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24. Nearness to raw materials would be most important to a ... A. grocery storeB. tax preparation serviceC. manufacturing companyD. post office E. hospital

C. manufacturing company**Manufacturers especially value proximity to raw materials.

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25. A one-hour photo processing machine in a Wal-Mart store is an example of a _________. A. micro-factoryB. downsize strategyC. diversified strategyD. lean production system E. falling price strategy

A. micro-factory**A micro-factory is a very efficient means of serving a small slice of a broad market.

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26. Which statement best characterizes a typical search for location alternatives? A. identify the best location choiceB. minimize cost consequencesC. maximize associated profitsD. locate near marketsE. identify acceptable locations

E. identify acceptable locations**Finding alternatives requires that we find which alternatives might be suitable and which might not.

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27. Which of the following is not a location option that management can consider in location planning? A. expand an existing facilityB. add a new locationC. relocate from one location to anotherD. do nothingE. All are possible options.

E. All are possible options.**All of these should or might be considered.

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28. Which of the following is the last step in the procedure for making location decisions? A. determine the evaluation criteriaB. identify important factorsC. develop location alternativesD. evaluate alternatives and make a selection E. request input regarding alternatives

D. evaluate alternatives and make a selection **When all alternatives have been evaluated it is time to make a decision.

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29. When a location evaluation includes both quantitative and qualitative inputs, a technique that can be used is ___________.A. Linear programmingB. Consumer surveysC. Factor ratingD. Transportation modelsE. Center of gravity methods

C. Factor rating**Factor rating approaches can incorporate both quantitative and qualitative considerations.

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30. The center of gravity method is used to _______ travel time, distance and costs. A. NormalizeB. EliminateC. AverageD. Minimize E. Document

D. Minimize **The center of gravity method minimizes travel time, distance and costs.

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31. In location planning, the location of raw materials, the location of markets, and labor factors are: A. regional factorsB. community factorsC. site-related factorsD. national factorsE. minor considerations

A. regional factors**These are regional factors.

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32. Software systems known as GIS help in location analysis. The initials GIS stand for _______. A. Graphic Interface SystemsB. Global Integrated SoftwareC. Graded Information SystemsD. Geo Intensive SoftwareE. Geographical Information System

E. Geographical Information System**GIS stands for Geographical Information System.

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33. Facilities, personnel and operations that are located around the world are called: A. non-domesticB. diversified operationsC. globalizationD. worldwide presence E. virtual organization

C. globalization**Globalization involves facilities, personnel and operations that are located around the world.

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34. Some communities offer financial and other incentives to ______ new businesses. A. TaxB. AttractC. MarginalizeD. Incorporate E. Zone

B. Attract**Businesses often weigh such incentives in their location decision processes.

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35. Location options don't usually include: A. expansionB. a contractC. adding new facilitiesD. movingE. doing nothing

B. a contract**A contract has little to do with location options.

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36. Cultural differences, Customer preferences, Labor and Resources are factors relating to: A. Regional choicesB. Site selectionC. ZoningD. Product design E. Foreign locations

E. Foreign locations**Foreign locations concerns with respect to these issues.

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37. The method for evaluating location alternatives which uses their total cost curves is: A. cost-volume analysisB. transportation model analysisC. factor rating analysisD. linear regression analysis E. MODI analysis

A. cost-volume analysis**Cost-volume analysis is based on total cost curves.

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38. The method for evaluating location alternatives which minimizes shipping costs between multiple sending and receiving locations is:A. cost-volume analysisB. transportation model analysisC. factor rating analysisD. linear regression analysis E. MODI analysis

B. transportation model analysis**Transportation model analysis minimizes shipping costs between multiple sending and receiving locations.

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39. The method for evaluating location alternatives which uses their composite (weighted-average) scores is: A. cost-volume analysisB. transportation model analysisC. factor rating analysisD. linear regression analysis E. MODI analysis

C. factor rating analysis**Factor rating analysis evaluates by using their composite (weighted-average) scores.

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40. An approach to location analysis that can include both qualitative and quantitative considerations is: A. location cost-volumeB. factor ratingC. transportation modelD. expected value (net present value) E. financial analysis

B. factor rating**Factor rating can include both qualitative and quantitative considerations.

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41. 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 AkronC. choose BostonD. reject both locationsE. build a plant in both cities

D. reject both locations**Neither location has the minimum acceptable score.