Question 1

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

Accepted Answer

A) Less than 50 
B) Less than 100 
C) About 260 
D) More than 412 
E) About 310 
A) Less than 50 
B) Less than 100 
C) About 260 
D) More than 412 
E) About 310

Question 2

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?

Accepted Answer

A) (81, 117) 
B) (88, 138) 
C) (117, 102) 
D) (76, 123) 
E) X and Y coordinates cannot be computed from the data given. 
A) (81, 117) 
B) (88, 138) 
C) (117, 102) 
D) (76, 123) 
E) X and Y coordinates cannot be computed from the data given.

Question 3

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

Accepted Answer

A) Proximity to customers 
B) Corporate policy 
C) Competitor's locations 
D) Competitive advantage 
E) Host-community politics 
A) Proximity to customers 
B) Corporate policy 
C) Competitor's locations 
D) Competitive advantage 
E) Host-community politics

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) Central American Free Trade Agreement countries 
B) Free trade zones 
C) ISO-9000 companies 
D) American Production and Inventory Control Society 
E) Walmart and its suppliers 
A) Central American Free Trade Agreement countries 
B) Free trade zones 
C) ISO-9000 companies 
D) American Production and Inventory Control Society 
E) Walmart and its suppliers

Question 6

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 7

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?

Accepted Answer

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

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

Facility location analysis considers the competitive imperative of locating near the appropriate labor pool to take advantage of high technical skills.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

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 12

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

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

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 15

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

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

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 18

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

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

In which of the following situations should we not use the transportation method of linear programming?

Accepted Answer

A) To find a new site location for a plant 
B) To minimize costs of shipping n units to m destinations 
C) To maximize profits of shipping n units to m destinations 
D) To determine which corner of a street intersection to locate a retail service facility 
E) To locate a finished goods distribution warehouse 
A) To find a new site location for a plant 
B) To minimize costs of shipping n units to m destinations 
C) To maximize profits of shipping n units to m destinations 
D) To determine which corner of a street intersection to locate a retail service facility 
E) To locate a finished goods distribution warehouse

Exam 15: Logistics Distribution, and Transportation

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

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?

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

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

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

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

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?

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

Facility location analysis considers the competitive imperative of locating near the appropriate labor pool to take advantage of high technical skills.

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

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.

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

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

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

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

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

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

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

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

In which of the following situations should we not use the transportation method of linear programming?

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