Question 1

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 more relevant for service-providing location decisions, rather than goods-producing location decisions.

Question 2

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 3

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 4

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 5

Location decisions of goods-producing companies often assume that costs are relatively constant for a given area;therefore,the revenue function is critical.

Accepted Answer

Location decisions for goods-producing companies often consider both costs and revenues since costs can significantly vary by area due to factors such as labor, materials, taxes, and transportation.

Question 6

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 commonly used in retail or professional service location decisions, as they help businesses determine the potential customer base and sales volume for a given area. Locational cost-volume analysis, the factor-rating method, and the transportation model are all different techniques used in location analysis, but they do not specifically involve traffic counts or purchasing power analysis. Manufacturing location decisions may involve factors such as labor costs and proximity to suppliers, but traffic counts and purchasing power analysis are not typically as relevant in this context.

Question 7

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 combine geography and demographic analysis to provide valuable insights for location decisions. This can include analyzing population density, income levels, consumer behavior, and more within a specific geographic area. This information can help businesses determine the optimal location for their operations. While GIS can automate center-of-gravity problems and provide transportation solutions, these features may not be as directly applicable to the location decision as demographic analysis. Factor-rating analysis and internet placement are also not directly related to GIS capabilities for location decisions.

Question 8

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 9

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

Service organizations typically use a combination of location analysis techniques to determine the best location for their facility or store. The factor rating method helps to identify the most favorable location based on a set of selected factors such as labor costs, availability of skilled workers, proximity to suppliers or customers, and transportation costs. The center-of-gravity method helps to identify the optimal location by taking into account the location of existing facilities, demand centers, and transportation costs. Purchasing power analysis of an area helps to understand the potential customer base, their income levels, and buying habits. Traffic counts provide an understanding of the volume and type of traffic in a particular location, helping organizations select sites with heavy traffic and easy accessibility. Therefore, all of the above techniques are typically employed by service organizations.

Question 10

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 of drawing area are most commonly associated with service location decisions, as they can help in the identification of the most appropriate areas for businesses such as retail stores, restaurants, and healthcare facilities. The center-of-gravity method, manufacturing location decisions, the transportation model, and locational cost-volume analysis are more commonly used in manufacturing and logistics decision making.

Question 11

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 12

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 relevant factors for the location decision for a service firm, since customers need to be able to easily access the location for the service they are seeking. Manufacturing firms often focus more on cost factors like labor and shipping.

Question 13

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 14

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.

Question 15

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

Shipment cost of finished goods is not a determinant of revenue and volume for a service firm because service firms do not typically deal with finished goods that require shipment. They provide intangible services directly to customers. The other options listed are all determinants of revenue and volume for a service firm.

Question 16

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

Appearance/image of the location is more important for a jewelry store as it can attract more customers and create a luxurious and exclusive atmosphere for their products. Manufacturing costs and transportation costs are more significant for a jewelry manufacturer, while quality of life and taxes are not directly related to the location decision for a jewelry business.

Question 17

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 18

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

A GIS (Geographic Information System) is a system that stores and displays information that can be linked to a geographic location. It allows users to analyze and visualize geographic data and make informed decisions based on that information. AIS (Automatic Identification System) is a system used for tracking ships and marine traffic, LOC and GLOC are not commonly used acronyms in the GIS industry, and LIS (Library Information System) is a system used for managing library materials.

Question 19

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 20

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

All the options listed are among the determinants of revenue and volume for a service firm, as they all influence customer attraction and retention.

Quiz 8: Location Strategies

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

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

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?

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 ________.

Location decisions of goods-producing companies often assume that costs are relatively constant for a given area;therefore,the revenue function is critical.

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

Geographic information systems can assist the location decision by:

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

Location analysis techniques typically employed by service organizations include:

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

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?

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

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

Which of the following is NOT 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.

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

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

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

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