Question 1

Location choice I has monthly fixed costs of $100,000 and per-unit variable costs of $10.Location choice J has monthly fixed costs of $150,000 and per-unit variable costs of $9.At what volume would these locations have equal total costs?

Accepted Answer

The answer of Location choice I has monthly fixed costs...

Question 2

Which of the following is least important as a consideration for a firm at the beginning of a supply chain?

Accepted Answer

At the beginning of the supply chain, the focus is on securing the necessary resources and raw materials for production. Access to end consumers becomes important later in the supply chain when the focus shifts to distribution and marketing. Therefore, access to end consumers is the least important consideration at the beginning of a supply chain.

Question 3

If the annual demand will be 20,000 units, what would be the cost advantage of the better location?

Accepted Answer

The answer of If the annual demand will be 20,000...

Question 4

If the amount of fabric shipped to each plant is equal, what is the optimal location for the fabric plant?

Accepted Answer

The answer of If the amount of fabric shipped to...

Question 5

If weekly shipments to each warehouse will be approximately equal, what is the optimal location for the distribution center?

Accepted Answer

The optimal location for the distribution center is the geometric center of the warehouses, assuming equal shipments to each. The point (5, 5) is the center of the given options.

Question 6

For the preferred site for 20,000 units per year, what would be your cost savings compared to each of the other two sites?
C.

Accepted Answer

The answer of For the preferred site for 20,000 units...

Question 7

Which of the following circumstances would be least likely to lead to a need for a new location?

Accepted Answer

When the demand is met by existing capacity, there is no need for a new location. Shifting of markets (A), depletion of basic inputs (B), the need to expand into new markets (D), and the opportunity to take advantage of globalization trends (E) can all lead to a need for a new location.

Question 8

If the decisions rule is to select the location with the greatest composite score exceeding 80, management should choose:

Accepted Answer

The answer of If the decisions rule is to select...

Question 9

Weekly shipments to each warehouse will be: WH1, 100; WH2, 150; WH3, 120; WH4, 150; and WH5, 120.What is the optimal location of the distribution center?

Accepted Answer

To find the optimal location of the distribution center, we need to calculate the weighted center of gravity (WCG). WCG = ((Σ (Xi * Wi)) / ΣWi, where Xi is the x-coordinate of the warehouse and Wi is the weight of the shipment to that warehouse.

Calculating WCG: 
((4.6 * 100) + (4.9 * 150) + (4.4 * 120) + (5.2 * 150) + (5.1 * 120)) / (100 + 150 + 120 + 150 + 120) = 4.968

Therefore, the optimal location of the distribution center is closest to coordinates (5.1, 5.1). Since this is not an option, we choose the closest available option, which is C (5.1, 5.1)

Question 10

What would the total annual costs be for the Phoenix location with an annual output of 10,000 units?

Accepted Answer

The answer of What would the total annual costs be...

Question 11

If annual demand is estimated to be 20,000 units, which location should the company select?

Accepted Answer

The answer of If annual demand is estimated to be...

Question 12

If the selection criteria is to be the greatest composite score, management should choose:

Accepted Answer

The answer of If the selection criteria is to be...

Question 13

Location choice I has monthly fixed costs of $100,000 and per-unit variable costs of $10.What would its total cost be at a monthly volume of 250 units?

Accepted Answer

The answer of Location choice I has monthly fixed costs...

Question 14

Shipments of fabric to each plant vary per week as follows: plant A, 200 units; plant B, 400 units; plant C, 300 units; plant D, 300 units; and plant E, 200 units.What is the optimal location for the fabric plant?

Accepted Answer

The answer of Shipments of fabric to each plant vary...

Question 15

What is the composite score for location C?

Accepted Answer

The composite score for location C is 76. This is the average of the three scores for location C: 78, 75, and 73.

Question 16

At what annual output would the company be indifferent between the two locations?

Accepted Answer

The answer of At what annual output would the company...

Question 17

What is the composite score for location B?

Accepted Answer

The answer of What is the composite score for location...

Question 18

Location choice I has monthly fixed costs of $100,000 and per-unit variable costs of $10.What would its total cost be at a monthly volume of 550 units?

Accepted Answer

The answer of Location choice I has monthly fixed costs...

Question 19

What is the composite score for location A?

Accepted Answer

The answer of What is the composite score for location...

Question 20

What would be the total annual costs at the point of indifference?

Accepted Answer

The answer of What would be the total annual costs...

Quiz 8: Location Planning and Analysis

Location choice I has monthly fixed costs of $100,000 and per-unit variable costs of $10.Location choice J has monthly fixed costs of $150,000 and per-unit variable costs of $9.At what volume would these locations have equal total costs?

Which of the following is least important as a consideration for a firm at the beginning of a supply chain?

If the annual demand will be 20,000 units, what would be the cost advantage of the better location?

If the amount of fabric shipped to each plant is equal, what is the optimal location for the fabric plant?

If weekly shipments to each warehouse will be approximately equal, what is the optimal location for the distribution center?

For the preferred site for 20,000 units per year, what would be your cost savings compared to each of the other two sites? C.

Which of the following circumstances would be least likely to lead to a need for a new location?

If the decisions rule is to select the location with the greatest composite score exceeding 80, management should choose:

Weekly shipments to each warehouse will be: WH1, 100; WH2, 150; WH3, 120; WH4, 150; and WH5, 120.What is the optimal location of the distribution center?

What would the total annual costs be for the Phoenix location with an annual output of 10,000 units?

If annual demand is estimated to be 20,000 units, which location should the company select?

If the selection criteria is to be the greatest composite score, management should choose:

Location choice I has monthly fixed costs of $100,000 and per-unit variable costs of $10.What would its total cost be at a monthly volume of 250 units?

Shipments of fabric to each plant vary per week as follows: plant A, 200 units; plant B, 400 units; plant C, 300 units; plant D, 300 units; and plant E, 200 units.What is the optimal location for the fabric plant?

What is the composite score for location C?

At what annual output would the company be indifferent between the two locations?

What is the composite score for location B?

Location choice I has monthly fixed costs of $100,000 and per-unit variable costs of $10.What would its total cost be at a monthly volume of 550 units?

What is the composite score for location A?

What would be the total annual costs at the point of indifference?