Question 1

Which issue is not addressed by the transportation model?

Accepted Answer

The transportation model deals with optimizing the flow of goods from sources to destinations, and considers factors such as transportation costs and the number of sources and destinations. However, it does not address the issue of renting or building facilities for transportation, which falls under the realm of logistics and supply chain management.

Question 2

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

Accepted Answer

In transportation model terminology, those that receive shipments are referred to as "sinks" or "destinations," making both B and C correct.

Question 3

Choosing the location of a plant is crucial because

Accepted Answer

All of the above options are important factors to consider when choosing the location of a plant. Availability of skilled labor, proximity to both suppliers and markets, as well as tax laws, can all have a significant impact on the success and profitability of a plant. Therefore, it is crucial to consider all these factors when making a decision on plant location.

Question 4

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.

Accepted Answer

The notation for transportation matrix entries uses the convention of i representing the factory plants and j representing the markets. Therefore, option B (i;j) is the best choice as it follows this convention. Option C (j;i) would be incorrect, as it represents markets to factory plants instead of the opposite direction stated in the question. Options A (A;B) and D (B;A) do not follow the conventional notation of using i and j, and therefore are not as appropriate as option B.

Question 5

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

Accepted Answer

The three-step procedure to obtain minimum total transport costs should start with a feasible solution, followed by selecting the biggest cost-reduction change in shipments, and then shipping as many units as possible. This process should be repeated until no further cost reductions are possible. Therefore, Choice A is the correct answer.

Question 6

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

Accepted Answer

Customers of service systems typically do not consider the municipal taxes paid by a company as a factor when selecting a location for the service. Rather, they are generally more concerned with the price, proximity, and convenience of the location. The cost of moving to and from the location can also be a consideration, depending on the nature of the service being provided.

Question 7

What factor(s) can affect location decisions?

Accepted Answer

All of the factors listed (taxes, process inputs and outputs, personal preferences) can affect location decisions. Taxes can affect the cost of doing business in a certain location, process inputs and outputs can impact efficiency and productivity, and personal preferences can play a role in decisions such as where to live or where to locate a business. Therefore, all of these factors should be considered in making location decisions.

Question 8

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

Accepted Answer

Starting with a feasible solution that balances supply and demand ensures that the initial solution is valid. Then, we select the highest-profit, nonassigned cell and ship as many units as possible to increase total profit. Finally, we evaluate changes until profit cannot be increased any further. This 4-step procedure is known as the "basic feasible solution method" for linear programming problems.

Question 9

Choice of a specific building is often best decided after the

Accepted Answer

The location is an important factor in choosing a building because factors such as zoning regulations, accessibility, and proximity to suppliers and customers can greatly influence the success of a business. Once the location is chosen, a suitable building can then be identified based on factors such as size, layout, and cost.

Question 10

What is the shipment allocation constraint rule?

Accepted Answer

The shipment allocation constraint rule is M + N - 1, where M represents the number of sources and N represents the number of destinations. This rule states that the number of shipments that can be allocated cannot exceed the total number of sources and destinations minus one. This is because the last shipment can be determined by subtracting the sum of all other shipments from the total capacity. Therefore, the best choice is C, which correctly represents the shipment allocation constraint rule.

Question 11

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

Accepted Answer

The symbol used for the dummy market is MD, not DM or any of the other options. Additionally, the dummy market takes up the slack between supply and demand, which aligns with option B. Option C is incorrect because MM is not used as the symbol for the dummy market. Option D is incorrect because "demand and supply" is the reverse order of the correct phrase, "supply and demand."

Question 12

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

Accepted Answer

Plants may produce output units at different costs due to a variety of factors including different types of processes (which can affect efficiency and cost), differences in tax, tariff, and government regulation (which can affect the financial burden on production), and different labor and material costs (which directly affect the cost of production). Therefore, all the given options (A, B, and C) are valid explanations.

Question 13

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

Accepted Answer

The answer of Relocation and moving costs can be added...

Question 14

What markets want to buy is known as

Accepted Answer

What markets want to buy is known as demand. Supply refers to what producers want to sell. Supply and demand are two opposing forces that determine prices and quantities in the market. Therefore, the correct answer is B, demand.

Question 15

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

Accepted Answer

Sources or Origins in the transportation model refer to locations that ship goods or products. Therefore, shippers are the best choice for this terminology. Sinks or destinations refer to locations that receive goods or products. Marketers do not apply to the transportation model.

Question 16

Services are strongly affected by

Accepted Answer

All of the given choices can strongly affect the services provided by a facility. Other factors such as staff training, customer service, pricing, and competition can also have a significant impact.

Question 17

Which is not a component of facilities planning?

Accepted Answer

Language spoken is not a component of facilities planning. The other options (location, equipment, layout of equipment and people, and structure and site) are all key components that need to be considered in facilities planning.

Question 18

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

Accepted Answer

The location of a facility is crucial for its operations and productivity. The characteristics of the facility itself, including its plant layout, are closely tied to the quality and efficiency of its products and services. The distance traveled and demand/supply systems may also be factors, but they are not directly related to the function and quality of the facility's products and services. Therefore, choice B is the best answer.

Question 19

The Transportation Model can include

Accepted Answer

The Transportation Model takes into account transportation costs, price differences in markets, and production efficiency differentials, hence all of the above are included in the model.

Question 20

Suboptimization is best described as

Accepted Answer

Suboptimization refers to achieving results that do not fully align with the objectives that drive strategies. This can occur when individual departments or units focus only on their own goals without considering the larger picture or overarching organizational objectives.

Quiz 11: Facilities Planning: Location and Layout