Question 1

In making a location decision, businesses seldom consider "quality of life" in various locations, because factors that influence quality of life have little or no impact on profits.

Accepted Answer

Many businesses do consider quality of life in their location decisions, as they recognize that it can impact their ability to attract and retain skilled workers, and therefore impact productivity and profitability in the long run. Additionally, businesses may consider factors such as crime rates, access to healthcare, and availability of recreational activities when making location decisions for the well-being of their employees.

Question 2

Operations management planning is concerned with finding the ideal location for a business and also with materials requirement planning. It leaves decisions about purchasing and inventory control to marketing.

Accepted Answer

Operations management planning includes purchasing and inventory control decisions, as these are integral to ensuring efficient and effective production processes.

Question 3

Seat-belts Unlimited, Inc. is located about 8 miles from two major auto assembly plants. The firm delivers seat-belts about every two hours to each of the plants. The assembly plants only accept the number of seat-belts that they will assemble into cars, during the next two hours after delivery. The auto plants embrace lean manufacturing.

Accepted Answer

The statement mentions that the auto plants embrace lean manufacturing. Lean manufacturing is a system of production that focuses on minimizing waste and maximizing efficiency, which is in line with the concept of accepting only the number of seat-belts that can be assembled into cars in the next two hours.

Question 4

Frolichstein Fabrics promotes itself as a specialty manufacturer that will produce according to customer specifications. This firm will probably be best served by using an intermittent process in production.

Accepted Answer

Intermittent processes are best suited for producing customized products since they allow for flexibility in production and can easily incorporate changes in the production process. This makes it ideal for Frolichstein Fabrics, which specializes in customer-specific products.

Question 5

Some companies will locate their production facilities near their suppliers.

Accepted Answer

Some companies prefer to locate their production facilities near their suppliers to reduce transportation costs and improve supply chain efficiency.

Question 6

Manufacturing firms that want to minimize time-to-market are likely to choose facility sites that give them easy access to their preferred modes of transportation.

Accepted Answer

This statement is true. Easy access to transportation can help manufacturing firms get their products to market faster, which can give them a competitive advantage.

Question 7

When it comes to location decisions, labor costs are no longer an important consideration for most manufacturing firms.

Accepted Answer

Labor costs are still a major consideration for most manufacturing firms when making location decisions, as they can significantly affect the cost of production and overall profitability.

Question 8

Although lean manufacturing attempts to reduce the amount of labor used in the manufacturing process, it typically does so by increasing the amount of most of the other resources used in the production process.

Accepted Answer

Lean manufacturing aims to reduce waste and maximize efficiency by streamlining the production process. This often involves implementing better systems for organizing materials and equipment, improving communication between workers, and standardizing work processes to reduce errors and increase productivity. While lean manufacturing may involve reducing the amount of labor needed for certain tasks, it generally does not aim to increase the use of other resources such as materials or energy. In fact, lean manufacturing often involves reducing the amount of raw materials and energy needed to produce goods, which can help to reduce overall costs and minimize environmental impact.

Question 9

Due to the growth of the Internet, the cost of labor is no longer an important consideration in location decisions of business firms.

Accepted Answer

While the Internet has made it easier for businesses to outsource and automate certain tasks, the cost of labor is still a crucial factor in location decisions. Other factors such as access to markets, infrastructure, and local regulations also play a role.

Question 10

Many state and local governments offer tax incentives and government services to attract businesses.

Accepted Answer

This statement is true. Many state and local governments use tax incentives and government services as a way to encourage businesses to locate or expand in their area. This can include offering tax breaks, subsidies, grants, and other forms of financial assistance, as well as providing infrastructure, workforce development programs, and other resources to support business growth.

Question 11

According to the Making Ethical Decisions box, titled, "Stay or Leave", by law a firm must give employees 60 days notice of a facility or plant closing.

Accepted Answer

The Making Ethical Decisions box states that by law, a firm must give employees 60 days notice of a facility or plant closing under the Worker Adjustment and Retraining Notification (WARN) Act.

Question 12

J & R Industries typically produces very large batches of standardized products used by plumbers, such as pipefittings and valves that must be produced in standard sizes. A continuous production process would work well for J & R.

Accepted Answer

A continuous production process is ideal for producing large quantities of standardized products. This allows for consistent quality and efficiency in production.

Question 13

Trace and Tim own a company that rehabs old houses. Prior to buying a house, they use software to create and design the renovation of each room. The program provides them with an estimation of how much of each kind of material is needed, and the orderly progression of tasks that need to be completed. Trace and Tim use computer-aided design.

Accepted Answer

The passage states that Trace and Tim use software to create and design the renovation of each room, and that the program provides them with an estimation of how much of each kind of material is needed and the order of tasks that need to be completed. This is an indication that they use computer-aided design.

Question 14

Computers and robots are only useful in continuous production processes where the same type of product is produced many times.

Accepted Answer

While computers and robots can be useful in repetitive production processes, they are also used in a wide range of other industries and applications, such as data analysis, healthcare, and agriculture. They can be used for tasks that require precision, speed, and consistency, regardless of the nature of the product or service being produced.

Question 15

When considering the issue of facility location, it is important to find an isolated location so that work can get done without interruption from customers.

Accepted Answer

When considering the issue of facility location, it is important to find a location that is easily accessible to customers and has good visibility. An isolated location may not attract enough customers and can harm the business.

Question 16

Alice's Cookie Company makes a variety of cookies for corporate accounts and restaurants. On a good day, the orders can range from 600 - 800 cookies, with a variety of uniqueness, although the company is known for delicate shortbread and butter cookies. Some cookies have round shapes, but other are elongated rectangles, and yet others are triangles. The bakers can quickly change the cookie cutting machine to reflect the orders for the day, while computers program the ovens to make those cookies the light golden color they are known for across town. Refrigeration is also computer controlled. Alice's Cookie Company embraces flexible manufacturing and mass customization.

Accepted Answer

The passage states that Alice's Cookie Company uses flexible manufacturing and mass customization to accommodate a variety of cookie orders. It also mentions the use of computer-controlled machinery and refrigeration. Therefore, the statement is true.

Question 17

The Internet is a very popular place to locate your business today.

Accepted Answer

The Internet is a highly popular platform for businesses to operate and advertise on.

Question 18

Facility location is the process of selecting a geographic location for a company's operations.

Accepted Answer

Facility location is indeed the process of selecting a geographic location for a company's operations.

Question 19

The Cooldaze Ice Company compresses carbon dioxide and cools it to a very low temperature to make dry ice. The method used by Cooldaze is an example of process manufacturing.

Accepted Answer

Process manufacturing involves transforming raw materials into finished goods using a specific process, often involving a chemical reaction or physical change. The process used by Cooldaze to create dry ice fits this definition, as they are taking carbon dioxide and transforming it through compression and cooling to create a new product.

Question 20

Featured Furnishings is a company that specializes in producing custom-made furniture. A continuous production process would be the most efficient way for Featured Furnishings to produce its products.

Accepted Answer

The answer of Featured Furnishings is a company that specializes...

Quiz 9: Production and Operations Management