Question 1

Service location strategies and goods-producing location strategies rely on very different sets of assumptions.What are the assumptions associated with goods-producing locations? How do these assumptions lead to a location strategy?

Accepted Answer

The answer of Service location strategies and goods-producing location strategies...

Question 2

Which of the following is NOT one of the predictive variables chosen by the profitability regression model used by La Quinta Inns?
A)the price of the inn
B)median income levels
C)the state population per inn
D)the location of nearby colleges
E)the number of inns in a region

Accepted Answer

The answer of Which of the following is NOT one...

Question 3

How do service facility location decisions differ from industrial location decisions in terms of the techniques used to analyze them?

Accepted Answer

The answer of How do service facility location decisions differ...

Question 4

Location analysis techniques typically employed by service organizations include:
A)the factor rating method.
B)the center-of-gravity method.
C)purchasing power analysis of area.
D)traffic counts.
E)all of the above.

Accepted Answer

All of the above techniques are typically employed by service organizations for location analysis. The factor rating method is used for evaluating multiple factors and assigning weights to each of them to determine the best location. The center-of-gravity method is used to determine the optimal location based on the location of existing facilities and the demand for services. Purchasing power analysis of an area is used to assess the economic and financial viability of a location. Traffic counts are used to determine the volume and patterns of traffic in the area, which can impact the accessibility and visibility of the service location. Therefore, all of these techniques are important and commonly used in location analysis by service organizations.

Question 5

Which of the following assumptions is NOT associated with strategies for goods-producing location decisions?
A)Most major costs can be identified explicitly for each site.
B)Focus on identifiable costs.
C)High customer-contact issues are critical.
D)Intangible costs can be evaluated.
E)Location is a major determinant of cost.

Accepted Answer

High customer-contact issues are typically associated with service-producing location decisions, not goods-producing location decisions. Goods-producing location decisions focus more on tangible factors such as cost and proximity to raw materials and transportation.

Question 6

Which of the following is most likely to affect the location strategy of a manufacturing firm?
A)appearance/image of the area
B)utility costs
C)purchasing power of drawing area
D)competition in the area
E)parking availability

Accepted Answer

Utility costs are a significant factor for manufacturing firms due to their high energy consumption, directly affecting operational costs and profitability.

Question 7

Traffic counts and purchasing power analysis of drawing area are techniques associated with:
A)locational cost-volume analysis.
B)a manufacturing location decision.
C)a retail or professional service location decision.
D)the factor-rating method.
E)the transportation model.

Accepted Answer

Traffic counts and purchasing power analysis are both techniques used in analyzing potential locations for retail or professional services. Locational cost-volume analysis and the factor-rating method are also used in location analysis, but do not specifically involve traffic and purchasing power. The transportation model is a mathematical model used in supply chain management and logistics, and is not related to location analysis.

Question 8

Which of the following is a location analysis technique typically employed by a service organization?
A)purchasing power analysis
B)linear programming
C)queuing theory
D)transportation method
E)locational cost-volume analysis

Accepted Answer

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

Question 9

Databases containing such variables as street maps,utilities,population age and income,and the software that analyzes such data for location decisions,are referred to as ________.

Accepted Answer

The answer of Databases containing such variables as street maps,utilities,population...

Question 10

Which of the following is a location analysis technique typically employed by a manufacturing organization?
A)transportation method
B)queuing theory
C)correlation analysis and traffic counts
D)simulation
E)demographic analysis

Accepted Answer

Transportation method is a location analysis technique that deals with finding the optimal location to minimize transportation costs and maximize distribution efficiency. It is commonly used by manufacturing organizations that have to transport their goods from the production site to the customers.

Question 11

What describes a system that stores and displays information that can be linked to a geographic location?
A)AIS
B)LOC
C)GLOC
D)LIS
E)GIS

Accepted Answer

GIS stands for Geographic Information System, which is a system that stores and displays information linked to a geographic location. AIS refers to Automatic Identification System used for ship tracking, LOC may refer to location but it is not specific to geographic location and may refer to other types of locations, and LIS may refer to various types of information systems but not necessarily ones linked to geographic location. GLOC is not a commonly used term in this context.

Question 12

Industrial firms choose locations that minimize cost,but service firms look for locations with good demographics and traffic count because these variables are indicators of good ________.

Accepted Answer

The answer of Industrial firms choose locations that minimize cost,but...

Question 13

Which of the following is among the eight determinants of revenue and volume for a service firm?
A)uniqueness of the firm's and the competitors' locations
B)quality of the competition
C)quality of management
D)purchasing power of the customer-drawing area
E)all of the above

Accepted Answer

The answer of Which of the following is among the...

Question 14

A jewelry store is more likely than a jewelry manufacturer to consider ________ in making a location decision.
A)transportation costs
B)cost of raw materials
C)appearance/image of the location
D)quality of life
E)taxes

Accepted Answer

A jewelry store is more concerned with the appearance and image of the location as it directly influences the perception of the quality and value of their products to potential customers. Transportation costs, cost of raw materials, quality of life, and taxes are more likely to be major considerations for a jewelry manufacturer.

Question 15

Geographic information systems can assist the location decision by:
A)automating center-of-gravity problems.
B)computerizing factor-rating analysis.
C)combining geography with demographic analysis.
D)updating transportation method solutions.
E)providing good Internet placement for virtual storefronts.

Accepted Answer

Geographic information systems can be useful in combining geographical data with demographic analysis to support location decisions. While automating center-of-gravity problems and updating transportation methods can be aided by GIS, factor-rating analysis is not necessarily linked to geographical information, and providing good Internet placement for virtual storefronts is not a direct function of GIS.

Question 16

Identify the four predictive variables chosen by the profitability regression model used by La Quinta Inns.Identify some that were tested but not included in the final model.

Accepted Answer

The answer of Identify the four predictive variables chosen by...

Question 17

Which of the following is most likely to affect the location decision of a service firm rather than a manufacturing firm?
A)energy and utility costs
B)attitude toward unions
C)parking and access
D)cost of shipping finished goods
E)labor costs

Accepted Answer

Parking and access are more important for a service firm as customers often need to visit the location of the firm to receive the service. In contrast, manufacturing firms can relocate to areas with cheaper energy and utility costs or labor costs, or closer to shipping locations to reduce shipping costs. Attitude toward unions may affect both service and manufacturing firms, while the cost of shipping finished goods is more relevant for manufacturing firms.

Question 18

Which of the following is NOT among the eight determinants of revenue and volume for a service firm?
A)quality of management
B)shipment cost of finished goods
C)purchasing power of the customer-drawing area
D)uniqueness of the firm's and the competitors' locations
E)competition in the area

Accepted Answer

The shipment cost of finished goods is not relevant to the revenue and volume determinants for a service firm, as they do not typically deal with physical products. The other options listed are all factors that can impact a service firm's revenue and volume.

Question 19

Traffic counts and demographic analysis of drawing area are associated with:
A)the center-of-gravity method.
B)manufacturing location decisions.
C)service location decisions.
D)the transportation model.
E)locational cost-volume analysis.

Accepted Answer

Traffic counts and demographic analysis are useful for making service location decisions, such as where to open a retail store or restaurant. They can help determine the potential customer base and level of demand in a particular area. The center-of-gravity method is used to find the optimal location for a facility based on the location of existing facilities and customer demand. Manufacturing location decisions and the transportation model typically focus more on factors such as cost and transportation efficiency, while locational cost-volume analysis considers how the cost and revenue of a facility change based on its location.

Question 20

La Quinta Inns has a competitive edge over its rivals because it:
A)uses regression analysis to determine which variables most influence profitability.
B)has better television advertisements.
C)picks larger locations than its rivals.
D)builds only along interstate highways.
E)consistently receives four-star ratings for its inns.

Accepted Answer

La Quinta Inns uses regression analysis to identify the variables that most significantly impact profitability, giving them a competitive advantage by allowing them to make data-driven decisions to enhance their operations and financial performance.

Quiz 9: Location Strategies

Service location strategies and goods-producing location strategies rely on very different sets of assumptions.What are the assumptions associated with goods-producing locations? How do these assumptions lead to a location strategy?

Which of the following is NOT one of the predictive variables chosen by the profitability regression model used by La Quinta Inns?

How do service facility location decisions differ from industrial location decisions in terms of the techniques used to analyze them?

Location analysis techniques typically employed by service organizations include:

Which of the following assumptions is NOT associated with strategies for goods-producing location decisions?

Which of the following is most likely to affect the location strategy of a manufacturing firm?

Traffic counts and purchasing power analysis of drawing area are techniques associated with:

Which of the following is a location analysis technique typically employed by a service organization?

Databases containing such variables as street maps,utilities,population age and income,and the software that analyzes such data for location decisions,are referred to as ________.

Which of the following is a location analysis technique typically employed by a manufacturing organization?

What describes a system that stores and displays information that can be linked to a geographic location?

Industrial firms choose locations that minimize cost,but service firms look for locations with good demographics and traffic count because these variables are indicators of good ________.

Which of the following is among the eight determinants of revenue and volume for a service firm?

A jewelry store is more likely than a jewelry manufacturer to consider ________ in making a location decision.

Geographic information systems can assist the location decision by:

Identify the four predictive variables chosen by the profitability regression model used by La Quinta Inns.Identify some that were tested but not included in the final model.

Which of the following is most likely to affect the location decision of a service firm rather than a manufacturing firm?

Which of the following is NOT among the eight determinants of revenue and volume for a service firm?

Traffic counts and demographic analysis of drawing area are associated with:

La Quinta Inns has a competitive edge over its rivals because it: