question

t/f : The location of many businesses is often the function of where the originator was located at the time the business was started.

answer

True

question

t/f: Zoning and land costs can be key regional considerations in a location analysis

answer

False

question

t/f: Regional Factors can include location of markets or location of raw materials,

answer

True

question

t/f: Factors used in location analysis for services and manufacturing are often quite similar.

answer

False

question

t/f: The benefits of having global locations generally outweigh the disadvantages.

answer

False

question

t/f: Companies may seek global locations to overcome miscommunication and cultural differences

answer

False

question

t/f: Factor rating includes both qualitative and quantitative inputs.

answer

True

question

t/f: In the factor rating system, the most important factor is given a rating if 10, and the less important factors are given lower ratings.

answer

False

question

t/f: The center of gravity method is used to minimize travel distances.

answer

True

question

t/f: A breakeven point in a location analysis is where the location alternatives have the same total cost.

answer

False

question

t/f: The transportation model is used to decide which form of transportation will minimize costs.

answer

False

question

t/f: The center of gravity method treats shipping cost as a linear function of the sipping distance.

answer

True

question

t/f: A microfactory is a small factory that has a narrow product focus and is located near major markets.

answer

True

question

t/f: Climate and taxes are often key site considerations in location planning.

answer

False

question

t/f: When businesses of the same type locate near similar businesses, that is referred to as clustering.

answer

True

question

t/f: In location analysis, service organizations tend to be revenue focused, whereas manufacturers tend to be cost focused

answer

True

question

The first step in location planning and analysis is: a) develop a reasonable set of alternatives b) determine the criteria upon which the decision will be made c) identify factors that are important

answer

b) determine the criteria upon which the decision will be made

question

Which statement about location decisions is NOT true? a) Mistakes can be difficult to overcome b) The goal is to find the optimal location c)Both fixed and variable costs can be affected d) decisions are often long term

answer

b) The goal is to find the optimal location

question

Multiple plant manufacturing strategies include all of these except: a) product plant b) process plant c) market area plant d) core plant

answer

d) core plant

question

Which reason would not generally be cited for locating in a third world country? a) nearness to raw materials b) lower labor costs c) increased output quality d) nearness to markets

answer

c) increased output quality

question

Which reason is not usually listed as a regional factor in location decisions? a) taxes b) nearness to raw materials c) labor costs d) nearness to markets

answer

a) taxes

question

The tool that provides demographic information for analysis is: a) factor rating method b) geographic information system c) center of gravity d) transportation model

answer

b) geographic information system

question

Location planning for secondary schools would most likely focus on factors of a a) region b) community c) cite

answer

c) cite

question

t/f: The transportation problem involves identifying minimum-cost distribution plan

answer

True

question

t/f: Supply and demand are constraints of the transportation model

answer

True

question

t/f: The number of origins and the number of destinations in a transportation problem must be equal.

answer

False

question

t/f: Unit shipping costs are the coefficients of the objective function.

answer

True

question

t/f: Total supply and total demand are equal in a transportation model

answer

True

question

t/f: There is one constraint for each supply location and one constraint for each demand location

answer

True

question

t/f:In a transportation table, the rows represent demand and the columns represent supply

answer

False

question

t/f:The transportation model assumes that items to be shipped are homogeneous

answer

True

question

t/f: If the quality is assigned to a dummy destination, it can be shipped at zero cost per unit

answer

False

question

t/f: Unit shipping costs may be linear, but all other values are assumed to be linear.

answer

False

question

t/f: The transportation model has applications besides location problems

answer

True

question

A dummy origin is used when: a) unit shipping cost is zero b) an alternate optimal solution occurs c) total supply is less than total demand d) the quality if the supply of an origin is unknown

answer

c) total supply is less than total demand

question

Which one is NOT an assumption of the transportation model? a) all items are the same, regardless of their source b) unit shipping costs are the same regardless of the quantity shipped c) there is only one mode of transportation between a given origin and destination d) both a dummy origin and a dummy destination may be needed to equate supply and demand

answer

d) both a dummy origin and a dummy destination may be needed to equate supply and demand

question

Manual solution of a transportation problem involves evaluating a) complete cells b) empty cells c) all cells d) all cells except dummy cells if there are any

answer

b) empty cells

question

In a manual solution, an alternate optimal solution exists when a cell evaluation is a) zero b) positive c) negative d) cannot be determined

answer

a) zero

question

Changing the unit cost of a cell will change the total cost of the solution a) not necessarily b) always c) never

answer

a) not necessarily

question

In which case would the transportation model NOT be used? a) unit shipping costs are all equal within a row b) there is only a single source of supply and supply and demand are equal c) total supply does not equal total demand d) the number of rows and columns is not equal

answer

b) there is only a single source of supply and supply and demand are equal

question

Manual techniques for identifying an optimal solution involve all but a) evaluating empty cells b) an iterative process c) progressive improvements in solutions d) elimination of unimportant variables

answer

d) elimination of unimportant variables

question

Unless a solution us degenerate, the number if occupied cells in a transportation table must equal: a) the number if rows plus the number of columns b) the number of rows times the number of columns c) the number of rows plus the number of columns minus one d) none of these

answer

c) the number of rows plus the number of columns minus one

question

Which one is NOT a solution technique for a transportation problem? a) northwest corner method b) VAM c) computer solution d) transportation table

answer

d) transportation table

question

t/f: Retail businesses generally prefer locations that are not near other retailers, as this reduces their competition

answer

False

question

t/f: Technology has made communication with global operations easier

answer

True

question

Which of the following is not a location option that management can consider in location planning? a) relocate b) do nothing c) expand existing facility d) add a new location e) all are possible options

answer

e) all are possible options

question

Which of the following would be lease likely to lead to a need for a new location? a) depletion of basic inputs b) the opportunity to take advantage of globalization trends c) growth in demand that is leading to greater utilization of existing capacity d) the need to expand into new markets

answer

c) growth in demand that is leading to greater utilization of existing capacity

MSIS 3223 Operations Management Ch. 8 – Flashcards

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