Question 1

Among the disadvantages of having global operations is/are:

Accepted Answer

A)  low labor productivity. 
B)  less restrictive environmental regulation. 
C)  lower wage costs. 
D)  proximity to global markets. 
E)  favorable liability laws. 
A)  low labor productivity. 
B)  less restrictive environmental regulation. 
C)  lower wage costs. 
D)  proximity to global markets. 
E)  favorable liability laws. A

Question 2

When making location decisions, nonprofit organizations differ from for-profit ones in seeking a balance between:

Accepted Answer

A)  profits and opportunities. 
B)  costs and revenues. 
C)  costs and customer service. 
D)  growth and stability. 
E)  stability and opportunity. 
A)  profits and opportunities. 
B)  costs and revenues. 
C)  costs and customer service. 
D)  growth and stability. 
E)  stability and opportunity. C

Question 3

A location analysis has been narrowed down to three locations. The critical factors, their weights, and the ratings for each location are shown below: $$\begin{array} {c} 
\quad\quad\quad\quad\quad\quad\quad\quad{ \text { Location } } \

\begin{array} { l c c c c } 
\text { Factor } &\text { Wt. } & \text { A } & \text { B } & \text { C } \
\hline \text { Labor Cost } & .4 & 70 & 80 & 90 \
\text { Transportation Cost } & .2 & 80 & 80 & 60 \
\text { Market Access } & .2 & 90 & 70 & 60 \
\text { Raw Materials Cost } & .1 & 50 & 70 & 90 \
\text { Utility Cost } & .1 & 80 & 90 & 70
\end{array}\end{array}$$ What is the composite score for location B?

Accepted Answer

A)  76 
B)  75 
C)  78 
D)  74 
E)  76.33 
A)  76 
B)  75 
C)  78 
D)  74 
E)  76.33 C

Question 4

The fact that most types of firms are located in every section of the country suggests that in many cases, location decisions are not overly important; one location typically is as good as another.

Accepted Answer

A) True 
 B)False

Question 5

When a location evaluation includes both quantitative and qualitative inputs, a technique that can be used is:

Accepted Answer

A)  linear programming. 
B)  consumer surveys. 
C)  factor rating. 
D)  transportation models. 
E)  center of gravity methods. 
A)  linear programming. 
B)  consumer surveys. 
C)  factor rating. 
D)  transportation models. 
E)  center of gravity methods.

Question 6

A location analysis has been narrowed down to three locations. The critical factors, their weights, and the ratings for each location are shown below: $$\begin{array} {c} 
\quad\quad\quad\quad\quad\quad\quad\quad{ \text { Location } } \

\begin{array} { l c c c c } 
\text { Factor } &\text { Wt. } & \text { A } & \text { B } & \text { C } \
\hline \text { Labor Cost } & .4 & 70 & 80 & 90 \
\text { Transportation Cost } & .2 & 80 & 80 & 60 \
\text { Market Access } & .2 & 90 & 70 & 60 \
\text { Raw Materials Cost } & .1 & 50 & 70 & 90 \
\text { Utility Cost } & .1 & 80 & 90 & 70
\end{array}\end{array}$$ What is the composite score for location C?

Accepted Answer

A)  76 
B)  75 
C)  78 
D)  74 
E)  76.33 
A)  76 
B)  75 
C)  78 
D)  74 
E)  76.33

Question 7

For service firms such as banks and supermarkets, location decisions are critical elements of __________ strategy.

Accepted Answer

A)  marketing 
B)  pricing 
C)  promotional 
D)  efficiency 
E)  effectiveness 
A)  marketing 
B)  pricing 
C)  promotional 
D)  efficiency 
E)  effectiveness

Question 8

A one-hour photo processing machine in a Walmart store is an example of a:

Accepted Answer

A)  microfactory. 
B)  downsize strategy. 
C)  diversified strategy. 
D)  lean production system. 
E)  falling price strategy. 
A)  microfactory. 
B)  downsize strategy. 
C)  diversified strategy. 
D)  lean production system. 
E)  falling price strategy.

Question 9

Retail businesses often engage in ____________, the tendency to locate in close proximity to one another.

Accepted Answer

A)  centering 
B)  strategizing 
C)  clustering 
D)  localcasting 
E)  macromarketing 
A)  centering 
B)  strategizing 
C)  clustering 
D)  localcasting 
E)  macromarketing

Question 10

Determine the optimum location for a distribution center to serve the following locations. Shipments to each location will be approximately equal. $$\begin{array} { l l } 
\text { Location } & ( \mathrm { x } , \mathrm { y } ) \
\hline \mathrm { A } & 2,2 \
\mathrm { B} & 5,6 \
\mathrm { C } & 6,3 \
\mathrm { D } & 7,5
\end{array}$$

Accepted Answer

None

Question 11

When service firms such as retailers or banks make growth-spurred location decisions, typically these involve:

Accepted Answer

A)  finding new sources of resources to replace exhausted ones. 
B)  adding new locations rather than expanding existing ones. 
C)  closing down existing locations and opening new ones elsewhere. 
D)  expanding existing locations rather than adding new ones. 
E)  downsizing existing locations and opening new ones elsewhere. 
A)  finding new sources of resources to replace exhausted ones. 
B)  adding new locations rather than expanding existing ones. 
C)  closing down existing locations and opening new ones elsewhere. 
D)  expanding existing locations rather than adding new ones. 
E)  downsizing existing locations and opening new ones elsewhere.

Question 12

Consider the following information about sites A, B, and C: $$\begin{array} { l r l } 
\text { Site } & \text { FC (annual) } & \text { VC (per unit) } \
\hline \text { A } & \$ 100,000 & \$ 10 \
\mathrm {~B} & \$ 120,000 & \$ 8 \
\text { C } & \$ 150,000 & \$ 7
\end{array}$$ What are total costs for site C for a quantity of 5,000 units per year?

Accepted Answer

The answer of Consider the following information about sites A,...

Question 13

For service organizations, the dominant factors in location analysis usually are market-related.

Accepted Answer

A) True 
 B)False

Question 14

Consider the following information about sites A, B, and C: $$\begin{array} { l r l } 
\text { Site } & \text { FC (annual) } & \text { VC (per unit) } \
\hline \text { A } & \$ 100,000 & \$ 10 \
\mathrm {~B} & \$ 120,000 & \$ 8 \
\text { C } & \$ 150,000 & \$ 7
\end{array}$$ For what quantity would you be indifferent between selecting site B or site C?

Accepted Answer

30,000 uni

Question 15

Web-based, retail businesses should be located near the customer to reduce their long distance phone charges.

Accepted Answer

A) True 
 B)False

Question 16

Locational cost-profit-volume analysis assumes:
(I) nonlinear variable costs.
(II) fixed costs that are constant over the range of possible output.
(III accurate estimates regarding the required level of output.
(IV) multiple products.

Accepted Answer

A)  I, III, and IV only 
B)  II and III only 
C)  I, II, and III only 
D)  II, III, and IV only 
E)  I, II, III, and IV 
A)  I, III, and IV only 
B)  II and III only 
C)  I, II, and III only 
D)  II, III, and IV only 
E)  I, II, III, and IV

Question 17

Consider the following information about sites A, B, and C: $$\begin{array} { l r l } 
\text { Site } & \text { FC (annual) } & \text { VC (per unit) } \
\hline \text { A } & \$ 100,000 & \$ 10 \
\mathrm {~B} & \$ 120,000 & \$ 8 \
\text { C } & \$ 150,000 & \$ 7
\end{array}$$ For what range of output would you prefer site A?

Accepted Answer

The answer of Consider the following information about sites A,...

Question 18

Consider the following information about sites A, B, and C: $$\begin{array} { l r l } 
\text { Site } & \text { FC (annual) } & \text { VC (per unit) } \
\hline \text { A } & \$ 100,000 & \$ 10 \
\mathrm {~B} & \$ 120,000 & \$ 8 \
\text { C } & \$ 150,000 & \$ 7
\end{array}$$ What are total costs for site B for a quantity of 5,000 units per year?

Accepted Answer

The answer of Consider the following information about sites A,...

Question 19

Some communities offer financial and other incentives to ______ new businesses.

Accepted Answer

A)  tax 
B)  attract 
C)  marginalize 
D)  incorporate 
E)  zone 
A)  tax 
B)  attract 
C)  marginalize 
D)  incorporate 
E)  zone

Question 20

In general, managing global operations is made easier by __________ and __________.

Accepted Answer

A)  political uncertainty; currency devaluation 
B)  differentiation strategies; diversified markets 
C)  low interest rates; price-sensitive customers 
D)  cost-leadership strategies; labor productivity 
E)  freer trade; technology 
A)  political uncertainty; currency devaluation 
B)  differentiation strategies; diversified markets 
C)  low interest rates; price-sensitive customers 
D)  cost-leadership strategies; labor productivity 
E)  freer trade; technology

Exam 8: Location Planning and Analysis

Among the disadvantages of having global operations is/are:

When making location decisions, nonprofit organizations differ from for-profit ones in seeking a balance between:

The fact that most types of firms are located in every section of the country suggests that in many cases, location decisions are not overly important; one location typically is as good as another.

When a location evaluation includes both quantitative and qualitative inputs, a technique that can be used is:

For service firms such as banks and supermarkets, location decisions are critical elements of __________ strategy.

A one-hour photo processing machine in a Walmart store is an example of a:

Retail businesses often engage in ____________, the tendency to locate in close proximity to one another.

Determine the optimum location for a distribution center to serve the following locations. Shipments to each location will be approximately equal. Location (,) 2,2 5,6 6,3 7,5

When service firms such as retailers or banks make growth-spurred location decisions, typically these involve:

Consider the following information about sites A, B, and C: Site FC (annual) VC (per unit) A \ 100,000 \ 10 \ 120,000 \ 8 C \ 150,000 \ 7 What are total costs for site C for a quantity of 5,000 units per year?

For service organizations, the dominant factors in location analysis usually are market-related.

Consider the following information about sites A, B, and C: Site FC (annual) VC (per unit) A \ 100,000 \ 10 \ 120,000 \ 8 C \ 150,000 \ 7 For what quantity would you be indifferent between selecting site B or site C?

Web-based, retail businesses should be located near the customer to reduce their long distance phone charges.

Locational cost-profit-volume analysis assumes: (I) nonlinear variable costs. (II) fixed costs that are constant over the range of possible output. (III accurate estimates regarding the required level of output. (IV) multiple products.

Consider the following information about sites A, B, and C: Site FC (annual) VC (per unit) A \ 100,000 \ 10 \ 120,000 \ 8 C \ 150,000 \ 7 For what range of output would you prefer site A?

Consider the following information about sites A, B, and C: Site FC (annual) VC (per unit) A \ 100,000 \ 10 \ 120,000 \ 8 C \ 150,000 \ 7 What are total costs for site B for a quantity of 5,000 units per year?

Some communities offer financial and other incentives to ______ new businesses.

In general, managing global operations is made easier by __________ and __________.

Introduction to Operations Management

Competitiveness, Strategy, and Productivity

Forecasting

Product and Service Design

Extension: Reliability

Strategic Capacity Planning for Products and Services

Extension: Decision Theory

Process Selection and Facility Layout

Work Design and Measurement

Extension: Learning Curves

Extension: The Transportation Model

Management of Quality

Quality Control

Extension: Acceptance Sampling

Aggregate Planning and Master Scheduling

MRP and ERP

Inventory Management

Jit and Lean Operations

Extension: Maintenance

Supply Chain Management

Scheduling

Project Management

Management of Waiting Lines

Linear Programming

Filters

In general, managing global operations is made easier by and .