires close

Question 3

One of the objectives of facility location analysis is to select a site with the lowest total cost.Which of the following costs should not be included in the analysis?

Accepted Answer

A) Outbound distribution costs 
B) Incidental costs 
C) Energy costs 
D) Hidden costs 
E) Taxes 
A) Outbound distribution costs 
B) Incidental costs 
C) Energy costs 
D) Hidden costs 
E) Taxes

Question 4

Which of the following is not a criterion that influences manufacturing plant or warehouse facility location decisions?

Accepted Answer

A) Proximity to customers 
B) Historical cost 
C) Infrastructure of a country 
D) Quality of labor 
E) Business climate 
A) Proximity to customers 
B) Historical cost 
C) Infrastructure of a country 
D) Quality of labor 
E) Business climate

Question 5

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

Accepted Answer

A) Becoming less responsive to the customer 
B) Supplier costs 
C) Taxes 
D) Construction costs 
E) Product life cycle costs 
A) Becoming less responsive to the customer 
B) Supplier costs 
C) Taxes 
D) Construction costs 
E) Product life cycle costs

Question 6

One of the objectives of facility location analysis is to select a site with the lowest total cost.Which of the following costs should be excluded from the analysis?

Accepted Answer

A) Historical costs 
B) Inbound distribution costs 
C) Land 
D) Construction 
E) Regional costs 
A) Historical costs 
B) Inbound distribution costs 
C) Land 
D) Construction 
E) Regional costs

Question 7

Which of the following is a plant location methodology good for locating a single facility within a set of existing facilities based in distances and volumes of goods shipped?

Accepted Answer

A) Factor-rating systems 
B) Centroid method 
C) Decision trees 
D) Linear programming 
E) Regression analysis 
A) Factor-rating systems 
B) Centroid method 
C) Decision trees 
D) Linear programming 
E) Regression analysis

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

A free trade zone is typically a closed facility into which foreign goods can be brought without being subject to the usual customs requirements.

Accepted Answer

A) True 
 B)False

Question 10

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.

Accepted Answer

A) True 
 B)False

Question 11

DHL and United Parcel Service are transportation companies that are prohibited from functioning as third-party logistics companies the way Federal Express does.

Accepted Answer

A) True 
 B)False

Question 12

The centroid method for plant location uses which of the following data?

Accepted Answer

A) Volume of goods to be shipped between existing points 
B) Inbound transportation costs 
C) Transport times between facilities 
D) Correlation matrix of existing facilities 
E) Probabilities and payoffs 
A) Volume of goods to be shipped between existing points 
B) Inbound transportation costs 
C) Transport times between facilities 
D) Correlation matrix of existing facilities 
E) Probabilities and payoffs

Question 13

Which of the following is not a criterion that influences manufacturing plant or warehouse facility location decisions?

Accepted Answer

A) Government barriers 
B) Trading blocs 
C) Environmental regulation 
D) Immigration rules 
E) Local labor costs 
A) Government barriers 
B) Trading blocs 
C) Environmental regulation 
D) Immigration rules 
E) Local labor costs

Question 14

Cross-docking is an approach used in consolidation warehouses, where large shipments are broken down into small shipments for local delivery in an area.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is a not criterion that influences manufacturing plant or warehouse facility location decisions?

Accepted Answer

A) Suppliers 
B) Free trade zones 
C) Political risk 
D) Gross national product 
E) Tariffs and customs duties 
A) Suppliers 
B) Free trade zones 
C) Political risk 
D) Gross national product 
E) Tariffs and customs duties

Question 16

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

Accepted Answer

(1 Excessive moving of pre-productio n m

Question 17

Very few products are moved without at least part of their journey being by which mode of transportation?

Accepted Answer

A) Highway 
B) Rail 
C) Water 
D) Pipeline 
E) Air 
A) Highway 
B) Rail 
C) Water 
D) Pipeline 
E) Air

Question 18

Governmental barriers to enter and locate in many countries are increasing through restrictive protectionist legislation.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is not an infrastructure criteria used in facility location analysis?

Accepted Answer

A) Adequate school system 
B) Adequate health care 
C) Adequate transportation 
D) Adequate low cost labor 
E) Adequate public utility systems 
A) Adequate school system 
B) Adequate health care 
C) Adequate transportation 
D) Adequate low cost labor 
E) Adequate public utility systems

Question 20

Facility location analysis considers the competitive imperative of a favorable business climate as indicated by the presence of other companies in the same industry.

Accepted Answer

A) True 
 B)False

Exam 15: Logistics Distribution, and Transportation

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

As a facility location consultant, would you advise a client wanting to locate a retail service facility differently than you would advise a client wanting to locate an on-line stock trading operation? Explain.

One of the objectives of facility location analysis is to select a site with the lowest total cost.Which of the following costs should not be included in the analysis?

Which of the following is not a criterion that influences manufacturing plant or warehouse facility location decisions?

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

One of the objectives of facility location analysis is to select a site with the lowest total cost.Which of the following costs should be excluded from the analysis?

Which of the following is a plant location methodology good for locating a single facility within a set of existing facilities based in distances and volumes of goods shipped?

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

A free trade zone is typically a closed facility into which foreign goods can be brought without being subject to the usual customs requirements.

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.

DHL and United Parcel Service are transportation companies that are prohibited from functioning as third-party logistics companies the way Federal Express does.

The centroid method for plant location uses which of the following data?

Which of the following is not a criterion that influences manufacturing plant or warehouse facility location decisions?

Cross-docking is an approach used in consolidation warehouses, where large shipments are broken down into small shipments for local delivery in an area.

Which of the following is a not criterion that influences manufacturing plant or warehouse facility location decisions?

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

Very few products are moved without at least part of their journey being by which mode of transportation?

Governmental barriers to enter and locate in many countries are increasing through restrictive protectionist legislation.

Which of the following is not an infrastructure criteria used in facility location analysis?

Facility location analysis considers the competitive imperative of a favorable business climate as indicated by the presence of other companies in the same industry.

Introduction

Strategy

Design of Products and Services

Project Management

Strategic Capacity Management

Learning Curves

Manufacturing Processes

Facility Layout

Service Processes

Waiting Line Analysis and Simulation

Process Design and Analysis

Six Sigma Quality

Statistical Quality Control

Lean Supply Chains

Global Sourcing and Procurement

Enterprise Resource Planning Systems

Forecasting

Sales and Operations Planning

Inventory Management

Material Requirements Planning

Workcenter Scheduling

Theory of Constraints

Health Care

Operations Consulting

Filters

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