Please answer the following questions.
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1 | |
Pick the statement about location decisions that is not true. |
| | A) | They are often long term. |
| | B) | Mistakes can be difficult to overcome. |
| | C) | Both fixed costs and variable costs are usually affected. |
| | D) | It is important to identify the optimal location. |
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2 | |
Which of the following would not generally be classified as a regional factor in location decisions? |
| | A) | Location of raw materials |
| | B) | Location of markets |
| | C) | Labor supply |
| | D) | Moving expenses |
| | E) | All are regional factors. |
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3 | |
Which one of the following is more of a site factor than a community factor? |
| | A) | Environmental regulations |
| | B) | Taxes |
| | C) | Special incentives |
| | D) | Zoning |
| | E) | Quality of life. |
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4 | |
Which of these is not a method for evaluating location alternatives? |
| | A) | The transportation model |
| | B) | The center of gravity method. |
| | C) | Cost-volume-profit analysis. |
| | D) | Waiting line analysis |
| | E) | Factor rating. |
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5 | |
Which of the following would not usually be cited as a reason for locating in foreign countries? |
| | A) | Increased quality of output |
| | B) | Cheaper labor |
| | C) | Availability of raw materials |
| | D) | Access to markets |
| | E) | All are reasons |
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6 | |
Faced with the choice of location for a plant, a firm is considering four different possible alternatives. The decision will be made by using a scoring model. Give the order of preference for the four different locations based on the following data. | | | Alternative | Criterion | Weight | 1 | 2 | 3 | 4 | raw material availability community support transportation costs labor relations quality of life | 0.2 0.1 0.5 0.1 0.1 | g ok vg g g | p ok ok vg vg | ok ok p p p | vg ok ok ok ok |
vg (very good) = 5 points; ok (acceptable) = 3 points; g (good) = 4 points; p (poor) = 1 point The order of preference for the four alternatives is: |
| | A) | 1, 2, 3, 4 |
| | B) | 4, 3, 2, 1 |
| | C) | 1, 4, 2, 3 |
| | D) | 4, 1, 3, 2 |
| | E) | 2, 1, 4, 3 |
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