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Exam 11: Location Planning and Analysis

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Question 21

Multiple Choice

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Cultural differences, customer preferences, labor, and resources are factors relating to:

A)  regional choices.
B)  site selection.
C)  zoning.
D)  product design.
E)  location decisions.

F) A) and C)
G) B) and E)

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Question 22

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

A) True
B) False

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Question 23

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A location analysis has been narrowed down to three locations. The critical factors, their weights, and the ratings for each location are shown below: What is the composite score for location C?

The first step in developing location alternatives is identifying important factors.

In location planning, the location of raw materials, the location of markets, and labor factors are:

Location options do not usually include:

The center of gravity method uses the earth's center to establish starting grid coordinates (i.e., the 0,0,0 point) in three dimensions (x, y and z).

A clothing manufacturer produces clothing in five locations in the United States. In a move to vertical integration, the company is planning a new fabric production plant that will supply fabric to all five clothing plants. The clothing plants have been located on a coordinate system as follows: $\begin{array} { c c } \text { Location } & ( \mathrm { x } , \mathrm { y } ) \\\hline \mathrm { A } & 7,2 \\\mathrm {~B} & 4,7 \\\mathrm { C } & 5,5 \\\mathrm { D } & 6,2 \\\mathrm { E } & 8,4\end{array}$ If the amount of fabric shipped to each plant is equal, what is the optimal location for the fabric plant?

The method for evaluating location alternatives that incorporates both qualitative and quantitative inputs to establish a composite score for each alternative is:

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

Location choice I has monthly fixed costs of $100,000 and per-unit variable costs of $10. What would its total cost be at a monthly volume of 550 units?

Some communities offer financial and other incentives to ______ new businesses.

An approach to location analysis that can include both qualitative and quantitative considerations is:

The Skulls, a student social organization, has two different locations under consideration for constructing a new chapter house. The Skulls' president, a POM student, estimates that due to differing land costs, utility rates, etc., both fixed and variable costs would be different for each of the proposed sites, as follows: $\begin{array} { l c c } \text { Location } & \text { Annual Fixed } & \text { Variable } \\\hline \text { Alpha Ave. } & \$ 5,000 & \$ 200 \text { per person } \\\text { Beta Blvd. } & \$ 8,000 & \$ 150 \text { perperson }\end{array}$ What would be total annual costs for either location at the point of indifference?

Software systems known as GIS help in location analysis. The initials GIS stand for:

The method for evaluating location alternatives that uses their total-cost lines is:

A location analysis has been narrowed down to three locations. The critical factors, their weights, and the ratings for each location are shown below: $\begin{array} { l c c c c } &{ \text { Location } } \\\text { Factor } & \text { Wt. } & \text { A } & \text { B } & \text { C } \\\hline \text { Labor Cost } & .4 & 70 & 80 & 90 \\\text { Transportation Cost } & .2 & 80 & 80 & 60 \\\text { Market Access } & .2 & 90 & 70 & 60 \\\text { RawMaterials Cost } & .1 & 50 & 70 & 90 \\\text { Utility Cost } & .1 & 80 & 90 & 70\end{array}$ What is the composite score for location A?

A location analysis has been narrowed down to three locations. The critical factors, their weights, and the ratings for each location are shown below: If the selection criterion is to be the greatest composite score, management should choose:

You cannot make a mistake by locating where labor costs are low.

Factor rating is limited to quantitative information concerning location decisions.