Question 1

The Centre of Gravity Method is a computer-based tool for collecting,storing,retrieving,and displaying location-dependent demographic data on maps.

Accepted Answer

The Centre of Gravity Method is a quantitative technique used in logistics and supply chain management to find the most cost-effective location for a facility like a warehouse or factory, based on factors such as demand, supply, and transportation costs. It does not involve collecting, storing, retrieving, and displaying demographic data on maps.

Question 2

Which statement is not associated with the basic steps in the location decision process?
A)Eliminate some sites to develop a short list of three or four sites.
B)Identify important search parameters and factors.
C)Maximize the number of sites considered.
D)Visit short-listed sites.
E)Gather information on appropriate sites.

Accepted Answer

The location decision process is about finding the most suitable site for a particular purpose or operation, and maximizing the number of sites considered is not one of the basic steps. Rather, the process involves identifying important search parameters and factors, gathering information on appropriate sites, eliminating some sites to develop a short list of three or four sites, visiting short-listed sites, and finally making a decision based on the evaluation of the selected sites.

Question 3

Which of the following is not considered a reason for foreign firms to locate in Canada?
A)Decreased delivery time to Canadian customers
B)Access to Canadian natural resources
C)Canadian workers are well educated
D)Political stability
E)Lack of government involvement in location decisions

Accepted Answer

Lack of government involvement in location decisions is not considered a reason for foreign firms to locate in Canada. The other options, such as decreased delivery time to Canadian customers, access to Canadian natural resources, Canadian workers being well-educated, and political stability, are all valid reasons for foreign firms to choose Canada as a location to invest in.

Question 4

Which of the following is not a basic step in the location decision process?
A)Identify important search parameters and factors
B)Gather information on appropriate sites
C)Visit short-listed sites
D)Evaluate the alternatives and make a selection
E)Evaluate access to available technology.

Accepted Answer

While evaluating access to available technology is important in some businesses, it is not always considered to be a basic step in the location decision process. The other choices listed are all essential in making an informed location decision.

Question 5

The method for evaluating location alternatives which minimizes shipping costs between multiple sending and receiving locations is:
A)break-even analysis.
B)transportation method.
C)factor rating analysis.
D)linear regression.
E)a Voronoi polygon.

Accepted Answer

The transportation method is specifically designed to minimize shipping costs between multiple locations by considering the distance, capacity, and freight rates. This method considers all possible transportation routes and determines the most cost-effective option. Therefore, it is the best choice for evaluating location alternatives with a focus on minimizing transportation costs.

Question 6

In location planning,the location of raw materials,the location of markets and labour factors are considered:
A)regional factors.
B)community factors.
C)site-related factors.
D)the basis of negotiating government subsidies.

Accepted Answer

Regional factors include considerations such as the location of raw materials, markets, and labor, which are crucial in determining the optimal location for a business or manufacturing facility. These factors influence transportation costs, access to markets, and availability of a skilled workforce.

Question 7

Which of the following are Community/Site-Related Considerations in location decisions?
A)Location of raw materials.
B)Labour laws.
C)Room for expansion
D)location of markets
E)Labour productivity

Accepted Answer

The answer of Which of the following are Community/Site-Related Considerations...

Question 8

The method for evaluating location alternatives based on comparing composite (weighted-average)scores of both quantitative and qualitative criteria is:
A)break-even analysis.
B)transportation method.
C)factor rating analysis.
D)linear regression.
E)a Voronoi polygon.

Accepted Answer

The method described in the question is factor rating analysis, which involves determining a set of criteria or factors that are relevant to location selection, assigning weights to the factors based on their importance, and scoring each potential location on each factor. This results in a composite score for each location, which can be used to compare and evaluate alternatives. None of the other options listed involve this specific method.

Question 9

A trend in location strategies is the possibility that the future will see larger factories located in central locations.

Accepted Answer

The answer of A trend in location strategies is the...

Question 10

Which of the following is not categorized as a community/site-related consideration in location planning?
A)Labour laws
B)Recreation facilities
C)Education facilities
D)Transportation systems
E)Medical facilities

Accepted Answer

Labour laws are not categorized as a community/site-related consideration in location planning. The other options listed (recreation facilities, education facilities, transportation systems, and medical facilities) all relate to the community or site and are important factors to consider when selecting a location for a business.

Question 11

An approach to locational analysis that includes both qualitative and quantitative considerations is:
A)break-even analysis.
B)factor rating.
C)transportation method.
D)expected value.
E)a Voronoi polygon.

Accepted Answer

The factor rating approach to locational analysis considers both qualitative and quantitative factors to determine the best location for a facility. Qualitative factors such as proximity to suppliers, labor availability, and community support are given a numerical score and combined with quantitative factors such as transportation costs and market size to provide a comprehensive evaluation of potential locations. The other options listed focus primarily on quantitative analysis and do not consider qualitative factors to the same extent as the factor rating approach.

Question 12

The centre of gravity method is useful in location planning for the location of a distribution centre.

Accepted Answer

The centre of gravity method is a spatial decision making tool that provides an approximate location for a facility based on the locations of existing facilities and the volume of goods being transported between them. Therefore, it is useful in location planning for the location of a distribution centre.

Question 13

Which of the following is not an accurate statement concerning location decisions?
A)Location decisions are influenced by the availability of labour.
B)The starting point for location decision process is developing a list of potential locations.
C)Location decisions generally involve long-term commitments.
D)Visiting a number of potential sites is typically part of the location decision process.
E)An organization's position in the supply chain influences location decisions.

Accepted Answer

The starting point for location decision process is not necessarily developing a list of potential locations. It could also involve identifying the criteria for selecting a location, analyzing the factors that influence location choice, and evaluating the alternatives.

Question 14

Which of the following is least likely to be a country (national)factor in location decisions?
A)Location of raw materials
B)Markets
C)Government subsidies
D)Zoning/regulations
E)Labour factors

Accepted Answer

Zoning and regulations are typically local or regional factors rather than national factors in location decisions. National factors often include aspects like government subsidies, labor factors, location of raw materials, and markets, which impact the entire country rather than specific localities.

Question 15

The centre of gravity method of location planning can only be used when the quantities to be shipped to each location are equal.

Accepted Answer

The centre of gravity method of location planning can be used even when the quantities to be shipped to each location are different. The method takes into account the distance between locations and the amount of goods to be shipped, and calculates the optimal location based on minimizing transportation costs.

Question 16

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

Accepted Answer

Location decisions impact operating costs significantly, as the choice of location affects transportation, labor, and other operational expenses.

Question 17

Which of the following statements concerning location analysis best typifies the situation for most location decisions?
A)Regional and country level factors are more important than local community factors.
B)Local community factors are more important than regional and country level factors.
C)Availability of raw materials tends to be the dominant factor.
D)Labour costs tend to emerge as the dominant factor.
E)One or more factors stated dominate the decision.

Accepted Answer

Location analysis involves considering various factors such as availability of raw materials, labour costs, local community factors, regional and country level factors, and many more. However, in most cases, one or more factors tend to dominate the decision-making process. Therefore, the best choice is E, as no single factor can be universally considered as the most important factor in all location decisions.

Question 18

A factor that has caused problems for Canadian companies operating in foreign countries is:
A)tax laws.
B)raw materials.
C)corruption.
D)labour cost.
E)lack of markets.

Accepted Answer

Corruption can create an uneven playing field, hindering Canadian companies from competing fairly in foreign markets. This can lead to difficulties in securing contracts, obtaining necessary permits and approvals, and navigating local regulations. Additionally, corruption increases the risk of bribery and unethical practices, which can damage a company's reputation and subject them to legal repercussions.

Question 19

In location planning,land and building costs are considered:
A)regional factors.
B)community/site-related factors.
C)raw material considerations.
D)regional/country factors.
E)community

Accepted Answer

The answer of In location planning,land and building costs are...

Question 20

Companies locate near or at the source of their raw materials for three primary reasons: necessity,perishability,and transportation costs.

Accepted Answer

Companies often locate near or at the source of their raw materials due to the necessity of having access to those materials, the perishability of some materials that require quick transportation, and to reduce transportation costs.

Quiz 12: Location Planning and Analysis

The Centre of Gravity Method is a computer-based tool for collecting,storing,retrieving,and displaying location-dependent demographic data on maps.

Which statement is not associated with the basic steps in the location decision process?

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

Which of the following is not a basic step in the location decision process?

The method for evaluating location alternatives which minimizes shipping costs between multiple sending and receiving locations is:

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

Which of the following are Community/Site-Related Considerations in location decisions?

The method for evaluating location alternatives based on comparing composite (weighted-average) scores of both quantitative and qualitative criteria is:

A trend in location strategies is the possibility that the future will see larger factories located in central locations.

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

An approach to locational analysis that includes both qualitative and quantitative considerations is:

The centre of gravity method is useful in location planning for the location of a distribution centre.

Which of the following is not an accurate statement concerning location decisions?

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

The centre of gravity method of location planning can only be used when the quantities to be shipped to each location are equal.

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

Which of the following statements concerning location analysis best typifies the situation for most location decisions?

A factor that has caused problems for Canadian companies operating in foreign countries is:

In location planning,land and building costs are considered:

Companies locate near or at the source of their raw materials for three primary reasons: necessity,perishability,and transportation costs.