opma 3306 ch 14

true

In a hub-and-spoke system each warehouse in the system acts as a spoke

false

In facility location decision making matching the educational and skill levels of the labor pool to a company's needs is even more important than the labor pool's willingness and ability to learn

true

In facility location decision making the educational and skill levels of the labor pool must match the company's needs

false

In facility location decision making the factor-rating system is based on linear programming.

false

In facility location decision making the factor-rating system is one of the least used general location techniques

to determine which corner of a street intersection to locate a retail service facility

In which of the following situations should we not use the transportation method of linear programming

true

Issues of product mix and capacity are strongly interconnected to the facility location decision

highway

Very few products are moved without at least part of their journey being by which mode of transportation?

false

An example of a positive business climate that might influence a facility location decision is increasing governmental costs and increasing property taxes.-

the willingness of local politicians to provide favorable treatment for a consideration

An important issue in facility location analysis is business climate. An unfavorable business climate could be indicated by which of the following?

false

Governmental barriers to enter and locate in many countries are increasing through restrictive protectionist legislation.

pipeline

What transportation mode has very high initial investment costs but gives a very low cost per mile for products that are highly specialized and require no packaging?

satisfactory hotel accommodations

c Not among the factors related to infrastructure in making facility location decisions is which of the following

(88, 138)

A company wants to determine where they should locate a new warehouse. They have two existing production plants (i.e., Plant A and Plant B) that will ship units of a product to this warehouse. Plant A is located at the (X, Y) coordinates of (50, 100) and will have volume of shipping of 250 units a day. Plant B is located at the (X, Y) coordinates of (150, 200) and will have a volume of shipping of 150 units a day. Using the centroid method, which of the following are the X and Y coordinates for the new plant location?

true

A favorable business climate in facility location decision making might include government legislation of tax abatements.

true

A favorable business climate in facility location decision making might include local government intervention to facilitate businesses locating in an area via subsidies

true

A favorable business climate in facility location decision making might include local government providing basic skill training for prospective members of the workforce.

true

A free trade zone is typically a closed facility into which foreign goods can be brought without being subject to the usual customs requirements. -

false

A free trade zone operates under different rules and laws than a foreign trade zone.

true

A major problem in a plant location decision based on the factor-rating system is that simple point-rating schemes do not account for the wide variance of costs that may occur within each factor used in the analysis

true

A third-party logistics company is a firm that manages all or part of another company's product delivery operations

about 260

How many free trade zones are there in the United States?

false

Because the world is becoming more highly interconnected, the proximity of an important supplier's plants is not crucial in supporting lean production methods

false

Cross-docking is a practice used in the international shipping industry that facilitates port utilization.

true

Cross-docking is an approach used in consolidation warehouses, where large shipments are broken down into small shipments for local delivery in an area.

true

Hub-and-spoke systems combine the idea of consolidation and that of cross docking.

false

DHL and United Parcel Service are transportation companies that are prohibited from functioning as a third-party logistics company the way Federal Express does.

true

Facility location analysis considers the competitive imperative of a favorable business climate as indicated by the presence of other companies in the same industry

true

Facility location analysis considers the competitive imperative of locating near the appropriate labor pool to take advantage of high technical skills.

true

Facility location analysis considers the competitive imperative of locating near the appropriate labor pool to take advantage of low wage costs and/or skill levels.

true

Facility location analysis considers the competitive imperative to be close to customers as to timeliness of deliveries.

false

Facility location decisions are made using analytical techniques that are able to weigh a large number of different variables equally.

movement of preproduction material between locations

One of the objectives in facility location analysis is to select a site with the lowest total cost. Which of the following costs are hidden costs that should be included in the analysis?

becoming less responsive to the customer

One of the objectives of facility location analysis is to select a site with the lowest total cost. Which of the following are hidden costs that should be included in the analysis?

historical costs

One of the objectives of facility location analysis is to select a site with the lowest total cost. Which of the following costs should be excluded from the analysis?

incidental costs

One of the objectives of facility location analysis is to select a site with the lowest total cost. Which of the following costs should not be included in the analysis?

about 114

Plant A is located at the (X, Y) coordinates of (100, 200) and has a volume of shipping of 500 units a day. Plant B is located at the (X, Y) coordinates of (150, 400) and has a volume of shipping of 200 units a day. Using the centroid method, which of the following is the X coordinate for the new plant location?

about 243

Plant A is located at the (X, Y) coordinates of (200, 500) and has a volume of shipping of 400 units a day. Plant B is located at the (X, Y) coordinates of (300, 100) and has a volume of shipping of 300 units a day. Using the centroid method, which of the following is the X coordinate for the new plant location?

false

Quality of life in a host community is not a major factor in making the facility location decision

true

Services typically have multiple site locations to maintain close contact with customers

true

The Association for Operations Management defines logistics as "the art and science of obtaining, producing, and distributing material and product in the proper place and in proper quantities."

volume of goods to be shipped between existing points

The centroid method for plant location uses which of the following data?

true

The local government's willingness to invest in upgrading infrastructure to the levels required by a company is an important issue in a company's decision of where to locate a new facility

true

The objective of facility location analysis is to select the site with the lowest total cost.

proximity to customers

Which of the following is a criterion that influences manufacturing plant or warehouse facility location decisions?

historical cost

Which of the following is not a criterion that influences manufacturing plant or warehouse facility location decisions? a. Historical cost b. Quality of labor c. Business climate

immigration rules

Which of the following is not a criterion that influences manufacturing plant or warehouse facility location decisions? a. Immigration rules b. Local labor costs c. Trading blocks

adequate low cost labor

Which of the following is not an infrastructure criteria used in facility location analysis?

the largest profits are recorded

a According to the text, an important decision for multinational companies is the nation in which to locate the home base for each business. Which of the following business activities does not happen at the business's home base?

this transportation method of decision analysis

b Which of the following is not mentioned in the text as a technique for identifying potential sites for plants or other types of facilities?