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Exam 8: Location Planning and Analysis

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Question 21

Multiple Choice

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Facilities, personnel and operations that are located around the world are called:

A) non-domestic
B) diversified operations
C) globalization
D) worldwide presence
E) virtual organization

F) D) and E)
G) A) and B)

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Question 22

Multiple Choice

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Which of the following circumstances would be least likely to lead to a need for a new location?

A) Shifting of markets.
B) Depletion of basic inputs.
C) Growth in demand that is leading to greater utilization of existing capacity.
D) The need to expand into new markets.
E) The opportunity to take advantage of globalization trends.

F) A) and B)
G) B) and D)

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Question 23

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For the preferred site for 20,000 units per year, what would be your cost savings compared to each of the other two sites? C.

What are total costs for site C for a quantity of 5,000 units per year?

For what quantity would you be indifferent between selecting site A or site B?

Shipments of fabric to each plant vary per week as follows: plant A, 200 units; plant B, 400 units; plant C, 300 units; plant D, 300 units; and plant E, 200 units.What is the optimal location for the fabric plant?

Location options don't usually include:

For what quantity would you be indifferent between selecting site B or site C?

The method for evaluating location alternatives which minimizes shipping costs between multiple sending and receiving locations is:

What is the composite score for location A?

Technology has made communication with global operations as easy as local communication.

Web-based, retail businesses should be located near the customer to reduce their long distance phone charges.

If the annual demand will be 20,000 units, what would be the cost advantage of the better location?

Labor laws are an important site-related factor.

Location choice I has monthly fixed costs of $100,000 and per-unit variable costs of $10.Location choice J has monthly fixed costs of $150,000 and per-unit variable costs of $9.At what volume would these locations have equal total costs?

The fact that most types of firms are located in every section of the country suggests that in many cases, location decisions are not overly important; one location typically is as good as another.

For the preferred site for 20,000 units per year, what would be your total costs?

Determine the center of gravity location for the destinations and shipping quantities shown below:

For service and retail stores, a prime factor in location analysis is customer access.

If annual demand is estimated to be 20,000 units, which location should the company select?