Location Strategy in Operations Management: A Comprehensive Guide for Students

Question 1

For a company producing bulky goods, which location attribute is most advantageous?

Accepted Answer

Excellent transportation infrastructure

Answer

Low land costs

Answer

Skilled labor force proximity

Answer

Financial incentives

Question 2

A key distinction between centralized and decentralized location strategies lies in:

Accepted Answer

Level of control

Answer

Number of facilities

Answer

Customer proximity

Answer

Cost structure

Question 3

In evaluating potential business locations, the costs associated with transporting finished products from the production site to customers are considered:

Accepted Answer

Outbound transportation costs

Answer

Inbound transportation costs

Answer

Distribution costs

Answer

Proximity costs

Question 4

Which of the following is NOT a key consideration in assessing location decisions for businesses?

Accepted Answer

Financial climate

Answer

Proximity to markets

Answer

Transportation costs

Answer

Labor availability

Question 5

Which transportation mode is typically the most cost-effective for long-distance shipments?

Accepted Answer

Ocean freight

Answer

Air freight

Answer

Rail freight

Answer

Road freight

Question 6

Which of the following site selection techniques involves visiting and assessing potential locations in person?

Accepted Answer

Site visit

Answer

Delphi method

Answer

Quantitative analysis

Answer

Qualitative analysis

Question 7

A company that manufactures high-value, low-volume products is likely to prioritize which of the following factors in location decisions?

Accepted Answer

Proximity to customers

Answer

Transportation costs

Answer

Labor availability

Answer

Land costs

Question 8

Which of the following is NOT a primary consideration influencing location decisions for businesses?

Accepted Answer

Political stability

Answer

Transportation costs

Answer

Proximity to customers

Answer

Availability of skilled labor

Question 9

What is a key benefit of locating a business near its customers?

Accepted Answer

Improved customer satisfaction

Answer

Reduced transportation costs

Answer

Increased brand recognition

Answer

Easier access to raw materials

Question 10

For a company considering a location in a foreign country, which factor should be a top priority?

Accepted Answer

Political stability

Answer

Cultural differences

Answer

Currency exchange rates

Answer

Distance to home office

Question 11

What is the term used to describe the process of evaluating and selecting the optimal location for a business?

Accepted Answer

Location analysis

Answer

Site selection

Answer

Business planning

Answer

Market research

Question 12

When choosing a location for a manufacturing facility, which factor is likely to be the most influential?

Accepted Answer

Availability of skilled labor

Answer

Proximity to customers

Answer

Access to transportation

Answer

Government incentives

Question 13

Which of the following factors DOES NOT directly influence location decisions for businesses?

Accepted Answer

Technological advancements

Answer

Proximity to markets

Answer

Transportation costs

Answer

Labor availability

Question 14

When selecting a location for a distribution center, a business should prioritize factors that:

Accepted Answer

Minimize transportation costs

Answer

Maximize sales volume

Answer

Enhance brand image

Answer

Support employee recruitment

Question 15

Which of the following is an advantage of locating near a cluster of similar businesses?

Accepted Answer

Shared resources and expertise

Answer

Reduced competition

Answer

Lower labor costs

Answer

Increased access to customers

Question 16

A company that requires a large workforce of skilled engineers would likely prioritize which location factor?

Accepted Answer

Availability of skilled labor

Answer

Proximity to markets

Answer

Transportation costs

Answer

Access to raw materials

Question 17

The process of evaluating and selecting a location for a business or facility is known as:

Accepted Answer

Site selection

Answer

Location planning

Answer

Facility layout

Answer

Operations strategy

Question 18

A business that relies heavily on imported materials would likely prioritize which factor in its location decision?

Accepted Answer

Proximity to major transportation hubs

Answer

Availability of skilled labor

Answer

Low energy costs

Answer

Proximity to customer base

Question 19

Which of the following is an advantage of locating a manufacturing facility in a rural area?

Accepted Answer

Lower labor costs

Answer

Larger workforce pool

Answer

Proximity to suppliers

Answer

Access to advanced infrastructure

Question 20

A business that requires access to a large pool of highly skilled engineers would likely prioritize which factor in its location decision?

Accepted Answer

Proximity to universities and research institutions

Answer

Availability of low-cost labor

Answer

Proximity to major transportation hubs

Answer

Government incentives and tax breaks

Question 21

Which of the following is NOT a key factor influencing location decisions for businesses?

Accepted Answer

Availability of tax breaks

Answer

Proximity to markets

Answer

Transportation costs

Answer

Availability of skilled labor

Question 22

Which factor is most important for businesses that rely on just-in-time inventory systems?

Accepted Answer

Proximity to suppliers

Answer

Access to transportation hubs

Answer

Availability of a skilled workforce

Answer

Low cost of labor

Question 23

What is the primary objective of cluster analysis in location decision-making?

Accepted Answer

Identifying geographic areas with similar characteristics

Answer

Predicting future demand

Answer

Evaluating transportation costs

Answer

Assessing labor availability

Question 24

What type of business model requires close proximity to customers but operates with a relatively small physical footprint?

Accepted Answer

Edge businesses

Answer

Brick-and-mortar businesses

Answer

Omni-channel businesses

Answer

Virtual businesses

Question 25

What is a potential risk associated with over-reliance on quantitative data in location decision-making?

Accepted Answer

Overlooking important qualitative factors

Answer

Data inaccuracy

Answer

Complex analysis

Answer

Limited stakeholder involvement