Question 1

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

Accepted Answer

Traffic counts and demographic analysis are used in service location decisions, as they provide insight into the potential customer base and traffic flow in the area. The center-of-gravity method is used in logistics and supply chain management to determine the optimal location for a distribution center. Manufacturing location decisions typically involve factors such as labor costs, proximity to suppliers, and access to transportation infrastructure. The transportation model is used to optimize transportation routes and costs. Locational cost-volume analysis is used to determine the break-even point for a particular location, taking into account costs, revenues, and volume of sales.

Question 2

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 3

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

Accepted Answer

GIS (Geographic Information System) is a system that stores, analyzes, and displays information that can be linked to a geographic location. It is used in many fields, such as urban planning, natural resource management, and emergency services. AIS (Automatic Identification System) is a system used in maritime navigation to track ships, but it does not necessarily store or display location-related information. LOC (Location) and GLOC (Geographic Location) are not specific enough to describe a system; they are simply terms used to refer to a physical position on the Earth. LIS (Library Information System) refers to a system used to manage and organize library resources.

Question 4

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 5

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

Accepted Answer

Parking and access are more likely to affect the location decision of a service firm as they primarily rely on foot traffic and easy accessibility for their customers. On the other hand, manufacturing firms often require a larger space with considerable access to transportation and distribution channels, making factors like energy and utility costs and shipping finished goods more critical for them. While labor costs are a significant factor in both service and manufacturing firms, it is less likely to be the only deciding factor for a service firm's location decision.  Attitude towards unions may also affect manufacturing firms more than service firms.

Question 6

Geographic information systems can assist the location decision by:

Accepted Answer

Geographic information systems can combine geography with demographic analysis to provide insights into the demographics of potential locations, which can be an important factor in the location decision. Automation of center-of-gravity problems (A) and computerization of factor-rating analysis (B) are also possible, but not specific to geographic information systems. Updating transportation method solutions (D) and providing good internet placement for virtual storefronts (E) are not directly related to the location decision.

Question 7

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

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 8

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

Accepted Answer

Shipment cost of finished goods is not relevant for a service firm as they do not typically sell physical goods that require shipment. The eight determinants of revenue and volume for a service firm are: quality of management, purchasing power of the customer-drawing area, uniqueness of the firm's and the competitors' locations, competition in the area, size of the customer-drawing area, nature of the local economic base, marketing effectiveness of the firm, and overall macroeconomic factors.

Question 9

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

Accepted Answer

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

Question 10

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 11

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

Accepted Answer

High customer-contact issues are more associated with service-producing location decisions, not goods-producing location decisions. The other assumptions listed are typically associated with goods-producing location decisions.

Question 12

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

Accepted Answer

Traffic counts and purchasing power analysis are commonly used in the retail and professional service industries to determine the potential success of a location based on the amount of traffic a location receives and the income level of the surrounding population. Locational cost-volume analysis and the factor-rating method are more commonly associated with manufacturing location decisions, while the transportation model is used to optimize transportation logistics.

Question 13

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

Accepted Answer

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

Question 14

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

Accepted Answer

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

Question 15

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 16

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

Accepted Answer

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

Question 17

Location analysis techniques typically employed by service organizations include:

Accepted Answer

All of the above techniques are typically employed by service organizations for location analysis. The factor rating method is used to evaluate and compare potential locations based on a set of pre-determined factors such as labor availability, transportation access, and community support. The center-of-gravity method is used to determine the geographic center of a set of existing or potential locations, which can help organizations optimize transportation and distribution costs. Purchasing power analysis is used to assess the consumer buying power in a particular area, which can help organizations determine the potential demand for their services. Traffic counts can provide valuable information on the amount and type of traffic in a particular area, which can help organizations evaluate potential locations based on ease of access and visibility.

Question 18

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

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 19

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

Accepted Answer

A jewelry store, being a retail business, places significant importance on the appearance and image of the location. The aim is to create an ambience that will attract customers, so the location must be visually appealing and in a well-trafficked area. Additionally, the location should be easily accessed for both vehicles and public transportation. The cost of raw materials and transportation are important for a jewelry manufacturer, but they are not as crucial for a retail store. Quality of life and taxes are also not as crucial for location decisions for a jewelry store.

Question 20

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...

Quiz 8: Location Decisions