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Choose The Correct Option From The Following ISDS Risk Management Flashcards
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Side A ------ Side B Industrial location analysis typically attempts toa. reduce costsb. maximize salesc. focus more on human resourcesd. be environmentally friendly ------ A Service location decisions typically attempt toa. minimize costsb. consider global implicationsc. decrease labor costsd. be environmentally friendlye. none of the above ------ E A location decision for an appliance manufacturer would tend to have a(an)a. cost focusb. labor focusc. revenue focusd. environmental focuse. education focus ------ A A location decision for a traditional department store (Macy's) would tend to have a(n)a. cost focusb. labor focusc. revenue focusd. environmental focus ------ C In location planning, environmental regulations, cost and availability of utilities, and taxes area. global factorsb. country factorsc. regional/community factorsd. site-related factorse. none of the above ------ C Which of the following is usually not one of the top considerations in choosing a manufacturinglocation?a. availability of labor and labor productivityb. exchange ratesc. attitude of governmental unitsd. zoning regulationse. entertainment opportunities ------ D When making a location decision at the country level, which of these would be considered?a. corporate desiresb. land/construction costsc. air, rail, highway, waterway systemsd. zoning restrictionse. location of markets ------ E Which of these factors would be considered when making a location decision at theregion/community level?a. government rules, attitudes, stability, incentivesb. cultural and economic issuesc. zoning restrictionsd. environmental impact issuese. proximity to raw materials and customers ------ E When making a location decision at the region/community level, which of these would beconsidered?a. government rules, attitudes, stability, incentivesb. cultural and economic issuesc. cost and availability of utilitiesd. zoning restrictionse. air, rail, highway, waterway systems ------ C Which of these factors would be considered when making a location decision at the site level?a. government rules, attitudes, stability, incentivesb. cultural and economic issuesc. zoning regulationsd. cost and availability of utilitiese. proximity to raw materials and customers ------ C Tangible costs include which of the following?a. climatic conditionsb. availability of public transportationc. taxesd. quality and attitude of prospective employeese. zoning regulations ------ C Intangible costs include which of the following?a. quality of prospective employeesb. quality of educationc. availability of public transportationd. all of the above ------ D Community attitudes, zoning restrictions, and quality of labor force are likely to be considered inwhich of the following location decision methods?a. transportation methodb. locational break-even analysisc. center-of-gravity methodd. simulatione. factor rating method ------ E Which of the following methods best considers intangible costs related to a location decision?a. crossover methodsb. locational break-even analysisc. factor rating analysisd. the transportation methode. the assignment method ------ C Evaluating location alternatives by comparing their composite (weighted-average) scores involvesa. factor rating analysisb. cost-volume analysisc. transportation model analysisd. linear regression analysise. crossover analysis ------ A A clothing chain is considering two different locations for a new retail outlet. They have identifiedthe four factors listed in the following table as the basis for evaluation, and have assigned weightsas shown on the left. The manager has rated each location on each factor, on a 100-point basis, asshown on the right.Factor Factor Description Weight Barclay Chester1 Average community income 0.40 30 202 Community growth potential 0.25 40 303 Availability of public transportation 0.15 20 204 Labor cost 0.20 10 30What is the score for Barclay?a. 10.00b. 24.50c. 25.75d. 27.00e. 100.00 ------ D An approach to location analysis that includes both qualitative and quantitative considerations isa. locational cost-volumeb. factor ratingc. transportation modeld. assignment methode. make or buy analysis ------ B A full-service restaurant is considering opening a new facility in a specific city. The table belowshows its ratings of four factors at each of two potential sites.Factor Weight Gary Mall Belt LineAffluence of local population 0.20 30 30Traffic flow 0.40 50 20Parking availability 0.20 30 40Growth potential 0.20 10 30The score for Gary Mall is _____ and the score for Belt Line is ______.a. 120; 120b. 22; 24c. 18; 120d. 34; 28e. none of the above ------ D The crossover chart for location break-even analysis shows wherea. fixed costs are equal for alternative locationsb. variable costs are equal for alternative locationsc. total costs are equal for alternative locationsd. fixed costs equal variable costs ------ C The center of gravity method does not take into considerationa. the location of marketsb. the volume of goods shipped to the marketsc. the value of the goods shippedd. the combination of volume and distance ------ C The center-of-gravity method is used primarily to determine what type of locations?a. service locationsb. manufacturing locationsc. distribution center locationsd. supplier locations ------ C A regional bookstore chain is about to build a distribution center that is centrally located for itseight retail outlets. It will most likely employ which of the following tools of analysis?a. assembly line balancingb. load-distance analysisc. center-of-gravity modeld. linear programming ------ C East Texas Seasonings is preparing to build one processing center to serve its four sources ofseasonings. The four source locations are at coordinates shown below. Also, the volume from eachsource is provided. What is the center of gravity?X-coordinate Y-coordinate VolumeAthens, Texas 30 30 150Beaumont, Texas 20 10 350Carthage, Texas 10 70 100Denton, Texas 50 50 200a. X = 28.125; Y = 31.25b. X = 22,000; Y = 24,000c. X = 27.5; Y = 40d. center of gravity = 28e. none of the above ------ A Production and/or shipping costs are always considered in which of the following location decisionmethods?a. factor rating methodb. transportation methodc. locational break-even analysisd. center-of-gravity method ------ B The transportation method, when applied to location analysisa. minimizes total fixed costsb. minimizes total production and transportation costsc. maximizes revenuesd. minimizes the movement of goods ------ B Which of the following are not among the eight components of revenue and volume for the servicefirm?a. quality of the managementb. shipment cost of finished goods5c. purchasing power of the customer-drawing aread. uniqueness of the firm's and the competitor's locationse. competition in the area ------ B Which of the following are among the eight components of revenue and volume for the servicefirm?a. uniqueness of the firm's and the competitor's locationsb. quality of the competitionc. quality of managementd. purchasing power of the customer-drawing areae. all of the above ------ E Traffic counts and purchasing power analysis of drawing area are techniques associated witha. an industrial location decisionb. a manufacturing location decisionc. a retail or professional service location decisiond. the factor rating methode. the transportation method ------ C LaQuinta Motor Inns has a competitive edge over its rivals because ita. uses regression analysis to determine which variables most influence profitabilityb. picks better locations than its rivalsc. picks larger locations than its rivalsd. builds only along Interstate highwayse. all of the above ------ A Traffic counts and demographic analysis of drawing areas are associated witha. industrial location decisionsb. manufacturing location decisionsc. service location decisionsd. the transportation method ------ C Which one of the following factors does not affect the volume and revenue for a service firm?a. affluence of customer drawing areab. competition in the areac. physical qualities of facilities and neighboring businessesd. quality of the competitione. environmental regulations ------ E Location analysis techniques typically employed by service organizations includea. factor rating methodb. center of gravity methodc. purchasing power analysis of aread. traffic countse. all of the above ------ E Which of the following is most likely to affect the location decision of a service firm rather than amanufacturing firm?a. energy and utility costsb. attitude toward unionsc. parking and accessd. cost of shipping finished goodse. labor costs ------ C Which of the following is a location analysis technique typically employed by a serviceorganization?a. purchasing power analysisb. linear programmingc. queuing theoryd. crossover chartse. cost-volume analysis ------ A A jewelry store is more likely than a jewelry manufacturer to consider __________ in making alocation decision.a. transportation costsb. cost of raw materialsc. parking and accessd. climatee. taxes ------ C Location analysis techniques typically employed by manufacturing organizations includea. transportation methodb. queuing theoryc. correlation analysis and traffic countsd. simulation ------ A Which of these assumptions is not associated with strategies for goods-producing locationdecisions?a. most major costs can be identified explicitly for each siteb. focus on identifiable costc. high customer contact issues are criticald. intangible costs can be evaluatede. location is a major determinant of cost ------ C Which of the following is most likely to affect the location strategy of a manufacturing firm?a. appearance/image of the areab. utility costsc. purchasing power of drawing aread. competition in the area ------ B Geographic Information Systems can assist the location decision bya. automating center of gravity problemsb. computerizing factor rating analysisc. combining geography with demographic analysisd. updating transportation method solutionse. giving good Internet placement for virtual storefronts ------ C
Side A ------ Side B Industrial location analysis typically attempts toa. reduce costsb. maximize salesc. focus more on human resourcesd. be environmentally friendly ------ A Service location decisions typically attempt toa. minimize costsb. consider global implicationsc. decrease labor costsd. be environmentally friendlye. none of the above ------ E A location decision for an appliance manufacturer would tend to have a(an)a. cost focusb. labor focusc. revenue focusd. environmental focuse. education focus ------ A A location decision for a traditional department store (Macy's) would tend to have a(n)a. cost focusb. labor focusc. revenue focusd. environmental focus ------ C In location planning, environmental regulations, cost and availability of utilities, and taxes area. global factorsb. country factorsc. regional/community factorsd. site-related factorse. none of the above ------ C Which of the following is usually not one of the top considerations in choosing a manufacturinglocation?a. availability of labor and labor productivityb. exchange ratesc. attitude of governmental unitsd. zoning regulationse. entertainment opportunities ------ D When making a location decision at the country level, which of these would be considered?a. corporate desiresb. land/construction costsc. air, rail, highway, waterway systemsd. zoning restrictionse. location of markets ------ E Which of these factors would be considered when making a location decision at theregion/community level?a. government rules, attitudes, stability, incentivesb. cultural and economic issuesc. zoning restrictionsd. environmental impact issuese. proximity to raw materials and customers ------ E When making a location decision at the region/community level, which of these would beconsidered?a. government rules, attitudes, stability, incentivesb. cultural and economic issuesc. cost and availability of utilitiesd. zoning restrictionse. air, rail, highway, waterway systems ------ C Which of these factors would be considered when making a location decision at the site level?a. government rules, attitudes, stability, incentivesb. cultural and economic issuesc. zoning regulationsd. cost and availability of utilitiese. proximity to raw materials and customers ------ C Tangible costs include which of the following?a. climatic conditionsb. availability of public transportationc. taxesd. quality and attitude of prospective employeese. zoning regulations ------ C Intangible costs include which of the following?a. quality of prospective employeesb. quality of educationc. availability of public transportationd. all of the above ------ D Community attitudes, zoning restrictions, and quality of labor force are likely to be considered inwhich of the following location decision methods?a. transportation methodb. locational break-even analysisc. center-of-gravity methodd. simulatione. factor rating method ------ E Which of the following methods best considers intangible costs related to a location decision?a. crossover methodsb. locational break-even analysisc. factor rating analysisd. the transportation methode. the assignment method ------ C Evaluating location alternatives by comparing their composite (weighted-average) scores involvesa. factor rating analysisb. cost-volume analysisc. transportation model analysisd. linear regression analysise. crossover analysis ------ A A clothing chain is considering two different locations for a new retail outlet. They have identifiedthe four factors listed in the following table as the basis for evaluation, and have assigned weightsas shown on the left. The manager has rated each location on each factor, on a 100-point basis, asshown on the right.Factor Factor Description Weight Barclay Chester1 Average community income 0.40 30 202 Community growth potential 0.25 40 303 Availability of public transportation 0.15 20 204 Labor cost 0.20 10 30What is the score for Barclay?a. 10.00b. 24.50c. 25.75d. 27.00e. 100.00 ------ D An approach to location analysis that includes both qualitative and quantitative considerations isa. locational cost-volumeb. factor ratingc. transportation modeld. assignment methode. make or buy analysis ------ B A full-service restaurant is considering opening a new facility in a specific city. The table belowshows its ratings of four factors at each of two potential sites.Factor Weight Gary Mall Belt LineAffluence of local population 0.20 30 30Traffic flow 0.40 50 20Parking availability 0.20 30 40Growth potential 0.20 10 30The score for Gary Mall is _____ and the score for Belt Line is ______.a. 120; 120b. 22; 24c. 18; 120d. 34; 28e. none of the above ------ D The crossover chart for location break-even analysis shows wherea. fixed costs are equal for alternative locationsb. variable costs are equal for alternative locationsc. total costs are equal for alternative locationsd. fixed costs equal variable costs ------ C The center of gravity method does not take into considerationa. the location of marketsb. the volume of goods shipped to the marketsc. the value of the goods shippedd. the combination of volume and distance ------ C The center-of-gravity method is used primarily to determine what type of locations?a. service locationsb. manufacturing locationsc. distribution center locationsd. supplier locations ------ C A regional bookstore chain is about to build a distribution center that is centrally located for itseight retail outlets. It will most likely employ which of the following tools of analysis?a. assembly line balancingb. load-distance analysisc. center-of-gravity modeld. linear programming ------ C East Texas Seasonings is preparing to build one processing center to serve its four sources ofseasonings. The four source locations are at coordinates shown below. Also, the volume from eachsource is provided. What is the center of gravity?X-coordinate Y-coordinate VolumeAthens, Texas 30 30 150Beaumont, Texas 20 10 350Carthage, Texas 10 70 100Denton, Texas 50 50 200a. X = 28.125; Y = 31.25b. X = 22,000; Y = 24,000c. X = 27.5; Y = 40d. center of gravity = 28e. none of the above ------ A Production and/or shipping costs are always considered in which of the following location decisionmethods?a. factor rating methodb. transportation methodc. locational break-even analysisd. center-of-gravity method ------ B The transportation method, when applied to location analysisa. minimizes total fixed costsb. minimizes total production and transportation costsc. maximizes revenuesd. minimizes the movement of goods ------ B Which of the following are not among the eight components of revenue and volume for the servicefirm?a. quality of the managementb. shipment cost of finished goods5c. purchasing power of the customer-drawing aread. uniqueness of the firm's and the competitor's locationse. competition in the area ------ B Which of the following are among the eight components of revenue and volume for the servicefirm?a. uniqueness of the firm's and the competitor's locationsb. quality of the competitionc. quality of managementd. purchasing power of the customer-drawing areae. all of the above ------ E Traffic counts and purchasing power analysis of drawing area are techniques associated witha. an industrial location decisionb. a manufacturing location decisionc. a retail or professional service location decisiond. the factor rating methode. the transportation method ------ C LaQuinta Motor Inns has a competitive edge over its rivals because ita. uses regression analysis to determine which variables most influence profitabilityb. picks better locations than its rivalsc. picks larger locations than its rivalsd. builds only along Interstate highwayse. all of the above ------ A Traffic counts and demographic analysis of drawing areas are associated witha. industrial location decisionsb. manufacturing location decisionsc. service location decisionsd. the transportation method ------ C Which one of the following factors does not affect the volume and revenue for a service firm?a. affluence of customer drawing areab. competition in the areac. physical qualities of facilities and neighboring businessesd. quality of the competitione. environmental regulations ------ E Location analysis techniques typically employed by service organizations includea. factor rating methodb. center of gravity methodc. purchasing power analysis of aread. traffic countse. all of the above ------ E Which of the following is most likely to affect the location decision of a service firm rather than amanufacturing firm?a. energy and utility costsb. attitude toward unionsc. parking and accessd. cost of shipping finished goodse. labor costs ------ C Which of the following is a location analysis technique typically employed by a serviceorganization?a. purchasing power analysisb. linear programmingc. queuing theoryd. crossover chartse. cost-volume analysis ------ A A jewelry store is more likely than a jewelry manufacturer to consider __________ in making alocation decision.a. transportation costsb. cost of raw materialsc. parking and accessd. climatee. taxes ------ C Location analysis techniques typically employed by manufacturing organizations includea. transportation methodb. queuing theoryc. correlation analysis and traffic countsd. simulation ------ A Which of these assumptions is not associated with strategies for goods-producing locationdecisions?a. most major costs can be identified explicitly for each siteb. focus on identifiable costc. high customer contact issues are criticald. intangible costs can be evaluatede. location is a major determinant of cost ------ C Which of the following is most likely to affect the location strategy of a manufacturing firm?a. appearance/image of the areab. utility costsc. purchasing power of drawing aread. competition in the area ------ B Geographic Information Systems can assist the location decision bya. automating center of gravity problemsb. computerizing factor rating analysisc. combining geography with demographic analysisd. updating transportation method solutionse. giving good Internet placement for virtual storefronts ------ C
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