FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 8: Location Strategies

Show Answer

Share

---

All types

Filters

Study Flashcards

Question 91

Multiple Choice

Review LaterAdd Note

Review Later

Which of the following is an approach to location analysis that includes both qualitative and quantitative considerations?

A) locational cost-volume analysis
B) factor-rating method
C) transportation model
D) center-of-gravity method
E) make-or-buy analysis

F) B) and C)
G) B) and E)

Correct Answer

verified

Show Answer

Question 92

True/False

Review LaterAdd Note

Review Later

Manufacturers may want to locate close to their customers if the transportation of finished goods is expensive or difficult.

A) True
B) False

Correct Answer

verified

Show Answer

Question 93

Essay

Review LaterAdd Note

Identify, in proper sequence, the steps in the process of recognizing and managing constraints.

Possible states of nature found in capacity EMV problems are future demands or market favorability.

A firm is considering adding a second secretary to answer phone calls and make appointments. The cost of the secretary will be $15/hour and she will work 200 hours each month. If each new client adds $800 of profit to the firm, how many clients must the secretary arrange for the firm to break even?

A firm is considering two location alternatives. At location A, fixed costs would be $4,000,000 per year, and variable costs $0.30 per unit. At alternative B, fixed costs would be $3,600,000 per year, with variable costs of $0.34 per unit. If annual demand is expected to be 9 million units, which plant offers the lowest total cost?

Which of the following workers is the most productive?

Describe how EMV might be used to analyze a capacity decision.

The transportation model calculates an optimal shipping system between several points of supply and several outlying customers.

A school district is considering where in town to house its central office (the office must also be located at an existing school for cost reasons). If there are five schools in the district, with locations and size given in the following table, use the center-of-gravity method to determine at which school the central office should be placed to minimize the average distance between the office and students.

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

A retailer is considering building a large store. If the local economy experiences expansion, the firm expects the store to earn a $2,000,000 profit next year. If the local economy experiences a contraction, the firm expects the store to lose $400,000 next year. Analysts estimate a 30% chance for the local economy to experience an expansion next year (hence a 70% chance for contraction) . What is the expected monetary value (EMV) of building the large store?

A firm that increases capacity at the beginning of each period to stay ahead of demand uses the ________ approach.

Which of the following statements regarding "proximity" in the location decision is FALSE?

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

Describe the theory of constraints in a sentence.

Labor cost per unit is also referred to as ________.

A clothing chain is considering two different locations for a new retail outlet. The organization has identified the four factors listed in the following table as the basis for evaluation, and it has assigned weights as shown. The manager has rated each location on each factor, on a 100-point basis (higher scores are better), as shown under the respective columns for Barclay and Chester. a. Calculate the composite score for each alternative location. b. Which site should be chosen? c. Are you concerned about the sensitivity and subjectivity of this solution? Comment.

Which of the following represents an aggressive approach to demand management in the service sector when demand and capacity are not particularly well matched?

The staff training center at a large regional hospital provides training sessions in CPR to all employees. Assume that the capacity of this training system was designed to be 2000 employees per year. Since the training center was first put in use, the program has become more complex, so that 1500 now represents the most employees that can be trained per year. In the past year, 1350 employees were trained. Calculate the efficiency and the utilization of this system.