Test Bank Chapter 14 Location, Logistics, and Distribution - Supply Chain Management Core 5e Complete Test Bank by F. Robert Jacobs. DOCX document preview.
Operations and Supply Chain Management: The Core, 5e (Jacobs)
Chapter 14 Location, Logistics, and Distribution
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.
Difficulty: 1 Easy
Topic: Issues in Facility Location
Learning Objective: 14-01 Explain what logistics is.
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
2) Facility location analysis considers the competitive imperative to be close to customers as to timeliness of deliveries.
Difficulty: 1 Easy
Topic: Issues in Facility Location
Learning Objective: 14-01 Explain what logistics is.
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
3) Facility location analysis considers the competitive imperative of lowest total cost.
Difficulty: 1 Easy
Topic: Issues in Facility Location
Learning Objective: 14-01 Explain what logistics is.
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
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.
Difficulty: 1 Easy
Topic: Issues in Facility Location
Learning Objective: 14-01 Explain what logistics is.
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
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.
Difficulty: 1 Easy
Topic: Issues in Facility Location
Learning Objective: 14-01 Explain what logistics is.
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
6) Facility location analysis considers the competitive imperative of locating near the appropriate labor pool to take advantage of high technical skills.
Difficulty: 1 Easy
Topic: Issues in Facility Location
Learning Objective: 14-01 Explain what logistics is.
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
7) An example of a positive business climate that might influence a facility location decision is increasing governmental costs and increasing property taxes.
Difficulty: 1 Easy
Topic: Issues in Facility Location
Learning Objective: 14-01 Explain what logistics is.
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
8) A favorable business climate in facility location decision making might include government legislation of tax abatements.
Difficulty: 1 Easy
Topic: Issues in Facility Location
Learning Objective: 14-01 Explain what logistics is.
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
9) A favorable business climate in facility location decision making might include local government intervention to facilitate businesses locating in an area via subsidies.
Difficulty: 1 Easy
Topic: Issues in Facility Location
Learning Objective: 14-01 Explain what logistics is.
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
10) A favorable business climate in facility location decision making might include local government providing basic skill training for prospective members of the workforce.
Difficulty: 1 Easy
Topic: Issues in Facility Location
Learning Objective: 14-01 Explain what logistics is.
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
11) In facility location decision making the educational and skill levels of the labor pool must match the company's needs.
Difficulty: 1 Easy
Topic: Issues in Facility Location
Learning Objective: 14-01 Explain what logistics is.
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
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.
Difficulty: 1 Easy
Topic: Issues in Facility Location
Learning Objective: 14-01 Explain what logistics is.
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
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.
Difficulty: 1 Easy
Topic: Issues in Facility Location
Learning Objective: 14-01 Explain what logistics is.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
14) Issues of product mix and capacity are strongly interconnected to the facility location decision.
Difficulty: 1 Easy
Topic: Issues in Facility Location
Learning Objective: 14-01 Explain what logistics is.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
15) A free trade zone operates under different rules and laws than a foreign trade zone.
Difficulty: 1 Easy
Topic: Issues in Facility Location
Learning Objective: 14-01 Explain what logistics is.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
16) A free trade zone is typically a closed facility into which foreign goods can be brought without being subject to the usual customs requirements.
Difficulty: 1 Easy
Topic: Issues in Facility Location
Learning Objective: 14-01 Explain what logistics is.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
17) The objective of facility location analysis is to select the site with the lowest total cost.
Difficulty: 1 Easy
Topic: Issues in Facility Location
Learning Objective: 14-01 Explain what logistics is.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
18) Governmental barriers to enter and locate in many countries are increasing through restrictive protectionist legislation.
Difficulty: 1 Easy
Topic: Issues in Facility Location
Learning Objective: 14-01 Explain what logistics is.
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
19) Quality of life in a host community is not a major factor in making the facility location decision.
Difficulty: 1 Easy
Topic: Issues in Facility Location
Learning Objective: 14-01 Explain what logistics is.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
20) In facility location decision making, the factor-rating system is one of the least used general location techniques.
Difficulty: 1 Easy
Topic: Issues in Facility Location
Learning Objective: 14-02 Contrast logistics and warehouse design alternatives.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
21) In facility location decision making, the factor-rating system is based on linear programming.
Difficulty: 1 Easy
Topic: Issues in Facility Location
Learning Objective: 14-02 Contrast logistics and warehouse design alternatives.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
22) A major problem in a plant location decision based on the factor-rating system is that simple point-rating schemes do not account for the wide variance of costs that may occur within each factor used in the analysis.
Difficulty: 1 Easy
Topic: Issues in Facility Location
Learning Objective: 14-02 Contrast logistics and warehouse design alternatives.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
23) Services typically have multiple site locations to maintain close contact with customers.
Difficulty: 1 Easy
Topic: Issues in Facility Location
Learning Objective: 14-03 Analyze logistics-driven location decisions.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
24) Facility location decisions are made using analytical techniques that are able to weigh a large number of different variables equally.
Difficulty: 1 Easy
Topic: Issues in Facility Location
Learning Objective: 14-01 Explain what logistics is.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
25) A third-party logistics company is a firm that manages all or part of another company's product delivery operations.
Difficulty: 1 Easy
Topic: Logistics
Learning Objective: 14-01 Explain what logistics is.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
26) The Association for Operations Management defines logistics as "the art and science of obtaining, producing, and distributing material and product in the proper place and in proper quantities."
Difficulty: 1 Easy
Topic: Logistics
Learning Objective: 14-01 Explain what logistics is.
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
27) Cross-docking is a practice used in the international shipping industry that facilitates port utilization.
Difficulty: 2 Medium
Topic: Decisions Related to Logistics
Learning Objective: 14-01 Explain what logistics is.
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
28) Cross-docking is an approach used in consolidation warehouses, where large shipments are broken down into small shipments for local delivery in an area.
Difficulty: 2 Medium
Topic: Decisions Related to Logistics
Learning Objective: 14-01 Explain what logistics is.
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
29) Hub-and-spoke systems combine the idea of consolidation and that of cross-docking.
Difficulty: 1 Easy
Topic: Decisions Related to Logistics
Learning Objective: 14-01 Explain what logistics is.
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
30) In a hub-and-spoke system each warehouse in the system acts as a spoke.
Difficulty: 1 Easy
Topic: Decisions Related to Logistics
Learning Objective: 14-01 Explain what logistics is.
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
31) DHL and United Parcel Service are transportation companies that are prohibited from functioning as a third-party logistics company the way Federal Express does.
Difficulty: 2 Medium
Topic: Logistics
Learning Objective: 14-01 Explain what logistics is.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
32) Which of the following is not a criterion that influences manufacturing plant or warehouse facility location decisions?
A) Proximity to customers
B) Historical cost
C) Infrastructure of a country
D) Quality of labor
E) Business climate
Difficulty: 1 Easy
Topic: Issues in Facility Location
Learning Objective: 14-01 Explain what logistics is.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
33) Which of the following is not a criterion that influences manufacturing plant or warehouse facility location decisions?
A) Suppliers
B) Free trade zones
C) Political risk
D) Gross national product
E) Tariffs and customs duties
Difficulty: 1 Easy
Topic: Issues in Facility Location
Learning Objective: 14-01 Explain what logistics is.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
34) Which of the following is not a criterion that influences manufacturing plant or warehouse facility location decisions?
A) Government barriers
B) Trading blocs
C) Environmental regulation
D) Immigration rules
E) Local labor costs
Difficulty: 1 Easy
Topic: Issues in Facility Location
Learning Objective: 14-01 Explain what logistics is.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
35) Which of the following is a criterion that influences manufacturing plant or warehouse facility location decisions?
A) Proximity to customers
B) Corporate policy
C) Competitor's locations
D) Competitive advantage
E) Host community politics
Difficulty: 1 Easy
Topic: Issues in Facility Location
Learning Objective: 14-01 Explain what logistics is.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
36) An important issue in facility location analysis is business climate. An unfavorable business climate could be indicated by which of the following?
A) Similar-sized businesses nearby
B) The willingness of local politicians to provide favorable treatment for a consideration
C) The presence of other foreign companies in the case of international locations
D) The local presence of companies in the same industry
E) An established educational institution nearby
F) None of the answers are correct
Difficulty: 1 Easy
Topic: Issues in Facility Location
Learning Objective: 14-01 Explain what logistics is.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
37) One of the objectives of facility location analysis is to select a site with the lowest total cost. Which of the following costs should be excluded from the analysis?
A) Historical costs
B) Inbound distribution costs
C) Land
D) Construction
E) Regional costs
Difficulty: 1 Easy
Topic: Issues in Facility Location
Learning Objective: 14-01 Explain what logistics is.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
38) One of the objectives of facility location analysis is to select a site with the lowest total cost. Which of the following costs should not be included in the analysis?
A) Outbound distribution costs
B) Incidental costs
C) Energy costs
D) Hidden costs
E) Taxes
Difficulty: 1 Easy
Topic: Issues in Facility Location
Learning Objective: 14-01 Explain what logistics is.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
39) One of the objectives of facility location analysis is to select a site with the lowest total cost. Which of the following are hidden costs that should be included in the analysis?
A) Becoming less responsive to the customer
B) Supplier costs
C) Taxes
D) Construction costs
E) Product life cycle costs
Difficulty: 1 Easy
Topic: Issues in Facility Location
Learning Objective: 14-01 Explain what logistics is.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
40) One of the objectives in facility location analysis is to select a site with the lowest total cost. Which of the following costs are hidden costs that should be included in the analysis?
A) Infrastructure costs
B) Movement of preproduction material between locations
C) Taxes
D) Construction costs
E) Bribery costs
Difficulty: 1 Easy
Topic: Issues in Facility Location
Learning Objective: 14-01 Explain what logistics is.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
41) Which of the following is not an infrastructure criteria used in facility location analysis?
A) Adequate school system
B) Adequate health care
C) Adequate transportation
D) Adequate low cost labor
E) Adequate public utility systems
Difficulty: 1 Easy
Topic: Issues in Facility Location
Learning Objective: 14-01 Explain what logistics is.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
42) How many free trade zones are there in the United States?
A) Less than 50
B) Less than 100
C) About 260
D) More than 412
E) About 310
Difficulty: 1 Easy
Topic: Issues in Facility Location
Learning Objective: 14-01 Explain what logistics is.
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
43) An example of a trading bloc is which of the following?
A) Central American Free Trade Agreement countries
B) Free trade zones
C) ISO-9000 companies
D) American Production and Inventory Control Society
E) Wal-Mart and its suppliers
Difficulty: 1 Easy
Topic: Issues in Facility Location
Learning Objective: 14-01 Explain what logistics is.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
44) Which of the following is a plant location methodology that is good for locating a single facility within a set of existing facilities based in distances and volumes of goods shipped?
A) Factor-rating systems
B) Centroid method
C) Decision trees
D) Linear programming
E) Regression analysis
Difficulty: 1 Easy
Topic: Issues in Facility Location
Learning Objective: 14-03 Analyze logistics-driven location decisions.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
45) In which of the following situations should we not use the transportation method of linear programming?
A) To find a new site location for a plant
B) To minimize costs of shipping "n" units to "m" destinations
C) To maximize profits of shipping "n" units to "m" destinations
D) To determine which corner of a street intersection to locate a retail service facility
E) To locate a finished goods distribution warehouse
Difficulty: 1 Easy
Topic: Issues in Facility Location
Learning Objective: 14-03 Analyze logistics-driven location decisions.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
46) The centroid method for plant location uses which of the following data?
A) Volume of goods to be shipped between existing points
B) Inbound transportation costs
C) Transport times between facilities
D) Correlation matrix of existing facilities
E) Probabilities and payoffs
Cx | = | ΣdixVi |
ΣVi |
Cy | = | ΣdiyVi |
ΣVi |
Difficulty: 1 Easy
Topic: Issues in Facility Location
Learning Objective: 14-03 Analyze logistics-driven location decisions.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
47) Plant A is located at the (X, Y) coordinates of (100, 200) and has a volume of shipping of 500 units a day. Plant B is located at the (X, Y) coordinates of (150, 400) and has a volume of shipping of 200 units a day. Using the centroid method, which of the following is the X coordinate for the new plant location?
A) About 100
B) About 114
C) About 130
D) About 150
E) X coordinate cannot be computed from the data given
Cx | = | ΣdixVi |
ΣVi |
Cy | = | ΣdiyVi |
ΣVi |
Difficulty: 2 Medium
Topic: Issues in Facility Location
Learning Objective: 14-03 Analyze logistics-driven location decisions.
Bloom's: Analyze
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
48) Plant A is located at the (X, Y) coordinates of (200, 500) and has a volume of shipping of 400 units a day. Plant B is located at the (X, Y) coordinates of (300, 100) and has a volume of shipping of 300 units a day. Using the centroid method, which of the following is the X coordinate for the new plant location?
A) About 208
B) About 227
C) About 243
D) About 389
E) X coordinate cannot be computed from the data given
Cx | = | ΣdixVi |
ΣVi |
Cy | = | ΣdiyVi |
ΣVi |
Difficulty: 2 Medium
Topic: Issues in Facility Location
Learning Objective: 14-03 Analyze logistics-driven location decisions.
Bloom's: Analyze
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
49) A company wants to determine where they should locate a new warehouse. They have two existing production plants (i.e., Plant A and Plant B) that will ship units of a product to this warehouse. Plant A is located at the (X, Y) coordinates of (50, 100) and will have volume of shipping of 250 units a day. Plant B is located at the (X, Y) coordinates of (150, 200) and will have a volume of shipping of 150 units a day. Using the centroid method, which of the following are the X and Y coordinates for the new plant location?
A) (81, 117)
B) (88, 138)
C) (117, 102)
D) (76, 123)
E) X and Y coordinates cannot be computed from the data given
Cx | = | ΣdixVi |
ΣVi |
Cy | = | ΣdiyVi |
ΣVi |
Difficulty: 2 Medium
Topic: Issues in Facility Location
Learning Objective: 14-03 Analyze logistics-driven location decisions.
Bloom's: Analyze
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
50) What transportation mode has very high initial investment costs but gives a very low cost per mile for products that are highly specialized and require no packaging?
A) Highway
B) Rail
C) Water
D) Pipeline
E) Air
Difficulty: 1 Easy
Topic: Decisions Related to Logistics
Learning Objective: 14-01 Explain what logistics is.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
51) Very few products are moved without at least part of their journey being by which mode of transportation?
A) Highway
B) Rail
C) Water
D) Pipeline
E) Air
Difficulty: 1 Easy
Topic: Decisions Related to Logistics
Learning Objective: 14-01 Explain what logistics is.
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
52) According to the text, an important decision for multinational companies is the nation in which to locate the home base for each business. Which of the following business activities does not happen at the business's home base?
A) Core process technology is created
B) A critical mass of production takes place
C) The largest profits are recorded
D) Strategy is created
E) Core products are created
Difficulty: 1 Easy
Topic: Decisions Related to Logistics
Learning Objective: 14-03 Analyze logistics-driven location decisions.
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
53) Which of the following is not mentioned in the text as a technique for identifying potential sites for plants or other types of facilities?
A) The centroid method
B) Factor-rating systems
C) Linear programming
D) The transportation method of decision analysis
E) Regression analysis
Difficulty: 1 Easy
Topic: Issues in Facility Location
Learning Objective: 14-03 Analyze logistics-driven location decisions.
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
54) Not among the factors related to infrastructure in making facility location decisions is which of the following?
A) Satisfactory hotel accommodations
B) Adequate air transportation
C) Energy requirements
D) Telecommunications requirements
E) Willingness of local government to invest in infrastructure upgrades
Difficulty: 1 Easy
Topic: Issues in Facility Location
Learning Objective: 14-03 Analyze logistics-driven location decisions.
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
55) Suppose that using the centroid method you found the best location for a communications tower. The location happens to be in the middle of a pond. Then, you should locate the tower
A) at that location using water proof concrete and precast poles.
B) at the closest point outside the pond.
C) using some other method.
D) after considering qualitative factors such as geography, roads and utilities to help find the exact location.
E) None of the above
Difficulty: 2 Medium
Topic: Issues in Facility Location
Learning Objective: 14-03 Analyze logistics-driven location decisions.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
56) Using the transportation method for solving the optimal shipping a product from factories to warehouses, as per text, you should use
A) "≤" for constraints regarding factory capacity and "=" for constraints regarding demand at warehouses.
B) "≥" for constraints regarding factory capacity and "≤" for constraints regarding demand at warehouses.
C) "=" for constraints regarding factory capacity and "≥" for constraints regarding demand at warehouses.
D) "≥" for constraints regarding factory capacity and "=" for constraints regarding demand at warehouses.
E) None of the above
Difficulty: 2 Medium
Topic: Issues in Facility Location
Learning Objective: 14-03 Analyze logistics-driven location decisions.
Bloom's: Analyze
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
57) In the logistics-systems design matrix, volume, cost and speed of delivery are three variables (assume three levels: low, moderate or high) used to describe attributes of transportation modes. Rail is associated with
A) moderate volume, moderate speed and high cost.
B) moderate volume, high speed and high cost.
C) high volume, moderate speed and low cost.
D) low volume, high cost and low speed.
E) high volume, high speed and high cost.
Difficulty: 2 Medium
Topic: Decisions Related to Logistics
Learning Objective: 14-01 Explain what logistics is.
Bloom's: Analyze
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
58) As per the discussion on FedEx, the vision of the firm is and driver for comprehensive technology strategy is
A) delivery of the package is important and technology is not relevant.
B) information about a package is as important as the delivery itself but technology is incidental.
C) delivery of the package is important though information about a package is incidental.
D) comprehensive technology is the only important thing.
E) information about the package is as important as the delivery of the package and that drives comprehensive technology strategy.
Difficulty: 2 Medium
Topic: Decisions Related to Logistics
Learning Objective: 14-01 Explain what logistics is.
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
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Supply Chain Management Core 5e Complete Test Bank
By F. Robert Jacobs