Operations Management 13th Edition by William J Stevenson – Test Bank

Operations Management 13th Edition by William J Stevenson – Test Bank

Chapter 08 Test Bank – Static
1. Location decisions are basically one-time decisions usually made by new organizations.

FALSE
Most organizations face location decisions over time.

AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 08-01 Identify some of the main reasons organizations need to make location decisions.
Topic: The Nature of Location Decisions

2. The fact that most types of firms are located in every section of the country suggests that in many cases, location decisions are not overly important; one location typically is as good as another.

FALSE
Many factors make locations relatively more or less attractive.

AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 08-02 Explain why location decisions are important.
Topic: The Nature of Location Decisions

3. You cannot make a mistake by locating where labor costs are low.

FALSE
Labor costs are only one of many considerations in location decisions. Among other things, labor skills and transportation costs must also be considered as they may negate any savings on labor costs.

AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 08-04 Discuss key considerations related to global location decisions.
Topic: Identifying a Country, Region, Community, and Site

4. Advanced communications has aided globalization.

TRUE
Globalization has been helped along by advances in communication technology.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-04 Discuss key considerations related to global location decisions.
Topic: Global Locations

5. The first step in developing location alternatives is identifying important factors.

FALSE
The first step is deciding on the criteria for evaluating the alternatives.

AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 08-05 Outline the decision process for making location decisions.
Topic: General Procedure for Making Location Decisions

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

TRUE
Market location is a regional factor.

AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-04 Discuss key considerations related to global location decisions.
Topic: Identifying a Country, Region, Community, and Site

7. A strategy that emphasizes convenience for the customers would probably select a single very large facility.

FALSE
Convenience for customers would tend to necessitate small, dispersed facilities.

AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 08-04 Discuss key considerations related to global location decisions.
Topic: The Nature of Location Decisions

8. For service organizations, the dominant factors in location analysis usually are market-related.

TRUE
Market considerations are dominant in service location decisions.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 08-06 Describe some of the key factors that guide service and retail location decisions.
Topic: Service and Retail Locations

9. The center of gravity method uses the earth’s center to establish starting grid coordinates (i.e., the 0,0,0 point) in three dimensions (x, y and z).

FALSE
The center of gravity method uses a two-dimensional grid with an arbitrary (0,0) point.

AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 08-07 Use the techniques presented to evaluate location alternatives.
Topic: Evaluating Location Alternatives

10. Labor laws are an important site-related factor.

FALSE
Labor laws are country- or region-related factors.