Question 1

________ costs are readily identifiable and can be measured with precision.

Accepted Answer

The answer of ________ costs are readily identifiable and can...

Question 2

Why is Northern Mexico used as a cluster for electronics firms?

Accepted Answer

A) high traffic flows 
B) venture capitalists located nearby 
C) natural resources of land and climate 
D) NAFTA 
E) high per capita GDP 
A) high traffic flows 
B) venture capitalists located nearby 
C) natural resources of land and climate 
D) NAFTA 
E) high per capita GDP

Question 3

Location decisions are often being based on which of the following?

Accepted Answer

A) ports and rivers 
B) rail hubs 
C) interstate highways 
D) airports 
E) all of the above 
A) ports and rivers 
B) rail hubs 
C) interstate highways 
D) airports 
E) all of the above

Question 4

A employee produces 15 parts during a shift in which he made $90.What is the labor content of the product?

Accepted Answer

A) $90 
B) $5 
C) $6 
D) $0.167 
E) $1,350 
A) $90 
B) $5 
C) $6 
D) $0.167 
E) $1,350

Question 5

What are the advantages and disadvantages of the use of the factor-rating method?

Accepted Answer

Factor rating can handle a mix of quanti

Question 6

For a location decision,labor productivity may be important in isolation,but low wage rates are a more important criterion.

Accepted Answer

A) True 
 B)False

Question 7

A manufacturer of stamped metal auto parts has four parts factories in one city at the location coordinates shown below.Each coordinate unit represents a city block (roughly 100 meters).The yearly demand at each factory is also given.
   Management has decided to build a new sheet metal mill,to supply these factories,at a location central to these plants.What should be the map coordinates of the new plant?

Accepted Answer

The mill s

Question 8

Industrial location analysis typically attempts to:

Accepted Answer

A) minimize costs. 
B) maximize sales. 
C) focus more on human resources. 
D) avoid countries with strict environmental regulations. 
E) ignore exchange rates and currency risks. 
A) minimize costs. 
B) maximize sales. 
C) focus more on human resources. 
D) avoid countries with strict environmental regulations. 
E) ignore exchange rates and currency risks.

Question 9

Tangible costs include which of the following?

Accepted Answer

A) climatic conditions 
B) availability of public transportation 
C) taxes 
D) quality and attitude of prospective employees 
E) zoning regulations 
A) climatic conditions 
B) availability of public transportation 
C) taxes 
D) quality and attitude of prospective employees 
E) zoning regulations

Question 10

What kinds of location decisions are appropriate for the use of locational cost-volume analysis? Write a brief paragraph explaining how the method can assist an operations manager in choosing among alternative sites in making a location decision.

Accepted Answer

Crossover analysis is appropriate when t

Question 11

Which of the following is a location analysis technique typically employed by a service organization?

Accepted Answer

A) purchasing power analysis 
B) linear programming 
C) queuing theory 
D) transportation method 
E) locational cost-volume analysis 
A) purchasing power analysis 
B) linear programming 
C) queuing theory 
D) transportation method 
E) locational cost-volume analysis

Question 12

Every month,a distribution center will deliver 14,000 units to Retailer A at coordinates (20,10),12,000 units to Retailer B at coordinates (30,-15),and 20,000 units to Retailer C at coordinates (4,4).Assuming no constraints on location,at what coordinates should the distribution center be located (rounded to two decimal places)?

Accepted Answer

(15.65,0.87),where 15.65 = [20

Question 13

One reason for a firm locating near its competitors is the presence of a major resource it needs.

Accepted Answer

A) True 
 B)False

Question 14

The center-of-gravity method finds the location of a centralized facility,such as a distribution center,that will maximize the organization's revenue.

Accepted Answer

A) True 
 B)False

Question 15

A clothing chain is considering two different locations for a new retail outlet.They have identified the four factors listed in the following table as the basis for evaluation,and have assigned weights as shown.The manager has rated each location on each factor,on a 100-point basis,as shown under the respective columns for Barclay and Chester.   What is the score for Chester?

Accepted Answer

A) 10.00 
B) 24.50 
C) 25.75 
D) 27.00 
E) 100.00 
A) 10.00 
B) 24.50 
C) 25.75 
D) 27.00 
E) 100.00

Question 16

The ratio of labor cost per day to productivity,in units per day,is the labor cost per unit.

Accepted Answer

A) True 
 B)False

Question 17

How do service facility location decisions differ from industrial location decisions in terms of the techniques used to analyze them?

Accepted Answer

Service location decisions tend to focus

Question 18

Which of the following methods best considers intangible costs related to a location decision?

Accepted Answer

A) crossover methods 
B) locational cost-volume analysis 
C) factor-rating method 
D) the transportation method 
E) center-of-gravity method 
A) crossover methods 
B) locational cost-volume analysis 
C) factor-rating method 
D) the transportation method 
E) center-of-gravity method

Question 19

Which of the following statements regarding FedEx is TRUE?

Accepted Answer

A) Its hub in Memphis,Tennessee,was selected because of its low cost. 
B) Memphis,Tennessee,is the only hub in the company's global flight network. 
C) FedEx believes the hub system helps reduce mishandling and delays due to better controls. 
D) FedEx uses a hub system in the United States,but a city-to-city network in other countries. 
E) Memphis is FedEx's only hub airport in the United States. 
A) Its hub in Memphis,Tennessee,was selected because of its low cost. 
B) Memphis,Tennessee,is the only hub in the company's global flight network. 
C) FedEx believes the hub system helps reduce mishandling and delays due to better controls. 
D) FedEx uses a hub system in the United States,but a city-to-city network in other countries. 
E) Memphis is FedEx's only hub airport in the United States.

Question 20

Globalization of the location decision is the result of all EXCEPT which of the following?

Accepted Answer

A) market economics 
B) higher quality of labor overseas 
C) ease of capital flow between countries 
D) high differences in labor costs 
E) more rapid,reliable travel and shipping 
A) market economics 
B) higher quality of labor overseas 
C) ease of capital flow between countries 
D) high differences in labor costs 
E) more rapid,reliable travel and shipping

Exam 8: Location Strategies

________ costs are readily identifiable and can be measured with precision.

Why is Northern Mexico used as a cluster for electronics firms?

Location decisions are often being based on which of the following?

A employee produces 15 parts during a shift in which he made $90.What is the labor content of the product?

What are the advantages and disadvantages of the use of the factor-rating method?

For a location decision,labor productivity may be important in isolation,but low wage rates are a more important criterion.

Industrial location analysis typically attempts to:

Tangible costs include which of the following?

What kinds of location decisions are appropriate for the use of locational cost-volume analysis? Write a brief paragraph explaining how the method can assist an operations manager in choosing among alternative sites in making a location decision.

Which of the following is a location analysis technique typically employed by a service organization?

One reason for a firm locating near its competitors is the presence of a major resource it needs.

The center-of-gravity method finds the location of a centralized facility,such as a distribution center,that will maximize the organization's revenue.

The ratio of labor cost per day to productivity,in units per day,is the labor cost per unit.

How do service facility location decisions differ from industrial location decisions in terms of the techniques used to analyze them?

Which of the following methods best considers intangible costs related to a location decision?

Which of the following statements regarding FedEx is TRUE?

Globalization of the location decision is the result of all EXCEPT which of the following?

Operations and Productivity

Operations Strategy in a Global Environment

Project Management

Forecasting

Design of Goods and Services

Managing Quality

Process Strategy

Layout Strategies

Human Resources,job Design,and Work Measurement

Supply Chain Management

Inventory Management

Aggregate Planning and Sop

Material Requirements Planning Mrpand ERP

Short-Term Scheduling

Lean Operations

Maintenance and Reliability

Sustainability in the Supply Chain

Statistical Process Control

Capacity and Constraint Management

Supply Chain Management Analytics

Decision-Making Tools

Linear Programming

Transportation Models

Waiting-Line Models

Learning Curves

Simulation

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