Question 1

DHL and United Parcel Service are transportation companies that are prohibited from functioning as a third-party logistics company the way Federal Express does.

Accepted Answer

DHL and United Parcel Service (UPS) both operate as third-party logistics providers, similar to Federal Express (FedEx), offering a range of logistics and supply chain services.

Question 2

The Association for Operations Management defines logistics as "the art and science of obtaining, producing, and distributing material and product in the proper place and in proper quantities."

Accepted Answer

This definition accurately describes logistics as defined by the Association for Operations Management.

Question 3

One of the objectives of facility location analysis is to select a site with the lowest total cost. Which of the following are hidden costs that should be included in the analysis?
A) Becoming less responsive to the customer
B) Supplier costs
C) Taxes
D) Construction costs
E) Product life cycle costs

Accepted Answer

The answer of One of the objectives of facility location...

Question 4

Cross-docking is a practice used in the international shipping industry that facilitates port utilization.

Accepted Answer

Cross-docking is a logistics practice where products received at a warehouse or distribution center are not stored but instead are immediately prepared for shipment to another location, reducing storage time and costs. It is not specifically related to international shipping or port utilization.

Question 5

Which of the following is a criterion that influences manufacturing plant or warehouse facility location decisions?
A) Proximity to customers
B) Corporate policy
C) Competitor's locations
D) Competitive advantage
E) Host community politics

Accepted Answer

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

Question 6

Hub-and-spoke systems combine the idea of consolidation and that of cross-docking.

Accepted Answer

Hub-and-spoke systems involve consolidating shipments at a central hub and then cross-docking them to their final destination, combining both concepts.

Question 7

Which of the following is not a criterion that influences manufacturing plant or warehouse facility location decisions?
A) Proximity to customers
B) Historical cost
C) Infrastructure of a country
D) Quality of labor
E) Business climate

Accepted Answer

While historical cost may influence other business decisions, it is not a criterion that typically impacts manufacturing plant or warehouse facility location decisions. The other options listed – proximity to customers, infrastructure of a country, quality of labor, and business climate – are all important factors that can affect location decisions.

Question 8

Which of the following is not a criterion that influences manufacturing plant or warehouse facility location decisions?
A) Suppliers
B) Free trade zones
C) Political risk
D) Gross national product
E) Tariffs and customs duties

Accepted Answer

Gross national product is a measure of a country's economic performance and does not directly influence the location decisions for manufacturing plants or warehouses.

Question 9

One of the objectives of facility location analysis is to select a site with the lowest total cost. Which of the following costs should not be included in the analysis?
A) Outbound distribution costs
B) Incidental costs
C) Energy costs
D) Hidden costs
E) Taxes

Accepted Answer

Incidental costs should be included in the facility location analysis as they are part of the total cost. The other options (A, C, D, and E) are all relevant costs that should be considered in the analysis.

Question 10

In a hub-and-spoke system each warehouse in the system acts as a spoke.

Accepted Answer

In a hub-and-spoke system, there is one central warehouse that acts as the hub and multiple smaller warehouses or distribution centers that act as spokes.

Question 11

Cross-docking is an approach used in consolidation warehouses, where large shipments are broken down into small shipments for local delivery in an area.

Accepted Answer

Cross-docking is a process of receiving large shipments and breaking them down into smaller shipments for local delivery without having to store them in the warehouse. This is commonly used in consolidation warehouses to speed up the process of getting products to their destination.

Question 12

Facility location decisions are made using analytical techniques that are able to weigh a large number of different variables equally.

Accepted Answer

Facility location decisions are made using analytical techniques that consider a variety of variables, but they are not necessarily weighed equally. The importance of each variable is usually determined based on the specific needs and goals of the company making the decision.

Question 13

Services typically have multiple site locations to maintain close contact with customers.

Accepted Answer

Services often have multiple site locations to maintain proximity to their customers and provide more convenient and accessible services.

Question 14

A major problem in a plant location decision based on the factor-rating system is that simple point-rating schemes do not account for the wide variance of costs that may occur within each factor used in the analysis.

Accepted Answer

The statement is true. Simple point-rating schemes may not take into account the different costs associated with each factor used in the analysis, leading to inaccurate results.

Question 15

A third-party logistics company is a firm that manages all or part of another company's product delivery operations.

Accepted Answer

A third-party logistics company is often referred to as a 3PL and provides services such as transportation, warehousing, and freight forwarding for other companies to help manage their supply chain and logistics operations.

Question 16

Which of the following is not a criterion that influences manufacturing plant or warehouse facility location decisions?
A) Government barriers
B) Trading blocs
C) Environmental regulation
D) Immigration rules
E) Local labor costs

Accepted Answer

Immigration rules do not typically play a significant role in manufacturing plant or warehouse facility location decisions. Factors such as government barriers, trading blocs, environmental regulation, and local labor costs are all commonly considered by manufacturers when deciding on a facility location.

Question 17

In facility location decision making, the factor-rating system is based on linear programming.

Accepted Answer

The factor-rating system is a non-linear decision making method that uses a weighted average score of different location factors. It does not involve linear programming.

Question 18

Which of the following is not an infrastructure criteria used in facility location analysis?
A) Adequate school system
B) Adequate health care
C) Adequate transportation
D) Adequate low cost labor
E) Adequate public utility systems

Accepted Answer

Adequate low-cost labor is not considered an infrastructure criterion in facility location analysis. Infrastructure typically refers to the physical and organizational structures needed for the operation of a society or enterprise, such as transportation systems, utilities, and services like healthcare and education, rather than the cost or availability of labor.

Question 19

One of the objectives in facility location analysis is to select a site with the lowest total cost. Which of the following costs are hidden costs that should be included in the analysis?
A) Infrastructure costs
B) Movement of preproduction material between locations
C) Taxes
D) Construction costs
E) Bribery costs

Accepted Answer

The answer of One of the objectives in facility location...

Question 20

One of the objectives of facility location analysis is to select a site with the lowest total cost. Which of the following costs should be excluded from the analysis?
A) Historical costs
B) Inbound distribution costs
C) Land
D) Construction
E) Regional costs

Accepted Answer

Historical costs are past expenses that have no relevance to the current facility location decision. All other costs listed (inbound distribution, land, construction, and regional costs) are relevant and should be considered in the analysis.

Quiz 14: Location, Logistics, and Distribution

DHL and United Parcel Service are transportation companies that are prohibited from functioning as a third-party logistics company the way Federal Express does.

The Association for Operations Management defines logistics as "the art and science of obtaining, producing, and distributing material and product in the proper place and in proper quantities."

One of the objectives of facility location analysis is to select a site with the lowest total cost. Which of the following are hidden costs that should be included in the analysis?

Cross-docking is a practice used in the international shipping industry that facilitates port utilization.

Which of the following is a criterion that influences manufacturing plant or warehouse facility location decisions?

Hub-and-spoke systems combine the idea of consolidation and that of cross-docking.

Which of the following is not a criterion that influences manufacturing plant or warehouse facility location decisions?

Which of the following is not a criterion that influences manufacturing plant or warehouse facility location decisions?

One of the objectives of facility location analysis is to select a site with the lowest total cost. Which of the following costs should not be included in the analysis?

In a hub-and-spoke system each warehouse in the system acts as a spoke.

Cross-docking is an approach used in consolidation warehouses, where large shipments are broken down into small shipments for local delivery in an area.

Facility location decisions are made using analytical techniques that are able to weigh a large number of different variables equally.

Services typically have multiple site locations to maintain close contact with customers.

A major problem in a plant location decision based on the factor-rating system is that simple point-rating schemes do not account for the wide variance of costs that may occur within each factor used in the analysis.

A third-party logistics company is a firm that manages all or part of another company's product delivery operations.

Which of the following is not a criterion that influences manufacturing plant or warehouse facility location decisions?

In facility location decision making, the factor-rating system is based on linear programming.

Which of the following is not an infrastructure criteria used in facility location analysis?

One of the objectives in facility location analysis is to select a site with the lowest total cost. Which of the following costs are hidden costs that should be included in the analysis?

One of the objectives of facility location analysis is to select a site with the lowest total cost. Which of the following costs should be excluded from the analysis?