DB 430 EXAM 2 STUDY GUIDE SOLUTIONS

DB 430 EXAM 2 STUDY GUIDE SOLUTIONS Distributors can locate anywhere due to - Ans:-technology infrastructure, transportation, and communication T/F Facility location has a longterm effect on the supply chain and must be part of the firm's strategy - Ans:-True Important location decisions - Ans:-1)Access and proximity to market- consider customer SERVICE STANDARDS 2)Outbound transportation issues- consider COST 3) Access and proximity to supplier- consider INVENTORY, RELATIONSHIPS 4) Inbound and Outbound transportation issues- consider COST, SERVICE STANDARDS 5) Labor issues 6)Quality of life issues 7) Land availability and cost ©GRACEAMELIA 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER 2024 Page 2/7 Other variables effecting distribution location decisions - Ans:-1. market variables 2. product variables 3. company variables 4. environmental variables Market variables - Ans:-1.Market geography- location, geographical size, and distance from producer 2.Market size- Number of customers in a market 3.Market density- Number of buying units (consumers or industrial firms) per unit of land area 4.Market behavior- Who buys, & how, when, and where customers buy. Product Variables - Ans:-Bulk and Weight Perish-ability Unit Value Degree of Standardization Technical versus Non-technical Newness ©GRACEAMELIA 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER 2024 Page 3/7 Company Variables - Ans:-1. Size- The range of options is relative to a firms size 2. Financial Capacity- The greater the capital, the greater the capability to geographically expand 3. Objectives and Strategies- Marketing objectives may effect growth Environmental Variables - Ans:-Economic Sociocultural Competitive Technological Legal (local, state, country level factors) Approaching for considering alternative locations - Ans:-1 Weighted criteria approach 2 Financial analysis approach 3 Center of gravity method Weighted criteria approach - Ans:-Weighted scores and whoever has the highest you go with (like the example we did in class) Financial analysis approach - Ans:-Breakeven formulas ©GRACEAMELIA 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER 2024 Page 4/7 Center of gravity method - Ans:-x,y graph "center of mass" approach tries to minimize distance for a central location where demand is highest for all markets Importance of Business clusters - Ans:-Clusters encompass an array of linked industries and other entities important for competition Research parks and economic/industrial park zones serv