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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.

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

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


A) locational cost-profit-volume analysis.
B) the transportation model.
C) factor rating.
D) geographic information system (GIS) analysis.
E) the center-of-gravity method.

F) D) and E)
G) C) and D)

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Which of the following is not an option in location planning?


A) expand globally
B) expand an existing facility
C) do nothing
D) move locations
E) add locations

F) None of the above
G) D) and E)

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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 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 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? A) 6.2, 3.0 B) 6.0, 4.0 C) 6.5, 5.3 D) 5.6, 4.4 E) 5.0, 3.0 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?


A) 6.2, 3.0
B) 6.0, 4.0
C) 6.5, 5.3
D) 5.6, 4.4
E) 5.0, 3.0

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

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A strategy that emphasizes convenience for the customers would probably select a single very large facility.

A) True
B) False

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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.

A) True
B) False

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All of the following are benefits of globalizing operations except for?


A) unskilled labor
B) expanding markets
C) cost savings
D) new ideas
E) less restrictive regulations

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

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


A) tax
B) attract
C) marginalize
D) incorporate
E) zone

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

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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 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 If it is estimated that 30 persons will be living in this new chapter house, which location should the Skulls select? A) Alpha Ave. B) Beta Blvd. C) either Alpha Ave. or Beta Blvd. D) reject both Alpha Ave. and Beta Blvd. E) become a virtual organization. If it is estimated that 30 persons will be living in this new chapter house, which location should the Skulls select?


A) Alpha Ave.
B) Beta Blvd.
C) either Alpha Ave. or Beta Blvd.
D) reject both Alpha Ave. and Beta Blvd.
E) become a virtual organization.

F) C) and D)
G) C) and E)

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Factor rating is limited to quantitative information concerning location decisions.

A) True
B) False

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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) C) and D)
G) A) and E)

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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 E)
G) A) and D)

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A manufacturing firm is considering two locations for a plant to produce a new product. The two locations have fixed and variable costs as follows A manufacturing firm is considering two locations for a plant to produce a new product. The two locations have fixed and variable costs as follows If the annual demand will be 20,000 units, what would be the cost advantage of the better location? A) $20,000 B) $460,000 C) $480,000 D) $80,000 E) $60,000 If the annual demand will be 20,000 units, what would be the cost advantage of the better location?


A) $20,000
B) $460,000
C) $480,000
D) $80,000
E) $60,000

F) C) and D)
G) None of the above

Correct Answer

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A hardware distributor has regional warehouses at the locations shown below. The company wants to locate a new central distribution center to serve this warehouse network. A hardware distributor has regional warehouses at the locations shown below. The company wants to locate a new central distribution center to serve this warehouse network. If weekly shipments to each warehouse will be approximately equal, what is the optimal location for the distribution center? A) 5, 5 B) 5, 4 C) 4, 5 D) 5, 6 E) 6, 5 If weekly shipments to each warehouse will be approximately equal, what is the optimal location for the distribution center?


A) 5, 5
B) 5, 4
C) 4, 5
D) 5, 6
E) 6, 5

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

Correct Answer

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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?


A) 30,000 units
B) 25,000 units
C) 40,000 units
D) 50,000 units
E) 60,000 units

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

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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 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 decision rule is to select the location with the greatest composite score exceeding 80, management should choose A) location A. B) location B. C) location C. D) either location B or location C. E) to reject all locations. If the decision rule is to select the location with the greatest composite score exceeding 80, management should choose


A) location A.
B) location B.
C) location C.
D) either location B or location C.
E) to reject all locations.

F) A) and B)
G) All of the above

Correct Answer

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The center of gravity method is used to _____ travel time or shipping costs.


A) normalize
B) eliminate
C) average
D) minimize
E) document

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

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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 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 If the amount of fabric shipped to each plant is equal, what is the optimal location for the fabric plant? A) 5, 5 B) 6, 4 C) 4, 6 D) 6, 2 E) 5, 4 If the amount of fabric shipped to each plant is equal, what is the optimal location for the fabric plant?


A) 5, 5
B) 6, 4
C) 4, 6
D) 6, 2
E) 5, 4

F) None of the above
G) B) and D)

Correct Answer

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A hardware distributor has regional warehouses at the locations shown below. The company wants to locate a new central distribution center to serve this warehouse network. A hardware distributor has regional warehouses at the locations shown below. The company wants to locate a new central distribution center to serve this warehouse network. Weekly shipments to each warehouse will be: WH1, 100; WH2, 150; WH3, 120; WH4, 150; and WH5, 120. What is the optimal location of the distribution center? A) 5.1, 4.2 B) 5.2, 4.0 C) 5.1, 5.1 D) 4.2, 5.1 E) 4.9, 5.2 Weekly shipments to each warehouse will be: WH1, 100; WH2, 150; WH3, 120; WH4, 150; and WH5, 120. What is the optimal location of the distribution center?


A) 5.1, 4.2
B) 5.2, 4.0
C) 5.1, 5.1
D) 4.2, 5.1
E) 4.9, 5.2

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

Correct Answer

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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 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 What would be total annual costs for either location at the point of indifference? A) $13,000 B) $13,350 C) $9,000 D) $17,000 E) $19,200 What would be total annual costs for either location at the point of indifference?


A) $13,000
B) $13,350
C) $9,000
D) $17,000
E) $19,200

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

Correct Answer

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