Deck 11: Facilities Planning: Location and Layout

Question 1

Location factors can be dealt with in both qualitative and quantitative fashions.

Answer 1

True

Question 2

In (M + N - 1),M is the number of origins or plants while N is the number of market destinations.

Answer 2

False

Question 3

Regional facilities planning calls upon a wealth of knowledge and great skills.

Answer 3

True

Question 4

If supply is less than demand,create dummy plants to pretend to produce all of the demand.

Question 5

Supply in a TM model is what plants can produce at maximum capacity.

Question 6

Layout is an exterior design problem that strongly interacts with structure and specific site selection and equipment choice.

Question 7

Suppliers benefit from small production runs which can be delivered in small batches which reduce their levels of inventory.

Question 8

For facilities planning regarding location and layout,strategic thinking is essential to gain suboptimization.

Question 9

To use the NWC method,begin in the upper NW left-hand corner of the matrix.

Question 10

The first step for profit maximization is to start with a feasible solution that balances supply and demand and that follows the (M + N - 1) rule.

Question 11

Minimum cost allocation can be determined by the transportation model in a satisfactory way as long as nonlinearity of shipping costs prevails.

Question 12

Job shops entail large investments in the design of the process.

Question 13

To rent,buy,or build requires specialists who know domestic (and sometimes) international real estate markets.

Question 14

Trade agreements and country laws are increasingly important in reaching global location decisions.

Question 15

In TM (transportation model) terminology,those receiving shipments (producers) are called "sources" and shippers (suppliers) are called "sinks."

Question 16

Auto assembly plants benefit from inventory reduction and location is a factor.

Question 17

If supply is greater than demand,create dummy plants that pretend to produce what cannot be filled of the demand.

Question 18

Locating close to customers is not a competitive advantage.

Question 19

The final solution in the text problem (11-6c) is the fourth step in the profit maximization procedure.It is called TPR₄ because it is the fourth iteration result.

Question 20

The Northwest Corner (NWC) method involves putting the largest possible shipment in the lower-left corner and moving upward and toward the right as further assignments are made.

Question 21

The dimension of community attitude is a good instance of a tangible factor which can be measured in a precise and nonambiguous way.

Question 22

The comparison among strategic location alternatives is equivalent to measuring the ratios of the cost estimates for the different intangible and tangible cost factors.This is a way of measuring relative advantage.Each ratio portrays opportunities to improve.The numerators and denominators are equivalent to the utilities of different options.

Question 23

Technological information and knowledge of real process details are required to reach good decisions.

Question 24

Facility layout precedes equipment selection.For example,buy the house and then furnish it.

Question 25

CA (community attitude) is a pure intangible number,meaning that it has no dimensions.

Question 26

Location,structure,and site come as a package of tangible conditions.Intangible issues have no costs and should not be included in analysis.

Question 27

When renting,building,or buying,expert help from real-estate specialists,architects,and building engineers is not needed to evaluate an existing facility or to plan a new structure.

Question 28

The easiest way to define suboptimization is that it is less good than optimization.It is a result,or a series of results,that strays from achieving the precise objectives that drive strategies.However,it may be close.

Question 29

Seven measures of layout effectiveness are: Capacity;Balance;Amount of Investment and Operation Costs;Flexibility to Change Layouts;Amount of WIP;Distance that parts Travel;and Storage Space for WIP and handling equipment.

Question 30

Strategic thinking is essential to avoid suboptimization.

Question 31

Improvement of the supply chain as a result of increased visibility means that bottlenecks can be identified.

Question 32

The costs of moving from one location to another should not have to include temporary production stoppage costs.

Question 33

WCA is the importance weight of the CA factor.

Question 34

Opportunity costs are the costs of choosing options that are optimal.

Question 35

Averaging the scores of multiple decision makers increases overall scoring variability.

Question 36

The Delphi method identifies differences in opinions and encourages convergence of informed opinion.

Question 37

Scoring models provide satisfying means for organizing and combining qualitative estimates and hard numbers.

Question 38

When the real problem to solve is too big to grasp because there are very many options,the systems approach is indicated.Dividing the (facilities) problem into regional subproblems to make it more workable can improve the quality of the solution.

Question 39

Eleven million containers are shipped into the United States every year and traditionally about 98 percent of these containers are inspected.

Question 40

Continuous-process industries,like petrochemicals,have to build to process specifications.

Question 41

Which issue is not addressed by the transportation model?

A)transport cost
B)renting or building
C)supply and demand
D)number of sources

Question 42

In TM (transportation model) terminology,those that receive shipments are called

A)shippers.
B)sinks.
C)destinations.
D)both a and c
E)both b and c

Question 43

Choosing the location of a plant is crucial because

A)labor skills may only be available in certain places.
B)closeness to market often counts.
C)closeness to suppliers often counts.
D)tax laws may be vital.
E)all of the above

Question 44

Using the examples in the text,the notation for the transportation matrix entries are: The costs of transporting finished goods from factory plants _____ to markets _____ appear in the appropriate cells.

A)A;B
B)i;j
C)j;i
D)B;A

Question 45

The three step procedure-in precise order of accomplishment-to obtain minimum total transport costs is:

A)Start with a feasible solution;select the biggest cost-reduction change in shipments;ship as many units as possible.
B)Select the lowest-cost shipment;start with a feasible solution;ship as many units as possible.
C)Ship as many units as possible;select the lowest-cost shipment;start with a feasible solution.
D)Start with a feasible solution;ship as many units as possible;select the biggest cost-reduction shipment.

Question 46

Which of the following location criteria are not important to customers of service systems?

A)municipal taxes paid by company
B)price for services
C)proximity of location
D)cost of moving to and from

Question 47

What factor(s) can affect location decisions?

A)taxes
B)process inputs and outputs
C)personal preferences
D)all of the above

Question 48

The 4-step procedure for profit maximization-in the correct order-is:

A)Select the highest-profit,nonassigned cell;start with a feasible solution that balances supply and demand;when an increase in total profit is obtained,ship as many units as possible;evaluate changes until profit cannot be increased any further.
B)Start with a feasible solution that balances supply and demand;select the highest-profit,nonassigned cell;when an increase in total profit is obtained,ship as many units as possible;evaluate changes until profit cannot be increased any further.
C)Evaluate changes until profit cannot be increased any further;when an increase in total profit is obtained,ship as many units as possible;start with a feasible solution that balances supply and demand;select the highest-profit,nonassigned cell.
D)When an increase in total profit is obtained,ship as many units as possible;evaluate changes until profit cannot be increased any further;start with a feasible solution that balances supply and demand;select the highest-profit,nonassigned cell.

Question 49

Choice of a specific building is often best decided after the

A)equipment is chosen.
B)layout of the facility has been created.
C)location is chosen.
D)cost is determined.

Question 50

What is the shipment allocation constraint rule?

A)M - N + 1
B)M + N + 1
C)M + N - 1
D)M - N - 1

Question 51

The symbol used in the text for the dummy market is _____ and the dummy takes up the slack between _____.

A)DM;supply and demand
B)MD;supply and demand
C)MM;new and old SKU
D)MA;demand and supply

Question 52

Some explanations for plants producing output units at different costs might be

A)different type of processes.
B)tax,tariff,and government regulation differentials.
C)different labor and material costs.
D)both a and c
E)a,b,and c

Question 53

Relocation and moving costs can be added to the _____ model.

A)transportation
B)breakeven
C)center of gravity
D)plant layout

Question 54

What markets want to buy is known as

A)supply.
B)demand.
C)supply and demand.
D)none of the above

Question 55

In TM (transportation model) terminology,_____ are called sources or origins.

A)sinks
B)destinations
C)shippers
D)marketers

Question 56

Services are strongly affected by

A)layout of facility.
B)structure used by facility.
C)location of facility.
D)equipment used at the facility.
E)all of the above and more

Question 57

Which is not a component of facilities planning?

A)location
B)language spoken
C)equipment
D)layout of equipment and people
E)structure and site

Question 58

Best location is related to the function of the _____ and the _____ of its products and services.

A)distance traveled;productivity
B)facility;characteristics
C)plant layout;productivity
D)demand system;supply setup

Question 59

The Transportation Model can include

A)transportation costs.
B)price differences in markets.
C)production efficiency differentials.
D)all of the above
E)none of the above

Question 60

Suboptimization is best described as

A)results that stray from achieving the objectives that drive strategies.
B)plans for arranging satisfactory working environments using company facilities.
C)satisfactory alternative strategies for building a new facility.
D)the result,or series of results,that achieve the strategic-driven objectives.

Question 61

Factorial computations play a part in determining how many combinations of possible plant layouts need to be considered.How many combinations need to be studied with five work centers?

A)25
B)120
C)3125
D)60

Question 62

What is one of the first steps required for adequate Design for Manufacturing analysis?

A)equipment selection
B)equipment performance evaluation
C)equipment installation
D)competitive analysis of equipment

Question 63

Service industries locate close to _____ to achieve the kind of contact that characterizes good service.

A)suppliers
B)customers
C)raw materials
D)vendors

Question 64

_____ organize a lot of information that is relevant for location decisions.

A)Scoring models
B)Transportation models
C)Assignment models
D)Flow shop models

Question 65

_____ structures permit serialized,sequential assembly with materials being received and introduced to the line as close as possible to the point of use.

A)Job shop
B)Closed shop
C)Flow shop
D)Concurrent shop

Question 66

RF in the location scoring model stands for

A)retrainable (work) force.
B)regional facilities.
C)relocation flexibility.
D)resources and finances.

Question 67

_____ locations are often chosen to be at the center of dense population zones.

A)Warehouse
B)Supermarket
C)Department store
D)both b and c

Question 68

What percentage of container are inspected?

A)20 percent
B)16 percent
C)9 percent
D)2 percent

Question 69

One main objective of smart plant layouts is

A)minimize the total unit-distances traveled.
B)minimize storage costs.
C)maximize the return on equity.
D)maximize modularity.

Question 70

Which is not an intangible cost?

A)community attitude
B)taxes per year
C)ease of relocating
D)product quality as a function of operators' skills and morale

Question 71

What is one of the limitations of the transportation model?

A)special location-based costs
B)production efficiency differentials
C)does not allow discounts
D)transportation costs

Question 72

Improvement of the supply chain as a result of increased visibility means that

A)bottlenecks can be identified.
B)bottlenecks disappear.
C)bottlenecks can not be identified.
D)none of the above

Question 73

Group technology cells are associated with all of the following except

A)continuous process layouts.
B)product-oriented layouts.
C)families of parts.
D)hybrid layouts.
E)cellular layouts.

Question 74

Heuristics are methods for discovering solutions without computing every possible combination.Heuristics are guides for problem-solving and procedures for experimental learning.One of the most popular heuristics is the _____ technique with feedback to reward steps in the right direction.

A)matrix iteration
B)random walk
C)layout factorial
D)trial and error

Question 75

_____ permit the simultaneous evaluation of tangible and intangible costs.

A)Scoring models
B)Transportation models
C)Sensitivity analyses
D)Pure number models

Question 76

_____ is a systems breakeven value for the cost of layout improvement that takes into account quality,productivity,and employees' health.

A)CPI
B)OC
C)QI
D)HB
E)PI

Question 77

Location,structure,and site come as a package of tangible and intangible conditions that have costs.What are some of the costs?

A)opportunity cost of not relocating
B)temporary production stoppage costs
C)cost of land
D)all of the above

Question 78

Five basic types of layouts are identified in the text.Which of the following choices is not listed as a type of layout?

A)job shop process layouts
B)improvement layouts
C)cellular layouts
D)group technology layouts
E)product-oriented layouts

Question 79

_____ analysis is a model analogous to a ledger with dollar costs listed on one side and dollar equivalents for the benefits on the other side.

A)Cost-benefit
B)Net-benefit
C)Opportunity-benefit
D)Temporary production benefit

Question 80

_____ can be created with the goal of cost minimization or profit maximization.

A)Scoring models
B)Transportation models
C)Systems synthesis and analysis
D)Pure number models