Exam 11: Logistics and Facility Location

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

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

As a facility location consultant,how would you advise a client wanting to locate a retail service facility differently than a client wanting to locate an on-line stock trading operation?

In facility location decision-making the factor-rating system is one of the least used general location techniques.

Services typically have multiple site locations close to customer markets.

An example of a positive business climate that might influence a facility location decision is increasing governmental costs and increasing property taxes.

In facility location decision-making the factor-rating system is based on linear programming.

Name four methods of quantitative analysis that are useful in making the facility location decision.

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?

Three distribution centers,A,B and C,are located at the following (X,Y)coordinates: A, (20,130);B, (180,0);and C, (200,200).A factory is to be constructed to distribute a new product through these warehouses.The expected annual volumes expected to be shipped through the three warehouses is forecast to be 20 million units through A,100 million through B and 50 million through C.Using the centroid method,approximately what should the coordinates of the new factory be? X = 167,Y = 74

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.

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?

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.

Compare and contrast the factor-rating system and the transportation method of linear programming as used in facility location decisions.

A favorable business climate in facility location decision-making might include government legislation of tax abatements.

Plant A is located at the (X,Y)coordinates of (100,200)and has a volume of shipping of 500 units a day.Plant B is located at the (X,Y)coordinates of (150,400)and has a volume of shipping of 200 units a day.Using the centroid method,which of the following is the X coordinate for the new plant location?

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

A company wants to determine where they should locate a new warehouse.They have 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 plant location methodology good for locating a single facility within a set of existing facilities based in distances and volumes of goods shipped?

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