Question 1

Political risk,cultural issues,and exchange rates are among those ________ that affect which country will be selected for a location decision.

Accepted Answer

The answer of Political risk,cultural issues,and exchange rates are among...

Question 2

Which of the following is the best example of the proximity rule that,for service firms,proximity to market is the most important location factor?

Accepted Answer

A) Soft drinks are bottled in many local plants,where carbonated water is added to proprietary syrups that may have been shipped long distances. 
B) Few people will travel out of state for a routine haircut. 
C) Patients will travel very long distances to have their hernia surgeries performed at Shouldice Hospital. 
D) Furniture makers choose to locate near the source of good hardwoods,even though it means locating near other furniture manufacturers. 
E) Metal refiners (smelters)locate near mines to accomplish significant weight reduction near the metal's source. 
A) Soft drinks are bottled in many local plants,where carbonated water is added to proprietary syrups that may have been shipped long distances. 
B) Few people will travel out of state for a routine haircut. 
C) Patients will travel very long distances to have their hernia surgeries performed at Shouldice Hospital. 
D) Furniture makers choose to locate near the source of good hardwoods,even though it means locating near other furniture manufacturers. 
E) Metal refiners (smelters)locate near mines to accomplish significant weight reduction near the metal's source.

Question 3

East Texas Seasonings is preparing to build one processing center to serve its four sources of seasonings.The four source locations are at coordinates shown below.Also,the volume from each source is provided.What is the center of gravity?

Accepted Answer

A) X = 28.125;Y = 31.25 
B) X = 22000;Y = 24000 
C) X = 27.5;Y = 40 
D) center of gravity = 28 
E) X = 25;Y = 40 
A) X = 28.125;Y = 31.25 
B) X = 22000;Y = 24000 
C) X = 27.5;Y = 40 
D) center of gravity = 28 
E) X = 25;Y = 40

Question 4

Which of the following is most likely to affect the location strategy of a manufacturing firm?

Accepted Answer

A) appearance/image of the area 
B) utility costs 
C) purchasing power of drawing area 
D) competition in the area 
E) parking availability 
A) appearance/image of the area 
B) utility costs 
C) purchasing power of drawing area 
D) competition in the area 
E) parking availability

Question 5

Suppose that a bus company is deciding where to locate its central hub.There are 6 possible destinations for the buses.Suppose that the center of town will be used as the reference for describing the possible destinations.A is located 5 miles South and 3 miles West.B is located 3 miles North and 2 miles East.C is located 1 mile South and 5 miles East.D is located 2 miles North and 3 miles West.E is located exactly in the center of town.F is located 10 miles North and 5 miles East.Assume that traffic to each destination will be equal.Where should the hub go so that travel time is minimized?

Accepted Answer

Since each site has the same demand the

Question 6

The location decisions of goods-producing firms will generally pay more attention to parking,access,and traffic counts than will service location decisions.

Accepted Answer

A) True 
 B)False

Question 7

Community attitudes,zoning restrictions,and quality of labor force are likely to be considered in which of the following location decision methods?

Accepted Answer

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

Question 8

Which of these factors would be considered when making a location decision at the region/community level?

Accepted Answer

A) government rules,attitudes,stability,incentives 
B) cultural and economic issues 
C) zoning restrictions 
D) environmental impact issues 
E) proximity to raw materials and customers 
A) government rules,attitudes,stability,incentives 
B) cultural and economic issues 
C) zoning restrictions 
D) environmental impact issues 
E) proximity to raw materials and customers

Question 9

Which of these factors would be considered when making a location decision at the site level?

Accepted Answer

A) government rules,attitudes,stability,incentives 
B) cultural and economic issues 
C) zoning regulations 
D) cost and availability of utilities 
E) proximity to raw materials and customers 
A) government rules,attitudes,stability,incentives 
B) cultural and economic issues 
C) zoning regulations 
D) cost and availability of utilities 
E) proximity to raw materials and customers

Question 10

A grocery chain is deciding on where to locate its new distribution center (DC).The new DC will serve four grocery stores,each with a demand of 10,000 units.If the coordinates of the stores are (112,108), (110,50), (40,85),and (10,25)where should the DC be located? Suppose now that each store instead had demand of 20,000 units.Where should the DC go in this case?

Accepted Answer

Since each store has the same demand,the

Question 11

What is the role of labor productivity in location decisions?

Accepted Answer

Labor productivity is the number of unit

Question 12

The ________ method is popular because a wide variety of factors,from education to recreation to labor skills,can be objectively included.

Accepted Answer

The answer of The ________ method is popular because a...

Question 13

A small producer of music boxes wants to move to a larger facility.Two alternative facilities have been found.Site 1 has a fixed cost of $500,000 per year,with a variable cost of $25 per unit.Site 2 has a fixed cost of $800,000 per year,but a variable cost of $22 per unit.
a.Write out the equation for total cost for each site.
b.At what volume of output would the two locations have the same total cost?
c.For what range of output would Site 1 be superior?
d.For what range of output would Site 2 be superior?

Accepted Answer

(a)The equation for the total cost at si

Question 14

________ and currency risks are to key country success factors as land costs and ________ are to key region success factors.

Accepted Answer

A) Cultural issues;zoning restrictions 
B) Exchange rates;environmental impact 
C) Labor cost;proximity to customers 
D) Land costs;air and rail systems 
E) All of the above are accurate relationships. 
A) Cultural issues;zoning restrictions 
B) Exchange rates;environmental impact 
C) Labor cost;proximity to customers 
D) Land costs;air and rail systems 
E) All of the above are accurate relationships.

Question 15

FedEx chose Memphis,Tennessee,for its central location,or "hub," primarily because of the incentives offered by the city of Memphis and the state of Tennessee.

Accepted Answer

A) True 
 B)False

Question 16

A manufacturing company is considering two alternative locations for a new facility.The fixed and variable costs for the two locations are found in the table below.For which volume of business would the two locations be equally attractive? If the company plans on producing 50,000 units,which location would be more attractive?

Accepted Answer

Crossover is at 250,000 units.

Question 17

A manufacturing company is considering three expansion options.The first is to do nothing (Option
A).The next is to leave the current plant open and also open a new larger plant (Option
B).Finally they could close the existing plant and open the new,larger one (Option
C).Given the variable costs (VC)and fixed costs (FC)from the table below,calculate the range for which each option minimizes cost.

Accepted Answer

To solve for the crossover points,studen

Question 18

A firm is considering two location alternatives.At location A,fixed costs would be $4,000,000 per year,and variable costs $0.30 per unit.At alternative B,fixed costs would be $3,600,000 per year,with variable costs of $0.35 per unit.If annual demand is expected to be 10 million units,which plant offers the lowest total cost?

Accepted Answer

A) Plant A,because it is cheaper than Plant B for all volumes over 8,000,000 units. 
B) Plant B,because it is cheaper than Plant A for all volumes over 8,000,000 units. 
C) Plant A,because it is cheaper than Plant B for all volumes. 
D) Plant B,because it has the lower variable cost per unit. 
E) Neither Plant A nor Plant B,because the crossover point is at 10 million units. 
A) Plant A,because it is cheaper than Plant B for all volumes over 8,000,000 units. 
B) Plant B,because it is cheaper than Plant A for all volumes over 8,000,000 units. 
C) Plant A,because it is cheaper than Plant B for all volumes. 
D) Plant B,because it has the lower variable cost per unit. 
E) Neither Plant A nor Plant B,because the crossover point is at 10 million units.

Question 19

Which of the following statements regarding "proximity" in the location decision is FALSE?

Accepted Answer

A) Service organizations find that proximity to market is the most critical primary location factor. 
B) Manufacturers want to be near customers when their product is bulky,heavy,or fragile. 
C) Perishability of raw materials is a good reason for manufacturers to locate near the supplier,not the customer. 
D) Reduction in bulk is a good reason for a manufacturer to locate near the supplier. 
E) Clustering among fast food chains occurs because they need to be near their labor supply. 
A) Service organizations find that proximity to market is the most critical primary location factor. 
B) Manufacturers want to be near customers when their product is bulky,heavy,or fragile. 
C) Perishability of raw materials is a good reason for manufacturers to locate near the supplier,not the customer. 
D) Reduction in bulk is a good reason for a manufacturer to locate near the supplier. 
E) Clustering among fast food chains occurs because they need to be near their labor supply.

Question 20

What is it called when competing companies locate next to each other? Why do they do this?

Accepted Answer

It is called clustering.In many cases,th

Exam 8: Location Strategies

Political risk,cultural issues,and exchange rates are among those ________ that affect which country will be selected for a location decision.

Which of the following is the best example of the proximity rule that,for service firms,proximity to market is the most important location factor?

East Texas Seasonings is preparing to build one processing center to serve its four sources of seasonings.The four source locations are at coordinates shown below.Also,the volume from each source is provided.What is the center of gravity?

Which of the following is most likely to affect the location strategy of a manufacturing firm?

The location decisions of goods-producing firms will generally pay more attention to parking,access,and traffic counts than will service location decisions.

Community attitudes,zoning restrictions,and quality of labor force are likely to be considered in which of the following location decision methods?

Which of these factors would be considered when making a location decision at the region/community level?

Which of these factors would be considered when making a location decision at the site level?

What is the role of labor productivity in location decisions?

The ________ method is popular because a wide variety of factors,from education to recreation to labor skills,can be objectively included.

________ and currency risks are to key country success factors as land costs and ________ are to key region success factors.

FedEx chose Memphis,Tennessee,for its central location,or "hub," primarily because of the incentives offered by the city of Memphis and the state of Tennessee.

Which of the following statements regarding "proximity" in the location decision is FALSE?

What is it called when competing companies locate next to each other? Why do they do this?

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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and currency risks are to key country success factors as land costs and are to key region success factors.