Question 1

Plant A is located at the (X, Y) coordinates of (100, 200) and has a volume of shipping of 500 units a day. Plant B is located at the (X, Y) coordinates of (150, 400) and has a volume of shipping of 200 units a day. Using the centroid method, which of the following is the X coordinate for the new plant location?

Accepted Answer

A)  About 100 
B)  About 114 
C)  About 130 
D)  About 150 
E)  X coordinate cannot be computed from the data given

Question 2

In a hub-and-spoke system each warehouse in the system acts as a spoke.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is a criterion that influences manufacturing plant or warehouse facility location decisions?

Accepted Answer

A)  Proximity to customers 
B)  Corporate policy 
C)  Competitor's locations 
D)  Competitive advantage 
E)  Host community politics

Question 4

Suppose that using the centroid method you found the best location for a communications tower. The location happens to be in the middle of a pond. Then, you should locate the tower

Accepted Answer

A)  at that location using water proof concrete and precast poles. 
B)  at the closest point outside the pond. 
C)  using some other method. 
D)  after considering qualitative factors such as geography, roads and utilities to help find the exact location. 
E)  None of the above

Question 5

Facility location decisions are made using analytical techniques that are able to weigh a large number of different variables equally.

Accepted Answer

A) True 
 B)False

Question 6

Cross-docking is an approach used in consolidation warehouses, where large shipments are broken down into small shipments for local delivery in an area.

Accepted Answer

A) True 
 B)False

Question 7

A company wants to determine where they should locate a new warehouse. They have two existing production plants and will have a volume of shipping of 150 units a day. Using the centroid method, which of the following are the X and Y coordinates for the new plant location?

Accepted Answer

A)  (81, 117) 
B)  (88, 138) 
C)  (117, 102) 
D)  (76, 123) 
E)  X and Y coordinates cannot be computed from the data given

Question 8

Which of the following is not a criterion that influences manufacturing plant or warehouse facility location decisions?

Accepted Answer

A)  Proximity to customers 
B)  Historical cost 
C)  Infrastructure of a country 
D)  Quality of labor 
E)  Business climate

Question 9

Hub-and-spoke systems combine the idea of consolidation and that of cross-docking.

Accepted Answer

A) True 
 B)False

Question 10

In the logistics-systems design matrix, volume, cost and speed of delivery are three variables (assume three levels: low, moderate or high) used to describe attributes of transportation modes. Rail is associated with

Accepted Answer

A)  moderate volume, moderate speed and high cost. 
B)  moderate volume, high speed and high cost. 
C)  high volume, moderate speed and low cost. 
D)  low volume, high cost and low speed. 
E)  high volume, high speed and high cost.

Question 11

Issues of product mix and capacity are strongly interconnected to the facility location decision.

Accepted Answer

A) True 
 B)False

Question 12

The centroid method for plant location uses which of the following data?

Accepted Answer

A)  Volume of goods to be shipped between existing points 
B)  Inbound transportation costs 
C)  Transport times between facilities 
D)  Correlation matrix of existing facilities 
E)  Probabilities and payoffs

Question 13

Facility location analysis considers the competitive imperative of locating near the appropriate labor pool to take advantage of low wage costs and/or skill levels.

Accepted Answer

A) True 
 B)False

Question 14

Services typically have multiple site locations to maintain close contact with customers.

Accepted Answer

A) True 
 B)False

Question 15

Facility location analysis considers the competitive imperative of lowest total cost.

Accepted Answer

A) True 
 B)False

Question 16

Because the world is becoming more highly interconnected, the proximity of an important supplier's plants is not crucial in supporting lean production methods.

Accepted Answer

A) True 
 B)False

Question 17

Plant A is located at the (X, Y) coordinates of (200, 500) and has a volume of shipping of 400 units a day. Plant B is located at the (X, Y) coordinates of (300, 100) and has a volume of shipping of 300 units a day. Using the centroid method, which of the following is the X coordinate for the new plant location?

Accepted Answer

A)  About 208 
B)  About 227 
C)  About 243 
D)  About 389 
E)  X coordinate cannot be computed from the data given

Exam 14: Location, Logistics, and Distribution

In a hub-and-spoke system each warehouse in the system acts as a spoke.

Which of the following is a criterion that influences manufacturing plant or warehouse facility location decisions?

Suppose that using the centroid method you found the best location for a communications tower. The location happens to be in the middle of a pond. Then, you should locate the tower

Facility location decisions are made using analytical techniques that are able to weigh a large number of different variables equally.

Cross-docking is an approach used in consolidation warehouses, where large shipments are broken down into small shipments for local delivery in an area.

A company wants to determine where they should locate a new warehouse. They have two existing production plants and will have a volume of shipping of 150 units a day. Using the centroid method, which of the following are the X and Y coordinates for the new plant location?

Which of the following is not a criterion that influences manufacturing plant or warehouse facility location decisions?

Hub-and-spoke systems combine the idea of consolidation and that of cross-docking.

In the logistics-systems design matrix, volume, cost and speed of delivery are three variables (assume three levels: low, moderate or high) used to describe attributes of transportation modes. Rail is associated with

Issues of product mix and capacity are strongly interconnected to the facility location decision.

The centroid method for plant location uses which of the following data?

Facility location analysis considers the competitive imperative of locating near the appropriate labor pool to take advantage of low wage costs and/or skill levels.

Services typically have multiple site locations to maintain close contact with customers.

Facility location analysis considers the competitive imperative of lowest total cost.

Because the world is becoming more highly interconnected, the proximity of an important supplier's plants is not crucial in supporting lean production methods.