Question 1

The location selection team formed for the facility location decision process

Accepted Answer

The location selection team must be aware of the firm's overall business and corporate strategies and the supply chain to make an informed location decision. Option B is incorrect because the team should make specific recommendations based on detailed analysis, not broad ones. Option C is incorrect because the team should include cross-functional workers from various levels of the organization, not just divisional levels. Option D is incorrect because the team should include a variety of levels and functions, not just senior officers.

Question 2

Which major locational determinant considers locating near the competition?

Accepted Answer

C

Question 3

Reengineering is often a reason for examining the firm's current logistics network.

Accepted Answer

Reengineering involves the examination and redesign of a company's processes, including its logistics network, to improve efficiency and effectiveness.

Question 4

The efficiency and effectiveness of a logistics operation are constrained by the location of plants and warehouses in its logistics system.

Accepted Answer

The location of plants and warehouses directly impacts the efficiency and effectiveness of a logistics operation, as it affects transportation costs, lead times, and overall supply chain responsiveness. Therefore, it is true that the location of facilities is a constraint on logistics operations.

Question 5

One impact that the transit privilege has on facility location is that intermediate locations can be optimum.

Accepted Answer

If a facility is located at an intermediate location where multiple transit routes intersect, it can enhance accessibility and encourage transit ridership, making it an optimum location.

Question 6

Labor-intensive industries emphasize a labor climate as a locational determinant.

Accepted Answer

Labor-intensive industries typically require a large workforce, making the availability and cost of labor a crucial factor in deciding where to locate a business. Therefore, they emphasize a labor climate as a locational determinant.

Question 7

Facilities may sometimes be located where senior officers prefer.

Accepted Answer

Senior officers may have the authority or influence to choose the location of facilities based on their preferences or convenience.

Question 8

In the short run,the firm's network is ____ while in the long run it is ____.

Accepted Answer

In the short run, the firm's network is fixed because the firm cannot easily change or adjust its network. However, in the long run, the firm has more flexibility and can make changes to its network, making it variable.

Question 9

What type of change may suggest a need to reevaluate and/or redesign a firm's logistics network?

Accepted Answer

The answer of What type of change may suggest a...

Question 10

The grid technique determines the highest cost location in an area to avoid movement of materials and goods.

Accepted Answer

The grid technique is used to find the optimal location for facilities by minimizing transportation costs, not to determine the highest cost location.

Question 11

Which is not true regarding logistics network design?

Accepted Answer

Subsequent "what-if" analysis is necessary to test the sensitivity of recommended network designs and ensure that the proposed network design will meet the requirements of the company. Without conducting "what-if" analysis, the recommended network design may not be optimal and can result in inefficient operation. Therefore, option C is not true.

Question 12

The grid approach is used to determine a fixed facility location that is the least cost center for moving both raw materials and finished goods within a geographic grid.This least cost center is also referred to as

Accepted Answer

The term "center of gravity" is specifically used to refer to the fixed facility location that minimizes transportation costs for moving both raw materials and finished goods within a geographic grid. The other options, such as "zero point" or "grid zero," do not have a specific meaning in the context of the grid approach for facility location.

Question 13

Logistics facilities and their locations are variable and easily modified in the short-run.

Accepted Answer

Logistics facilities and their locations are typically fixed and require significant time and resources to modify, making them difficult to change in the short-run.

Question 14

The quality of life locational determinant is most important to companies that must attract and retain an unskilled,static work force.

Accepted Answer

The quality of life locational determinant is most important to companies that must attract and retain a skilled and mobile work force, as they have more options and can choose to live in areas that offer a better quality of life. Unskilled and static workforces are typically more limited in their options and may not place as much importance on quality of life factors when considering job locations.

Question 15

The grid technique will evaluate all transportation rates equally.

Accepted Answer

The grid technique is a method of evaluating transportation rates based on multiple factors, such as distance, weight, and shipment type. It does not treat all rates equally but rather considers each rate based on these factors to determine the most cost-effective option.

Question 16

Which is not a trend in today's logistics environment that may have significant effects on decisions involving logistics facility location?

Accepted Answer

Decentralized facilities is not a trend in today's logistics environment. The other options - cross-docking, use of third-party suppliers, and direct plant-to-customer shipments - are all trends in logistics that can have significant effects on decisions involving logistics facility location.

Question 17

Which is true regarding optimization models?

Accepted Answer

The answer of Which is true regarding optimization models?
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Question 18

In a commercial zone,the same rate is applied from an origin to any point in the zone.

Accepted Answer

In a commercial zone, the same rate is usually applied from an origin to any point within the zone. This is because commercial areas are usually defined by a specific set of boundaries, and the rates charged are designed to reflect the costs of providing services within that area. While there may be some variations in rates depending on the specific location or business involved, the general principle is that all customers within the zone are subject to the same rate.

Question 19

The optimization model is based on

Accepted Answer

The optimization model is based on precise mathematical procedures to find the best solution for a given problem.

Question 20

Which is true regarding the facility location decision?

Accepted Answer

The facility location decision is a strategic decision that should be closely coordinated with the identification and implementation of key corporate and overall business strategies. It is important to consider how the location of the facility will impact other functional areas such as marketing, logistics, and finance. Business conditions anticipated in the future should also be considered, but they should not have the greatest weight in selection. Qualitative and quantitative criteria should both be considered in the decision-making process.

Quiz 12: Supply Chain Network Analysis and Design