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CHAPTER 9: LAYOUT STRATEGY TRUE FALSE 1. McDonald's "Made for You" kitchen system represents a strategic layout decision even though an obvious benefit of the system is a dramatic reduction in the inventory of food prepared in advance. True (Global company profile, easy) 2. The objective of layout strategy is to develop an effective and efficient layout that will meet the firm's competitive requirements. True (The strategic importance of layout decisions, easy) 3. The work cell layout, a special arrangement of machinery and equipment to focus on the production of a single product or group of related products, is for manufacturing applications and has no relevance to services. False (Types of layout, moderate) 4. The layout approach that addresses trade-offs between space and material handling is called the fixed position layout. False (Types of layout, moderate) 5. Utilization of the total "cube" is the dominant consideration in office layout. False (Office layout, moderate) 6. One guideline for a retail layout is to locate high-draw items around the periphery of the store. True (Retail layout, moderate) 7. Category management is the use of computer software to evaluate the profitability of merchandising plans. True (Retail layout, moderate) 8. Servicescape refers to the physical surrounding in which the service is delivered. True (Retail layout, moderate) 9. One guideline for determining the arrangement and space allocation of a retail store is to place high-impulse and high-margin items such as housewares and beauty aids in prominent locations. True (Retail layout, moderate) 10. Cross-docking processes items as they are received, rather than placing them in storage; this helps explain why "warehouses" are now called "distribution centers." True (Warehousing and storage layouts, moderate) 11. The dominant problem associated with the fixed-position layout is that workers are fixed in position, and cannot be reassigned. False (Fixed-position layout, moderate) 12. A process-oriented layout is the traditional way to support a product differentiation strategy. True (Process-oriented layout, easy) 13. Job lots are groups or batches of parts processed together. True (Process-oriented layout, easy) 14. Process-oriented layouts typically have low levels of work-in-process inventory. False (Process-oriented layout, moderate) 15. CRAFT is software for balancing assembly lines. False (Process-oriented layout, moderate) {AACSB: Use of IT} 16. The most common tactic to arrange departments in a process-oriented layout is to minimize material handling costs. True (Process-oriented layout, moderate) 17. The work cell improves process layouts by reducing floor space and by reducing direct labor cost. ... View Full Document

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