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Exam 11: Location Planning and Analysis

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Question 31

Multiple Choice

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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. $\begin{array} { c c } \text { Location } & ( \mathrm { x } , \mathrm { y } ) \\\hline \mathrm { A } & 2,3 \\\mathrm {~B} & 3,7 \\\mathrm { C } & 5,5 \\\mathrm { D } & 7,3 \\\mathrm { E } & 8,7\end{array}$ 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) B) and D)
G) None of the above

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Question 32

Multiple Choice

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Which of the following is a location option that management can consider in location planning? I. Expand an existing facility. II. Add a new location. III. Relocate from one location to another. IV. Do nothing.

A)  I and II only.
B)  I and III only.
C)  II and IV only.
D)  I, II, and III only.
E)  I, II, III, and IV.

F) C) and D)
G) A) and C)

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Question 33

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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: $\begin{array} { c c } \text { Location } & ( \mathrm { x } , \mathrm { y } ) \\\hline \mathrm { A } & 7,2 \\\mathrm {~B} & 4,7 \\\mathrm { C } & 5,5 \\\mathrm { D } & 6,2 \\\mathrm { E } & 8,4\end{array}$ 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?

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

Labor laws are an important site-related factor.

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 B?

An example of a regional factor in location planning is the location of our markets (either existing or potential).

Retail businesses often engage in ____________, the tendency to locate in close proximity to one another.

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: $\begin{array} { l c c } \text { Location } & F C \text { (annual) } & \text { VC (per unit) } \\\hline \text { Atlanta } & \$ 80,000 & \$ 20 \\\text { Phoenix } & \$ 140,000 & \$ 16\end{array}$ If the annual demand will be 20,000 units, what would be the cost advantage of the better location?

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: $\begin{array} { l c c } \text { Location } & \text { Annual Fixed } & \text { Variable } \\\hline \text { Alpha Ave. } & \$ 5,000 & \$ 200 \text { perperson } \\\text { Beta Blvd. } & \$ 8,000 & \$ 150 \text { perperson }\end{array}$ If it is estimated that 30 persons will be living in this new chapter house, which location should the Skulls select?

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: $\begin{array} { l c c } \text { Location } & \text { Annual Fixed } & \text { Variable } \\\hline \text { Alpha Ave. } & \$ 5,000 & \$ 200 \text { perperson } \\\text { Beta Blvd. } & \$ 8,000 & \$ 150 \text { perperson }\end{array}$ If it is estimated that 30 persons will be living in this new chapter house, what would be the Skulls' annual cost savings by selecting the less costly location, rather than the more costly?

When service firms such as retailers or banks make growth-spurred location decisions, typically these involve:

Which of the following circumstances would be least likely to lead to a need for a new location?

Among the potential disadvantages of having global operations is/are:

Nearness to raw materials would be most important to a:

When making location decisions, nonprofit organizations differ from for-profit ones in seeking a balance between:

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: $\begin{array} { l c c } \text { Location } & \mathrm { FC } \text { (annual) } & \mathrm { VC } \text { (per unit) } \\\hline \text { Atlanta } & \$ 80,000 & \$ 20 \\\text { Phoenix } & \$ 140,000 & \$ 16\end{array}$ If annual demand is estimated to be 20,000 units, which location should the company select?

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 250 units?

Technology has made communication with global operations as easy as local communication.

When a location evaluation includes both quantitative and qualitative inputs, a technique that can be used is: