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Operations chapter 8

Nearness to raw materials would be most important to a
A. grocery store
B. tax preparation service
C. manufacturing company
D. post office
E. hospital
C. manufacturing company
A one-hour photo processing machine in a Wal-Mart store is an example of a ___.
A. micro-factory
B. downsize strategy
C. diversified strategy
D. lean production system
E. falling price strategy
A. micro-factory
Which statement best characterizes a typical search for location alternatives?
A. identify the best location choice
B. minimize cost consequences
C. maximize associated profits
D. locate near markets
E. identify acceptable locations
E. identify acceptable locations
Which of the following is not a location option that management can consider in location planning?
A. expand an existing facility
B. add a new location
C. relocate from one location to another
D. do nothing
E. All are possible options.
E. All are possible options.
Which of the following is the last step in the procedure for making location decisions?
A. determine the evaluation criteria
B. identify important factors
C. develop location alternatives
D. evaluate alternatives and make a selection
E. request input regarding alternatives
D. evaluate alternatives and make a selection
When a location evaluation includes both quantitative and qualitative inputs, a technique that can be used is ___.
A. Linear programming
B. Consumer surveys
C. Factor rating
D. Transportation models
E. Center of gravity methods
C. Factor rating
The center of gravity method is used to _______ travel time, distance and costs.
A. Normalize
B. Eliminate
C. Average
D. Minimize
E. Document
D. Minimize
In location planning, the location of raw materials, the location of markets, and labor factors are:
A. regional factors
B. community factors
C. site-related factors
D. national factors
E. minor considerations
A. regional factors
Software systems known as GIS help in location analysis. The initials GIS stand for __.
A. Graphic Interface Systems
B. Global Integrated Software
C. Graded Information Systems
D. Geo Intensive Software
E. Geographical Information System
E. Geographical Information System
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
C. globalization
Some communities offer financial and other incentives to ______ new businesses.
A. Tax
B. Attract
C. Marginalize
D. Incorporate
E. Zone
B. Attract
Location options don’t usually include:
A. expansion
B. a contract
C. adding new facilities
D. moving
E. doing nothing
B. a contract
Cultural differences, Customer preferences, Labor and Resources are factors relating to:
A. Regional choices
B. Site selection
C. Zoning
D. Product design
E. Foreign locations
E. Foreign locations
The method for evaluating location alternatives which uses their total cost curves is:
A. cost-volume analysis
B. transportation model analysis
C. factor rating analysis
D. linear regression analysis
E. MODI analysis
A. cost-volume analysis
The method for evaluating location alternatives which minimizes shipping costs between multiple sending and receiving locations is:
A. cost-volume analysis
B. transportation model analysis
C. factor rating analysis
D. linear regression analysis
E. MODI analysis
B. transportation model analysis
The method for evaluating location alternatives which uses their composite (weighted-average) scores is:
A. cost-volume analysis
B. transportation model analysis
C. factor rating analysis
D. linear regression analysis
E. MODI analysis
C. factor rating analysis
An approach to location analysis that can include both qualitative and quantitative considerations is:
A. location cost-volume
B. factor rating
C. transportation model
D. expected value (net present value)
E. financial analysis
B. factor rating

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