Question 1

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

Japan's NTN Driveshafts Inc.built a major plant in Columbus,Indiana,to be closer to major automobile manufacturing plants in the United States whose buyers want their goods delivered

Question 2

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

Historical cost is not mentioned as a criterion that influences manufacturing plant or warehouse facility location decisions.

Question 3

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

Accepted Answer

The warehouse is referred to as a "hub" and its sole purpose is to sort goods.

Question 4

An important issue in facility location analysis is business climate.An unfavorable business climate could be indicated by which of the following?
A) Similar-sized businesses nearby
B) The willingness of local politicians to provide favorable treatment for a consideration
C) The presence of other foreign companies in the case of international locations
D) The local presence of companies in the same industry
E) An established educational institution nearby

Accepted Answer

The willingness of local politicians to accept bribes was not discussed as being favorable or unfavorable in the text.

Question 5

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 are not mentioned as a criterion that influences manufacturing plant or warehouse facility location decisions.

Question 6

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

Accepted Answer

Linear programming is another,separate,method of facility location.

Question 7

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

Additional hidden costs are difficult to measure.These involve (1)excessive moving of preproduction material between locations before final delivery to the customers and (2)loss of customer responsiveness arising from locating away from the main customer base.

Question 8

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

Accepted Answer

Services typically have multiple sites to maintain close contact with customers.

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 be excluded from the analysis?
A) Historical costs
B) Inbound distribution costs
C) Land
D) Construction
E) Regional costs

Accepted Answer

The objective is to select a site with the lowest total cost.This includes regional costs,inbound distribution costs,and outbound distribution costs.Land,construction,labor,taxes,and energy costs make up the regional costs.

Question 10

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

Question 11

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

Accepted Answer

There are companies that specialize in logistics,such as United Parcel Service (UPS),Federal Express (FedEx),and DHL.These global companies are in the business of moving everything from flowers to industrial equipment.Today a manufacturing company most often will contract with one of those companies to handle many of its logistics functions.In this case,those transportation companies often are called a third-party logistics company.

Question 12

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

Accepted Answer

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

Question 13

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

Additional hidden costs are difficult to measure.These involve (1)excessive moving of preproduction material between locations before final delivery to the customers and (2)loss of customer responsiveness arising from locating away from the main customer base.

Question 14

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

Accepted Answer

There are companies that specialize in logistics,such as United Parcel Service (UPS),Federal Express (FedEx),and DHL.These global companies are in the business of moving everything from flowers to industrial equipment.Today a manufacturing company most often will contract with one of those companies to handle many of its logistics functions.In this case,those transportation companies often are called a third-party logistics company.

Question 15

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

A major problem with simple point-rating schemes is that they do not account for the wide range of costs that may occur within each factor.

Question 16

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

Accepted Answer

Analytical techniques assist the decisions but seldom weigh different variables equally.

Question 17

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

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."

Question 18

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

The objective is to select a site with the lowest total cost.This includes regional costs,inbound distribution costs,and outbound distribution costs.Land,construction,labor,taxes,and energy costs make up the regional costs.

Question 19

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

Accepted Answer

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

Question 20

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

Quiz 14: Location, Logistics, and Distribution

Which of the following is 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?

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

An important issue in facility location analysis is business climate.An unfavorable business climate could be indicated by which of the following?

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.

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?

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

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?

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

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

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

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?

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

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.

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

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 costs should not be included in the analysis?

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

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