2026 COMPLETE QUESTIONS AND CORRECT
ANSWERS GRADED A+
◉ product plant.
Answer: each factory makes one product/product line for entire
region
◉ market area plant.
Answer: plants are designed to serve a particular geographic area
(used when an item is expensive to ship, perishable, etc.)
◉ process plant.
Answer: different plants focus on different parts of a process
◉ general purpose plants.
Answer: plants are flexible and can handle many products
◉ service and retail locations considerations.
Answer: -customer access
-dont need to be near raw materials
, -services are revenue driven, not cost
-benefit from clustering (ex: malls)
◉ evaluating location alternatives methods.
Answer: -locational cost-profit-volume analysis
-transportation model
-factor rating
-center of gravity method
◉ locational cost-profit-volume analysis.
Answer: -based in economics
find lowest total cost
◉ transportation model.
Answer: -movement of raw materials or finished goods
find lowest cost based on each location costs
◉ factor rating method.
Answer: -determining the weighted average of each location
find highest weighted score of the locations
◉ center of gravity method.