Q&A Hero

Q: Consider the following information about sites A, B, and C: For the preferred site for 20,000 units per year, what would be your total costs?

Q: Consider the following information about sites A, B, and C: Which site would you prefer for a quantity of 20,000 units per year?

Q: Consider the following information about sites A, B, and C: For what range of output would you prefer site C?

Q: Consider the following information about sites A, B, and C: For what quantity would you be indifferent between selecting site B or site C?

Q: Consider the following information about sites A, B, and C: What are total costs for site C for a quantity of 5,000 units per year?

Q: Determine the optimum location for a distribution center to serve the following locations. Shipments to each location will be approximately equal.

Q: Determine the center of gravity location for the following destinations and shipping quantities:

Q: Given the following information on scores of three location alternatives, which alternative would you recommend? Why?

Q: A firm is trying to decide between two location alternatives, Albany and Baltimore. Albany would result in annual fixed costs of $60,000, labor costs of $7 per unit, material costs of $10 per unit, transportation costs of $15 per unit, and revenue per unit of $50. Baltimore would have annual fixed costs of $80,000, labor costs of $6 per unit, material costs of $9 per unit, transportation costs of $14 per unit, and revenue per unit of $48. (A) At an annual volume of 9,000, which would yield the higher profit? (B) At what annual volume would management be indifferent between the two alternatives in terms of annual profits?

Q: A manager must decide between two location alternatives, Boston and Chicago. Boston would have annual fixed costs of $70,000, transportation costs of $60 per unit, and labor and material costs of $200 per unit. Chicago would have annual fixed costs of $90,000, transportation costs of $40 per unit, and labor and material costs of $170 per unit. Revenue will be $300 per unit. (A) Which alternative would yield the higher profit for an annual demand of 3,000 units? (B) Would the two locations yield the same profit at a certain volume? If so, at what volume would that be?

Q: Location choice I has monthly fixed costs of $100,000 and per-unit variable costs of $10. Location choice J has monthly fixed costs of $150,000 and per-unit variable costs of $9. At what volume would these locations have equal total costs? A. 30,000 units B. 25,000 units C. 40,000 units D. 50,000 units E. 60,000 units

Q: 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

Q: 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

Q: Which of the following is least important as a consideration for a firm at the beginning of a supply chain? A. access to end consumers B. access to resources C. proximity to customers D. access to transportation infrastructure E. access to productive labor

Q: 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

Q: A hardware distributor has regional warehouses at the locations shown below. The company wants to locate a new central distribution center to serve this warehouse network. Weekly shipments to each warehouse will be: WH1, 100; WH2, 150; WH3, 120; WH4, 150; and WH5, 120. What is the optimal location of the distribution center? A. 5.1, 4.2 B. 5.2, 4.0 C. 5.1, 5.1 D. 4.2, 5.1 E. 4.9, 5.2

Q: A clothing manufacturer produces clothing in five locations in the United States. In a move to vertical integration, the company is planning a new fabric production plant that will supply fabric to all five clothing plants. The clothing plants have been located on a coordinate system as follows: Shipments of fabric to each plant vary per week as follows: plant A, 200 units; plant B, 400 units; plant C, 300 units; plant D, 300 units; and plant E, 200 units. What is the optimal location for the fabric plant? A. 6.2, 3.0 B. 6.0, 4.0 C. 6.5, 5.3 D. 5.6, 4.4 E. 5.0, 3.0

Q: A location analysis has been narrowed down to three locations. The critical factors, their weights, and the ratings for each location are shown below: If the decision rule is to select the location with the greatest composite score exceeding 80, management should choose: A. location A. B. location B. C. location C. D. either location B or location C. E. to reject all locations.

Q: 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: If the annual demand will be 20,000 units, what would be the cost advantage of the better location? A. $20,000 B. $460,000 C. $480,000 D. $80,000 E. $60,000

Q: 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

Q: 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

Q: 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

Q: 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

Q: 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.

Q: An approach to location analysis that can include both qualitative and quantitative considerations is: A. locational cost-profit-volume. B. factor rating. C. transportation model. D. expected value (net present value). E. financial analysis.

Q: The method for evaluating location alternatives that uses their composite (weighted-average) scores is: A. cost-profit-volume analysis. B. transportation model analysis. C. factor rating analysis. D. linear regression analysis. E. MODI analysis.

Q: The method for evaluating location alternatives that minimizes shipping costs between multiple sending and receiving locations is: A. locational cost-profit-volume analysis. B. transportation model analysis. C. factor rating analysis. D. linear regression analysis. E. MODI analysis.

Q: The method for evaluating location alternatives that uses their total cost curves is: A. locational cost-profit-volume analysis. B. transportation model analysis. C. factor rating analysis. D. linear regression analysis. E. MODI analysis.

Q: Cultural differences, customer preferences, labor, and resources are factors relating to: A. regional choices. B. site selection. C. zoning. D. product design. E. foreign locations.

Q: Location options do not usually include: A. expansion. B. a contract. C. adding new facilities. D. moving. E. doing nothing.

Q: Some communities offer financial and other incentives to ______ new businesses. A. tax B. attract C. marginalize D. incorporate E. zone

Q: Having facilities, personnel, and operations located around the world is called: A. nondomestic operations. B. diversified operations. C. globalization. D. worldwide presence. E. virtual organization.

Q: 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.

Q: In location planning, the location of raw materials, the location of markets, and labor factors are: A. regional factors. B. community factors. C. site-related factors. D. national factors. E. minor considerations.

Q: The center of gravity method is used to _______ travel time, distance, and costs. A. normalize B. eliminate C. average D. minimize E. document

Q: When a location evaluation includes both quantitative and qualitative inputs, a technique that can be used is: A. linear programming. B. consumer surveys. C. factor rating. D. transportation models. E. center of gravity methods.

Q: Which of the following is the last step in the procedure for making location decisions? A. Determine the evaluation criteria. B. Identify important factors. C. Develop location alternatives. D. Evaluate alternatives and make a selection. E. Request input regarding alternatives.

Q: Which of the following is not a location option that management can consider in location planning? A. Expand an existing facility. B. Add a new location. C. Relocate from one location to another. D. Do nothing. E. All of the choices.

Q: Which statement best characterizes a typical search for location alternatives? A. Identify the best location choice. B. Minimize cost consequences. C. Maximize associated profits. D. Locate near markets. E. Identify acceptable locations.

Q: A one-hour photo processing machine in a Walmart store is an example of a: A. microfactory. B. downsize strategy. C. diversified strategy. D. lean production system. E. falling price strategy.

Q: 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.

Q: Retail businesses often engage in ____________, the tendency to locate in close proximity to one another. A. centering B. strategizing C. clustering D. localcasting E. macromarketing

Q: Locational cost-profit-volume analysis assumes: (I) nonlinear variable costs. (II) fixed costs that are constant over the range of possible output. (III accurate estimates regarding the required level of output. (IV) multiple products. A. I, III, and IV only B. II and III only C. I, II, and III only D. II, III, and IV only E. I, II, III, and IV

Q: Among the 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.

Q: 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

Q: In regards 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

Q: Given the following work sampling data, based upon 100 random observations of a particular worker: For a confidence level of 86.64 percent, what is the maximum error of the estimate for activity B?

Q: Eight instances of a worker doing a task were observed as follows: How many observations would be needed to be 99.74 percent confident that the maximum error is 5 percent of the observed time? Assume that the standard deviation of the task time is two seconds.

Q: Eight instances of a worker doing a task were observed as follows: If the person observed worked at a pace that is 20 percent faster than average, and if the appropriate allowance for this task is 25 percent of the workday, what should be the standard time?

Q: Eight instances of a worker doing a task were observed as follows: What is the observed time for this task?

Q: A work sampling study of dockworkers must be set up. There will be a large number of random observations. However, for this exercise, determine an observation schedule (arranged chronologically) for six observations. Assume workers are on the docks for eight hours a day, and that the study will be done over a 60-day period. Use the random digits listed below.

Q: A work sampling study of kitchen help is to be designed. The study will be conducted over a nine-day period. The kitchen help works a seven-hour shift. Determine the day, hour, and minute of five observations using the random digits listed below.

Q: A work sampling study is needed that will estimate the percentage of time a postal clerk spends selling stamps as opposed to other duties. Determine the necessary sample size to estimate that proportion with a confidence of 99.74 percent to within 3 percent, for these cases: (1) No information is currently available concerning that proportion. (2) The proportion is probably no more than 15 percent.

Q: 133. An initial time study resulted in an average observed time of 2.2 minutes per cycle, and a standard deviation of .3 minutes per cycle. The performance rating was 1.20. What sample size, including the 20 observations in the initial study, would be necessary to have a confidence of 95.44 percent that the observed time was within 4 percent of the true value?

Q: 132. How many observations would be required in a time study in order to obtain 95 percent confidence that the average time observed was no more than 0.6 minutes from the true mean, assuming a standard deviation of cycle time of 1.8 minutes?

Q: A time study of a job produced the following: average cycle time = 1.5 minutes, performance rating = 1.15. Allowances are 18 percent of the workday (480 minutes). Determine the standard time for this job.

Q: An analyst has observed 28 work cycles, for which the average cycle time was five minutes and the performance rating was 1.05. Allowances for the department are 25 percent of job time. What standard time is appropriate for this job?

Q: The manager of Lawn and Garden Services would like to estimate the proportion of her employees' time spent performing various gardening and lawn care activities. She has made 400 random observations of a typical worker, with the following results: If the manager wants to be 95.44 percent confident that the true proportion of time spent mowing is within .02 (plus or minus) of the sample proportion, what should be her sample size? A. 400 B. 1,000 C. 1,600 D. 2,000 E. 2,500

Q: A methods and measurements analyst for Digital Devices needs to develop a time standard for the task of assembling a computer mouse. In a preliminary study, she observed one of her workers perform this task six times with the following results: How many observations should be made if she wants to be 86.64 percent confident that the maximum error in the observed time is .5 second? Assume that the standard deviation of the task time is four seconds. A. 10 B. 12 C. 120 D. 144 E. 169

Q: The owner of Touchdown Sports Bar wants to develop a time standard for the task of mixing a specialty cocktail. In a preliminary study, he observed one of his bartenders perform this task seven times with an average of 90 seconds and a standard deviation of five seconds. How many observations should be made if he wants to be 95.44 percent confident that the maximum error in the observed time is one second? A. 64 B. 86 C. 100 D. 144 E. 169

Q: The owner of Touchdown Sports Bar wants to develop a time standard for the task of mixing a specialty cocktail. In a preliminary study, he observed one of his bartenders perform this task seven times with an average of 90 seconds and a standard deviation of five seconds. What is the standard time for this task if the bartender worked at a 20 percent faster pace than is average, and an allowance of 10 percent of job time is used? A. 135 seconds B. 123.8 seconds C. 118.8 seconds D. 120 seconds E. 112.5 seconds

Q: The owner of Touchdown Sports Bar wants to develop a time standard for the task of mixing a specialty cocktail. In a preliminary study, he observed one of his bartenders perform this task seven times with an average of 90 seconds and a standard deviation of five seconds. What is the standard time for this task if the bartender worked at a 20 percent faster pace than is average, and an allowance of 20 percent of the workday is used? A. 112.5 seconds B. 120 seconds C. 135 seconds D. 144 seconds E. 150 seconds

Q: The owner of Touchdown Sports Bar wants to develop a time standard for the task of mixing a specialty cocktail. In a preliminary study, he observed one of his bartenders perform this task seven times with an average of 90 seconds and a standard deviation of five seconds. What is the normal time for this task if the bartender worked at a 20 percent faster pace than is average? A. 75 seconds B. 90 seconds C. 108 seconds D. 110 seconds E. 112.5 seconds

Q: A methods and measurement analyst wants to develop a time standard for a certain task. In a preliminary study, he observed one worker perform the task six times with an average observed time of 20 seconds and a standard deviation of two seconds. How many observations should be made if he wants to be 95.44 percent confident that the maximum error in the observed time is one second? A. 3 B. 4 C. 13.3 D. 16 E. 25

Q: A methods and measurement analyst wants to develop a time standard for a certain task. In a preliminary study, he observed one worker perform the task six times with an average observed time of 20 seconds and a standard deviation of two seconds. What is the standard time for this task if the employee worked at a 20 percent faster pace than average, and an allowance of 25 percent of job time is used? A. 20 seconds B. 25 seconds C. 26.7 seconds D. 30 seconds E. 32 seconds

Q: A methods and measurement analyst wants to develop a time standard for a certain task. In a preliminary study, he observed one worker perform the task six times with an average observed time of 20 seconds and a standard deviation of two seconds. What is the standard time for this task if the employee worked at a 20 percent faster pace than average, and an allowance of 25 percent of the workday is used? A. 20 seconds B. 25 seconds C. 26.7 seconds D. 30 seconds E. 32 seconds

Q: A methods and measurement analyst wants to develop a time standard for a certain task. In a preliminary study, he observed one worker perform the task six times with an average observed time of 20 seconds and a standard deviation of two seconds. What is the normal time for this task if the employee worked at a 20 percent faster pace than average? A. 4 seconds B. 16.7 seconds C. 20 seconds D. 24 seconds E. 100 seconds

Q: A methods and measurements analyst for Timepiece, Inc., needs to develop a time standard for the task of attaching a watch to a wristband. In a preliminary study, he observed one of his workers perform this task five times, with the following results: How many observations should be made if he wants to be 95.44 percent confident that the maximum error in the observed time is one second? Assume that the standard deviation of the task time is five seconds. A. 5 B. 10 C. 25 D. 100 E. 121

Q: The owner of Kat Motel wants to develop a time standard for the task of cleaning a cat cage. In a preliminary study, she observed one of her workers perform this task six times, with the following results: How many observations should be made if she wants to be 95.44 percent confident that the maximum error in the observed time is two seconds? Assume that the standard deviation of the task time is six seconds. A. 5 B. 6 C. 30 D. 36 E. 49

Q: A methods and measurements analyst needs to develop a time standard for a certain task. In a preliminary study, he observed one of his workers perform this task five times, with the following results: How many observations should be made if the analyst wants to be 99.74 percent confident that the maximum error in the observed time is two seconds? Assume that the standard deviation of each task time is four seconds. A. 5 B. 6 C. 25 D. 36 E. 49

Q: A methods and measurements analyst needs to develop a time standard for a certain task. In a preliminary study, he observed one of his workers perform this task five times, with the following results: What is the normal time for this task if the employee worked at a 25 percent faster pace than average? A. 80 seconds B. 96 seconds C. 100 seconds D. 120 seconds E. 125 seconds

Q: A methods and measurements analyst needs to develop a time standard for a certain task. In a preliminary study, he observed one of his workers perform this task five times, with the following results: What is the observed time for this task? A. 80 seconds B. 84 seconds C. 160 seconds D. 240 seconds E. 400 seconds

Q: A disadvantage of teams is: A. higher quality. B. higher productivity. C. greater worker satisfaction. D. team member conflict. E. lower turnover.

Q: Methods analysis and motion study techniques develop which aspects of jobs? A. behavioral aspects B. efficiency aspects C. pay levels D. quality levels E. teamwork aspects

Q: The design of work systems typically involves: (I) work measurement. (II) job design. (III) compensation. (IV) the use of outside consultants. A. II and III only B. I and III only C. II, III, and IV only D. I, II, and III only E. I, II, III, and IV

Q: Which of the following statements should not characterize an operations strategy toward the design of work systems? A. Manufacturing technology is the heart of a business. B. Workers can make or break a business. C. Workers can be a valuable source of insights. D. A spirit of cooperation can contribute to success. E. Workers can be proud and respected.

Q: Which of the following is not characteristic of time-based compensation plans? A. stable labor costs B. easier to administer than output-based plans C. stable pay for workers D. simpler wage computations than output-based plans E. lower cost per unit than output-based plans

Q: Which of the following is not an advantage of work sampling compared to stopwatch time study? A. There is little or no disruption of work. B. It is less susceptible to short-term fluctuations. C. Workers are less resentful. D. It is less costly and less time-consuming. E. It is better suited for short, repetitive tasks.

Q: In work sampling, observations should be taken: A. at the same time each day. B. within a short period of time. C. at randomly determined times. D. once every hour. E. once every day.

Q: In work sampling, how will increasing the permissible maximum error affect sample size? A. It will increase the number of observations needed. B. It will decrease the number of observations needed. C. It will have no effect on sample size. D. It will sometimes increase and sometimes decrease the sample size, depending on the analyst. E. It is impossible to say without additional information.