SCMA 331 COMPREHENSIVE EXAM STUDY
GUIDE WITH COMPLETE SOLUTIONS
●● Which of the following statements regarding FedEx is TRUE?
A) Its hub in Memphis, Tennessee, was selected because of its low cost.
B) Memphis, Tennessee, is the only hub in the company's global flight
network.
C) FedEx believes the hub system helps reduce mishandling and delays
due to better controls.
D) FedEx uses a hub system in the United States, but a city-to-city
network in other countries.
E) Memphis is FedEx's only hub airport in the United States
Answer: C) FedEx believes the hub system helps reduce mishandling
and delays due to better controls
●● Industrial location analysis typically attempts to:
A) minimize costs.
B) maximize sales.
C) focus more on human resources.
D) avoid countries with strict environmental regulations.
E) ignore exchange rates and currency risks
Answer: A) minimize costs
,●● A location decision for an appliance manufacturer would tend to
have what type of focus?
A) cost focus
B) focus on finding very highly skilled technicians
C) revenue focus
D) environmental focus
E) education focus
Answer: A) cost focus
●● A location decision for a traditional department store (e.g., Macy's)
would tend to have what type of focus?
A) cost focus
B) labor focus
C) revenue focus
D) environmental focus
E) education focus
Answer: C) revenue focus
●● As described in the book Aerotropolis, nowadays location decisions
worldwide are often being based on what?
A) rivers
B) rail hubs
C) interstate highways
, D) ports
E) airports
Answer: E) airports
●● Why is Northern Mexico used as a cluster for electronics firms?
A) high traffic flows
B) venture capitalists located nearby
C) natural resources of land and climate
D) NAFTA
E) high per capita GDP
Answer: D) NAFTA
●● Among the following choices, an operations manager might best
evaluate political risk of a country by looking at which type of country
ranking?
A) based on competitiveness
B) based on cost of doing business
C) based on corruption
D) based on magnitude of government social programs
E) based on average duration between presidential/prime minister
elections
Answer: C) based on corruption
GUIDE WITH COMPLETE SOLUTIONS
●● Which of the following statements regarding FedEx is TRUE?
A) Its hub in Memphis, Tennessee, was selected because of its low cost.
B) Memphis, Tennessee, is the only hub in the company's global flight
network.
C) FedEx believes the hub system helps reduce mishandling and delays
due to better controls.
D) FedEx uses a hub system in the United States, but a city-to-city
network in other countries.
E) Memphis is FedEx's only hub airport in the United States
Answer: C) FedEx believes the hub system helps reduce mishandling
and delays due to better controls
●● Industrial location analysis typically attempts to:
A) minimize costs.
B) maximize sales.
C) focus more on human resources.
D) avoid countries with strict environmental regulations.
E) ignore exchange rates and currency risks
Answer: A) minimize costs
,●● A location decision for an appliance manufacturer would tend to
have what type of focus?
A) cost focus
B) focus on finding very highly skilled technicians
C) revenue focus
D) environmental focus
E) education focus
Answer: A) cost focus
●● A location decision for a traditional department store (e.g., Macy's)
would tend to have what type of focus?
A) cost focus
B) labor focus
C) revenue focus
D) environmental focus
E) education focus
Answer: C) revenue focus
●● As described in the book Aerotropolis, nowadays location decisions
worldwide are often being based on what?
A) rivers
B) rail hubs
C) interstate highways
, D) ports
E) airports
Answer: E) airports
●● Why is Northern Mexico used as a cluster for electronics firms?
A) high traffic flows
B) venture capitalists located nearby
C) natural resources of land and climate
D) NAFTA
E) high per capita GDP
Answer: D) NAFTA
●● Among the following choices, an operations manager might best
evaluate political risk of a country by looking at which type of country
ranking?
A) based on competitiveness
B) based on cost of doing business
C) based on corruption
D) based on magnitude of government social programs
E) based on average duration between presidential/prime minister
elections
Answer: C) based on corruption
