OMIS 430 - Quiz Chapter 8

Which of the following statements about location planning is/are true?

-Abundant energy supplies can be important for manufacturing companies. -Services often try to locate in close proximity to their market. -Transportation costs can be a major factor for manufacturing companies.

Which of the following statements about site selection are true?

-Customer service facilities could consider industrial parks as locations. -Land, transportation, and zoning are the primary considerations in site selection.

Which of the following are potential issues in managing global operations?

-Differences in work ethics -Bribery -Corruption

Which of the following are the main options generally considered by managers in location planning of existing companies?

-Expand existing facilities. -Shut down one location and move to another. -Do nothing. -Add new locations while keeping existing ones.

Which of the following are the assumptions for the locational cost-profit-volume analysis?

-Fixed costs are constant. -Variable costs are linear for the range of output.

Which of the following are possible disadvantages of globalizing operations?

-Import restriction -Ethical concerns about labor practices -Increased security costs

Which of the following are reasons companies may choose to not locate manufacturing facilities in other countries?

-Increased inventory -Longer transportation times

Geographic Information Systems are ____________ tools that are used to display data on ____________.

Blank 1: computer, computerized, digital, or computer-based Blank 2: maps

Which of the following statements about labor factors in regional identification is not true?

Cost of labor is the overriding factor.

All organizations attempt to identify the best location available, in making location decisions.

False

State incentives, and workforce and land availability and cost, helped convince Nissan to build a huge assembly plant in Canton, Mississippi. What kind of a benefit is this?

Financial benefit

Which of the following is not a risk associated with globalizing operations?

Increased security at borders can slow shipments.

Automation has the greatest impact on which of an organization's costs.

Labor

Which of the following is not a risk associated with globalizing operations?

Low labor productivity.

Which of the following are the three primary reasons companies locate near the source of raw materials?

Necessity, perishability, transportation costs

Which of the following are the primary regional factors in identifying regions?

Raw materials, markets, labor

Which of the following statements regarding service location decisions is true?

Services tend to locate in high-traffic areas.

Which of the following is not a supply chain consideration for location decisions?

The adaptability of customers for product preferences.

Which of the following statements about global locations is not true?

The main reason for global locations is a decrease in labor costs.

When goods will be shipped from multiple sending points to multiple receiving points, which method should be used in deciding where to add a new shipping or receiving location?

Transportation model

Which of the following is the correct formula for the unweighted center of gravity method?

X-bar = sigma(Xi) / nY-bar = sigma(Yi) / n

Internet-based retail businesses such as Netflix are ______ location decisions than a distribution-based business such as Amazon.

much less dependent on

The importance of factors in location decisions will differ depending on ______.

the type of facility

Place the following steps for making location decisions in the correct order.

-Decide on evaluation criteria. -Identify important factors. -Develop location alternatives. -Evaluate alternatives and make a decision.

Which of the following statements about a process plant strategy are true?

-Different plants focus on individual product components. -It allows for greater specialization, which leads to economies of scale.

Which of the following statements about product plant strategy are true?

-Entire products or product lines are produced at in separate plants. -It can result in economies of scale, reducing costs.

Which of the following statements about location options are true?

-Expansion costs are often less than those of other alternatives. -Adding new locations while keeping existing ones may draw demand from existing locations instead of increasing overall demand.

Which of the following statements about the center of gravity method are true?

-It finds a distribution center location to minimize distribution costs. -It does not take existing roads or routing methods into account.

Which of the following statements about a market area plant strategy are true?

-It requires centralized coordination between all plants. -Enables greater responsiveness to local needs. -Individual plants produce most/all of a company's products for a specific area.

Which of the following are reasons companies may choose to locate manufacturing facilities in other countries?

-Low wage rates -Delay paying taxes on profits -Avoid taxes through transfer pricing rules

Which of the following are possible benefits of globalizing operations?

-Market expansion leading to greater demand. -Avoid the impact of fluctuations in currency exchanges.

Which of the following statements about location planning is not true?

-Products are perishable -Distribution costs -Require close customer contact

Identify the factors that affect location decisions while identifying a community.

-Taxes -Environmental regulations -Pollution

Which of the following statements about service and retail locations are true?

-They are usually found near the center of the markets they serve. -Customer safety and security can be important factors. -They are usually revenue-focused

Which of the following are disadvantages of globalizing operations?

-Transportation costs -Import restrictions -Security costs

Many communities try to attract new businesses because they are viewed as potential sources of _____.

-new job opportunities -future tax revenues

Two key factors that have made globalization attractive to many organizations are _____ and _____.

-trade agreements -technological advances

Put the steps of the locational cost-profit-volume analysis in the correct order.

1. Determine the fixed and variable costs associated with each alternative .2. Plot the total-cost lines for all alternatives on the same graph. 3. Determine which location has the lowest total cost (or highest profit) at the expected output levels.

Which of the following are reasons for rising automation?

1. Shorter domestic transportation times 2. Poor safety in developing countries 3. Advances in automation

Centralized distribution tends to lead to_____________ of scale, while decentralized distribution tends to be more ________________ to local needs.

Blank 1: economies Blank 2: responsive or catered

Factor rating is an approach that can be used to evaluate location alternatives. It includes both

Blank 1: qualitative Blank 2: quantitative

In the context of identifying a suitable site, land costs can be ______ to other site-related factors, such as room for future ______.

Blank 1: secondary Blank 2: expansion, growth, or development

__________ in the areas of transportation, labor, and raw material are benefits of globalization.

Cost savings

A computer-based tool for collecting, storing, retrieving and displaying demographic data on maps is ______.

GIS

Many communities try to attract new businesses because they are viewed as potential sources of _____.

GIS

Which of the following is not a strategic implication of location decisions?

Impact availability of finished goods.

Which of the following is not an issue associated with managing global operations?

Need to operate using the local currency

Which of the following statements about the market location factors for identifying a region is not true?

Regardless of business type, proximity to the market is critical.

Which of the following statements about service and retail locations are true?

They are usually revenue-focused. They are usually found near the center of the markets they serve. Customer safety and security can be important factors.

Which of the following statements about location decisions is not true?

Web-based business are just as dependent on location decisions as traditional businesses are.

Trade agreements and technology are ______ in globalization.

facilitating factors

Labor costs are a main consideration for all firms.

false

In a ______ plant strategy, plants have the flexibility and capacity to produce a range of products. This leads to greater responsiveness to market changes, though at slightly lower levels of productivity.

general-purpose

Better serving existing customers by having a quicker response time when problems occur is a benefit of _______.

globalization

The increased dispersion of manufacturing and service operations around the world was brought about by

globalization

Clustering refers to ______ types of businesses locating in the same area.

similar

Clustering refers to ___________ types of businesses locating in the same area.

similar