Deck 9: Operational Decision-Making Tools: Facility Location Models

Question 1

A package delivery service wants to build a new distribution centre in Calgary,Alberta.The location of the centre needs to be in the vicinity of Deerfoot Trail,Highway 22 and the Calgary Airport.The following table provides the coordinates of these three sites and the number of weekly packages. Deerfoot Trail Highway 22 Airport
X = 20 x = 26 x = 36
Y = 35 y = 13 y = 19
W = 16,000 W = 11,000 W = 8,000
The suggested coordinates for the new warehouse using the centre of gravity method are

A)x = 36.0 and y = 35.0
B)x = 27.3 and y = 22.3
C)x = 25.54 and y =24.4
D)x = 27.5 and y = 35.5

Answer 1

C

Question 2

Which type of facility is large and expensive?

A)light-industry facilities
B)retail and service facilities
C)heavy-manufacturing facilities
D)medium-site facilities

Answer 2

C

Question 3

For a service operation being in the right place usually means being in a location that is convenient and easily accessible.

Answer 3

True

Question 4

A company is deciding where to locate a new warehouse that will receive shipments from three suppliers: 1,2,and 3.The locations of the suppliers (x_i,y_i)and the annual number of shipments from supplier i (W_i)are provided below: 1 2 3
X₁ = 250 x₂= 100 x₃= 500
Y₁ = 250 y₂= 400 y₃= 300
W₁ = 240 W₂=205 W₃= 300
The coordinates for the new warehouse suggested by the centre of gravity method are

A)x = 311.4 and y = 309.4.
B)x = 309.4 and y = 311.4.
C)x = 291.2 and y =198.9.
D)x = 193.2 and y = 219.4.

Question 5

Service operations tend to make location decisions more frequently than manufacturing facilities.

Question 6

The factors used to evaluate location of a manufacturing plant are usually different from the factors used in locating a service facility.

Question 7

Service facilities are usually the largest and most expensive type of facility.

Question 8

Which of the following is not a primary factor in location decisions for manufacturing plants?

A)proximity to raw materials
B)proximity to customers
C)proximity to different modes of transportation
D)proximity to significant labour pools

Question 9

The centre of gravity technique outlines a method for identifying and weighing important location factors.

Question 10

A location's collection of physical support systems is known as its infrastructure.

Question 11

One reason foreign firms locate facilities in North America is to reduce their supply chain costs.

Question 12

Common location incentives include all of the following except

A)tax credits.
B)job training.
C)fixed exchange rates.
D)improvements to infrastructure.

Question 13

The load-distance technique evaluates different locations based on load and transport distance.

Question 14

Facility location is often overlooked because it is not an important aspect of a firm's strategic plan.

Question 15

Inadequate infrastructure at a given location increases supply chain costs and decreases customer service.

Question 16

The cost and availability of labour is an important factor in a location decision.

Question 17

Which of the following is a type of facility addressed by the facility location decision?

A)heavy manufacturing
B)light manufacturing
C)retail facilities
D)all the above

Question 18

Which of the following is not a facility location factor important in selecting a country?

A)government stability
B)export and import tariffs
C)customer service
D)culture

Question 19

Railroad access is frequently a factor in locating a manufacturing plant.

Question 20

Transportation costs are generally a function of distance,weight,and time.

Question 21

A technique based on transport weight and distance used for locating a facility at the centre of movement in a geographic area is known as the

A)load-distance technique.
B)centre of gravity technique.
C)location factor rating.
D)location factor technique.