TESTED QUESTIONS AND EXPERT VERIFIED
ANSWERS GUARANTEED TO PASS
◉ 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.
Answer: -method for locating a distribution center that minimizes
distribution cost.
take average of coordinates (when just location based) or avg
coord/sum of quantities (when location and quantity based)
◉ options for locations.
Answer: -stay in current space
-shut down location and move
-expand an existing facility
-add new locations and maintain current
◉ reasons for location changes.
Answer: -new facilities
-growth in demand or expanding markets
-depletion of inputs requires relocation
-shift in markets
-reducing costs
◉ importance of location decisions.
Answer: -long-term commitment