Question 1

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

Accepted Answer

Labour laws are not directly related to the community or site where the business is located, but rather apply at the national or regional level. The other options, recreation facilities, cost of land, transportation systems, and medical facilities, are community/site-related considerations in location planning.

Question 2

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 can be used when the quantities to be shipped to each location are not necessarily equal. It takes into account the distance and weight of each shipment, and calculates the optimal location based on minimizing transportation costs.

Question 3

A location analysis has been narrowed down to two locations,A and B.The main factors in the decision will be supply of raw materials,which has a weight of .50,transportation cost,which has a weight of .40,and labour cost,which has a weight of .10.The ratings for raw materials,transportation,and labour are for A-60,80,and 70,respectively; for B-70,50,and 90,respectively.Given this information and a minimum acceptable composite score of 75,we can say that the manager should:
A)be indifferent between these locations.
B)choose location A.
C)choose location B.
D)reject both locations.

Accepted Answer

The answer of A location analysis has been narrowed down...

Question 4

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 is a significant factor that has caused problems for Canadian companies operating in foreign countries. Corruption can affect a company's ability to conduct business fairly and can lead to bribes, extortion, and other unethical practices. This can ultimately lead to legal, financial, and reputational damage for the company.

Question 5

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 multiple factors such as availability of labour, raw materials, transportation, market demand, taxes, regulations, and local community support. Depending on the type of industry, product or service, and company objectives, one or more factors may dominate the location decision. For example, if the product is highly perishable, proximity to the market may be critical, while if the product requires skilled labour, a location with a strong talent pool may be more important. Similarly, if the company aims to minimize costs, factors such as labour costs, taxes, and energy expenses may be paramount, while if the company wants to be seen as socially responsible, local community support and environmental factors may be more relevant. Therefore, the best choice is E, as none of the other statements accurately reflects the general situation for most location decisions.

Question 6

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) I
B) II
C) III
D) II and III
E) I, II, and III

Accepted Answer

Location decisions impact operating costs significantly, as they determine factors such as transportation costs, labor availability, and utility expenses. They are not typically made frequently, nor do they usually entail a short-term commitment.

Question 7

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

This method is called factor rating analysis and involves assigning weights to various location criteria, both quantitative and qualitative, and then scoring potential locations on each criterion. The scores are multiplied by their respective weights and added together to obtain a composite score for each location. This allows for a systematic and objective evaluation of location alternatives.

Question 8

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 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 selecting the final site. Maximizing the number of sites considered is not one of the basic steps in the location decision process.

Question 9

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 developing a list of potential locations. The starting point is determining the criteria that are important for the organization's strategic goals and objectives. Once the criteria are established, then a list of potential locations can be developed and evaluated against the criteria.

Question 10

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) none of the above.

Accepted Answer

Land and building costs are community/site-related factors because they are influenced by the specific location of the business. Factors such as local zoning laws, availability of land, supply and demand, and local building codes can all affect the cost of land and buildings in a given area. Therefore, when considering location options, a business must take into account these community/site-related factors to determine the best location for the business.

Question 11

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) Energy costs are low
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 listed are all potential reasons why foreign firms may choose to locate in Canada.

Question 12

The method for determining location alternatives which minimizes distribution costs is:
A) break-even analysis.
B) transportation method.
C) factor rating analysis.
D) linear regression.
E) centre of gravity method.

Accepted Answer

The centre of gravity method is the best choice for determining location alternatives which minimizes distribution costs as it considers the locations of customers, suppliers, and other resources, as well as the distances between them. It calculates the geographic centre of a set of locations and suggests locating the facility closest to this point. This method helps to minimize transportation costs and optimize the location of facilities.

Question 13

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.
E) none of the choices are factors.

Accepted Answer

These are considered regional factors as they pertain to the broader geographic area affecting the location decision.

Question 14

Which of the following are basic steps in the location decision process?
I.Identify important search parameters and factors
II.Gather information on appropriate sites
III.Visit short-listed sites
IV.Evaluate the alternatives and make a selection
A) II and III only.
B) I, II, and III only.
C) II, III, and IV only.
D) I, II only.
E) I, II, III, and IV

Accepted Answer

All four steps, identifying important search parameters and factors, gathering information on appropriate sites, visiting short-listed sites, and evaluating alternatives and making a selection, are basic steps in the location decision process.

Question 15

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

Factor rating takes into account both qualitative and quantitative factors when evaluating potential locations. This method assigns weights to various factors, such as labor costs or access to transportation, and then scores each potential location on those factors before adding up the scores to determine the best overall option.

Question 16

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 mathematical technique commonly used in location planning, particularly for determining the optimal location of a distribution centre based on the location of demand points or supply points.

Question 17

Which of the following are community/site-related considerations in location decisions?
I.Location of raw materials.
II.Labour laws.
III.Land prices.
IV.Room for expansion.
A) I, II
B) I, III
C) III, IV
D) I, III, IV
E) I, II, III, IV

Accepted Answer

Land prices and room for expansion are directly related to the community or site where a business is located, affecting the feasibility and cost of setting up operations.

Question 18

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 evaluate location alternatives that minimize shipping costs between multiple sending and receiving locations. It takes into account the distances between the locations, the transportation costs, and the volume of goods being transported. Therefore, it is the best choice for this situation.

Question 19

In location planning,land prices,transportation types,and taxes are:
A) regional/country factors.
B) community/site-related factors.
C) market factors.
D) irrelevant factors.
E) none of the choices.

Accepted Answer

Land prices, transportation types, and taxes are all community/site-related factors that need to be considered in location planning. Community/site-related factors relate directly to the specific location being considered and can have a significant impact on the success of a business in that area.

Question 20

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.

Quiz 8: A: Location Planning and Analysis

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

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

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

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

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

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

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

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

In location planning,land and building costs are considered:

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

The method for determining location alternatives which minimizes distribution costs is:

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

Which of the following are basic steps in the location decision process? I.Identify important search parameters and factors II.Gather information on appropriate sites III.Visit short-listed sites IV.Evaluate the alternatives and make a selection

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 are community/site-related considerations in location decisions? I.Location of raw materials. II.Labour laws. III.Land prices. IV.Room for expansion.

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

In location planning,land prices,transportation types,and taxes are:

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