OM 300 Exam 2 Chilcutt Exam
Questions and Answers
Which type of control chart should be used when it is possible to have more than one
mistake per item?
A. R-chart
B. c-chart
C. p-chart
D. x-bar chart - ANSWER-B. c-chart
What is the major difference in focus between a location decision in the service
sector vs. the manufacturing sector?
A. There is no difference in focus.
B. The focus in manufacturing is on labor, while the focus in service is on raw
materials.
C. The focus in manufacturing is on revenue maximization, while the focus in service
is on cost minimization.
D. The focus in service is on revenue maximization, while the focus in manufacturing
is on cost minimization. - ANSWER-D. the focus in service is on revenue
maximization, while the focus in manufacturing is on cost minimization
Which of the following statements is NOT true regarding location decisions?
A. Once management is committed to a specific location, many costs become
relatively easy to reduce.
B. Location often has the power to make or break a company's business strategy.
C. Location decisions to support a low-cost strategy require particularly careful
consideration.
D. Location decisions are important because location has a major impact on the
overall risk and profit of the company. - ANSWER-A. once management is
committed to a specific location, many costs become relatively easy to reduce.
What term refers to the location of competing companies near each other?
A. centralizing
, B. clustering
C. neighboring
D. battling - ANSWER-B. clustering
Which of the following is NOT an example of tangible costs?
A. labor
B. depreciation
C. public transportation facilities
D. utilities - ANSWER-C. public transportation facilities
Which of the following methods is a mathematical technique used for finding the best
location for a single distribution point that services several stores or areas?
A. factor-rating method
B. center-of-gravity method
C. locational cost-volume analysis
D. transportation model - ANSWER-B. center of gravity method
Which of the following techniques might a service or retail organization use to make
a location decision?
A. traffic counts
B. crossover charts
C. locational cost-volume analysis
D. transportation method
transportation method - ANSWER-A. traffic counts
A goods-producing location decision would likely emphasize the importance of which
of the following?
A. security and lighting
B. appearance and image
C. utility and labor costs
D. parking and access - ANSWER-C. utility and labor costs
Questions and Answers
Which type of control chart should be used when it is possible to have more than one
mistake per item?
A. R-chart
B. c-chart
C. p-chart
D. x-bar chart - ANSWER-B. c-chart
What is the major difference in focus between a location decision in the service
sector vs. the manufacturing sector?
A. There is no difference in focus.
B. The focus in manufacturing is on labor, while the focus in service is on raw
materials.
C. The focus in manufacturing is on revenue maximization, while the focus in service
is on cost minimization.
D. The focus in service is on revenue maximization, while the focus in manufacturing
is on cost minimization. - ANSWER-D. the focus in service is on revenue
maximization, while the focus in manufacturing is on cost minimization
Which of the following statements is NOT true regarding location decisions?
A. Once management is committed to a specific location, many costs become
relatively easy to reduce.
B. Location often has the power to make or break a company's business strategy.
C. Location decisions to support a low-cost strategy require particularly careful
consideration.
D. Location decisions are important because location has a major impact on the
overall risk and profit of the company. - ANSWER-A. once management is
committed to a specific location, many costs become relatively easy to reduce.
What term refers to the location of competing companies near each other?
A. centralizing
, B. clustering
C. neighboring
D. battling - ANSWER-B. clustering
Which of the following is NOT an example of tangible costs?
A. labor
B. depreciation
C. public transportation facilities
D. utilities - ANSWER-C. public transportation facilities
Which of the following methods is a mathematical technique used for finding the best
location for a single distribution point that services several stores or areas?
A. factor-rating method
B. center-of-gravity method
C. locational cost-volume analysis
D. transportation model - ANSWER-B. center of gravity method
Which of the following techniques might a service or retail organization use to make
a location decision?
A. traffic counts
B. crossover charts
C. locational cost-volume analysis
D. transportation method
transportation method - ANSWER-A. traffic counts
A goods-producing location decision would likely emphasize the importance of which
of the following?
A. security and lighting
B. appearance and image
C. utility and labor costs
D. parking and access - ANSWER-C. utility and labor costs
