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Every month,a distribution center will deliver 14,000 units to Retailer A at coordinates (20,10),12,000 units to Retailer B at coordinates (30,-15),and 20,000 units to Retailer C at coordinates (4,4).Assuming no constraints on location,at what coordinates should the distribution center be located (rounded to two decimal places)?

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(15.65,0.87),where 15.65 = [20...

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In location decisions,intangible costs are easier to measure than tangible costs.

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How do service facility location decisions differ from industrial location decisions in terms of the techniques used to analyze them?

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Service location decisions tend to focus...

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What kinds of location decisions are appropriate for the use of locational cost-volume analysis? Write a brief paragraph explaining how the method can assist an operations manager in choosing among alternative sites in making a location decision.

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Crossover analysis is appropriate when t...

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A regional bookstore chain wants to build a distribution center that is centrally located for its eight retail outlets.It will most likely employ which of the following tools of analysis?


A) assembly line balancing
B) load-distance analysis
C) center-of-gravity method
D) linear programming
E) locational cost-volume analysis

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Which of the following methods best considers intangible costs related to a location decision?


A) crossover methods
B) locational cost-volume analysis
C) factor-rating method
D) the transportation method
E) center-of-gravity method

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A employee produces 15 parts during a shift in which he made $90.What is the labor content of the product?


A) $90
B) $5
C) $6
D) $0.167
E) $1,350

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A manufacturing firm is considering three potential locations for a new parts manufacturing facility.A consulting firm has assessed three sites based on the four factors supplied by management as critical to the location's success.Given the management-supplied factor weights and the consultant team scores,which location should be selected? Scores are based on 50 = best. A manufacturing firm is considering three potential locations for a new parts manufacturing facility.A consulting firm has assessed three sites based on the four factors supplied by management as critical to the location's success.Given the management-supplied factor weights and the consultant team scores,which location should be selected? Scores are based on 50 = best.

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C is clearly better than either A or B.T...

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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

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The ________ is used to determine the best pattern of shipments from several points of supply to several points of demand.

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transporta...

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Which of the following is among the eight determinants of revenue and volume for a service firm?


A) uniqueness of the firm's and the competitors' locations
B) quality of the competition
C) quality of management
D) purchasing power of the customer-drawing area
E) all of the above

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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

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Which of the following statements regarding "proximity" in the location decision is FALSE?


A) Service organizations find that proximity to market is the most critical primary location factor.
B) Manufacturers want to be near customers when their product is bulky,heavy,or fragile.
C) Perishability of raw materials is a good reason for manufacturers to locate near the supplier,not the customer.
D) Reduction in bulk is a good reason for a manufacturer to locate near the supplier.
E) Clustering among fast food chains occurs because they need to be near their labor supply.

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Identify five factors that affect location decisions at the site level.

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Factors that affect location decisions a...

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A grocery chain is deciding on where to locate its new distribution center (DC).The new DC will serve four grocery stores,each with a demand of 10,000 units.If the coordinates of the stores are (112,108), (110,50), (40,85),and (10,25)where should the DC be located? Suppose now that each store instead had demand of 20,000 units.Where should the DC go in this case?

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Since each store has the same demand,the...

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One reason for a firm locating near its competitors is the presence of a major resource it needs.

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The center-of-gravity method finds the location of a centralized facility,such as a distribution center,that will maximize the organization's revenue.

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"Proximity" or closeness implies that a firm should locate "close" to something.What are the three kinds of proximity described in the text? What are the basic conditions under which each is appropriate? What kinds of firms are likely to use each of these?

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The three are proximity to markets,proxi...

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Which of the following assumptions is NOT associated with strategies for goods-producing location decisions?


A) Most major costs can be identified explicitly for each site.
B) Focus on identifiable costs.
C) High customer-contact issues are critical.
D) Intangible costs can be evaluated.
E) Location is a major determinant of cost.

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Manufacturers may want to locate close to their customers if the transportation of finished goods is expensive or difficult.

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