Question 1

DHL and United Parcel Service are transportation companies that are prohibited from functioning as a third-party logistics company the way Federal Express does.

Accepted Answer

The answer of DHL and United Parcel Service are transportation...

Question 2

Which of the following is a criterion that influences manufacturing plant or warehouse facility location decisions?

Accepted Answer

The answer of Which of the following is a criterion...

Question 3

In a hub-and-spoke system each warehouse in the system acts as a spoke.

Accepted Answer

In a hub-and-spoke system, there is a central distribution center or hub, and various smaller warehouses or distribution centers that act as spokes, connecting to the hub for transportation and logistics coordination.

Question 4

Facility location decisions are made using analytical techniques that are able to weigh a large number of different variables equally.

Accepted Answer

Facility location decisions often involve weighing various factors that are not equal in importance, such as transportation costs, labor availability, and access to markets. Analytical techniques are used to analyze and compare these factors, but they do not necessarily treat them as equally important.

Question 5

One of the objectives of facility location analysis is to select a site with the lowest total cost.Which of the following costs should not be included in the analysis?

Accepted Answer

Incidental costs should be included in the analysis as they are costs that could have a significant impact on the overall total cost. Outbound distribution costs, energy costs, hidden costs, and taxes should all be considered as they directly contribute to the operational costs of the facility location.

Question 6

One of the objectives of facility location analysis is to select a site with the lowest total cost.Which of the following are hidden costs that should be included in the analysis?

Accepted Answer

The answer of One of the objectives of facility location...

Question 7

One of the objectives of facility location analysis is to select a site with the lowest total cost.Which of the following costs should be excluded from the analysis?

Accepted Answer

Historical costs are past expenses and have no relevance to the decision-making process for facility location. Therefore, they should be excluded from the analysis. Inbound distribution costs, land, construction, and regional costs are all relevant factors to consider when determining the total cost of a facility location.

Question 8

Which of the following is not a criterion that influences manufacturing plant or warehouse facility location decisions?

Accepted Answer

Gross national product is not a criterion that influences manufacturing plant or warehouse facility location decisions. The other options (suppliers, free trade zones, political risk, tariffs and customs duties) are all factors that businesses consider when selecting a location for their manufacturing plant or warehouse facility. Gross national product is a measure of a country's economic output and is not a direct factor in location decisions.

Question 9

third-party logistics company is a firm that manages all or part of another company's product delivery operations.

Accepted Answer

A third-party logistics company (3PL) is indeed a firm that provides outsourced logistics services to other companies, which may include transportation, warehousing, and other aspects of the supply chain.

Question 10

Services typically have multiple site locations to maintain close contact with customers.

Accepted Answer

Yes, services often have multiple site locations, such as retail stores or offices, to maintain close proximity to customers and provide convenient access to their services.

Question 11

Cross-docking is a practice used in the international shipping industry that facilitates port utilization.

Accepted Answer

Cross-docking is a logistics practice where products received at a warehouse or distribution center are not stored but instead are immediately prepared for shipment to another location, reducing storage time and costs. It is not specifically related to international shipping or port utilization.

Question 12

Which of the following is not a criterion that influences manufacturing plant or warehouse facility location decisions?

Accepted Answer

Immigration rules do not typically influence manufacturing plant or warehouse facility location decisions since these rules primarily affect individuals rather than business operations. The other criteria listed (government barriers, trading blocs, environmental regulation, and local labor costs) can all have significant impacts on where a facility is located.

Question 13

The Association for Operations Management defines logistics as "the art and science of obtaining,producing,and distributing material and product in the proper place and in proper quantities."

Accepted Answer

This definition of logistics is directly quoted from the Association for Operations Management.

Question 14

One of the objectives in facility location analysis is to select a site with the lowest total cost.Which of the following costs are hidden costs that should be included in the analysis?

Accepted Answer

The answer of One of the objectives in facility location...

Question 15

major problem in a plant location decision based on the factor-rating system is that simple point-rating schemes do not account for the wide variance of costs that may occur within each factor used in the analysis.

Accepted Answer

Simple point-rating systems do not take into account the potential variation in costs that can occur within each factor used in the decision-making process, which can result in biased or inaccurate evaluations.

Question 16

Hub-and-spoke systems combine the idea of consolidation and that of cross docking.

Accepted Answer

Hub-and-spoke systems involve consolidating shipments from various origins and then cross docking them at a central hub facility before dispatching them to their final destinations. Therefore, the statement is true.

Question 17

Cross-docking is an approach used in consolidation warehouses,where large shipments are broken down into small shipments for local delivery in an area.

Accepted Answer

Cross-docking refers to the process of transferring goods from inbound vehicles directly to outbound vehicles with little or no storage in between. It is commonly used in consolidation warehouses to break down large shipments into smaller ones for local delivery.

Question 18

Which of the following is not a criterion that influences manufacturing plant or warehouse facility location decisions?

Accepted Answer

Historical cost is not a criterion that influences manufacturing plant or warehouse facility location decisions. The other options listed are all important factors to consider when making location decisions. Proximity to customers can reduce transportation costs and provide better customer service, the infrastructure of a country can affect the ease of shipping and receiving goods, the quality of labor can impact productivity and efficiency, and the business climate can affect taxes, regulations, and other factors that influence the costs and ease of doing business.

Question 19

In facility location decision making the factor-rating system is based on linear programming.

Accepted Answer

The factor-rating system is not based on linear programming. It is a qualitative method that involves assigning weights to different factors and rating potential locations based on how well they meet the criteria. Linear programming is a mathematical optimization technique that is often used in facility location decision making, but it is not directly related to the factor-rating system.

Question 20

An important issue in facility location analysis is business climate.An unfavorable business climate could be indicated by which of the following?

Accepted Answer

The willingness of local politicians to provide favorable treatment for a consideration suggests corruption and an unfavorable business environment. The other options do not necessarily indicate an unfavorable business climate. Similar-sized businesses nearby could actually be beneficial, the presence of other foreign companies may indicate a favorable business environment, the local presence of companies in the same industry could be beneficial in terms of knowledge sharing and collaboration, and an established educational institution nearby could provide a skilled workforce.

Quiz 14: Location, Logistics and Distribution

DHL and United Parcel Service are transportation companies that are prohibited from functioning as a third-party logistics company the way Federal Express does.

Which of the following is a criterion that influences manufacturing plant or warehouse facility location decisions?

In a hub-and-spoke system each warehouse in the system acts as a spoke.

Facility location decisions are made using analytical techniques that are able to weigh a large number of different variables equally.

One of the objectives of facility location analysis is to select a site with the lowest total cost.Which of the following costs should not be included in the analysis?

One of the objectives of facility location analysis is to select a site with the lowest total cost.Which of the following are hidden costs that should be included in the analysis?

One of the objectives of facility location analysis is to select a site with the lowest total cost.Which of the following costs should be excluded from the analysis?

Which of the following is not a criterion that influences manufacturing plant or warehouse facility location decisions?

third-party logistics company is a firm that manages all or part of another company's product delivery operations.

Services typically have multiple site locations to maintain close contact with customers.

Cross-docking is a practice used in the international shipping industry that facilitates port utilization.

Which of the following is not a criterion that influences manufacturing plant or warehouse facility location decisions?

The Association for Operations Management defines logistics as "the art and science of obtaining,producing,and distributing material and product in the proper place and in proper quantities."

One of the objectives in facility location analysis is to select a site with the lowest total cost.Which of the following costs are hidden costs that should be included in the analysis?

major problem in a plant location decision based on the factor-rating system is that simple point-rating schemes do not account for the wide variance of costs that may occur within each factor used in the analysis.

Hub-and-spoke systems combine the idea of consolidation and that of cross docking.

Cross-docking is an approach used in consolidation warehouses,where large shipments are broken down into small shipments for local delivery in an area.

Which of the following is not a criterion that influences manufacturing plant or warehouse facility location decisions?

In facility location decision making the factor-rating system is based on linear programming.

An important issue in facility location analysis is business climate.An unfavorable business climate could be indicated by which of the following?