OM CHAPTER 8
Which of the following is a location analysis technique typically employed by a manufacturing organization? correlation analysis and traffic counts demographic analysis transportation method queuing theory simulation
transportation method
Production and transportation costs are always considered in which of the following location decision methods?
transportation model
Which of the following is most likely to affect the location strategy of a manufacturing firm? competition in the area utility costs purchasing power of drawing area parking availability appearance/image of the area
utility costs
Which of the following is usually NOT one of the top considerations in choosing a country for a facility location? zoning regulations exchange rates attitude of governmental units availability of labor and labor productivity location of markets
zoning regulations
Currency risk is based on what assumption?
Values of foreign currencies continually rise and fall in most countries
Intangible costs include which of the following? quality of prospective employees quality of education availability of public transportation All of these None of these
all of these
Location analysis techniques typically employed by service organizations include: the factor rating method. the center-of-gravity method. purchasing power analysis of area. traffic counts. All of these.
all of these
Location decisions are often being based on which of the following? rail hubs interstate highways All of these airports ports and rivers
all of these
Which of the following is among the eight determinants of revenue and volume for a service firm? uniqueness of the firm's and the competitors' locations quality of the competition quality of management purchasing power of the customer-drawing area All of these
all of these
Geographic information systems can assist the location decision by:
combining geography with demographic analysis
A location decision for an appliance manufacturer would tend to have what type of focus?
cost focus
The center-of-gravity method is used primarily to determine what type of locations?
distribution center locations
Community attitudes, zoning restrictions, and quality of labor force are likely to be considered in which of the following location decision methods?
factor rating method
Which of the following is an approach to location analysis that includes both qualitative and quantitative considerations? center-of-gravity method locational cost-volume analysis make-or-buy analysis factor-rating method transportation model
factor rating method
Which of the following methods best considers intangible costs related to a location decision? factor-rating method the transportation method locational cost-volume analysis crossover methods center-of-gravity method
factor rating method
Globalization of the location decision is the result of all EXCEPT which of the following? high differences in labor costs higher quality of labor overseas market economics ease of capital flow between countries more rapid, reliable travel and shipping
higher quality of labor overseas
________ and currency risks are to key country success factors as land costs and ________ are to key region success factors.
labor cost, proximity to customers
The reason fast food restaurants often are found in close proximity to each other is: they enjoy competition. location clustering near high traffic flows. low cost. availability of skilled labor. All of these.
location clustering near high traffic flows
The transportation model, when applied to location analysis: minimizes total fixed costs. minimizes total production and transportation costs. minimizes the movement of goods. minimizes total transportation costs. maximizes revenues.
minimizes total production and transportation costs
Which of the following is most likely to affect the location decision of a service firm rather than a manufacturing firm? parking and access labor costs cost of shipping finished goods energy and utility costs attitude toward unions
parking and access
Governmental attitudes toward issues such as private property, intellectual property, zoning, pollution, and employment stability may change over time. What is the term associated with this phenomenon?
political risk
Which of these factors would be considered when making a location decision at the region/community level? government rules, attitudes, stability, incentives zoning restrictions cultural and economic issues proximity to raw materials and customers environmental impact issues
proximity to raw materials & customers
Which of these factors would be considered when making a location decision at the site level? proximity to raw materials and customers government rules, attitudes, stability, incentives cost and availability of utilities zoning regulations cultural and economic issues
proximity to raw materials and customers
Which of the following is a location analysis technique typically employed by a service organization? queuing theory transportation method purchasing power analysis locational cost-volume analysis linear programming
purchasing power analysis
Industrial location analysis typically attempts to:
reduce costs
In location planning, environmental regulations, cost and availability of utilities, and taxes are: global factors. country factors. regional/community factors. site-related factors. None of these.
regional/community factors
A location decision for a traditional department store (e.g., Macy's) would tend to have what type of focus?
revenue focus
Traffic counts and demographic analysis of drawing area are associated with:
service location decisions
Which of the following is NOT among the eight determinants of revenue and volume for a service firm? uniqueness of the firm's and the competitors' locations competition in the area quality of management purchasing power of the customer-drawing area shipment cost of finished goods
shipment cost of finished goods
Tangible costs include which of the following? taxes zoning regulations availability of public transportation quality and attitude of prospective employees climatic conditions
taxes
