If the customer must be physically present at the process, location is an important issue.

If the customer must be physically present at the process, location is an important issue.
  
If the customer must be physically present at the process, location is an important issue.

T/F Questions: Need to be completed with preciseness…..1) If the customer must be physically present at the process, location is an important issue.2) Two conditions must be met by factors selected to evaluate location decisions: the factors must have a high impact on the company’s ability to meet its goals and the factors themselves must be affected by the location decision.3) When outbound transportation costs are a dominant factor, manufacturing facilities should be located close to suppliers and resources needed for production.4) One dominant factor in locating manufacturing facilities is a favorable labor climate.5) Traffic flows are one dominant factor in locating manufacturing location.6) Service location decisions are driven primarily by the operating costs at the locations under consideration.7) Many firms are concluding that large, centralized manufacturing facilities in low-cost countries with poorly trained workers are not sustainable.8) Critical mass is a situation whereby several competing firms cluster near one location, and thus attract more customers than the total number who would shop at the same stores in scattered locations.9) A geographic information system contains demographic information.10) More than 80 percent of all relocations are within 10 miles of the first location, so usually the existing workforce is displaced.11) Repeated onsite expansion ultimately leads to diseconomies of scale.12) When comparing several sites, typically a company will pick specific available site locations, then broaden their choices to communities, and finally to alternate regions.

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  • School Lehigh University
  • Course Title SCM 340
  • Uploaded By elr216
  • Pages 51
  • Ratings 93% (109) 101 out of 109 people found this document helpful

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Operations Management: Processes and Supply Chains, 10e(Krajewski et al.)Chapter 11Supply Chain Location Decisions1) If the customer must be physically present at the process, location is an important issue.Answer:TRUEReference:IntroductionDifficulty:EasyKeywords:location, physical presence, customerLearning Outcome:Discuss factors affecting location decision and describe commonmethods for location selection2) Two conditions must be met by factors selected to evaluate location decisions: thefactors must have a high impact on the company's ability to meet its goals and the factorsthemselves mustbe affected by the location decision.Answer:TRUEReference:Factors Affecting Location DecisionsDifficulty:ModerateKeywords:location decision, goal impact, labor, factor impactLearning Outcome:Discuss factors affecting location decision and describe commonmethods for location selection3) When outbound transportation costs are a dominant factor, manufacturing facilitiesshould be located close to suppliers and resources needed for production.Answer:FALSEReference:Factors Affecting Location DecisionsDifficulty:ModerateKeywords:outbound transportation cost, suppliers, resourcesLearning Outcome:Discuss factors affecting location decision and describe commonmethods for location selection4) One dominant factor in locating manufacturing facilities is a favorable labor climate.Answer:TRUEReference:Factors Affecting Location DecisionsDifficulty:ModerateKeywords:labor climate, manufacturing location factorLearning Outcome:Discuss factors affecting location decision and describe commonmethods for location selection5) Traffic flows are one dominant factor in locating manufacturing location.Answer:FALSEReference:Factors Affecting Location DecisionsDifficulty:ModerateKeywords:traffic flow, manufacturing location factorLearning Outcome:Discuss factors affecting location decision and describe commonmethods for location selection11-1

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If the customer must be physically present at the process, location is an important issue.

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College Algebra with Applications for Business and Life Sciences

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6) Service location decisions are driven primarily by the operating costs at the locationsunder consideration.Answer:FALSEReference:Factors Affecting Location DecisionsDifficulty:ModerateKeywords:service location factor, cost, revenueLearning Outcome:Discuss factors affecting location decision and describe commonmethods for location selection7) Many firms are concluding that large, centralized manufacturing facilities in low-costcountries with poorly trained workers are not sustainable.Answer:TRUEReference:Factors Affecting Location DecisionsDifficulty:ModerateKeywords:offshoring, location factor, manufacturingLearning Outcome:Discuss factors affecting location decision and describe commonmethods for location selection8) Critical mass is a situation whereby several competing firms cluster near one location,and thus attract more customers than the total number who would shop at the same storesin scattered locations.

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If the customer must be physically present at the process, location is an important issue.

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Which factors would be most important in selecting the location of a new manufacturing plant?

Proximity to markets: After determining where the demand for goods and services is greatest, management must select a location for the facility that will supply that demand. Locating near markets is particularly important when the final goods are bulky or heavy and outbound transportation rates are high.

When using the load distance method How do you select a new location?

18) When using the load-distance method to select a new location, the decision maker can represent the number of trips to be made, the number of customers needing a physical presence, or number of tons per week, among other measures, as loads.