Chap011 - Chapter 11 - Logistics and Facility Location...

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Chapter 11 - Logistics and Facility Location Chapter 11 Logistics and Facility Location True / False Questions 1. The local government's willingness to invest in upgrading infrastructure to the levels required by a company is an important issue in a company's decision of where to locate a new facility. TRUE Level: Easy 2. Facility location analysis considers the competitive imperative to be close to customers as to timeliness of deliveries. TRUE Level: Easy 3. Facility location analysis considers the competitive imperative of lowest total cost. TRUE Level: Easy 4. Facility location analysis considers the competitive imperative of a favorable business climate as indicated by the presence of other companies in the same industry. TRUE Level: Easy 11-1
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Chapter 11 - Logistics and Facility Location 5. Facility location analysis considers the competitive imperative of locating near the appropriate labor pool to take advantage of low wage costs and/or skill levels. TRUE Level: Easy 11-2
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Chapter 11 - Logistics and Facility Location 6. Facility location analysis considers the competitive imperative of locating near the appropriate labor pool to take advantage of high technical skills. TRUE Level: Easy 7. An example of a positive business climate that might influence a facility location decision is increasing governmental costs and increasing property taxes. FALSE Level: Easy 8. A favorable business climate in facility location decision-making might include government legislation of tax abatements. TRUE Level: Easy 9. A favorable business climate in facility location decision-making might include local government intervention to facilitate businesses locating in an area via subsidies. TRUE Level: Easy 10. A favorable business climate in facility location decision-making might include local government providing basic skill training for prospective members of the workforce. TRUE Level: Easy 11-3
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11. In facility location decision-making the educational and skill levels of the labor pool must match the company's needs. TRUE Level: Easy 12. In facility location decision-making matching the educational and skill levels of the labor pool to a company's needs is even more important than the labor pool's willingness and ability to learn. FALSE Level: Easy 13. Because the world is becoming more highly interconnected, the proximity of an important supplier's plants is not crucial in supporting lean production methods. FALSE Level: Easy 14. Issues of product mix and capacity are strongly interconnected to the facility location decision. TRUE Level: Easy 15. A free trade zone operates under different rules and laws than a foreign trade zone. FALSE
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Chap011 - Chapter 11 - Logistics and Facility Location...

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