Question 1

Which of the following methods best considers intangible costs related to a location decision?

Accepted Answer

A)  crossover methods
B)  locational cost-volume analysis
C)  factor-rating method
D)  the transportation method
E)  center-of-gravity methodF) A) and E)
G) All of the above

Question 2

Identify five factors that affect location decisions at the site level.

Accepted Answer

Factors that affect location decisions a...

Question 3

Which of these factors would be considered when making a location decision at the site level?

Accepted Answer

A)  government rules,attitudes,stability,incentives
B)  cultural and economic issues
C)  zoning regulations
D)  cost and availability of utilities
E)  proximity to raw materials and customersF) A) and D)
G) A) and C)

Question 4

Service location strategies and goods-producing location strategies rely on very different sets of assumptions.What are the assumptions associated with goods-producing locations? How do these assumptions lead to a location strategy?

Accepted Answer

The assumptions for goods-producing loca...

Question 5

The location decisions of goods-producing firms will generally pay more attention to parking,access,and traffic counts than will service location decisions.

Accepted Answer

A) True 
 B)False

Question 6

Location analysis techniques typically employed by service organizations include:

Accepted Answer

A)  the factor rating method.
B)  the center-of-gravity method.
C)  purchasing power analysis of area.
D)  traffic counts.
E)  all of the above.F) C) and E)
G) C) and D)

Question 7

What is the impact of exchange rates on location decisions?

Accepted Answer

Exchange rates fluct...

Question 8

La Quinta Inns has a competitive edge over its rivals because it:

Accepted Answer

A)  uses regression analysis to determine which variables most influence profitability.
B)  has better television advertisements.
C)  picks larger locations than its rivals.
D)  builds only along interstate highways.
E)  consistently receives four-star ratings for its inns.F) B) and E)
G) B) and D)

Question 9

Production and transportation costs are always considered in which of the following location decision methods?

Accepted Answer

A)  traffic counts
B)  transportation model
C)  purchasing power
D)  proximity of markets
E)  clusteringF) B) and E)
G) A) and B)

Question 10

Which of the following is most likely to affect the location strategy of a manufacturing firm?

Accepted Answer

A)  appearance/image of the area
B)  utility costs
C)  purchasing power of drawing area
D)  competition in the area
E)  parking availabilityF) All of the above
G) A) and C)

Question 11

Unfavorable exchange rates can offset other savings in a location decision.

Accepted Answer

A) True 
 B)False

Question 12

A location decision for an appliance manufacturer would tend to have what type of focus?

Accepted Answer

A)  cost focus
B)  focus on finding very highly skilled technicians
C)  revenue focus
D)  environmental focus
E)  education focusF) B) and C)
G) A) and C)

Question 13

When making a location decision at the region/community level,which of these would be considered?

Accepted Answer

A)  government rules,attitudes,stability,incentives
B)  cultural and economic issues
C)  cost and availability of utilities
D)  zoning restrictions
E)  air,rail,highway,waterway systemsF) A) and B)
G) A) and C)

Question 14

How do service facility location decisions differ from industrial location decisions in terms of the techniques used to analyze them?

Accepted Answer

Service location decisions tend to focus...

Question 15

Location decisions are based on many things,including costs,revenues,incentives,attitudes,and intangibles,but not on ethical considerations.

Accepted Answer

A) True 
 B)False

Question 16

Identify the four major quantitative methods for solving location problems.

Accepted Answer

Factor-rating method,locationa...

Question 17

Which of these factors would be considered when making a location decision at the region/community level?

Accepted Answer

A)  government rules,attitudes,stability,incentives
B)  cultural and economic issues
C)  zoning restrictions
D)  environmental impact issues
E)  proximity to raw materials and customersF) B) and C)
G) A) and B)

Question 18

Which of the following is usually NOT one of the top considerations in choosing a country for a facility location?

Accepted Answer

A)  availability of labor and labor productivity
B)  exchange rates
C)  attitude of governmental units
D)  zoning regulations
E)  location of marketsF) B) and C)
G) C) and D)

Question 19

Which of the following is the best example of the proximity rule that,for service firms,proximity to market is the most important location factor?

Accepted Answer

A)  Soft drinks are bottled in many local plants,where carbonated water is added to proprietary syrups that may have been shipped long distances.
B)  Few people will travel out-of state for a haircut.
C)  Patients will travel very long distances to have their hernia surgeries performed at Shouldice Hospital.
D)  Furniture makers choose to locate near the source of good hardwoods,even though it means locating near other furniture manufacturers.
E)  Metal refiners (smelters) locate near mines to accomplish significant weight reduction near the metal's source.F) D) and E)
G) A) and B)

Question 20

Among the following choices,an operations manager might best evaluate political risk of a country by looking at which type of country ranking?

Accepted Answer

A)  based on competitiveness
B)  based on cost of doing business
C)  based on corruption
D)  based on magnitude of government social programs
E)  based on average duration between presidential/prime minister electionsF) A) and B)
G) A) and C)

Exam 9: Location Strategies

Identify the four major quantitative methods for solving location problems.

Correct AnswerverifiedFactor-rating method,locationa...View AnswerShow Answer

Unfavorable exchange rates can offset other savings in a location decision.

Correct AnswerverifiedShow Answer

Which of the following is the best example of the proximity rule that,for service firms,proximity to market is the most important location factor?

Correct AnswerverifiedShow Answer

Production and transportation costs are always considered in which of the following location decision methods?

Correct AnswerverifiedShow Answer

When making a location decision at the region/community level,which of these would be considered?

Correct AnswerverifiedShow Answer

Service location strategies and goods-producing location strategies rely on very different sets of assumptions.What are the assumptions associated with goods-producing locations? How do these assumptions lead to a location strategy?

Correct AnswerverifiedThe assumptions for goods-producing loca...View AnswerShow Answer

Which of these factors would be considered when making a location decision at the region/community level?

Correct AnswerverifiedShow Answer

Among the following choices,an operations manager might best evaluate political risk of a country by looking at which type of country ranking?

Correct AnswerverifiedShow Answer

Which of the following is most likely to affect the location strategy of a manufacturing firm?

Correct AnswerverifiedShow Answer

Identify five factors that affect location decisions at the site level.

Correct AnswerverifiedFactors that affect location decisions a...View AnswerShow Answer

How do service facility location decisions differ from industrial location decisions in terms of the techniques used to analyze them?

Correct AnswerverifiedService location decisions tend to focus...View AnswerShow Answer

Which of the following is usually NOT one of the top considerations in choosing a country for a facility location?

Correct AnswerverifiedShow Answer

Which of the following methods best considers intangible costs related to a location decision?

Correct AnswerverifiedShow Answer

La Quinta Inns has a competitive edge over its rivals because it:

Correct AnswerverifiedShow Answer

Which of these factors would be considered when making a location decision at the site level?

Correct AnswerverifiedShow Answer

Location analysis techniques typically employed by service organizations include:

Correct AnswerverifiedShow Answer

What is the impact of exchange rates on location decisions?

Correct AnswerverifiedExchange rates fluct...View AnswerShow Answer

Location decisions are based on many things,including costs,revenues,incentives,attitudes,and intangibles,but not on ethical considerations.

Correct AnswerverifiedShow Answer

A location decision for an appliance manufacturer would tend to have what type of focus?

Correct AnswerverifiedShow Answer

The location decisions of goods-producing firms will generally pay more attention to parking,access,and traffic counts than will service location decisions.

Correct AnswerverifiedShow Answer

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Factor-rating method,locationa...
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The assumptions for goods-producing loca...
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Factors that affect location decisions a...
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Service location decisions tend to focus...
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Correct Answer
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Exchange rates fluct...
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