Ch14 QUIZ ASNWERS Location, Logistics, and Distribution

Chapter 14 - Location, Logistics, and Distribution
Chapter 14
Location, Logistics, and Distribution
Learning Objectives for Chapter 14:
1. Describe what a third-party logistics provider is.
2. Assess the major issues that need to be considered in locating a
plant or warehouse facility.
3. Set up the transportation model to analyze location problems and
how to use Excel Solver to find solutions to these models.
4. Understand the centroid method for locating entities such as cell
phone communication towers.
5. Know how a factor-rating system can be used to narrow potential
location sites.
True / False Questions
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.
True False
2. Facility location analysis considers the competitive imperative to be close to customers as

to timeliness of deliveries.
True False
9-1
3. Facility location analysis considers the competitive imperative of lowest total cost.
True False
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.
True False
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.
True False
appropriate labor pool to take advantage of high technical skills.
True False
9-2
7. An example of a positive business climate that might influence a facility location decision
is increasing governmental costs and increasing property taxes.
True False
8. A favorable business climate in facility location decision-making might include

government legislation of tax abatements.
True False
9. A favorable business climate in facility location decision-making might include local

government intervention to facilitate businesses locating in an area via subsidies.
True False
government providing basic skill training for prospective members of the workforce.
True False
11. In facility location decision-making the educational and skill levels of the labor pool must
match the company's needs.
True False
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.
True False
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.
True False
9-3
14. Issues of Error! Hyperlink reference not valid.Error! Hyperlink reference not
valid. and capacity are strongly interconnected to the facility location decision.
True False
15. A free trade zone operates under different rules and laws than a foreign trade zone.
True False
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.
True False
17. The objective of facility location analysis is to select the site with the lowest total cost.
True False
18. Governmental barriers to enter and locate in many countries are increasing through
restrictive protectionist legislation.
True False
19. Quality of life in a host community is not a major factor in making the facility location
decision.
True False
20. In facility location decision-making the factor-rating system is one of the least used
general location techniques.
True False
9-4
21. In facility location decision-making the factor-rating system is based on linear

programming.
True False
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.
True False
23. Services typically have multiple site locations to maintain close contact with customers.
True False
24. Facility location decisions are made using analytical techniques that are able to weigh a
large number of different variables equally.
True False
25. A third-party logistics company is a firm that manages all or part of another company's
product delivery operations.
True False
26. DHL and United Parcel Service are transportation companies which are prohibited from
functioning as a third-party logistics company the way Federal Express does.
True False
9-5

Multiple Choice Questions
27. 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
28. Which of the following is a not criterion that influences manufacturing plant or warehouse
A. Suppliers
B. Free trade zones
C. Political risk
D. Gross national product
E. Tariffs and customs duties
A. Government barriers
B. Trading blocs
C. Environmental regulation
D. Immigration rules
E. Local labor costs
30. Which of the following is a criterion that influences manufacturing plant or warehouse
B. Corporate policy
C. Competitor's locations
D. Competitive advantage
E. Host community politics
9-6
31. 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
32. 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
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. Costs we can pass along to our customer
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
9-7
35. 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
E. Bribery costs
36. 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
37. 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
38. An example of a trading bloc is which of the following?

A. North 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
9-8
39. Which of the following is a plant location methodology 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
40. 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
41. 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
42. 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 115
C. About 130
D. About 150
E. X coordinate cannot be computed from the data given
9-9
A. About 227
B. About 243
C. About 389
D. X coordinate cannot be computed from the data given
44. 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
45. 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
46. 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
9-10

Fill in the Blank Questions
47. Name the five transportation modes discussed in the textbook.

1)____________________; 2)____________________;
3)____________________; 4)____________________;
5) ____________________
________________________________________
48. Name four methods of quantitative analysis that are useful in informing the facility
location decision. 1)____________________; 2)____________________;
3)____________________; 4)____________________
________________________________________
49. What is a closed area or compound into which foreign goods can be brought without being
subject to the normal customs requirements? ____________________
________________________________________
50. Three distribution centers, A, B, and C, are located at the following (X, Y) coordinates: A,
(20, 130); B, (180, 0); and C, (200, 200). A factory is to be constructed to distribute a new
product through these warehouses. The expected annual volumes expected to be shipped
through the three warehouses is forecast to be 20 million units through A, 100 million through
B and 50 million through C. Using the centroid method, approximately what should the
coordinates of the new factory be? _________________
________________________________________
51. What is the name for a group of countries that have agreed on a set of special
arrangements governing the buying and selling of goods between member countries?
________________________
________________________________________
9-11
52. The text describes 14 "Issues in facility location." Name as many of these as you can.
1) ________________________ 2) ________________________
3) ________________________ 4) ________________________
5) ________________________ 6) ________________________
7) ________________________ 8) ________________________
9) ________________________ 10) ________________________
11) ________________________ 12) ________________________
13) ________________________ 14) ________________________
________________________________________
53. What are the two "hidden costs" that are often overlooked in determining the total cost of
a facility location decision?
__________________________________
__________________________________
________________________________________
Essay Questions
54. Compare and contrast the factor-rating system and the transportation method of linear
programming as used in facility location decisions.
55. As a facility location consultant, how would you advise a client wanting to locate a retail
service facility differently than a client wanting to locate an on-line stock trading operation?
9-12
56. What weight should be given to environmental pollution control regulations that differ
from location to location or from country to country in making facility location decisions?
9-13
Chapter 09 Location, Logistics, and Distribution Answer Key
True / False Questions
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.
TRUE
AACSB: Analytic
Difficulty: Easy
Learning Objective: 2
Taxonomy: Knowledge
Topic: Issues in Facility Location
2. Facility location analysis considers the competitive imperative to be close to customers as

to timeliness of deliveries.
TRUE
AACSB: Analytic
Difficulty: Easy
Taxonomy: Knowledge
9-14
3. Facility location analysis considers the competitive imperative of lowest total cost.
TRUE
AACSB: Analytic
Difficulty: Easy
Taxonomy: Knowledge
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.
TRUE
AACSB: Analytic
Difficulty: Easy
Taxonomy: Knowledge
appropriate labor pool to take advantage of low wage costs and/or skill levels.
TRUE
AACSB: Analytic
Difficulty: Easy
Taxonomy: Knowledge
appropriate labor pool to take advantage of high technical skills.
TRUE
AACSB: Analytic
Difficulty: Easy
Taxonomy: Knowledge
9-15
7. An example of a positive business climate that might influence a facility location decision
is increasing governmental costs and increasing property taxes.
FALSE
AACSB: Analytic
Difficulty: Easy
Taxonomy: Knowledge
8. A favorable business climate in facility location decision-making might include

government legislation of tax abatements.
TRUE
AACSB: Analytic
Difficulty: Easy
Taxonomy: Knowledge

government intervention to facilitate businesses locating in an area via subsidies.
TRUE
AACSB: Analytic
Difficulty: Easy
Taxonomy: Knowledge
government providing basic skill training for prospective members of the workforce.
TRUE
AACSB: Analytic
Difficulty: Easy
Taxonomy: Knowledge
9-16
11. In facility location decision-making the educational and skill levels of the labor pool must
match the company's needs.
TRUE
AACSB: Analytic
Difficulty: Easy
Taxonomy: Knowledge
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.
FALSE
AACSB: Analytic
Difficulty: Easy
Taxonomy: Knowledge
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.
FALSE
AACSB: Analytic
Difficulty: Easy
Taxonomy: Understanding
14. Issues of Error! Hyperlink reference not valid.Error! Hyperlink reference not
valid. and capacity are strongly interconnected to the facility location decision.
TRUE
AACSB: Analytic
Difficulty: Easy
9-17
15. A free trade zone operates under different rules and laws than a foreign trade zone.
FALSE
AACSB: Analytic
Difficulty: Easy
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.
TRUE
AACSB: Analytic
Difficulty: Easy
17. The objective of facility location analysis is to select the site with the lowest total cost.
TRUE
AACSB: Analytic
Difficulty: Easy
18. Governmental barriers to enter and locate in many countries are increasing through
restrictive protectionist legislation.
FALSE
AACSB: Analytic
Difficulty: Easy
Taxonomy: Knowledge
9-18
19. Quality of life in a host community is not a major factor in making the facility location
decision.
FALSE
AACSB: Analytic
Difficulty: Easy
20. In facility location decision-making the factor-rating system is one of the least used
general location techniques.
FALSE
AACSB: Analytic
Difficulty: Easy
Topic: Plant Location Methods
21. In facility location decision-making the factor-rating system is based on linear

programming.
FALSE
AACSB: Analytic
Difficulty: Easy
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.
TRUE
AACSB: Analytic
Difficulty: Easy
9-19
23. Services typically have multiple site locations to maintain close contact with customers.
TRUE
AACSB: Analytic
Difficulty: Easy
24. Facility location decisions are made using analytical techniques that are able to weigh a
large number of different variables equally.
FALSE
AACSB: Analytic
Difficulty: Easy
25. A third-party logistics company is a firm that manages all or part of another company's
product delivery operations.
TRUE
AACSB: Analytic
Difficulty: Easy
Topic: Logistics
26. DHL and United Parcel Service are transportation companies which are prohibited from
functioning as a third-party logistics company the way Federal Express does.
FALSE
AACSB: Analytic
Difficulty: Medium
Topic: Logistics
9-20

Multiple Choice Questions
B. Historical cost
C. Infrastructure of a country
D. Quality of labor
E. Business climate
AACSB: Analytic
Difficulty: Easy
28. Which of the following is a not criterion that influences manufacturing plant or warehouse
A. Suppliers
B. Free trade zones
C. Political risk
D. Gross national product
E. Tariffs and customs duties
AACSB: Analytic
Difficulty: Easy
A. Government barriers
B. Trading blocs
C. Environmental regulation
D. Immigration rules
E. Local labor costs
AACSB: Analytic
Difficulty: Easy
9-21
30. Which of the following is a criterion that influences manufacturing plant or warehouse
B. Corporate policy
C. Competitor's locations
D. Competitive advantage
E. Host community politics
AACSB: Analytic
Difficulty: Easy
31. 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
AACSB: Analytic
Difficulty: Easy
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
AACSB: Analytic
Difficulty: Easy
9-22
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. Costs we can pass along to our customer
AACSB: Analytic
Difficulty: Easy
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
E. Product life cycle costs
AACSB: Analytic
Difficulty: Easy
35. 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
E. Bribery costs
AACSB: Analytic
Difficulty: Easy
9-23
36. 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
AACSB: Analytic
Difficulty: Easy
37. 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
AACSB: Analytic
Difficulty: Easy
Taxonomy: Knowledge
38. An example of a trading bloc is which of the following?

A. North 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
AACSB: Analytic
Difficulty: Easy
9-24
39. Which of the following is a plant location methodology 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
AACSB: Analytic
Difficulty: Easy
40. 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
AACSB: Analytic
Difficulty: Easy
41. 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
AACSB: Analytic
Difficulty: Easy
9-25
A. About 100
B. About 115
C. About 130
D. About 150
E. X coordinate cannot be computed from the data given
AACSB: Analytic
Difficulty: Medium
Taxonomy: Analysis
A. About 227
B. About 243
C. About 389
D. X coordinate cannot be computed from the data given
AACSB: Analytic
Difficulty: Medium
Taxonomy: Analysis
9-26
44. 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
AACSB: Analytic
Difficulty: Medium
Taxonomy: Analysis
45. 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
AACSB: Analytic
Difficulty: Easy
9-27
46. 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
AACSB: Analytic
Difficulty: Easy
Taxonomy: Knowledge
Fill in the Blank Questions
47. Name the five transportation modes discussed in the textbook.

1)____________________; 2)____________________;
3)____________________; 4)____________________;
5) ____________________
1) Highway; 2) Rail; 3) Water; 4) Air; 5) Pipeline
AACSB: Analytic
Difficulty: Medium
Taxonomy: Knowledge
48. Name four methods of quantitative analysis that are useful in informing the facility
location decision. 1)____________________; 2)____________________;
3)____________________; 4)____________________
1) Centroid method; 2) Regression analysis; 3) Transportation method of linear
programming; 4) Factor rating system
AACSB: Analytic
Difficulty: Medium
Taxonomy: Knowledge
9-28
49. What is a closed area or compound into which foreign goods can be brought without being
subject to the normal customs requirements? ____________________
A free trade zone (or foreign trade zone)
AACSB: Analytic
Difficulty: Easy
50. Three distribution centers, A, B, and C, are located at the following (X, Y) coordinates: A,
(20, 130); B, (180, 0); and C, (200, 200). A factory is to be constructed to distribute a new
product through these warehouses. The expected annual volumes expected to be shipped
through the three warehouses is forecast to be 20 million units through A, 100 million through
B and 50 million through C. Using the centroid method, approximately what should the
coordinates of the new factory be? _________________
X = 167, Y = 74
AACSB: Analytic
Difficulty: Hard
Taxonomy: Analysis
51. What is the name for a group of countries that have agreed on a set of special
arrangements governing the buying and selling of goods between member countries?
________________________
Trading bloc
AACSB: Analytic
Difficulty: Medium
Taxonomy: Knowledge
9-29
52. The text describes 14 "Issues in facility location." Name as many of these as you can.
1) ________________________ 2) ________________________
3) ________________________ 4) ________________________
5) ________________________ 6) ________________________
7) ________________________ 8) ________________________
9) ________________________ 10) ________________________
11) ________________________ 12) ________________________
13) ________________________ 14) ________________________
(1.) Proximity to customers; (2.) Business climate; (3.) Total cost; (4.) Infrastructure; (5.)
Quality of labor; (6.) Suppliers; (7.) Other facilities; (8.) Free trade zones; (9.) Political
risk; (10.) Government barriers; (11.) Trading blocs; (12.) Governmental regulation;
(13.) Host community; (14.) Competitive advantage
AACSB: Analytic
Difficulty: Hard
Taxonomy: Knowledge
53. What are the two "hidden costs" that are often overlooked in determining the total cost of
a facility location decision?
__________________________________
__________________________________
(1.) Excessive moving of pre-production materials between locations prior to final
delivery to the customers. (2.) Loss of customer responsiveness arising from locating
away from the main customer base.
AACSB: Analytic
Difficulty: Medium
9-30

Essay Questions
54. Compare and contrast the factor-rating system and the transportation method of linear
programming as used in facility location decisions.
These two methods are discussed in the text starting on page 255. A successful response to the
question will identify that the transportation method of linear programming employs
substantially more mathematical rigor but also imposes some fairly rigid assumptions (like
linearity & certainty) and is limited in the kinds of information that is considered in making
the decision. The factor-rating system makes fewer assumptions to facilitate analytical
tractability and gives broad latitude in terms of the kinds of information used. On the other
hand, to use the factor-rating system to sort out a facility decision from a large number of
candidate locations will require gathering and assessment of large amounts of data which is
measured differently and may not necessarily be compatible. Linear programming, on the
other hand, uses less data per alternative and that data is, by definition, analyzable. Stated
differently, the factor-rating method incorporates the decision-makers judgment more
explicitly than does the transportation method of linear programming.
A strong response to this question will convey the idea that blending these methods is
possible. The transportation method can be used to help sort through a large number of
candidate locations and eliminate most of them. The factor-rating system, then, working with
a relatively short list of possibilities, each of which is acceptable from the transportation linear
programming perspective, can look more closely and in more detail to assist in the final
decision.
AACSB: Analytic
Difficulty: Medium
Taxonomy: Synthesis
9-31
55. As a facility location consultant, how would you advise a client wanting to locate a retail
service facility differently than a client wanting to locate an on-line stock trading operation?
A retail service facility requires close physical proximity to customers. An analytical method
that relates possible locations to the locations of clientele (such as the centroid method or
regression analysis) is favored here. The on-line operation, on the other hand, is relatively
footloose relative to customers. Here, a factor-rating system that considered issues like quality
of labor, infrastructure, quality of life, host community amenities, etc. would be more
appropriate.
AACSB: Analytic
Difficulty: Hard
56. What weight should be given to environmental pollution control regulations that differ
from location to location or from country to country in making facility location decisions?
Environmental regulations are mentioned in passing on page 254 of the text. This question is
extremely value-laden and does not lend itself to a right-or-wrong answer. Instead it provides
your students with the opportunity to impose their own values on the issue. Hence, some
latitude must be taken in evaluating their responses. Some students will argue that, because of
the costs of being "green," the firm has a responsibility to shareholders to locate in the most
environmentally permissive location. Others will argue that the social responsibility of the
firm should dominate the decision and, wherever it locates, the firm should spare no expense
to be as "clean and green" as technology allows. Either case, argued well, should get some
credit. A slightly more thoughtful response will look not just at current regulations but toward
possible tighter regulations in the long-term future and even to the public image the firm
wishes to project. An excellent response will incorporate all of these perspectives and will add
the notion that, by being "clean and green" a firm may actually gain competitive advantage as
the environmental movement takes hold and sensitive customers become aware of the firm's
environmentally responsible stance. A second type of competitive advantage might arise. If
the "green" firm lobbies for the more strict pollution rules, competitors may be required to
conform to tougher regulations by adopting pollution controls at inflated future prices.
AACSB: Analytic
Difficulty: Hard
9-32

Ch14 QUIZ ASNWERS Location, Logistics, and Distribution

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Chapter 14 - Location, Logistics, and Distribution

1. The local government's willingness to invest in upgrading infrastructure to the levels

2. Facility location analysis considers the competitive imperative to be close to customers as

Chapter 14 - Location, Logistics, and Distribution

4. Facility location analysis considers the competitive imperative of a favorable business

Chapter 14 - Location, Logistics, and Distribution

8. A favorable business climate in facility location decision-making might include

9. A favorable business climate in facility location decision-making might include local

Chapter 14 - Location, Logistics, and Distribution

Chapter 14 - Location, Logistics, and Distribution

21. In facility location decision-making the factor-rating system is based on linear

Chapter 14 - Location, Logistics, and Distribution

Chapter 14 - Location, Logistics, and Distribution

31. An important issue in facility location analysis is business climate. An unfavorable

Chapter 14 - Location, Logistics, and Distribution

38. An example of a trading bloc is which of the following?

Chapter 14 - Location, Logistics, and Distribution

Chapter 14 - Location, Logistics, and Distribution

Chapter 14 - Location, Logistics, and Distribution

47. Name the five transportation modes discussed in the textbook.

Chapter 14 - Location, Logistics, and Distribution

Chapter 14 - Location, Logistics, and Distribution

Chapter 14 - Location, Logistics, and Distribution

Chapter 09 Location, Logistics, and Distribution Answer Key

True / False Questions

1. The local government's willingness to invest in upgrading infrastructure to the levels

2. Facility location analysis considers the competitive imperative to be close to customers as

Chapter 14 - Location, Logistics, and Distribution

4. Facility location analysis considers the competitive imperative of a favorable business

Chapter 14 - Location, Logistics, and Distribution

8. A favorable business climate in facility location decision-making might include

9. A favorable business climate in facility location decision-making might include local

Chapter 14 - Location, Logistics, and Distribution

Chapter 14 - Location, Logistics, and Distribution

Chapter 14 - Location, Logistics, and Distribution

21. In facility location decision-making the factor-rating system is based on linear

Chapter 14 - Location, Logistics, and Distribution

Chapter 14 - Location, Logistics, and Distribution

Chapter 14 - Location, Logistics, and Distribution

31. An important issue in facility location analysis is business climate. An unfavorable

Chapter 14 - Location, Logistics, and Distribution

Chapter 14 - Location, Logistics, and Distribution

38. An example of a trading bloc is which of the following?

Chapter 14 - Location, Logistics, and Distribution

Chapter 14 - Location, Logistics, and Distribution

Chapter 14 - Location, Logistics, and Distribution

Chapter 14 - Location, Logistics, and Distribution

Fill in the Blank Questions

47. Name the five transportation modes discussed in the textbook.

Chapter 14 - Location, Logistics, and Distribution

Chapter 14 - Location, Logistics, and Distribution

Chapter 14 - Location, Logistics, and Distribution

Chapter 14 - Location, Logistics, and Distribution

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