Operations and Supply Chain Management - Chapter 14 with complete solutions

Quality of life in a host community is not a major factor in making the facility location decision. False The host community's interest in having the plant in its midst is a necessary part of the evaluation process. Local educational facilities and the broader issue of quality of life are also important. 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 A high-quality and competitive supplier base makes a given location suitable. The proximity of important suppliers' plants also supports lean production methods. Brainpower Read More Previous Play Next Rewind 10 seconds Move forward 10 seconds Unmute 0:04 / 0:15 Full screen An example of a trading bloc is which of the following? ISO-9000 companies Free trade zones Central American Free Trade Agreement countries American Production and Inventory Control Society Wal-Mart and its suppliers Central American Free Trade Agreement countries The Central America Free Trade Agreement (CAFTA) is one of the new trading blocs in our hemisphere. In a hub-and-spoke system each warehouse in the system acts as a spoke. False The warehouse is referred to as a "hub" and its sole purpose is to sort goods. Facility location analysis considers the competitive imperative of lowest total cost. True The objective is to select a site with the lowest total cost. 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? Pipeline Highway Water Air Rail Pipeline Pipelines (are) highly specialized and limited to liquids, gases, and solids in slurry forms. No packaging is needed and the costs per mile are low. The initial cost to build a pipeline is very high. In facility location decision making the educational and skill levels of the labor pool must match the company's needs. True The educational and skill levels of the labor pool must match the company's needs Which of the following is not an infrastructure criteria used in facility location analysis? Adequate health care Adequate transportation Adequate school system Adequate public utility systems Adequate low cost labor Adequate low cost labor Labor is not an infrastructure criterion. Quality of labor is, but low cost labor is not mentioned. Infrastructure criteria mentioned are: adequate road, rail, air, and sea transportation, energy and telecommunications and, the local government's willingness to invest in upgrading infrastructure to the levels required. Issues of product mix and capacity are strongly interconnected to the facility location decision. True The location of other plants or distribution centers of the same company may influence a new facility's location in the network. Issues of product mix and capacity are strongly interconnected to the location decision in this context. Which of the following is a criterion that influences manufacturing plant or warehouse facility location decisions? Proximity to customers Competitive advantage Corporate policy Competitor's locations Host community politics Proximity to customers Japan's NTN Drive shafts Inc. built a major plant in Columbus, Indiana, to be closer to major automobile manufacturing plants in the United States whose buyers want their goods delivered.