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Q:
Because courtesy is subjective, it cannot be considered a factor in service quality.
Q:
An organization achieves quality by consistently meeting its competitors' standards.
Q:
Broadly defined, quality refers to the ability of a product or service to occasionally meet or exceed customer expectations.
Q:
When making location decisions, nonprofit organizations differ from for-profit ones in seeking a balance between:
A. profits and opportunities.
B. costs and revenues.
C. costs and customer service.
D. growth and stability.
E. stability and opportunity.
Q:
When service firms such as retailers or banks make growth-spurred location decisions, typically these involve:
A. finding new sources of resources to replace exhausted ones.
B. adding new locations rather than expanding existing ones.
C. closing down existing locations and opening new ones elsewhere.
D. expanding existing locations rather than adding new ones.
E. downsizing existing locations and opening new ones elsewhere.
Q:
For service firms such as banks and supermarkets, location decisions are critical elements of __________ strategy.
A. marketing
B. pricing
C. promotional
D. efficiency
E. effectiveness
Q:
Factor rating is limited to quantitative information concerning location decisions.
Q:
Technology has made communication with global operations as easy as local communication.
Q:
Retail businesses generally prefer locations that are not near other retailers, as this reduces their competition.
Q:
For service and retail stores, a prime factor in location analysis is customer access.
Q:
Web-based, retail businesses should be located near the customer to reduce their long distance phone charges.
Q:
Labor laws are an important site-related factor.
Q:
Global positioning systems (GPS) use the center of gravity method to establish starting grid coordinates.
Q:
For service organizations, the dominant factors in location analysis usually are market-related.
Q:
A strategy that emphasizes convenience for the customers would probably select a single very large facility.
Q:
An example of a regional factor in location planning is the location of our markets (either existing or potential).
Q:
The first step in developing location alternatives is identifying important factors.
Q:
Advanced communications has aided globalization.
Q:
You cannot make a mistake by locating where labor costs are low.
Q:
The fact that most types of firms are located in every section of the country suggests that in many cases, location decisions are not overly important; one location typically is as good as another.
Q:
Location decisions are basically one-time decisions usually made by new organizations.
Q:
Consider the following information about sites A, B, and C: For the preferred site for 20,000 units per year, what would be your cost savings compared to each of the other two sites?
Q:
Consider the following information about sites A, B, and C: For the preferred site for 20,000 units per year, what would be your total costs?
Q:
Consider the following information about sites A, B, and C: Which site would you prefer for a quantity of 20,000 units per year?
Q:
Consider the following information about sites A, B, and C: For what range of output would you prefer site C?
Q:
Consider the following information about sites A, B, and C: For what quantity would you be indifferent between selecting site B or site C?
Q:
Consider the following information about sites A, B, and C: What are total costs for site C for a quantity of 5,000 units per year?
Q:
Determine the optimum location for a distribution center to serve the following locations. Shipments to each location will be approximately equal.
Q:
Determine the center of gravity location for the following destinations and shipping quantities:
Q:
Given the following information on scores of three location alternatives, which alternative would you recommend? Why?
Q:
A firm is trying to decide between two location alternatives, Albany and Baltimore. Albany would result in annual fixed costs of $60,000, labor costs of $7 per unit, material costs of $10 per unit, transportation costs of $15 per unit, and revenue per unit of $50. Baltimore would have annual fixed costs of $80,000, labor costs of $6 per unit, material costs of $9 per unit, transportation costs of $14 per unit, and revenue per unit of $48. (A) At an annual volume of 9,000, which would yield the higher profit?
(B) At what annual volume would management be indifferent between the two alternatives in terms of annual profits?
Q:
A manager must decide between two location alternatives, Boston and Chicago. Boston would have annual fixed costs of $70,000, transportation costs of $60 per unit, and labor and material costs of $200 per unit. Chicago would have annual fixed costs of $90,000, transportation costs of $40 per unit, and labor and material costs of $170 per unit. Revenue will be $300 per unit. (A) Which alternative would yield the higher profit for an annual demand of 3,000 units?
(B) Would the two locations yield the same profit at a certain volume? If so, at what volume would that be?
Q:
Location choice I has monthly fixed costs of $100,000 and per-unit variable costs of $10. Location choice J has monthly fixed costs of $150,000 and per-unit variable costs of $9. At what volume would these locations have equal total costs?
A. 30,000 units
B. 25,000 units
C. 40,000 units
D. 50,000 units
E. 60,000 units
Q:
Location choice I has monthly fixed costs of $100,000 and per-unit variable costs of $10. What would its total cost be at a monthly volume of 550 units?
A. $105,200
B. $102,500
C. $100,250
D. $100,520
E. $105,500
Q:
Location choice I has monthly fixed costs of $100,000 and per-unit variable costs of $10. What would its total cost be at a monthly volume of 250 units?
A. $105,200
B. $102,500
C. $100,250
D. $100,520
E. $105,500
Q:
Which of the following is least important as a consideration for a firm at the beginning of a supply chain?
A. access to end consumers
B. access to resources
C. proximity to customers
D. access to transportation infrastructure
E. access to productive labor
Q:
Which of the following circumstances would be least likely to lead to a need for a new location?
A. shifting of markets
B. depletion of basic inputs
C. growth in demand that is leading to greater utilization of existing capacity
D. the need to expand into new markets
E. the opportunity to take advantage of globalization trends
Q:
A hardware distributor has regional warehouses at the locations shown below. The company wants to locate a new central distribution center to serve this warehouse network. Weekly shipments to each warehouse will be: WH1, 100; WH2, 150; WH3, 120; WH4, 150; and WH5, 120. What is the optimal location of the distribution center? A. 5.1, 4.2 B. 5.2, 4.0 C. 5.1, 5.1 D. 4.2, 5.1 E. 4.9, 5.2
Q:
A clothing manufacturer produces clothing in five locations in the United States. In a move to vertical integration, the company is planning a new fabric production plant that will supply fabric to all five clothing plants. The clothing plants have been located on a coordinate system as follows: Shipments of fabric to each plant vary per week as follows: plant A, 200 units; plant B, 400 units; plant C, 300 units; plant D, 300 units; and plant E, 200 units. What is the optimal location for the fabric plant? A. 6.2, 3.0 B. 6.0, 4.0 C. 6.5, 5.3 D. 5.6, 4.4 E. 5.0, 3.0
Q:
A location analysis has been narrowed down to three locations. The critical factors, their weights, and the ratings for each location are shown below: If the decision rule is to select the location with the greatest composite score exceeding 80, management should choose: A. location A. B. location B. C. location C. D. either location B or location C. E. to reject all locations.
Q:
A manufacturing firm is considering two locations for a plant to produce a new product. The two locations have fixed and variable costs as follows: If the annual demand will be 20,000 units, what would be the cost advantage of the better location? A. $20,000 B. $460,000 C. $480,000 D. $80,000 E. $60,000
Q:
If it is estimated that 30 persons will be living in this new chapter house, what would be the Skulls' annual cost savings by selecting the less costly location, rather than the more costly? A. $0 B. $1,500 C. $200 D. $150 E. $350
Q:
If it is estimated that 30 persons will be living in this new chapter house, which location should the Skulls select? A. Alpha Ave. B. Beta Blvd. C. either Alpha Ave. or Beta Blvd. D. reject both Alpha Ave. and Beta Blvd. E. become a virtual organization
Q:
What would be total annual costs for either location at the point of indifference? A. $13,000 B. $13,350 C. $9,000 D. $17,000 E. $19,200
Q:
What would be the total annual costs for the Alpha Ave. location with 20 persons living there? A. $5,400 B. $4,000 C. $5,000 D. $7,000 E. $9,000
Q:
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.
Q:
An approach to location analysis that can include both qualitative and quantitative considerations is:
A. locational cost-profit-volume.
B. factor rating.
C. transportation model.
D. expected value (net present value).
E. financial analysis.
Q:
The method for evaluating location alternatives that uses their composite (weighted-average) scores is:
A. cost-profit-volume analysis.
B. transportation model analysis.
C. factor rating analysis.
D. linear regression analysis.
E. MODI analysis.
Q:
The method for evaluating location alternatives that minimizes shipping costs between multiple sending and receiving locations is:
A. locational cost-profit-volume analysis.
B. transportation model analysis.
C. factor rating analysis.
D. linear regression analysis.
E. MODI analysis.
Q:
The method for evaluating location alternatives that uses their total cost curves is:
A. locational cost-profit-volume analysis.
B. transportation model analysis.
C. factor rating analysis.
D. linear regression analysis.
E. MODI analysis.
Q:
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.
Q:
Location options do not usually include:
A. expansion.
B. a contract.
C. adding new facilities.
D. moving.
E. doing nothing.
Q:
Some communities offer financial and other incentives to ______ new businesses.
A. tax
B. attract
C. marginalize
D. incorporate
E. zone
Q:
Having facilities, personnel, and operations located around the world is called:
A. nondomestic operations.
B. diversified operations.
C. globalization.
D. worldwide presence.
E. virtual organization.
Q:
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. Geographic Information System.
Q:
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.
Q:
The center of gravity method is used to _______ travel time, distance, and costs.
A. normalize
B. eliminate
C. average
D. minimize
E. document
Q:
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.
Q:
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.
Q:
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 of the choices.
Q:
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.
Q:
A one-hour photo processing machine in a Walmart store is an example of a:
A. microfactory.
B. downsize strategy.
C. diversified strategy.
D. lean production system.
E. falling price strategy.
Q:
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.
Q:
Retail businesses often engage in ____________, the tendency to locate in close proximity to one another.
A. centering
B. strategizing
C. clustering
D. localcasting
E. macromarketing
Q:
Locational cost-profit-volume analysis assumes: (I) nonlinear variable costs.
(II) fixed costs that are constant over the range of possible output.
(III accurate estimates regarding the required level of output.
(IV) multiple products.
A. I, III, and IV only
B. II and III only
C. I, II, and III only
D. II, III, and IV only
E. I, II, III, and IV
Q:
Among the disadvantages of having global operations is/are:
A. low labor productivity.
B. less restrictive environmental regulation.
C. lower wage costs.
D. proximity to global markets.
E. favorable liability laws.
Q:
In general, managing global operations is made easier by __________ and __________.
A. political uncertainty; currency devaluation
B. differentiation strategies; diversified markets
C. low interest rates; price-sensitive customers
D. cost-leadership strategies; labor productivity
E. freer trade; technology
Q:
In regards to supply chain management and the location decision, a primary challenge is to address _______________ distribution.
A. insourced vs. outsourced
B. strategic vs. tactical
C. local vs. global
D. centralized vs. decentralized
E. anticipatory vs. reactive
Q:
Given the following work sampling data, based upon 100 random observations of a particular worker: For a confidence level of 86.64 percent, what is the maximum error of the estimate for activity B?
Q:
Eight instances of a worker doing a task were observed as follows: How many observations would be needed to be 99.74 percent confident that the maximum error is 5 percent of the observed time? Assume that the standard deviation of the task time is two seconds.
Q:
Eight instances of a worker doing a task were observed as follows: If the person observed worked at a pace that is 20 percent faster than average, and if the appropriate allowance for this task is 25 percent of the workday, what should be the standard time?
Q:
Eight instances of a worker doing a task were observed as follows: What is the observed time for this task?
Q:
A work sampling study of dockworkers must be set up. There will be a large number of random observations. However, for this exercise, determine an observation schedule (arranged chronologically) for six observations. Assume workers are on the docks for eight hours a day, and that the study will be done over a 60-day period. Use the random digits listed below.
Q:
A work sampling study of kitchen help is to be designed. The study will be conducted over a nine-day period. The kitchen help works a seven-hour shift. Determine the day, hour, and minute of five observations using the random digits listed below.
Q:
A work sampling study is needed that will estimate the percentage of time a postal clerk spends selling stamps as opposed to other duties. Determine the necessary sample size to estimate that proportion with a confidence of 99.74 percent to within 3 percent, for these cases: (1) No information is currently available concerning that proportion.
(2) The proportion is probably no more than 15 percent.
Q:
133. An initial time study resulted in an average observed time of 2.2 minutes per cycle, and a standard deviation of .3 minutes per cycle. The performance rating was 1.20. What sample size, including the 20 observations in the initial study, would be necessary to have a confidence of 95.44 percent that the observed time was within 4 percent of the true value?
Q:
132. How many observations would be required in a time study in order to obtain 95 percent confidence that the average time observed was no more than 0.6 minutes from the true mean, assuming a standard deviation of cycle time of 1.8 minutes?
Q:
A time study of a job produced the following: average cycle time = 1.5 minutes, performance rating = 1.15. Allowances are 18 percent of the workday (480 minutes). Determine the standard time for this job.
Q:
An analyst has observed 28 work cycles, for which the average cycle time was five minutes and the performance rating was 1.05. Allowances for the department are 25 percent of job time. What standard time is appropriate for this job?
Q:
The manager of Lawn and Garden Services would like to estimate the proportion of her employees' time spent performing various gardening and lawn care activities. She has made 400 random observations of a typical worker, with the following results: If the manager wants to be 95.44 percent confident that the true proportion of time spent mowing is within .02 (plus or minus) of the sample proportion, what should be her sample size? A. 400 B. 1,000 C. 1,600 D. 2,000 E. 2,500