Exam 11: Supply Chain Location Decisions

A preference matrix is a special case application of the load-distance method of comparing several potential site locations.

The load-distance model is used to minimize the total:

On average,it is less expensive to relocate a service-oriented business than a manufacturing business.

Which of the following location factors was NOT found to dominate location decisions for new U.S.manufacturing plants?

Quality of life issues include:

More than 80 percent of all relocations are within 10 miles of the first location,so usually the existing workforce is displaced.

Because Geographical Information System (GIS)tools are primarily quantitative in nature,a firm's managerial criteria,such as proximity to major metropolitan areas,are not able to be included in the GIS analysis.

Table 11.8 An operations manager has narrowed down the search for a new plant for Burdell Industries to three locations.Fixed and variable costs follow. -Use the information in Table 11.8 to determine the best statement.

McKenna Restaurant wishes to open a new store.Based on the following subjective criteria,where 10 is excellent and 0 is poor,where should the new store be located?

The center of gravity method considers a greater number of location factors than the break-even analysis.

________ is a function of wage rates,training requirements,attitudes toward work,worker productivity,and union strength.

Consider the location of four distribution centers,A,B,C,and D,with the following location coordinates and shipping requirements per week. Management is considering locating a new plant at the site of one of the four distribution centers.What is the load-distance score if the plant is located at distribution center A? (Use rectilinear distance. )

A company has determined the "demand points" and their relative locations as follows: If a company desires to locate a manufacturing facility at the center of gravity,what would be the x and y coordinates of the facility?

The Nelson Company has four distribution centers (A,B,C,and D)that require shipments of 20,30,40,and 10 units per week,respectively.Its three plants (1,2,and 3)have monthly capacities of 40,30,and 30,respectively.Shipping costs (in $)follow. What can be said about a plan that ships 40 units from 1 to C,30 units from 2 to B,20 units from 3 to A,and 10 units from 3 to D?

Solution guidelines,or rules of thumb,that find feasible-but not necessarily the best-solutions to problems are called heuristics.

Costs that are represented in each cell of a transportation tableau are based on ________.

Consider the transportation tableau shown below.What is the minimum cost of transporting the production from Ada,Bugtussle,and Choctaw to Durant,Edmond,and Foss if costs per unit are shown at the intersections of each location?

Which one of the following is usually an advantage of building a new facility,compared to on-site expansion?

________ is the process of determining a geographic site for a firm's operations.

A dummy plant is useful for problems where the sum of the plant capacities equals the sum of the demands.