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An example of a regional factor in location planning is the location of our markets (either existing or potential).

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In regard to supply chain management and the location decision, a primary challenge is to address _____ distribution.


A) insourced vs. outsourced
B) strategic vs. tactical
C) local vs. global
D) centralized vs. decentralized
E) anticipatory vs. reactive

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Location choice I has monthly fixed costs of $100,000 and per-unit variable costs of $10. What would its total cost be at a monthly volume of 550 units?


A) $105,200
B) $102,500
C) $100,250
D) $100,520
E) $105,500

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Location options do not usually include


A) expansion.
B) a contract.
C) adding new facilities.
D) moving.
E) doing nothing.

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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 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 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

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Among the potential disadvantages of having global operations is/are


A) low labor productivity.
B) less restrictive environmental regulation.
C) lower wage costs.
D) proximity to global markets.
E) favorable liability laws.

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A

When making location decisions, nonprofit organizations differ from for-profit ones in seeking a balance between


A) profits and opportunities.
B) costs and revenues.
C) costs and customer service.
D) growth and stability.
E) stability and opportunity.

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Labor laws are an important site-related factor.

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A location analysis has been narrowed down to three locations. The critical factors, their weights, and the ratings for each location are shown below A location analysis has been narrowed down to three locations. The critical factors, their weights, and the ratings for each location are shown below   What is the composite score for location B? A) 76 B) 75 C) 78 D) 74 E) 76.33 What is the composite score for location B?


A) 76
B) 75
C) 78
D) 74
E) 76.33

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Nearness to raw materials would be most important to a


A) grocery store.
B) tax preparation service.
C) manufacturing company.
D) post office.
E) hospital.

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Location choice I has monthly fixed costs of $100,000 and per-unit variable costs of $10. What would its total cost be at a monthly volume of 250 units?


A) $105,200
B) $102,500
C) $100,250
D) $100,520
E) $105,500

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B

Retail businesses generally prefer locations that are not near other retailers, as this reduces their competition.

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False

Web-based, retail businesses should be located near the customer to reduce their long distance phone charges.

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Software systems known as GIS help in location analysis. The initials GIS stand for


A) Graphic Interface Systems.
B) Global Integrated Software.
C) Graded Information Systems.
D) Geo Intensive Software.
E) Geographic Information System.

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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 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   What would be the total annual costs at the point of indifference? A) $300,000 B) $240,000 C) $380,000 D) $220,000 E) $760,000 What would be the total annual costs at the point of indifference?


A) $300,000
B) $240,000
C) $380,000
D) $220,000
E) $760,000

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The method for evaluating location alternatives that minimizes shipping costs between multiple sending and receiving locations is


A) locational cost-profit-volume analysis.
B) the transportation model.
C) factor rating.
D) geographic information system (GIS) analysis.
E) the center-of-gravity method.

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In general, managing global operations is made easier by _____ and _____.


A) political uncertainty; currency devaluation
B) differentiation strategies; diversified markets
C) low interest rates; price-sensitive customers
D) cost-leadership strategies; labor productivity
E) freer trade; technology

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Which of the following is least likely to experience relocation decisions based upon depletion of basic inputs?


A) petroleum operations
B) mining operations
C) farming operations
D) logging operations
E) fishing operations

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Location decisions are basically one-time decisions usually made by new organizations.

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_____ has/have a major influence on the decision-making process of where to produce goods.


A) Automation
B) Technology
C) Costs
D) Transportation costs
E) Skilled labor

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