Question 1

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 A

Question 2

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 B

Question 3

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.

Accepted Answer

A) True 
 B)False  True

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Using the transportation method for solving the optimal shipping a product from factories to warehouses, as per text, you should use

Accepted Answer

A) "≤" for constraints regarding factory capacity and "=" for constraints regarding demand at warehouses. 
B) "≥" for constraints regarding factory capacity and "≤" for constraints regarding demand at warehouses. 
C) "=" for constraints regarding factory capacity and "≥" for constraints regarding demand at warehouses. 
D) "≥" for constraints regarding factory capacity and "=" for constraints regarding demand at warehouses. 
E) None of the above 
A) "≤" for constraints regarding factory capacity and "=" for constraints regarding demand at warehouses. 
B) "≥" for constraints regarding factory capacity and "≤" for constraints regarding demand at warehouses. 
C) "=" for constraints regarding factory capacity and "≥" for constraints regarding demand at warehouses. 
D) "≥" for constraints regarding factory capacity and "=" for constraints regarding demand at warehouses. 
E) None of the above

Question 6

Because the world is becoming more highly interconnected, the proximity of an important supplier's plants is not crucial in supporting lean production methods.

Accepted Answer

A) True 
 B)False

Question 7

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?

Accepted Answer

A) About 208 
B) About 227 
C) About 243 
D) About 389 
E) X coordinate cannot be computed from the data given. 
A) About 208 
B) About 227 
C) About 243 
D) About 389 
E) X coordinate cannot be computed from the data given.

Question 8

In the logistics-systems design matrix, volume, cost and speed of delivery are three variables (assume three levels: low, moderate or high) used to describe attributes of transportation modes.Air is associated with

Accepted Answer

A) moderate volume, moderate speed and high cost 
B) low volume, high speed and high cost 
C) high volume, moderate speed and low cost 
D) low volume, high cost and low speed 
E) high volume, high speed and high cost 
A) moderate volume, moderate speed and high cost 
B) low volume, high speed and high cost 
C) high volume, moderate speed and low cost 
D) low volume, high cost and low speed 
E) high volume, high speed and high cost

Question 9

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 10

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 11

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

Accepted Answer

A) Similar-sized businesses nearby 
B) The willingness of local politicians to provide favorable treatment for a consideration 
C) The presence of other foreign companies in the case of international locations 
D) The local presence of companies in the same industry 
E) An established educational institution nearby 
A) Similar-sized businesses nearby 
B) The willingness of local politicians to provide favorable treatment for a consideration 
C) The presence of other foreign companies in the case of international locations 
D) The local presence of companies in the same industry 
E) An established educational institution nearby

Question 12

The objective of facility location analysis is to select the site with the lowest total cost.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

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.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

Cross-docking is a practice used in the international shipping industry that facilitates port utilization.

Accepted Answer

A) True 
 B)False

Question 18

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?

Accepted Answer

A) Infrastructure costs 
B) Movement of preproduction material between locations 
C) Taxes 
D) Construction costs 
E) Bribery costs 
A) Infrastructure costs 
B) Movement of preproduction material between locations 
C) Taxes 
D) Construction costs 
E) Bribery costs

Question 19

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.

Accepted Answer

A) True 
 B)False

Question 20

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

Exam 15: Logistics Distribution, and Transportation

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

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

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.

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

Using the transportation method for solving the optimal shipping a product from factories to warehouses, as per text, you should use

Because the world is becoming more highly interconnected, the proximity of an important supplier's plants is not crucial in supporting lean production methods.

In the logistics-systems design matrix, volume, cost and speed of delivery are three variables (assume three levels: low, moderate or high) used to describe attributes of transportation modes.Air is associated with

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?

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

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

The objective of facility location analysis is to select the site with the lowest total cost.

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

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

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.

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

Cross-docking is a practice used in the international shipping industry that facilitates port utilization.

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?

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.

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

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