Exam 8: Location Strategies

"Proximity" or closeness implies that a firm should locate "close" to something.What are the three kinds of proximity described in the text? What are the basic conditions under which each is appropriate? What kinds of firms are likely to use each of these?

Location decisions of goods-producing companies often assume that costs are relatively constant for a given area;therefore,the revenue function is critical.

A jewelry store is more likely than a jewelry manufacturer to consider ________ in making a location decision.

What is the impact of exchange rates on location decisions?

The ________ is used to determine the best pattern of shipments from several points of supply to several points of demand.

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. a.Calculate the volume-weighted center of gravity. b.Calculate the simple center of gravity (all cities weighted equally). c.Explain why the two calculations differ.

What kinds of location decisions are appropriate for the use of center-of-gravity analysis? What variable is being optimized in this analysis?

Intangible costs include which of the following?

Using the factor ratings shown below,determine which location alternative should be chosen on the basis of maximum composite score.

Labor cost per unit is also referred to as ________.

When making a location decision at the region/community level,which of these would be considered?

The center-of-gravity method is used primarily to determine what type of locations?

Which of the following is most likely to affect the location decision of a service firm rather than a manufacturing firm?

The transportation model calculates an optimal shipping system between a central facility and several outlying customers.

Service location strategies and goods-producing location strategies rely on very different sets of assumptions.What are the assumptions associated with goods-producing locations? How do these assumptions lead to a location strategy?

A highway contractor needs to locate a single supply point to provide road building materials to four projects.The four projects,which are all approximately the same magnitude,are located at the following coordinates.Coordinate units are in miles. a.What is the center of gravity? b.If a single truck were sent from center-of-gravity to each project and back (four round trips),how many miles would be traveled? (Hint: use the Pythagorean Theorem C = ).

Which of the following is an approach to location analysis that includes both qualitative and quantitative considerations?

A full-service restaurant is considering opening a new facility in a specific city.The table below shows its ratings of four factors at each of two potential sites. The score for Gary Mall is ________ and the score for Belt Line is ________.

Governmental attitudes toward issues such as private property,intellectual property,zoning,pollution,and employment stability may change over time.What is the term associated with this phenomenon?

Which of the following assumptions is NOT associated with strategies for goods-producing location decisions?