Question 1

Software systems known as GIS help in location analysis. The initials GIS stand for:

Accepted Answer

A)  Graphic Interface Systems. 
B)  Global Integrated Software. 
C)  Graded Information Systems. 
D)  Geo Intensive Software. 
E)  Geographic Information System. 
A)  Graphic Interface Systems. 
B)  Global Integrated Software. 
C)  Graded Information Systems. 
D)  Geo Intensive Software. 
E)  Geographic Information System.

Question 2

You cannot make a mistake by locating where labor costs are low.

Accepted Answer

A) True 
 B)False

Question 3

A hardware distributor has regional warehouses at the locations shown below. The company wants to locate a new central distribution center to serve this warehouse network. $$\begin{array} { l l } 
\text { Location } & ( \mathrm { x } , \mathrm { y } ) \
\hline 1 & 2,3 \
2 & 3,7 \
3 & 5,5 \
4 & 7,3 \
5 & 8,7
\end{array}$$ Weekly shipments to each warehouse will be: WH1, 100; WH2, 150; WH3, 120; WH4, 150; and WH5, 120. What is the optimal location of the distribution center?

Accepted Answer

A)  5.1, 4.2 
B)  5.2, 4.0 
C)  5.1, 5.1 
D)  4.2, 5.1 
E)  4.9, 5.2 
A)  5.1, 4.2 
B)  5.2, 4.0 
C)  5.1, 5.1 
D)  4.2, 5.1 
E)  4.9, 5.2

Question 4

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 A?

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 5

A clothing manufacturer produces clothing in five locations in the United States. In a move to vertical integration, the company is planning a new fabric production plant that will supply fabric to all five clothing plants. The clothing plants have been located on a coordinate system as follows: $$\begin{array} { l l } 
\text { Location } & ( \mathrm { x } , \mathrm { y } ) \
\hline \mathrm { A } & 7,2 \
\mathrm {~B} & 4,7 \
\mathrm { C } & 5,5 \
\mathrm { D } & 6,2 \
\mathrm { E } & 8,4
\end{array}$$ Shipments of fabric to each plant vary per week as follows: plant A, 200 units; plant B, 400 units; plant C, 300 units; plant D, 300 units; and plant E, 200 units. What is the optimal location for the fabric plant?

Accepted Answer

A)  6.2, 3.0 
B)  6.0, 4.0 
C)  6.5, 5.3 
D)  5.6, 4.4 
E)  5.0, 3.0 
A)  6.2, 3.0 
B)  6.0, 4.0 
C)  6.5, 5.3 
D)  5.6, 4.4 
E)  5.0, 3.0

Question 6

A clothing manufacturer produces clothing in five locations in the United States. In a move to vertical integration, the company is planning a new fabric production plant that will supply fabric to all five clothing plants. The clothing plants have been located on a coordinate system as follows: $$\begin{array} { l l } 
\text { Location } & ( \mathrm { x } , \mathrm { y } ) \
\hline \mathrm { A } & 7,2 \
\mathrm { B} & 4,7 \
\mathrm { C } & 5,5 \
\mathrm { D } & 6,2 \
\mathrm { E } & 8,4
\end{array}$$ If the amount of fabric shipped to each plant is equal, what is the optimal location for the fabric plant?

Accepted Answer

A)  5, 5 
B)  6, 4 
C)  4, 6 
D)  6, 2 
E)  5, 4 
A)  5, 5 
B)  6, 4 
C)  4, 6 
D)  6, 2 
E)  5, 4

Question 7

Given the following information on scores of three location alternatives, which alternative would you recommend? Why? $\begin{array}{r}
\text { Location }\quad\quad\quad\
\begin{array}{lcccc}
\text { Factor } & \text { Wt. } & \text { A } & \text { B } & \text { C } \
\hline \text { Raw Materials } & 4 & 80 & 70 & 80 \
\text { Market } & .2 & 40 & 60 & 80 \
\text { Transportation Cost } & .1 & 90 & 70 & 50 \
\text { Labor Cost } & .2 & 70 & 70 & 50 \
\text { Construction Cost } & .1 & 90 & 80 & 60
\end{array}\end{array}$

Accepted Answer

Composite scores are

Question 8

The Skulls, a student social organization, has two different locations under consideration for constructing a new chapter house. The Skulls' president, a POM student, estimates that due to differing land costs, utility rates, etc., both fixed and variable costs would be different for each of the proposed sites, as follows: $\begin{array}{lcl}
\text { Location } & \begin{array}{r}
\text { Annual } \
\text { Fixed }
\end{array} & \text { Variable } \
\hline \text { Alpha Ave. } & \$ 5,000 & \$ 200 \text { per person } \
\text { Beta Blvd. } & \$ 8,000 & \$ 150 \text { per person }
\end{array}$ If it is estimated that 30 persons will be living in this new chapter house, what would be the Skulls' annual cost savings by selecting the less costly location, rather than the more costly?

Accepted Answer

A)  $0 
B)  $1,500 
C)  $200 
D)  $150 
E)  $350 
A)  $0 
B)  $1,500 
C)  $200 
D)  $150 
E)  $350

Question 9

The method for evaluating location alternatives that uses their composite (weighted-average) scores is:

Accepted Answer

A)  cost-profit-volume analysis. 
B)  transportation model analysis. 
C)  factor rating analysis. 
D)  linear regression analysis. 
E)  MODI analysis. 
A)  cost-profit-volume analysis. 
B)  transportation model analysis. 
C)  factor rating analysis. 
D)  linear regression analysis. 
E)  MODI analysis.

Question 10

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 A for a quantity of 5,000 units per year?

Accepted Answer

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

Question 11

Location choice I has monthly fixed costs of $100,000 and per-unit variable costs of $10. What would its total cost be at a monthly volume of 250 units?

Accepted Answer

A)  $105,200 
B)  $102,500 
C)  $100,250 
D)  $100,520 
E)  $105,500 
A)  $105,200 
B)  $102,500 
C)  $100,250 
D)  $100,520 
E)  $105,500

Question 12

Global positioning systems (GPS) use the center of gravity method to establish starting grid coordinates.

Accepted Answer

A) True 
 B)False

Question 13

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 the preferred site for 20,000 units per year, what would be your total costs?

Accepted Answer

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

Question 14

Which of the following circumstances would be least likely to lead to a need for a new location?

Accepted Answer

A)  shifting of markets 
B)  depletion of basic inputs 
C)  growth in demand that is leading to greater utilization of existing capacity 
D)  the need to expand into new markets 
E)  the opportunity to take advantage of globalization trends 
A)  shifting of markets 
B)  depletion of basic inputs 
C)  growth in demand that is leading to greater utilization of existing capacity 
D)  the need to expand into new markets 
E)  the opportunity to take advantage of globalization trends

Question 15

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 A or site B?

Accepted Answer

10,000 uni

Question 16

The Skulls, a student social organization, has two different locations under consideration for constructing a new chapter house. The Skulls' president, a POM student, estimates that due to differing land costs, utility rates, etc., both fixed and variable costs would be different for each of the proposed sites, as follows: $\begin{array}{lcl}
\text { Location } & \begin{array}{r}
\text { Annual } \
\text { Fixed }
\end{array} & \text { Variable } \
\hline \text { Alpha Ave. } & \$ 5,000 & \$ 200 \text { per person } \
\text { Beta Blvd. } & \$ 8,000 & \$ 150 \text { per person }
\end{array}$ If it is estimated that 30 persons will be living in this new chapter house, which location should the Skulls select?

Accepted Answer

A)  Alpha Ave. 
B)  Beta Blvd. 
C)  either Alpha Ave. or Beta Blvd. 
D)  reject both Alpha Ave. and Beta Blvd. 
E)  become a virtual organization 
A)  Alpha Ave. 
B)  Beta Blvd. 
C)  either Alpha Ave. or Beta Blvd. 
D)  reject both Alpha Ave. and Beta Blvd. 
E)  become a virtual organization

Question 17

A strategy that emphasizes convenience for the customers would probably select a single very large facility.

Accepted Answer

A) True 
 B)False

Question 18

Which statement best characterizes a typical search for location alternatives?

Accepted Answer

A)  Identify the best location choice. 
B)  Minimize cost consequences. 
C)  Maximize associated profits. 
D)  Locate near markets. 
E)  Identify acceptable locations. 
A)  Identify the best location choice. 
B)  Minimize cost consequences. 
C)  Maximize associated profits. 
D)  Locate near markets. 
E)  Identify acceptable locations.

Question 19

A firm is trying to decide between two location alternatives, Albany and Baltimore. Albany would result in annual fixed costs of $60,000, labor costs of $7 per unit, material costs of $10 per unit, transportation costs of $15 per unit, and revenue per unit of $50. Baltimore would have annual fixed costs of $80,000, labor costs of $6 per unit, material costs of $9 per unit, transportation costs of $14 per unit, and revenue per unit of $48.
(A) At an annual volume of 9,000, which would yield the higher profit?
(B) At what annual volume would management be indifferent between the two alternatives in terms of annual profits?

Accepted Answer

\[\begin{array} { l l c c } 
& \mathrm {

Question 20

Nearness to raw materials would be most important to a:

Accepted Answer

A)  grocery store. 
B)  tax preparation service. 
C)  manufacturing company. 
D)  post office. 
E)  hospital. 
A)  grocery store. 
B)  tax preparation service. 
C)  manufacturing company. 
D)  post office. 
E)  hospital.

Software systems known as GIS help in location analysis. The initials GIS stand for:

You cannot make a mistake by locating where labor costs are low.

Given the following information on scores of three location alternatives, which alternative would you recommend? Why? Location Factor Wt. A B C Raw Materials 4 80 70 80 Market .2 40 60 80 Transportation Cost .1 90 70 50 Labor Cost .2 70 70 50 Construction Cost .1 90 80 60

The method for evaluating location alternatives that uses their composite (weighted-average) scores is:

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 A for a quantity of 5,000 units per year?

Location choice I has monthly fixed costs of $100,000 and per-unit variable costs of $10. What would its total cost be at a monthly volume of 250 units?

Global positioning systems (GPS) use the center of gravity method to establish starting grid coordinates.

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 the preferred site for 20,000 units per year, what would be your total costs?

Which of the following circumstances would be least likely to lead to a need for a new location?

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 A or site B?

A strategy that emphasizes convenience for the customers would probably select a single very large facility.

Which statement best characterizes a typical search for location alternatives?

Nearness to raw materials would be most important to a:

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

Exam 8: Location Planning and Analysis

Software systems known as GIS help in location analysis. The initials GIS stand for:

You cannot make a mistake by locating where labor costs are low.

Given the following information on scores of three location alternatives, which alternative would you recommend? Why? Location Factor Wt. A B C Raw Materials 4 80 70 80 Market .2 40 60 80 Transportation Cost .1 90 70 50 Labor Cost .2 70 70 50 Construction Cost .1 90 80 60

The method for evaluating location alternatives that uses their composite (weighted-average) scores is:

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 A for a quantity of 5,000 units per year?

Location choice I has monthly fixed costs of $100,000 and per-unit variable costs of $10. What would its total cost be at a monthly volume of 250 units?

Global positioning systems (GPS) use the center of gravity method to establish starting grid coordinates.

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 the preferred site for 20,000 units per year, what would be your total costs?

Which of the following circumstances would be least likely to lead to a need for a new location?

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 A or site B?

A strategy that emphasizes convenience for the customers would probably select a single very large facility.

Which statement best characterizes a typical search for location alternatives?

Nearness to raw materials would be most important to a:

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