(Combined) ISDS Exam 2 Chapter 8, Quiz reviews, Quiz
2, OMIS 430 Test 3, Supply Chain Exam 2 (Chapter 8),
ISDS 3115 Chapter 9, 353 Final, Chapter 1:
Introduction to Operations Management, Chapter 2:
Introduction to Processes, Database Management
Midterm, All With Complete Verified Solutions 2023/2024
FedEx chose Memphis, Tennessee, for its central location, or "hub," primarily
because of the incentives offered by the city of Memphis and the state of
Tennessee.
False (Global company profile, easy)
Generally, the objective of the location decision is to maximize the firm's profit.
False (The strategic importance of location, easy)
Lists have been developed that rank countries on issues such as
"competitiveness" and "corruption."
True (Factors that affect location decisions, easy)
When innovation replaces cost as a firm's focus for location decisions, the
presence of other stateof-the-art firms is a plus, not a negative, for the firm's
competitiveness.
True (The strategic importance of location, moderate)
The ratio of labor cost per day to productivity, in units per day, is the labor cost
per unit.
True (Factors that affect location decisions, moderate)
6. For a location decision, labor productivity may be important in isolation, but
low wage rates are a more important criterion.
False (Factors that affect location decisions, moderate)
7. Unfavorable exchange rates can offset other savings in a location decision.
True (Factors that affect location decisions, moderate)
8. An example of an intangible cost, as it relates to location decisions, is the
quality of education.
True (Factors that affect location decisions, moderate)
9. In location decisions, intangible costs are easier to measure than tangible
costs.
False (Factors that affect location decisions, moderate)
10. Location decisions are based on many things, including costs, revenues,
incentives, attitudes, and intangibles, but not on ethical considerations.
False (Factors that influence location decisions, easy) {AACSB: Ethical Reasoning}
11. Manufacturers may want to locate close to their customers, if the
transportation of finished goods is expensive or difficult.
True (Factors that affect location decisions, moderate)
12. One reason for a firm locating near its competitors is the presence of a major
resource it needs.
True (Factors that affect location decisions, moderate)
,13. The graphic approach to location break-even analysis displays the range of
volume over which each location is preferable.
True (Methods of evaluating location alternatives, moderate)
14. The factor-rating method can consider both tangible and intangible costs.
True (Methods of evaluating location alternatives, moderate)
15. The center-of-gravity method finds the location of a centralized facility, such
as a distribution center, that will maximize the organization's revenue.
False (Methods of evaluating location alternatives, moderate)
16. The transportation model calculates an optimal shipping system between a
central facility and several outlying customers.
False (Methods of evaluating location alternatives, moderate)
17. Service firms choose locations based, in part, on the revenue potential of a
site.
True (Service location strategy, moderate)
18. Starbucks Coffee's approach to choosing new café locations is largely based
on executive intuition, not sophisticated models and site selection technology.
False (Service location strategy, easy)
19. Labor cost and labor availability often drive the location decision in the call
center industry.
True (Service location strategy, moderate)
20. The location decisions of goods-producing firms will generally pay more
attention to parking, access, and traffic counts than will service location
decisions.
False (Service location strategy, moderate)
21. Industrial location decisions often assume that costs are relatively constant
for a given area.
False (Service location strategy, moderate)
22. Starbucks Coffee's use of geocoded demographic and consumer data in site
selection decisions is an example of the use of a Geographic Information System,
or GIS.
True (Service location strategy, moderate)
23. FedEx chose Memphis, Tennessee, as its U.S. hub because
a. the city is in the center of the U.S., geographically
b. the airport has relatively few hours of bad weather closures
c. it needed a means to reach cities to which it did not have direct flights
d. the firm believed that a hub system was superior to traditional city-to-city flight
scheduling
e. All of the above are true.
e. All of the above are true.
24. Which of the following statements regarding FedEx is true?
a. Its hub in Memphis, Tennessee, was selected because of its low cost.
b. Memphis, Tennessee, is the only hub in the company's global flight network.
c. FedEx believes the hub system helps reduce mishandling and delays due to
better controls.
d. FedEx uses a hub system in the U.S., but a city-to-city network in other
,countries.
e. Memphis is FedEx's only hub airport in the United States.
c. FedEx believes the hub system helps reduce mishandling and delays due to better
controls.
25. Industrial location analysis typically attempts to
a. reduce costs
b. maximize sales
c. focus more on human resources
d. be environmentally friendly
e. none of the above
a. reduce costs
26. Governmental attitudes toward issues such as private property, intellectual
property, zoning, pollution, and employment stability may change over time. The
term associated with this phenomenon is
a. bureaucratic risk
b. political risk
c. legislative risk
d. judicial risk
e. democratic risk
b. political risk
27. A location decision for an appliance manufacturer would tend to have a(n)
a. cost focus
b . labor focus
c. revenue focus
d. environmental focus
e. education focus
a. cost focus
28. A location decision for a traditional department store (Macy's) would tend to
have a(n)
a. cost focus
b. labor focus
c. revenue focus
d. environmental focus
e. education focus
c. revenue focus
29. Globalization of the location decision is the result of all of the following
except
a. market economics
b. higher quality of labor overseas
c. ease of capital flow between countries
d. high differences in labor costs
e. more rapid, reliable travel and shipping
b. higher quality of labor overseas
30. In location planning, environmental regulations, cost and availability of
utilities, and taxes are
a. global factors
, b. country factors
c. regional/community factors
d. site-related factors
e. none of the above
c. regional/community factors
A manufacturing firm finds a location that has a significant cost advantage over
alternatives, but rejects that location because the educational infrastructure was
insufficient to train the firm's workers in its special production technologies. The
firm's action illustrates the link between__________ and location.
a. innovation
b. clustering
c. tax incentives
d. globalization
e. proximity
a. innovation
32. Which of the following is usually not one of the top considerations in
choosing a country for a facility location?
a. availability of labor and labor productivity
b. exchange rates
c. attitude of governmental units
d. zoning regulations
e. location of markets
d. zoning regulations
33. When making a location decision at the country level, which of these would be
considered?
a. corporate desires
b. land/construction costs
c. air, rail, highway, waterway systems
d. zoning restrictions
e. location of markets
e. location of markets
34. Which of these factors would be considered when making a location decision
at the region/community level?
a. government rules, attitudes, stability, incentives
b. cultural and economic issues
c. zoning restrictions
d. environmental impact issues
e. proximity to raw materials and customers
e. proximity to raw materials and customers
35. When making a location decision at the region/community level, which of
these would be considered?
a. government rules, attitudes, stability, incentives
b. cultural and economic issues
c. cost and availability of utilities
d. zoning restrictions
e. air, rail, highway, waterway systems
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