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Exam 12: Location Planning and Analysis

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Question 1

Multiple Choice

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Location decisions are a highly important part of production system design because: I.typically they are made rather frequently II) they impact operating costs III) they entail a high-cost,short-term commitment

A) typically,they are made rather frequently
B) they impact operating costs
C) they entail a high-cost,short-term commitment
D) mistakes can be easily overcome
E) they are usually based on one single factor

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

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Question 2

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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: At what annual output would the company be indifferent between the two locations?

A) 60,000 units
B) 15,000 units
C) 10,000 units
D) 20,000 units
E) 4,000 units

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

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Question 3

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Location decisions are basically one-time decisions that only pertain to newly formed organizations.

Taxes are an example of a regional/country-related factor in location decisions.

Phi Upsilon Nu,a student social organization,has two different locations under consideration for constructing a new chapter house.PhUN's 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?

Which of the following is not categorized as a community/site-related consideration in location planning?

11eab92b_c492_aadb_99e6_fde94ba4ccd3 For what quantity would you be indifferent between selecting site A or site B?

The first step in the location decision process is to determine a short list of approximately 3 or 4 potential sites.

For agricultural companies,locating close to raw materials is typically a necessity.

The centre of gravity method is a location planning technique that determines a composite score from factor evaluation.

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: What would the total annual costs be for the Phoenix location with an annual output of 10,000 units?

Phi Upsilon Nu,a student social organization,has two different locations under consideration for constructing a new chapter house.PhUN's 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 the Alpha Ave.location with 20 persons living there?

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 annual demand is estimated to be 20,000 units,which location should the company select?

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

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 A?

What is the primary reason a retailer would want to gather data utilizing GIS information?

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.

Which of the following is not considered a reason for foreign firms to locate in Canada?

Since they can almost always be secured,government subsidies is not a significant factor in location decisions.

Which of the following is least likely to be a country (national) factor in location decisions?