Question 1

In facility location decision making, the factor-rating system is based on linear programming.

Accepted Answer

A) True 
 B)False

Question 2

Facility location analysis considers the competitive imperative to be close to customers as to timeliness of deliveries.

Accepted Answer

A) True 
 B)False  True

Question 3

Facility location analysis considers the competitive imperative of locating near the appropriate labor pool to take advantage of high technical skills.

Accepted Answer

A) True 
 B)False

Question 4

How many free trade zones are there in the United States?

Accepted Answer

A)   Less than 50
B)   Less than 100
C)   About 260
D)   More than 412
E)   About 310F) A) and E)
G) A) and C)

Question 5

In facility location decision making, the factor-rating system is one of the least used general location techniques.

Accepted Answer

A) True 
 B)False

Question 6

One of the objectives of facility location analysis is to select a site with the lowest total cost. Which of the following costs should be excluded from the analysis?

Accepted Answer

A)   Historical costs
B)   Inbound distribution costs
C)   Land
D)   Construction
E)   Regional costsF) A) and E)
G) B) and D) A

Question 7

One of the objectives in facility location analysis is to select a site with the lowest total cost. Which of the following costs are hidden costs that should be included in the analysis?

Accepted Answer

A)   Infrastructure costs
B)   Movement of preproduction material between locations
C)   Taxes
D)   Construction costs
E)   Bribery costsF) A) and B)
G) None of the above B

Question 8

One of the objectives of facility location analysis is to select a site with the lowest total cost. Which of the following costs should not be included in the analysis?

Accepted Answer

A)   Outbound distribution costs
B)   Incidental costs
C)   Energy costs
D)   Hidden costs
E)   TaxesF) None of the above
G) A) and B)

Question 9

An example of a positive business climate that might influence a facility location decision is increasing governmental costs and increasing property taxes.

Accepted Answer

A) True 
 B)False

Question 10

The objective of facility location analysis is to select the site with the lowest total cost.

Accepted Answer

A) True 
 B)False

Question 11

A major problem in a plant location decision based on the factor-rating system is that simple point-rating schemes do not account for the wide variance of costs that may occur within each factor used in the analysis.

Accepted Answer

A) True 
 B)False

Question 12

An example of a trading bloc is which of the following?

Accepted Answer

A)   Central American Free Trade Agreement countries
B)   Free trade zones
C)   ISO-9000 companies
D)   American Production and Inventory Control Society
E)   Wal-Mart and its suppliersF) A) and E)
G) A) and D)

Question 13

The Association for Operations Management defines logistics as "the art and science of obtaining, producing, and distributing material and product in the proper place and in proper quantities."

Accepted Answer

A) True 
 B)False

Question 14

In facility location decision making the educational and skill levels of the labor pool must match the company's needs.

Accepted Answer

A) True 
 B)False

Question 15

Very few products are moved without at least part of their journey being by which mode of transportation?

Accepted Answer

A)   Highway
B)   Rail
C)   Water
D)   Pipeline
E)   AirF) D) and E)
G) B) and C)

Question 16

A favorable business climate in facility location decision making might include local government providing basic skill training for prospective members of the workforce.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is not mentioned in the text as a technique for identifying potential sites for plants or other types of facilities?

Accepted Answer

A)   The centroid method
B)   Factor-rating systems
C)   Linear programming
D)   The transportation method of decision analysis
E)   Regression analysisF) C) and E)
G) A) and B)

Question 18

Which of the following is not a criterion that influences manufacturing plant or warehouse facility location decisions?

Accepted Answer

A)   Suppliers
B)   Free trade zones
C)   Political risk
D)   Gross national product
E)   Tariffs and customs dutiesF) B) and E)
G) A) and D)

Question 19

DHL and United Parcel Service are transportation companies that are prohibited from functioning as a third-party logistics company the way Federal Express does.

Accepted Answer

A) True 
 B)False

Question 20

Cross-docking is a practice used in the international shipping industry that facilitates port utilization.

Accepted Answer

A) True 
 B)False

Exam 14: Location, Logistics, and Distribution

In facility location decision making, the factor-rating system is based on linear programming.

Correct AnswerverifiedShow Answer

Facility location analysis considers the competitive imperative to be close to customers as to timeliness of deliveries.

Correct AnswerverifiedTrue

Facility location analysis considers the competitive imperative of locating near the appropriate labor pool to take advantage of high technical skills.

Correct AnswerverifiedShow Answer

How many free trade zones are there in the United States?

Correct AnswerverifiedShow Answer

In facility location decision making, the factor-rating system is one of the least used general location techniques.

Correct AnswerverifiedShow Answer

One of the objectives of facility location analysis is to select a site with the lowest total cost. Which of the following costs should be excluded from the analysis?

Correct AnswerverifiedA

One of the objectives in facility location analysis is to select a site with the lowest total cost. Which of the following costs are hidden costs that should be included in the analysis?

Correct AnswerverifiedB

One of the objectives of facility location analysis is to select a site with the lowest total cost. Which of the following costs should not be included in the analysis?

Correct AnswerverifiedShow Answer

An example of a positive business climate that might influence a facility location decision is increasing governmental costs and increasing property taxes.

Correct AnswerverifiedShow Answer

The objective of facility location analysis is to select the site with the lowest total cost.

Correct AnswerverifiedShow Answer

A major problem in a plant location decision based on the factor-rating system is that simple point-rating schemes do not account for the wide variance of costs that may occur within each factor used in the analysis.

Correct AnswerverifiedShow Answer

An example of a trading bloc is which of the following?

Correct AnswerverifiedShow Answer

The Association for Operations Management defines logistics as "the art and science of obtaining, producing, and distributing material and product in the proper place and in proper quantities."

Correct AnswerverifiedShow Answer

In facility location decision making the educational and skill levels of the labor pool must match the company's needs.

Correct AnswerverifiedShow Answer

Very few products are moved without at least part of their journey being by which mode of transportation?

Correct AnswerverifiedShow Answer

A favorable business climate in facility location decision making might include local government providing basic skill training for prospective members of the workforce.

Correct AnswerverifiedShow Answer

Which of the following is not mentioned in the text as a technique for identifying potential sites for plants or other types of facilities?

Correct AnswerverifiedShow Answer

Which of the following is not a criterion that influences manufacturing plant or warehouse facility location decisions?

Correct AnswerverifiedShow Answer

DHL and United Parcel Service are transportation companies that are prohibited from functioning as a third-party logistics company the way Federal Express does.

Correct AnswerverifiedShow Answer

Cross-docking is a practice used in the international shipping industry that facilitates port utilization.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
True

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A

Correct Answer
verified
B

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified