Location Planning and Analysis
Showing posts with label Location Planning and Analysis. Show all posts
Showing posts with label Location Planning and Analysis. Show all posts

Which of the following circumstances would be least likely to lead to a need for a new location?

Which of the following circumstances would be least likely to lead to a need for a new location?



A. shifting of markets


B. depletion of basic inputs


C. growth in demand that is leading to greater utilization of existing capacity


D. the need to expand into new markets


E. the opportunity to take advantage of globalization trends


Answer: growth in demand that is leading to greater utilization of existing capacity

If it is estimated that 30 persons will be living in this new chapter house, which location should the Skulls select?

The Skulls, a student social organization, has two different locations under consideration for constructing a new chapter house. The Skulls' president, a POM student, estimates that due to differing land costs, utility rates, etc., both fixed and variable costs would be different for each of the proposed sites, as follows:




If it is estimated that 30 persons will be living in this new chapter house, which location should the Skulls select?



A. Alpha Ave.


B. Beta Blvd.


C. either Alpha Ave. or Beta Blvd.


D. reject both Alpha Ave. and Beta Blvd.


E. become a virtual organization


Answer: alpha ave.

If it is estimated that 30 persons will be living in this new chapter house, what would be the Skulls' annual cost savings by selecting the less costly location, rather than the more costly?

The Skulls, a student social organization, has two different locations under consideration for constructing a new chapter house. The Skulls' president, a POM student, estimates that due to differing land costs, utility rates, etc., both fixed and variable costs would be different for each of the proposed sites, as follows:




If it is estimated that 30 persons will be living in this new chapter house, what would be the Skulls' annual cost savings by selecting the less costly location, rather than the more costly?



A. $0


B. $1,500


C. $200


D. $150


E. $350


Answer: 1500

At what annual output would the company be indifferent between the two locations?

A manufacturing firm is considering two locations for a plant to produce a new product. The two locations have fixed and variable costs as follows:




At what annual output would the company be indifferent between the two locations?



A. 60,000 units


B. 15,000 units


C. 10,000 units


D. 20,000 units


E. 4,000 units


Answer: 15000

A location analysis has been narrowed down to two locations, Akron and Boston. The main factors in the decision will be the supply of raw materials, which has a weight of .50, transportation cost, which has a weight of .40, and labor cost, which has a weight of .10. The scores for raw materials, transportation, and labor are for Akron 60, 80, and 70, respectively; for Boston 70, 50, and 90, respectively. Given this information and a minimum acceptable composite score of 75, we can say that the manager should:

A location analysis has been narrowed down to two locations, Akron and Boston. The main factors in the decision will be the supply of raw materials, which has a weight of .50, transportation cost, which has a weight of .40, and labor cost, which has a weight of .10. The scores for raw materials, transportation, and labor are for Akron 60, 80, and 70, respectively; for Boston 70, 50, and 90, respectively. Given this information and a minimum acceptable composite score of 75, we can say that the manager should:



A. be indifferent between these locations.


B. choose Akron.


C. choose Boston.


D. reject both locations.


E. build a plant in both cities.


Answer: reject both locations

What would be the total annual costs for the Alpha Ave. location with 20 persons living there?

The Skulls, a student social organization, has two different locations under consideration for constructing a new chapter house. The Skulls' president, a POM student, estimates that due to differing land costs, utility rates, etc., both fixed and variable costs would be different for each of the proposed sites, as follows:


What would be the total annual costs for the Alpha Ave. location with 20 persons living there?



A. $5,400


B. $4,000


C. $5,000


D. $7,000


E. $9,000


Answer: 9000

What would be total annual costs for either location at the point of indifference?

The Skulls, a student social organization, has two different locations under consideration for constructing a new chapter house. The Skulls' president, a POM student, estimates that due to differing land costs, utility rates, etc., both fixed and variable costs would be different for each of the proposed sites, as follows:




What would be total annual costs for either location at the point of indifference?



A. $13,000


B. $13,350


C. $9,000


D. $17,000


E. $19,200


Answer: 17000

Location options do not usually include:

Location options do not usually include:



A. expansion.


B. a contract.


C. adding new facilities.


D. moving.


E. doing nothing.


Answer: -contract

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