OM 302 Final Study Guide (5-12).docx - 1 Industrial...

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1. Industrial location analysis typically attempts to: a. minimize costs b. maximize sales c. focus more on human resources d. avoid countries with strict environmental regulations e. ignore exchange rates and currency risk 2. _______ and currency risks are two key country success factors as land cost and ______ are key region success factors. a. cultural issues; zoning restrictions b. exchange rates; environmental impact c. labor cost; proximity to customers d. land cost; air and rail systems e. all of the above are accurate relationships 3. An employee produces 15 parts during a shift in which he made $90 what is the labor cost of the product? a. $90 b. $5 c. $6 d. $0.167 e. $1,350 4. When making a location decision at the country level, which of these would be considered? a. corporate desires b. land/construction cost c. air, rail, highway, waterway systems d. zoning restrictions e. location of markets 5. Tangible cost include which of the following? a. Climatic conditions b. availability of public transportation c. taxes d. quality an attitude of prospective employees e. zoning regulations 6. A clothing chain is considering two different locations for a new retail outlet. They have identified the four factors listed in the following table as the basis for evaluation, and have assigned weights as shown. The manager has rated each location on each factor, on a 100- point basis, as shown under the respective columns for Barkley and Chester. Factor Factor description Weight Barclay Chester 1 Average community income .40 30 20 2 Community growth potential .25 40 30 3 Availability of public .15 20 20
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transportation 4 Labor cost .20 10 30 What is the score for Chester? a. 10.00 b. 24.50 c. 25.75 d. 27.00 e. 100.00 7. A firm is considering to location alternatives. At location any, fixed cost would be $4 million per year, and variable cost $.30 per unit. At alternative be, fixed cost would be $3,600,000 per year, with variable costs of $.35 per unit. It’s annual demand is expected to be 10 million units, which plants offer is the lowest total cost? a. Plant A, because it is cheaper than Plant B before all volumes over 8,000,000 units. b. Plant B, because it is cheaper than Plant A before all volumes over 8,000,000 units. c. Plant A, because it is cheaper than Plant B for all volumes. d. Plant B, because it has the lower variable cost per unit. e. Neither Plant A nor Plant B, because the crossover point is at 10 million units. 8. East Texas seasonings is preparing to build one processing center to service for sources of seasonings. The four source locations are coordinate shown below. Also, the volume from each source is provided. What is the center of gravity? X-Coordinate Y-Coordinate Volume Athens, Texas 30 30 150 Beumont, Texas 20 10 350 Carthage, Texas 10 70 100 Denton, Texas 50 50 200 a. X = 28.125; Y = 31.25 b. X = 22000; Y = 24000 c. X = 27.5; Y = 40 d. Center of gravity is 28 e. X = 25; Y = 40 9. a hospitals layout most closely resembles which of the following?
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