ISDS (CHAPTER 8 AND 9)
21. In the Office Relationship Chart, which rating reflects the highest importance for two departments' closeness to each other? a. A b. E c. I d. O e. X
a A
54. Four hundred and eighty minutes of production time are available per day. Scheduled production is 120 units per day. What is the cycle time? a. 4 minutes b. 5 minutes c. 6 minutes d. 7 minutes e. 8 minutes
a. 4 minutes
20. Which of the following is true of a focused factory? a. It may be focused in ways other than by product or layout. b. It may be focused only by processing requirements. c. It is much like a product facility within an otherwise process facility. d. All of the above are true. e. None of the above is true.
a. It may be focused in ways other than by product or layout.
5. A location decision for an appliance manufacturer would tend to have a(n) a. cost focus b . labor focus c. revenue focus d. environmental focus e. education focus
a. cost focus
18. A firm is seeking a new factory location, and is considering several countries worldwide. In some of these countries, child labor is prevalent; in others, working conditions and worker safety are inferior to conditions in the U.S. An operations manager paying attention to will factor these issues into the location decision. a. ethical and social responsibility issues b. critical success factors c. factor rating systems d. geographic information systems e. regression models
a. ethical and social responsibility issue
24. Evaluating location alternatives by comparing their composite (weighted-average) scores involves a. factor rating analysis b. cost-volume analysis c. transportation model analysis d. linear regression analysis e. crossover analysis
a. factor rating analysis
22. Which of the statements below best describes office layout? a. groups workers, their equipment, and spaces/offices to provide for movement of information b. addresses the layout requirements of large, bulky projects such as ships and buildings c. seeks the best personnel and machine utilization in repetitive or continuous production d. allocates shelf space and responds to customer behavior e. deals with low-volume, high-variety production
a. groups workers, their equipment, and spaces/offices to provide for movement of information
9. A manufacturing firm finds a location that has a significant cost advantage over alternatives, but rejects that location because the educational infrastructure was insufficient to train the firm's workers in its special production technologies. The firm's action illustrates the link between ____and location. a. innovation b. clustering c. tax incentives d. globalization e. proximity
a. innovation
17. A big advantage of a process-oriented layout is a. its flexibility in equipment and labor assignments b. its low cost c. the simplified scheduling problem presented by this layout strategy d. the ability to employ low-skilled labor e. its high equipment utilization
a. its flexibility in equipment and labor assignments
53. Daily capacity of a product layout is determined by a. operating time divided by cycle time b. cycle time divided by operating time c. operating time divided by total task time d. total task time divided by cycle time e. cycle time divided by total task time
a. operating time divided by cycle time
9. The type of layout which features departments or other functional groupings in which similar activities are performed is a. process-oriented b. product-oriented c. fixed-position d. mass production e. unit production
a. process-oriented
39. Which layout type assumes an adequate volume for high equipment utilization? a. product-oriented layout b. process-oriented layout c. fixed-position layout d. retail layout e. warehouse layout
a. product-oriented layout
46. Which of the following is a location analysis technique typically employed by a service organization? a. purchasing power analysis b. linear programming c. queuing theory d. crossover charts e. cost-volume analysis
a. purchasing power analysis
3. industrial location analysis typically attempts to a. reduce costs b. maximize sales c. focus more on human resources d. be environmentally friendly e. none of the above
a. reduce costs
1. Which of the following is not one of McDonald's "seven major innovations"? a. the Happy Meal b. drive-through windows c. breakfast menus d. play areas e. a kitchen system to facilitate mass customization
a. the Happy Meal
35. Solving a load-distance problem for a process-oriented layout requires that a. the difficulty of movement be the same for all possible paths b. pickup and setdown costs vary from department to department c. the cost to move a load be the same for all possible paths d. takt time be less than 1 e. CRAFT software examine all possible department configurations
a. the difficulty of movement be the same for all possible paths
33. Takt time is a. the total work time available divided by units required by the consumer b. the units required divided by workers required c. a fictional time increment similar to a therblig d. the same thing as cycle time in a process layout e. an important consideration in balancing an assembly line
a. the total work time available divided by units required by the consumer
48. Which of the following is a location analysis technique typically employed by a manufacturing organization? a. transportation method b. queuing theory c. correlation analysis and traffic counts d. simulation e. demographic analysis
a. transportation method
41. LaQuinta Motor Inns has a competitive edge over its rivals because it a. uses regression analysis to determine which variables most influence profitability b. picks better locations than its rivals c. picks larger locations than its rivals d. builds only along interstate highways e. all of the above
a. uses regression analysis to determine which variables most influence profitability
16. Intangible costs include which of the following? a. quality of prospective employees b. quality of education c. availability of public transportation d. all of the above e. none of the above
all of the above
17. Operations managers will need to consider ethical and social responsibility issues when location decisions involve a. child labor issues b. sweatshop conditions c. allegiance to the firm's current location d. corruption e. all of the above
all of the above
20. 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? 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.
b. Few people will travel out-of state for a haircut.
29. 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 $0.35 per unit. If demand is expected to be 10 million units, which plant offers the lowest total cost? a. Plant A, because it is cheaper than Plant B for all volumes under 8,000,000 units b. Plant B, because it is cheaper than Plant A for all volumes over 8,000,000 units c. Plant A, because it is cheaper than Plant B for all volumes d. Plant B, because it has the lower variable cost per unit e. neither Plant A nor Plant B, because the crossover point is at 10 million units
b. Plant B, because it is cheaper than Plant A for all volumes over 8,000,000 units
37. Which of the following is not one of the requirements of cellular production? a. test (poka-yoke) at each station in the cell b. adequate volume for high equipment utilization c. a high level of training, flexibility, and empowerment of employees d. being self-contained, with its own equipment and resources e. identification of families of products, often through the use of group technology codes
b. adequate volume for high equipment utilization
32. Balancing a work cell is done a. before the work cell equipment is sequenced b. as part of the process of building an efficient work cell c. before takt time is calculated d. so that each assembly line workstation has exactly the same amount of work e. to minimize the total movement in a process layout
b. as part of the process of building an efficient work cell
31. Which of the following is not an advantage of work cells? a. reduced direct labor cost b. decreased use of equipment and machinery c. heightened sense of employee participation d. reduced raw material and finished goods inventory e. reduced investment in machinery and equipment
b. decreased use of equipment and machiner
11. The main issue in designing process layouts concerns the relative positioning of a. safety devices b. departments c. raw materials d. entrances, loading docks, etc. e. supervisors to their employees
b. departments
26. An approach to location analysis that includes both qualitative and quantitative considerations is a. locational cost-volume b. factor rating c. transportation model d. assignment method e. make or buy analysis
b. factor rating
16. Which of the following is true for process layouts, but false for product-oriented layouts? a. low in-process inventories b. flexibility in equipment and labor assignments c. low variety of products d. high volume of output e. often solved by assembly line balancing
b. flexibility in equipment and labor assignments
7. Globalization of the location decision is the result of all of the following except a. market economics b. higher quality of labor overseas c. ease of capital flow between countries d. high differences in labor costs e. more rapid, reliable travel and shipping
b. higher quality of labor overseas
49. In assembly line balancing, cycle time (the ratio of available production time to scheduled production) is the a. minimum time that a product is allowed at each workstation b. maximum time that a product is allowed at each workstation c. optimum time that a product is allowed at each workstation d. desired cycle time that a product is allowed at each workstation e. all of the above
b. maximum time that a product is allowed at each workstation
19. The typical goal used when developing a process-oriented layout strategy is to a. minimize the distance between adjacent departments b. minimize the material handling costs c. maximize the number of different tasks which can be performed by an individual machine d. minimize the level of operator skill necessary e. maximize job specialization
b. minimize the material handling costs
36. The transportation method, when applied to location analysis a. minimizes total fixed costs b. minimizes total production and transportation costs c. minimizes total transportation costs d. maximizes revenues e. minimizes the movement of goods
b. minimizes total production and transportation costs
50. A production line is to be designed to make 500 El-More dolls per day. Each doll requires 11 activities totaling 16 minutes of work. The factory operates 750 minutes per day. The cycle time for this assembly line is a. one-half minute b. one and one-half minutes c. two minutes d. 5,500 minutes e. cannot be determined from the information given
b. one and one-half minute
4. Governmental attitudes toward issues such as private property, intellectual property, zoning, pollution, and employment stability may change over time. The term associated with this phenomenon is a. bureaucratic risk b. political risk c. legislative risk d. judicial risk e. democratic risk
b. political risk
38. The assumption of stability of demand is important for justifying which of the following layout types? a. fixed-position layout b. product-oriented layout c. process-oriented layout d. all of the above e. none of the above
b. product-oriented layout
36. Which of the following layouts generally has the best machine utilization? a. fixed-position layout b. repetitive and product-oriented layout c. process-oriented layout d. office layout e. warehouse layout
b. repetitive and product-oriented layout
37. Which of the following is not among the eight components of revenue and volume for a service firm? a. quality of the management b. shipment cost of finished goods c. purchasing power of the customer-drawing area d. uniqueness of the firm's and the competitor's locations e. competition in the area
b. shipment cost of finished goods
40. A product-oriented layout would be most appropriate for which one of the following businesses? a. fast food b. steel-making c. insurance sales d. clothing alterations e. a grocery store
b. steel-making
35. Production and/or shipping costs are always considered in which of the following location decision methods? a. factor rating method b. transportation method c. locational break-even analysis d. center-of-gravity method e. crossover analysis
b. transportation method
50. Which of the following is most likely to affect the location strategy of a manufacturing firm? a. appearance/image of the area b. utility costs c. purchasing power of drawing area d. competition in the area e. parking availability b (Service location strategy, moderate)
b. utility cost
51. A production line is to be designed for a job with four tasks. The task times are 2.4 minutes, 1.4 minutes, 0.9 minutes, and 1.7 minutes. The maximum cycle time is and the minimum cycle time is minutes. a. 1.8; 1.4 b. 1.6; 0.9 c. 6.4; 2.4 d. 2.4; 0.9 e. none of these
c. 6.4; 2.4
61. An assembly line consists of 158 tasks grouped into 32 workstations. The sum of all task times is 105 minutes. Cycle time for the line is 4 minutes. The efficiency of this line is approximately a. 8 percent b. 21 percent c. 82 percent d. 100 percent e. none of the above
c. 82 percent
60. An assembly line consists of 21 tasks grouped into 5 workstations. The sum of the 21 task times is 85 minutes. Cycle time for the line is 20 minutes. The efficiency of this line is a. 4.2 percent b. 17 percent c. 85 percent d. 100 percent e. none of the above
c. 85 percent
2. Which of the following statements regarding FedEx is true? a. Its hub in Memphis, Tennessee, was selected because of its low cost. b. Memphis, Tennessee, is the only hub in the company's global flight network. c. FedEx believes the hub system helps reduce mishandling and delays due to better controls. d. FedEx uses a hub system in the U.S., but a city-to-city network in other countries. e. Memphis is FedEx's only hub airport in the United States.
c. FedEx believes the hub system helps reduce mishandling and delays due to better controls.
49. Which of these assumptions is not associated with strategies for goods-producing location decisions? a. Most major costs can be identified explicitly for each site. b. Focus on identifiable cost. c. High customer contact issues are critical. d. Intangible costs can be evaluated. e. Location is a major determinant of cost. c (Service location strategy, moderate)
c. High customer contact issues are critical.
40. Which of the following statements regarding Starbucks Coffee is false? a. The firm plans to open three new cafes per day around the world. b. The firm uses GIS to evaluate every site decision. c. The firm's cafes are exclusively in traditional settings: malls, tourist areas, and airports. d. The firm places cafes into ever more innovative locations. e. The firm put cafes in Japan, even though that country had no GIS data available.
c. The firm's cafes are exclusively in traditional settings: malls, tourist areas, and airports.
39. Traffic counts and purchasing power analysis of drawing area are techniques associated with a. an industrial location decision b. a manufacturing location decision c. a retail or professional service location decision d. the factor rating method e. the transportation method
c. a retail or professional service location decision
30. Which one of the following is not common to repetitive and product-oriented layouts? a. a high rate of output b. specialization of labor c. ability to adjust to changes in demand d. low unit costs e. All are common to product-oriented layouts.
c. ability to adjust to changes in demand
28. The major problem addressed by the warehouse layout strategy is a. minimizing difficulties caused by material flow varying with each product b. requiring frequent contact close to one another c. addressing trade-offs between space and material handling d. balancing product flow from one work station to the next e. none of the above
c. addressing trade-offs between space and material handling
32. A regional bookstore chain is about to build a distribution center that is centrally located for its eight retail outlets. It will most likely employ which of the following tools of analysis? a. assembly line balancing b. load-distance analysis c. center-of-gravity model d. linear programming e. all of the above
c. center-of-gravity model
51. Geographic Information Systems can assist the location decision by a. automating center-of-gravity problems b. computerizing factor rating analysis c. combining geography with demographic analysis d. updating transportation method solutions e. giving good Internet placement for virtual storefronts
c. combining geography with demographic analysis
6. For which of the following operations would a fixed-position layout be most appropriate? a. assembling automobiles b. producing TV sets c. constructing a highway tunnel or bridge d. refining of crude oil e. running an insurance agency
c. constructing a highway tunnel or bridge
13. When making a location decision at the region/community level, which of these would be considered? 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 systems
c. cost and availability of utilities
31. The center-of-gravity method is used primarily to determine what type of locations? a. service locations b. manufacturing locations c. distribution center locations d. supplier locations e. call center locations
c. distribution center locations
23. Which of the following methods best considers intangible costs related to a location decision? a. crossover methods b. locational break-even analysis c. factor rating analysis d. the transportation method e. the assignment method
c. factor rating analysis
10. One of the major advantages of process-oriented layouts is a. high equipment utilization b. large work-in-process inventories c. flexibility in equipment and labor assignment d. smooth and continuous flow of work e. none of the above
c. flexibility in equipment and labor assignment
24. Which of the following does not support the retail layout objective of maximizing customer exposure to products? a. locate high-draw items around the periphery of the store b. use prominent locations for high-impulse and high-margin items c. maximize exposure to expensive items d. use end-aisle locations e. convey the store's mission with the careful positioning of the lead-off department
c. maximize exposure to expensive items
57. Which of the following is not a heuristic rule for assigning tasks to workstations in a product layout? a. longest tasks first b. in order of most number of following tasks c. median tasks first d. shortest tasks first e. in accordance with positional weight
c. median tasks first
55. A production line is to be designed for a product whose completion requires 21 minutes of work. The factory works 400 minutes per day. Can an assembly line with five workstations make 100 units per day? a. yes, with exactly 100 minutes to spare b. no, but four workstations would be sufficient c. no, it will fall short even with a perfectly balanced line d. yes, but the line's efficiency is very low e. cannot be determined from the information given
c. no, it will fall short even with a perfectly balanced line
15. Which type of layout is specifically designed to encourage employees to interact? a. warehouse b. job shop c. open office d. retail e. repetitive/continuous
c. open office
45. Which of the following is most likely to affect the location decision of a service firm rather than a manufacturing firm? a. energy and utility costs b. attitude toward unions c. parking and access d. cost of shipping finished goods e. labor costs
c. parking and access
47. A jewelry store is more likely than a jewelry manufacturer to consider in making a location decision. a. transportation costs b. cost of raw materials c. parking and access d. climate e. taxes
c. parking and access
8. In location planning, environmental regulations, cost and availability of utilities, and taxes are a. global factors b. country factors c. regional/community factors d. site-related factors e. none of the above
c. regional/community factors
6. A location decision for a traditional department store (Macy's) would tend to have a(n) a. cost focus b. labor focus c. revenue focus d. environmental focus e. education focus
c. revenue focus
42. Traffic counts and demographic analysis of drawing areas are associated with a. industrial location decisions b. manufacturing location decisions c. service location decisions d. the transportation method e. none of the above
c. service location decisions
15. Tangible costs include which of the following? a. climatic conditions b. availability of public transportation c. taxes d. quality and attitude of prospective employees e. zoning regulations
c. taxes
30. The center-of-gravity method does not take into consideration the a. location of markets b. volume of goods shipped to the markets c. value of the goods shipped d. combination of volume and distance e. center-of-gravity method considers none of the above
c. value of the goods shipped
41. The assumptions necessary for a successful product layout include all of the following except a. adequate volume for high equipment utilization b. standardized product c. volatile product demand d. All of the above are appropriate assumptions. e. None of the above is an appropriate assumption.
c. volatile product demand
14. Which of these factors would be considered when making a location decision at the site level? 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 customers
c. zoning regulations
34. A process layout problem consists of 4 departments, each of which can be assigned to one of four rooms. The number of different solutions to this problem is , although not all of them may have different material handling costs. a 1 b 4 c 16 d 24 e unknown
d 24
56. Four hundred and eighty minutes of production time are available per day. The schedule calls for the production of 80 units per day. Each unit of the product requires 30 minutes of work. What is the theoretical minimum number of workstations? a 2 b 3 c 4 d 5 e 6
d 5
45. A disadvantage of product-oriented layout is that a. there is a lack of flexibility in handling a variety of products or production rates b. high volume is required because of the large investment needed to set up the process c. work stoppage at any one point ties up the whole operation d. All of the above are disadvantages of product-oriented layouts. e. None of the above is a disadvantage of product-oriented layouts.
d. All of the above are disadvantages of product-oriented layouts.
43. Which of the following is true regarding fabrication lines? a. They are the same thing as assembly lines. b. They are the same thing as focused factories. c. They are a special type of process-oriented layout. d. Balancing their assembly line is more technological than worker oriented. e. None of the above is true.
d. Balancing their assembly line is more technological than worker oriented.
5. The fixed-position layout would be most appropriate in which of the following settings? a. a fast-food restaurant b. a doctor's office c. a casual dining restaurant d. a cruise ship assembly facility e. none of the above
d. a cruise ship assembly facility
12. Which of the following is not an information requirement for solving a load-distance problem? a. a list of departments or work centers b. a projection of work flows between the work centers c. the distance between locations d. a list of product cycle times e. the cost per unit of distance to move loads
d. a list of product cycle times
48. In assembly line balancing, the minimum number of workstations is a. the ratio of the sum of all task times to cycle time b. always (when a fraction) rounded upward to the next larger integer value c. not always possible to reach when tasks are actually assigned to stations d. all of the above e. none of the above
d. all of the above
52. Cycle time is computed as a. desired output divided by the daily operating time b. daily operating time divided by the product of desired output and the sum of job times c. the product of desired output and the sum of job times divided by daily operating time d. daily operating time divided by the scheduled output e. 1.00 minus station time
d. daily operating time divided by the scheduled output
25. Ambient conditions, spatial layout and functionality, and signs, symbols, and artifacts are all a. indicators of imbalance on an assembly line b. indicators that cross-docking has been successful c. elements of customization in a warehouse layout d. elements of servicescapes e. elements of successful office layouts
d. elements of servicescapes
29. The concept of customizing in a warehouse layout a. is possible, but causes serious loss of oversight of the quality function b. cannot be considered seriously in today's high efficiency factories c. is theoretically sound, but several years away in practice d. is a new trend in value-added activities in warehouses e. none of the above
d. is a new trend in value-added activities in warehouses
47. In a product-oriented layout, the process of deciding how to assign tasks to workstations is referred to as a. station balancing b. process balancing c. task allocation d. line balancing e. work allocation
d. line balancing
14. The most common tactic followed in process-layout planning is to arrange departments or work centers so they a. minimize the cost of skilled labor b. maximize the machine utilization c. allocate the available space equally to all the departments d. minimize the costs of material handling e. none of the above
d. minimize the costs of material handling
13. The major problem addressed by the process-oriented layout strategy is a. the movement of material to the limited storage areas around the site b. requiring frequent contact close to one another c. the provision of low-cost storage with low-cost material handling d. minimizing difficulties caused by material flow varying with each product e. balancing product flow from one work station to the next
d. minimizing difficulties caused by material flow varying with each product
23. Which of the following constitutes a major trend influencing office layouts? a. downsizing b. globalization c. environmental issues d. off-site employees e. health issues
d. off-site employees
7. Because the fixed-position layout problem is so difficult to solve on-site, operations managers a. virtually never employ this layout strategy b. utilize this approach only for construction projects such as bridges and office towers c. increase the size of the site d. often complete as much of the project as possible off-site e. utilize this layout only for defense contractors
d. often complete as much of the project as possible off-site
42. Which of these layouts is most suitable for processing sugar from sugar beets or sugar cane? a. process-oriented layout b. fixed-position layout c. focused factory d. product-oriented layout e. work cell layout
d. product-oriented layout
59. Which of the following is a common heuristic for assembly line balancing? a. debits near the windows, credits near the door b. manufacturers locate near materials, retailers locate near customers c. earliest due date first d. ranked positional weight e. none of the above
d. ranked positional weight
8. One factor impacting the fixed-position layout strategy is a. minimizing difficulties caused by material flow varying with each product b. requiring frequent contact close to one another c. the provision of low-cost storage with low-cost material handling d. the movement of material to the limited storage areas around the site e. balancing product flow from one work station to the next
d. the movement of material to the limited storage areas around the site
3. "A special arrangement of machinery and equipment to focus on production of a single product or group of related products" describes what layout type? a. fixed-position layout b. intermittent production c. focused factory d. work cell e. warehouse layout
d. work cell
10. Which of the following is usually not one of the top considerations in choosing a country for a facility location? a. availability of labor and labor productivity b. exchange rates c. attitude of governmental units d. zoning regulations e. location of markets
d. zoning regulations
43. What describes a system that stores and displays information that can be linked to a geographic location? a. AIS b. LOC c. GLOC d. LIS e. GIS
e GIS
44. Location analysis techniques typically employed by service organizations include a. factor rating method b. center-of-gravity method c. purchasing power analysis of area d. traffic counts e. all of the above
e all of the above
19. Which of the following statements regarding "proximity" in the location decision is false? a. Service organizations find that proximity to market is the most critical primary location factor. b. Manufacturers want to be near customers when their product is bulky, heavy, or fragile. c. Perishability of raw materials is a good reason for manufacturers to locate near the supplier, not the customer. d. Reduction in bulk is a good reason for a manufacturer to locate near the supplier. e. Clustering among fast food chains occurs because they need to be near their labor supply.
e. Clustering among fast food chains occurs because they need to be near their labor supply.
58. If a layout problem is solved by use of "heuristics," this means that a. there was no other way to solve the problem b. no computer software was available c. the problem has only a few alternatives to evaluate d. no optimum solution exists e. a "satisfactory" solution is acceptable
e. a "satisfactory" solution is acceptable
38. Which of the following is among the eight components of revenue and volume for a service firm? a. uniqueness of the firm's and the competitor's locations b. quality of the competition c. quality of management d. purchasing power of the customer-drawing area e. all of the above
e. all of the above
4. A good layout requires determining a. material handling requirements b. capacity and space requirements c. environment and aesthetics d. cost of moving between various work areas e. all of the above
e. all of the above
1. FedEx chose Memphis, Tennessee, as its U.S. hub because a. the city is in the center of the U.S., geographically b. the airport has relatively few hours of bad weather closures c. it needed a means to reach cities to which it did not have direct flights d. the firm believed that a hub system was superior to traditional city-to-city flight scheduling e. All of the above are true.
e. all of the above are true
21. Which of the following worker characteristics would likely be least important for U.S. firms looking to open up call centers in different countries? a. willing to accept low wages b. have a high level of education c. speak English d. possess an in-depth knowledge of American popular culture e. are young
e. are young
27. Which of the following requires an information system that provides inbound product identification, its destination, and routing of the product to the designated outbound vehicle? a. phantom-docking b. random stocking c. ASRS d. customizing e. cross-docking
e. cross-docking
22. Community attitudes, zoning restrictions, and quality of labor force are likely to be considered in which of the following location decision methods? a. transportation method b. locational break-even analysis c. center-of-gravity method d. simulation e. factor rating method
e. factor rating method
11. When making a location decision at the country level, which of these would be considered? a. corporate desires b. land/construction costs c. air, rail, highway, waterway systems d. zoning restrictions e. location of markets
e. location of markets
46. The main advantage of a product-oriented layout is typically a. low raw material cost b. employability of highly skilled labor c. high flexibility d. low capital cost e. low variable cost per unit
e. low variable cost per unit
44. The central problem in product-oriented layout planning is a. minimizing material handling within workstations b. minimizing labor movement between workstations c. equalizing the space allocated to the different workstations d. maximizing equipment utilization e. minimizing the imbalance in the work loads among workstations
e. minimizing the imbalance in the work loads among workstations
2. The layout strategy that deals with low-volume, high-variety production is a. fixed-position layout b. retail layout c. warehouse layout d. office layout e. none of the above
e. none of the above
12. Which of these factors would be considered when making a location decision at the region/community level? a. government rules, attitudes, stability, incentives b. cultural and economic issues c. zoning restrictions d. environmental impact issues e. proximity to raw materials and customers
e. proximity to raw materials and customers
18. One disadvantage of process-oriented layouts arises from a. the use of special purpose equipment b. machine maintenance, which tends to seriously degrade the capacity of the entire system c. the use of specialized material handling equipment d. the need for stable demand e. the use of the general purpose machines and equipment
e. the use of the general purpose machines and equipment
27. On the crossover chart where the costs of two or more location alternatives have been plotted, the quantity at which two cost curves cross is the quantity at which a. fixed costs are equal for two alternative locations b. variable costs are equal for two alternative locations c. total costs are equal for all alternative locations d. fixed costs equal variable costs for one location e. total costs are equal for two alternative locations
e. total costs are equal for two alternative locations
26. Balancing low-cost storage with low-cost material handling is important in a(n) a. fixed-position layout b. process-oriented layout c. office layout d. repetitive and product-oriented layout e. warehouse layout
e. warehouse layout
