Question 1

Factor rating is limited to quantitative information concerning location decisions.

Accepted Answer

A) True 
 B)False

Question 2

A manufacturing firm is considering two locations for a plant to produce a new product. The two locations have fixed and variable costs as follows: $$\begin{array} { l r l } 
\text { Location } & \mathrm { FC } \text { (annual) } & \mathrm { VC } \text { (per unit) } \
\hline \text { Atlanta } & \$ 80,000 & \$ 20 \
\text { Phoenix } & \$ 140,000 & \$ 16
\end{array}$$ If annual demand is estimated to be 20,000 units, which location should the company select?

Accepted Answer

A)  Atlanta 
B)  Phoenix 
C)  either Atlanta or Phoenix 
D)  reject both Atlanta and Phoenix 
E)  build at both locations 
A)  Atlanta 
B)  Phoenix 
C)  either Atlanta or Phoenix 
D)  reject both Atlanta and Phoenix 
E)  build at both locations

Question 3

A location analysis has been narrowed down to two locations, Akron and Boston. The main factors in the decision will be the supply of raw materials, which has a weight of .50, transportation cost, which has a weight of .40, and labor cost, which has a weight of .10. The scores for raw materials, transportation, and labor are for Akron 60, 80, and 70, respectively; for Boston 70, 50, and 90, respectively. Given this information and a minimum acceptable composite score of 75, we can say that the manager should:

Accepted Answer

A)  be indifferent between these locations. 
B)  choose Akron. 
C)  choose Boston. 
D)  reject both locations. 
E)  build a plant in both cities. 
A)  be indifferent between these locations. 
B)  choose Akron. 
C)  choose Boston. 
D)  reject both locations. 
E)  build a plant in both cities.

Question 4

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 B?

Accepted Answer

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

Question 5

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}$$ If the selection criterion is to be the greatest composite score, management should choose:

Accepted Answer

A)  location A. 
B)  location B. 
C)  location C. 
D)  either location B or location C. 
E)  to reject all locations. 
A)  location A. 
B)  location B. 
C)  location C. 
D)  either location B or location C. 
E)  to reject all locations.

Question 6

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: $\begin{array}{lcl}
\text { Location } & \begin{array}{r}
\text { Annual } \
\text { Fixed }
\end{array} & \text { Variable } \
\hline \text { Alpha Ave. } & \$ 5,000 & \$ 200 \text { per person } \
\text { Beta Blvd. } & \$ 8,000 & \$ 150 \text { per person }
\end{array}$ What would be total annual costs for either location at the point of indifference?

Accepted Answer

A)  $13,000 
B)  $13,350 
C)  $9,000 
D)  $17,000 
E)  $19,200 
A)  $13,000 
B)  $13,350 
C)  $9,000 
D)  $17,000 
E)  $19,200

Question 7

Having facilities, personnel, and operations located around the world is called:

Accepted Answer

A)  nondomestic operations. 
B)  diversified operations. 
C)  globalization. 
D)  worldwide presence. 
E)  virtual organization. 
A)  nondomestic operations. 
B)  diversified operations. 
C)  globalization. 
D)  worldwide presence. 
E)  virtual organization.

Question 8

Determine the center of gravity location for the following destinations and shipping quantities: $$\begin{array} { l c c } 
\text { Destination } & ( \mathrm { x } , \mathrm { y } ) & \text { Quantity } \
\hline \text { D1 } & 3,5 & 600 \
\text { D2 } & 5,1 & 400 \
\text { D3 } & 6,7 & 300 \
\text { D4 } & 8,4 & 500
\end{array}$$

Accepted Answer

None

Question 9

Cultural differences, customer preferences, labor, and resources are factors relating to:

Accepted Answer

A)  regional choices. 
B)  site selection. 
C)  zoning. 
D)  product design. 
E)  foreign locations. 
A)  regional choices. 
B)  site selection. 
C)  zoning. 
D)  product design. 
E)  foreign locations.

Question 10

A manufacturing firm is considering two locations for a plant to produce a new product. The two locations have fixed and variable costs as follows: $$\begin{array} { l r l } 
\text { Location } & \mathrm { FC } \text { (annual) } & \mathrm { VC } \text { (per unit) } \
\hline \text { Atlanta } & \$ 80,000 & \$ 20 \
\text { Phoenix } & \$ 140,000 & \$ 16
\end{array}$$ What would be the total annual costs at the point of indifference?

Accepted Answer

A)  $300,000 
B)  $240,000 
C)  $380,000 
D)  $220,000 
E)  $760,000 
A)  $300,000 
B)  $240,000 
C)  $380,000 
D)  $220,000 
E)  $760,000

Question 11

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 cost savings compared to each of the other two sites?

Accepted Answer

$20,000 vs

Question 12

A manufacturing firm is considering two locations for a plant to produce a new product. The two locations have fixed and variable costs as follows: $$\begin{array} { l r l } 
\text { Location } & \mathrm { FC } \text { (annual) } & \mathrm { VC } \text { (per unit) } \
\hline \text { Atlanta } & \$ 80,000 & \$ 20 \
\text { Phoenix } & \$ 140,000 & \$ 16
\end{array}$$ What would the total annual costs be for the Phoenix location with an annual output of 10,000 units?

Accepted Answer

A)  $280,000 
B)  $140,000 
C)  $220,000 
D)  $300,000 
E)  $156,000 
A)  $280,000 
B)  $140,000 
C)  $220,000 
D)  $300,000 
E)  $156,000

Question 13

Which of the following is the last step in the procedure for making location decisions?

Accepted Answer

A)  Determine the evaluation criteria. 
B)  Identify important factors. 
C)  Develop location alternatives. 
D)  Evaluate alternatives and make a selection. 
E)  Request input regarding alternatives. 
A)  Determine the evaluation criteria. 
B)  Identify important factors. 
C)  Develop location alternatives. 
D)  Evaluate alternatives and make a selection. 
E)  Request input regarding alternatives.

Question 14

Consider the following information about sites A, B, and C: $$\begin{array} { l r l } 
\text { Site } & \text { FC (annual) } & \text { VC (per unit) } \
\hline \text { A } & \$ 100,000 & \$ 10 \
\mathrm {~B} & \$ 120,000 & \$ 8 \
\text { C } & \$ 150,000 & \$ 7
\end{array}$$ Which site would you prefer for a quantity of 20,000 units per year?

Accepted Answer

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

Question 15

The method for evaluating location alternatives that uses their total cost curves is:

Accepted Answer

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

Question 16

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. $$\begin{array} { l l } 
\text { Location } & ( \mathrm { x } , \mathrm { y } ) \
\hline 1 & 2,3 \
2 & 3,7 \
3 & 5,5 \
4 & 7,3 \
5 & 8,7
\end{array}$$ If weekly shipments to each warehouse will be approximately equal, what is the optimal location for the distribution center?

Accepted Answer

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

Question 17

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 550 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 18

A manufacturing firm is considering two locations for a plant to produce a new product. The two locations have fixed and variable costs as follows: $$\begin{array} { l r l } 
\text { Location } & \mathrm { FC } \text { (annual) } & \mathrm { VC } \text { (per unit) } \
\hline \text { Atlanta } & \$ 80,000 & \$ 20 \
\text { Phoenix } & \$ 140,000 & \$ 16
\end{array}$$ If the annual demand will be 20,000 units, what would be the cost advantage of the better location?

Accepted Answer

A)  $20,000 
B)  $460,000 
C)  $480,000 
D)  $80,000 
E)  $60,000 
A)  $20,000 
B)  $460,000 
C)  $480,000 
D)  $80,000 
E)  $60,000

Question 19

Location decisions are basically one-time decisions usually made by new organizations.

Accepted Answer

A) True 
 B)False

Question 20

Technology has made communication with global operations as easy as local communication.

Accepted Answer

A) True 
 B)False

Factor rating is limited to quantitative information concerning location decisions.

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 B?

Having facilities, personnel, and operations located around the world is called:

Determine the center of gravity location for the following destinations and shipping quantities: Destination (,) Quantity D1 3,5 600 D2 5,1 400 D3 6,7 300 D4 8,4 500

Cultural differences, customer preferences, labor, and resources are factors relating to:

A manufacturing firm is considering two locations for a plant to produce a new product. The two locations have fixed and variable costs as follows: Location (annual) (per unit) Atlanta \ 80,000 \ 20 Phoenix \ 140,000 \ 16 What would be the total annual costs at the point of indifference?

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 cost savings compared to each of the other two sites?

Which of the following is the last step in the procedure for making location decisions?

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 Which site would you prefer for a quantity of 20,000 units per year?

The method for evaluating location alternatives that uses their total cost curves is:

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 550 units?

Location decisions are basically one-time decisions usually made by new organizations.

Technology has made communication with global operations as easy as local communication.

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

Factor rating is limited to quantitative information concerning location decisions.

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 B?

Having facilities, personnel, and operations located around the world is called:

Determine the center of gravity location for the following destinations and shipping quantities: Destination (,) Quantity D1 3,5 600 D2 5,1 400 D3 6,7 300 D4 8,4 500

Cultural differences, customer preferences, labor, and resources are factors relating to:

A manufacturing firm is considering two locations for a plant to produce a new product. The two locations have fixed and variable costs as follows: Location (annual) (per unit) Atlanta \ 80,000 \ 20 Phoenix \ 140,000 \ 16 What would be the total annual costs at the point of indifference?

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 cost savings compared to each of the other two sites?

Which of the following is the last step in the procedure for making location decisions?

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 Which site would you prefer for a quantity of 20,000 units per year?

The method for evaluating location alternatives that uses their total cost curves is:

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 550 units?

Location decisions are basically one-time decisions usually made by new organizations.

Technology has made communication with global operations as easy as local communication.

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