Chapter 08 Location Planning and Analysis Part 2

Chapter 08 - Location Planning and Analysis Multiple Choice Questions 24. Nearness to raw materials would be most important to a  A. grocery store B. tax preparation service C. manufacturing company D. post office E. hospital Manufacturers especially value proximity to raw materials. AACSB: Reflective Thinking Bloom's: Remember Difficulty: Easy Learning Objective: 08-04 Give examples of the major factors that affect location decisions. Topic Area: Identifying a Country, Region, Community and Site 25. A one-hour photo processing machine in a Wal-Mart store is an example of a _________. A. micro-factory B. downsize strategy C. diversified strategy D. lean production system E. falling price strategy A micro-factory is a very efficient means of serving a small slice of a broad market. AACSB: Reflective Thinking Bloom's: Remember Difficulty: Medium Learning Objective: 08-03 Discuss the options that are available for location decisions. Topic Area: Identifying a Country, Region, Community and Site 26. Which statement best characterizes a typical search for location alternatives? A. identify the best location choice B. minimize cost consequences C. maximize associated profits D. locate near markets E. identify acceptable locations Finding alternatives requires that we find which alternatives might be suitable and which might not. AACSB: Reflective Thinking 8-31 Bloom's: Remember Difficulty: Medium Learning Objective: 08-05 Outline the decision process for making these kinds of decisions. Topic Area: General Procedures for Making Location Decisions Chapter 08 - Location Planning and Analysis 27. Which of the following is not a location option that management can consider in location planning? A. expand an existing facility B. add a new location C. relocate from one location to another D. do nothing E. All are possible options. All of these should or might be considered. AACSB: Reflective Thinking Bloom's: Remember Difficulty: Medium Learning Objective: 08-03 Discuss the options that are available for location decisions. Topic Area: The Nature of Location Decisions 28. Which of the following is the last step in the procedure for making location decisions? A. determine the evaluation criteria B. identify important factors C. develop location alternatives D. evaluate alternatives and make a selection E. request input regarding alternatives When all alternatives have been evaluated it is time to make a decision. AACSB: Reflective Thinking Bloom's: Remember Difficulty: Easy Learning Objective: 08-05 Outline the decision process for making these kinds of decisions. Topic Area: General Procedures for Making Location Decisions 8-32 Chapter 08 - Location Planning and Analysis 29. When a location evaluation includes both quantitative and qualitative inputs, a technique that can be used is ___________. A. Linear programming B. Consumer surveys C. Factor rating D. Transportation models E. Center of gravity methods Factor rating approaches can incorporate both quantitative and qualitative considerations. AACSB: Reflective Thinking Bloom's: Remember Difficulty: Medium Learning Objective: 08-06 Use the techniques presented to solve typical problems. Topic Area: Evaluating Location Alternatives 30. The center of gravity method is used to _______ travel time, distance and costs. A. Normalize B. Eliminate C. Average D. Minimize E. Document The center of gravity method minimizes travel time, distance and costs. AACSB: Reflective Thinking Bloom's: Remember Difficulty: Medium Learning Objective: 08-06 Use the techniques presented to solve typical problems. Topic Area: Evaluating Location Alternatives 8-33 Chapter 08 - Location Planning and Analysis 31. In location planning, the location of raw materials, the location of markets, and labor factors are: A. regional factors B. community factors C. site-related factors D. national factors E. minor considerations These are regional factors. AACSB: Reflective Thinking Bloom's: Remember Difficulty: Medium Learning Objective: 08-04 Give examples of the major factors that affect location decisions. Topic Area: Identifying a Country, Region, Community and Site 32. Software systems known as GIS help in location analysis. The initials GIS stand for _______. A. Graphic Interface Systems B. Global Integrated Software C. Graded Information Systems D. Geo Intensive Software E. Geographical Information System GIS stands for Geographical Information System. AACSB: Reflective Thinking Bloom's: Remember Difficulty: Medium Learning Objective: 08-05 Outline the decision process for making these kinds of decisions. Topic Area: Identifying a Country, Region, Community and Site 8-34 Chapter 08 - Location Planning and Analysis 33. Facilities, personnel and operations that are located around the world are called: A. non-domestic B. diversified operations C. globalization D. worldwide presence E. virtual organization Globalization involves facilities, personnel and operations that are located around the world. AACSB: Reflective Thinking Bloom's: Remember Difficulty: Medium Learning Objective: 08-03 Discuss the options that are available for location decisions. Topic Area: Global Locations 34. Some communities offer financial and other incentives to ______ new businesses. A. Tax B. Attract C. Marginalize D. Incorporate E. Zone Businesses often weigh such incentives in their location decision processes. AACSB: Reflective Thinking Bloom's: Remember Difficulty: Easy Learning Objective: 08-04 Give examples of the major factors that affect location decisions. Topic Area: Identifying a Country, Region, Community and Site 8-35 Chapter 08 - Location Planning and Analysis 35. Location options don't usually include: A. expansion B. a contract C. adding new facilities D. moving E. doing nothing A contract has little to do with location options. AACSB: Reflective Thinking Bloom's: Remember Difficulty: Hard Learning Objective: 08-03 Discuss the options that are available for location decisions. Topic Area: The Nature of Location Decisions 36. Cultural differences, Customer preferences, Labor and Resources are factors relating to: A. Regional choices B. Site selection C. Zoning D. Product design E. Foreign locations Foreign locations concerns with respect to these issues. AACSB: Reflective Thinking Bloom's: Remember Difficulty: Hard Learning Objective: 08-04 Give examples of the major factors that affect location decisions. Topic Area: Identifying a Country, Region, Community and Site 8-36 Chapter 08 - Location Planning and Analysis 37. The method for evaluating location alternatives which uses their total cost curves is: A. cost-volume analysis B. transportation model analysis C. factor rating analysis D. linear regression analysis E. MODI analysis Cost-volume analysis is based on total cost curves. AACSB: Reflective Thinking Bloom's: Remember Difficulty: Easy Learning Objective: 08-06 Use the techniques presented to solve typical problems. Topic Area: Evaluating Location Alternatives 38. The method for evaluating location alternatives which minimizes shipping costs between multiple sending and receiving locations is: A. cost-volume analysis B. transportation model analysis C. factor rating analysis D. linear regression analysis E. MODI analysis Transportation model analysis minimizes shipping costs between multiple sending and receiving locations. AACSB: Reflective Thinking Bloom's: Remember Difficulty: Medium Learning Objective: 08-06 Use the techniques presented to solve typical problems. Topic Area: Evaluating Location Alternatives 8-37 Chapter 08 - Location Planning and Analysis 39. The method for evaluating location alternatives which uses their composite (weightedaverage) scores is: A. cost-volume analysis B. transportation model analysis C. factor rating analysis D. linear regression analysis E. MODI analysis Factor rating analysis evaluates by using their composite (weighted-average) scores. AACSB: Reflective Thinking Bloom's: Remember Difficulty: Medium Learning Objective: 08-06 Use the techniques presented to solve typical problems. Topic Area: Evaluating Location Alternatives 40. An approach to location analysis that can include both qualitative and quantitative considerations is: A. location cost-volume B. factor rating C. transportation model D. expected value (net present value) E. financial analysis Factor rating can include both qualitative and quantitative considerations. AACSB: Reflective Thinking Bloom's: Remember Difficulty: Medium Learning Objective: 08-06 Use the techniques presented to solve typical problems. Topic Area: Evaluating Location Alternatives 8-38 Chapter 08 - Location Planning and Analysis 41. A location analysis has been narrowed down to two locations, Akron and Boston. The main factors in the decision will be the supply of raw materials, which has a weight of .50, transportation cost, which has a weight of .40, and labor cost, which has a weight of .10. The scores for raw materials, transportation, and labor are for Akron 60, 80, and 70, respectively; for Boston 70, 50, and 90, respectively. Given this information and a minimum acceptable composite score of 75, we can say that the manager should: A. be indifferent between these locations B. choose Akron C. choose Boston D. reject both locations E. build a plant in both cities Neither location has the minimum acceptable score. AACSB: Analytic Bloom's: Apply Difficulty: Hard Learning Objective: 08-06 Use the techniques presented to solve typical problems. Topic Area: Evaluating Location Alternatives 8-39