Question 1

A geographic information system contains demographic information.

Accepted Answer

A) True 
 B)False

Question 2

Table 11.7
Nuts-and-Bolts,Inc.wishes to find the best location for a plant that will satisfy customer demand in the following five areas.
  
-Use the information in Table 11.7.If the plant is located at the coordinates (5,5),what is the total load-distance score,assuming Euclidean (straight line)distance?

Accepted Answer

A) less than or equal to 600 
B) more than 600 but less than or equal to 700 
C) more than 700 but less than or equal to 800 
D) more than 800 
A) less than or equal to 600 
B) more than 600 but less than or equal to 700 
C) more than 700 but less than or equal to 800 
D) more than 800

Question 3

Two conditions must be met by factors selected to evaluate location decisions: the factors must have a high impact on the company's ability to meet its goals and the factors themselves must be affected by the location decision.

Accepted Answer

A) True 
 B)False

Question 4

Which of these is most likely to be classified as a "load" when using the load-distance model?

Accepted Answer

A) a process 
B) a supplier 
C) a shipment 
D) a customer 
A) a process 
B) a supplier 
C) a shipment 
D) a customer

Question 5

Table 11.9
Sagebrush Company has four warehouses (A,B,C,and D)that require monthly shipments of 250,200,300,and 200 units per month,respectively.Its three plants (1,2,and 3)have monthly capacities of 300,400,and 250,respectively.Plant capacities,warehouse needs and shipping costs (in $)are shown in the following initial transportation method tableau.For example,the shipping cost from Plant 1 to Warehouse A is $17 per unit.  
-Use the information in Table 11.9.Which of these statements regarding the problem is correct?

Accepted Answer

A) Another plant must be added to the tableau because there are more warehouses than plants. 
B) A dummy plant must be added due to production volumes. 
C) A dummy warehouse must be added to solve this problem. 
D) The simplex method can be used to solve this problem. 
A) Another plant must be added to the tableau because there are more warehouses than plants. 
B) A dummy plant must be added due to production volumes. 
C) A dummy warehouse must be added to solve this problem. 
D) The simplex method can be used to solve this problem.

Question 6

A quantitative method used to evaluate multiple locations based on total cost of production or service operations is called:

Accepted Answer

A) break-even analysis. 
B) the transportation method. 
C) a preference matrix. 
D) the load-distance method. 
A) break-even analysis. 
B) the transportation method. 
C) a preference matrix. 
D) the load-distance method.

Question 7

When using the load-distance method to select a new location,the decision maker can represent the number of trips to be made,the number of customers needing a physical presence,or number of tons per week,among other measures,as loads.

Accepted Answer

A) True 
 B)False

Question 8

Table 11.9
Sagebrush Company has four warehouses (A,B,C,and D)that require monthly shipments of 250,200,300,and 200 units per month,respectively.Its three plants (1,2,and 3)have monthly capacities of 300,400,and 250,respectively.Plant capacities,warehouse needs and shipping costs (in $)are shown in the following initial transportation method tableau.For example,the shipping cost from Plant 1 to Warehouse A is $17 per unit.  
-Use the information in Table 11.9.What can be said about a plan that ships 200 units from 1 to A,100 units from 1 to B,100 units from 2 to B,300 units from 2 to C,and 250 units from 3 to D?

Accepted Answer

A) It is not feasible in terms of plant capacities. 
B) It is not feasible in terms of satisfying warehouse demands. 
C) It is feasible,but not the least-cost allocation pattern. 
D) It is the optimal solution. 
A) It is not feasible in terms of plant capacities. 
B) It is not feasible in terms of satisfying warehouse demands. 
C) It is feasible,but not the least-cost allocation pattern. 
D) It is the optimal solution.

Question 9

A decision maker using break-even analysis must assume that suppliers do not provide discounts for large orders.

Accepted Answer

A) True 
 B)False

Question 10

Five sources exist for the civet cat coffee favored by true coffee connoisseurs.The four processing centers for these coffee beans are scattered about the country,each with a different level of demand.The five sources all face different cost structures for transporting their beans,the prices in the table reflect a dollar cost per 50 pound bag of coffee beans.The total amounts supplied by each source and demanded by each destination are also shown in the table,and as luck would have it,the total supply equals the total demand.What is the optimal shipping scheme such that the total transportation cost is minimized?

Accepted Answer

The optimal tableau

Question 11

Most firms that choose to relocate operations have:

Accepted Answer

A) more than 500 employees. 
B) more than 100 employees but fewer than 500 employees. 
C) more than 10 employees but fewer than 100 employees. 
D) fewer than 10 employees. 
A) more than 500 employees. 
B) more than 100 employees but fewer than 500 employees. 
C) more than 10 employees but fewer than 100 employees. 
D) fewer than 10 employees.

Question 12

Table 11.2
A single facility is needed to meet the demands of four markets.The locations and demands of these four markets are shown below.
  
-Use the information from Table 11.2.What are the x and y coordinates for the center of gravity?

Accepted Answer

A) x > 6,y > 7 B) x > 6,y 7 D) x < 6,y < 7 A) x > 6,y > 7 B) x > 6,y 7 D) x < 6,y < 7

Question 13

The number of nonzero shipments in an optimal transportation solution will never exceed ________.

Accepted Answer

the sum of the numbe

Question 14

Sweet Candy,Inc.wishes to open two new stores.Based on the following subjective criteria,where should the new stores be located? The higher the score,the better.

Accepted Answer

A) A and B 
B) B and C 
C) B and D 
D) B and E 
A) A and B 
B) B and C 
C) B and D 
D) B and E

Question 15

Which of the following statements about break-even analysis is incorrect?

Accepted Answer

A) No start-up costs exist. 
B) Economies of scale cannot be achieved. 
C) Variable costs vary as output changes. 
D) Fixed costs vary as output changes. 
A) No start-up costs exist. 
B) Economies of scale cannot be achieved. 
C) Variable costs vary as output changes. 
D) Fixed costs vary as output changes.

Question 16

An operations manager has narrowed down the search for a new plant for McIntosh Enterprises to three locations.Fixed and variable costs follow:   Plot the total cost curves in the chart provided and identify the range over which each location would be best.Then use break-even analysis to calculate exactly the break-even quantity that defines each range.   Which of the following statements is correct?

Accepted Answer

A) Location C is the best one if volumes are quite low. 
B) Location A becomes the most expensive place to produce at volumes less than 10,000. 
C) The break-even quantity between A and B is less than or equal to 17,000 units. 
D) The break-even quantity between C and B is more than 30,000 units. 
A) Location C is the best one if volumes are quite low. 
B) Location A becomes the most expensive place to produce at volumes less than 10,000. 
C) The break-even quantity between A and B is less than or equal to 17,000 units. 
D) The break-even quantity between C and B is more than 30,000 units.

Question 17

Which of the following statements concerning the use of the Geographical Information System (GIS)method for locating multiple facilities is TRUE?

Accepted Answer

A) GIS helps with general facility locations,but is not able to identify specific locations because the transportation structure of roads and interstate highways can't be included in the GIS databases. 
B) Load-distance scores and center of gravity data can be merged with customer databases to arrive at trial locations for facilities. 
C) When locating two new facilities,the entire operating area is split into four subregions,two for each new facility,so the best two locations from the four subregions can be selected. 
D) One weakness of the GIS method is that it is slow and cumbersome,and significant time must be allowed in order to reach a reasonable multiple-facility location decision. 
A) GIS helps with general facility locations,but is not able to identify specific locations because the transportation structure of roads and interstate highways can't be included in the GIS databases. 
B) Load-distance scores and center of gravity data can be merged with customer databases to arrive at trial locations for facilities. 
C) When locating two new facilities,the entire operating area is split into four subregions,two for each new facility,so the best two locations from the four subregions can be selected. 
D) One weakness of the GIS method is that it is slow and cumbersome,and significant time must be allowed in order to reach a reasonable multiple-facility location decision.

Question 18

A national drugstore chain prefers to operate one outlet in a town that has four major market segments.The number of potential customers in each segment,along with the location coordinates,are given below.   Which would be the best location using the center of gravity method?

Accepted Answer

A) x > 10,y  5 
C) x  8 
A) x > 10,y  5 
C) x  8

Question 19

________ has the advantage of keeping people together,reducing construction time and costs,and avoiding splitting up operations.

Accepted Answer

The answer of ________ has the advantage of keeping people...

Question 20

The center of gravity technique does not take into consideration the:

Accepted Answer

A) total volume of product any given site receives. 
B) location of any given site. 
C) number of locations that must be served. 
D) balance of supply and demand. 
A) total volume of product any given site receives. 
B) location of any given site. 
C) number of locations that must be served. 
D) balance of supply and demand.

Exam 11: Supply Chain Location Decisions

A geographic information system contains demographic information.

Two conditions must be met by factors selected to evaluate location decisions: the factors must have a high impact on the company's ability to meet its goals and the factors themselves must be affected by the location decision.

Which of these is most likely to be classified as a "load" when using the load-distance model?

A quantitative method used to evaluate multiple locations based on total cost of production or service operations is called:

When using the load-distance method to select a new location,the decision maker can represent the number of trips to be made,the number of customers needing a physical presence,or number of tons per week,among other measures,as loads.

A decision maker using break-even analysis must assume that suppliers do not provide discounts for large orders.

Most firms that choose to relocate operations have:

Table 11.2 A single facility is needed to meet the demands of four markets.The locations and demands of these four markets are shown below. -Use the information from Table 11.2.What are the x and y coordinates for the center of gravity?

The number of nonzero shipments in an optimal transportation solution will never exceed ________.

Sweet Candy,Inc.wishes to open two new stores.Based on the following subjective criteria,where should the new stores be located? The higher the score,the better.

Which of the following statements about break-even analysis is incorrect?

Which of the following statements concerning the use of the Geographical Information System (GIS)method for locating multiple facilities is TRUE?

A national drugstore chain prefers to operate one outlet in a town that has four major market segments.The number of potential customers in each segment,along with the location coordinates,are given below. Which would be the best location using the center of gravity method?

________ has the advantage of keeping people together,reducing construction time and costs,and avoiding splitting up operations.

The center of gravity technique does not take into consideration the:

Using Operations to Compete

Project Management

Process Strategy

Process Analysis

Quality and Performance

Capacity Planning

Constraint Management

Lean Systems

Supply Chain Inventory Management

Supply Chain Design

Supply Chain Integration

Supply Chain Sustainability and Humanitarian Logistics

Forecasting

Operations Planning and Scheduling

Resource Planning

Decision Making

Waiting Line

Special Inventory Models

Linear Programming

Simulation

Financial Analysis

Acceptance Sampling Plans

Measuring Output Rates

Learning Curve Analysis

Operations Scheduling

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