MGSC Final Exam questions with
complete solutions
Office Layout - correct answer ✔✔focus on efficiency of staff, equipment, and space to facilitate
productivity and movement of information
Retail Layout - correct answer ✔✔maximizes exposure of products/services to customers
Servicescape Layout - correct answer ✔✔provides exceptional customer experience as opposed to
maximizing floor space and product exposure (e.g. upscale restaurant vs. traditional diner)
Warehouse Layout - correct answer ✔✔efficiency of unloading and storing incoming inventory,
managing in-house inventory, and loading inventory for outgoing deliveries; maximizes storage space
and minimizes overhead costs
Product-Focused Layout - correct answer ✔✔high volume, low variety products produced
continuously/via mass production; maximizes use of complex equipment with significant investment
Fixed-Position Layout - correct answer ✔✔configurations in which product/equipment is fixed in place;
raw materials, components, and sub-assemblies are brought to fixed location for installation (e.g. hotels,
hospitals)
Process-Focused layout - correct answer ✔✔supports batch, job-shop, and project operations; provides
flexibility to meet customer demands (e.g. airport)
Work-Cell Layout - correct answer ✔✔organizes people, machines, and functions into concentrated
group to create focused effort advantages (less floor spaces, less work in progress inventory, reduce
labor cost, enhance employee interactions, high utilization of equipment)
Cross-Docking - correct answer ✔✔instead of unloading inventory and placing it into storage, offloaded
inventory is immediately loaded into outbound delivery; eliminates need for storage space but requires
additional loading/unloading capacities
,Random Stocking - correct answer ✔✔inventory is stored randomly throughout warehouse; relies on
information system management via barcodes and RFID tags; eliminates time and effort put into storing
inventory in specific area and retrieving it when needed
Layout Redesigns - correct answer ✔✔new processes, machines, and technologies may lead to changing
layout to increase productivity and reduce workload, inventory, and waste
Customized Warehousing - correct answer ✔✔warehouse becomes extension of factory where product
and operations functions are conducted; eliminates need to transfer inventory between factory and
warehouse
Importance of Location - correct answer ✔✔tradeoff between cost of operating in high density, higher
cost locations with higher potential revenue generation vs. low density, lower cost locations with lower
potential revenue generation; tradeoff between cost of operating in populated location vs. logistic
constraints (willingness to travel to facility) (for warehouses and manufacturers)
Factors Affecting Location Decisions - correct answer ✔✔-Labor productivity
-Political and legal risk
-Culture and values
-Ease of access to markets and suppliers
-Supply chain logistics (locations of suppliers, manufacturers, and markets)
National Location Factors - correct answer ✔✔-Political and legal risk
-Culture and values
-Supply chain logistics
-Strategic alignment with corporate goals and strategies
-Country attractiveness (incentives, opportunities, and risks)
-Availability of resources (labor, energy, natural resources)
-Cost of doing business (currency exchange rate and financial risk)
-Ease of communication and movement of goods, services, and people
, Regional Location Factors - correct answer ✔✔-Supply chain logistics
-Strategic alignment with corporate goals and strategies
-Regional attractiveness (tax incentives, regional advantages, climate)
-Availability of resources
-Cost of doing business
-Conducive to operations
-Sustainability initiatives
-Infrastructure (utilities, communications, support services)
Local Location Factors - correct answer ✔✔-Supply chain logistics
-Sustainability initiatives
-Infrastructure
-Size and cost of site
-Zoning restrictions
-Business incentives
-Customer and labor density
Political Risk - correct answer ✔✔government's perspective towards private businesses seen through
lower tariffs, tax breaks, subsidies, and other incentives; stability of region
Legal Risk - correct answer ✔✔laws and regulations relative to ownership of property, labor laws,
environmental regulations, and rights of individuals
Culture and Values - correct answer ✔✔behaviors, attitudes, social norms, language, religion, and ethical
standards
Access to Markets - correct answer ✔✔transit time and cost to access markets (for manufacturers),
proximity to customers (for retail and service providers), location in densely populated areas can be
directly related to sales volume (for businesses)
complete solutions
Office Layout - correct answer ✔✔focus on efficiency of staff, equipment, and space to facilitate
productivity and movement of information
Retail Layout - correct answer ✔✔maximizes exposure of products/services to customers
Servicescape Layout - correct answer ✔✔provides exceptional customer experience as opposed to
maximizing floor space and product exposure (e.g. upscale restaurant vs. traditional diner)
Warehouse Layout - correct answer ✔✔efficiency of unloading and storing incoming inventory,
managing in-house inventory, and loading inventory for outgoing deliveries; maximizes storage space
and minimizes overhead costs
Product-Focused Layout - correct answer ✔✔high volume, low variety products produced
continuously/via mass production; maximizes use of complex equipment with significant investment
Fixed-Position Layout - correct answer ✔✔configurations in which product/equipment is fixed in place;
raw materials, components, and sub-assemblies are brought to fixed location for installation (e.g. hotels,
hospitals)
Process-Focused layout - correct answer ✔✔supports batch, job-shop, and project operations; provides
flexibility to meet customer demands (e.g. airport)
Work-Cell Layout - correct answer ✔✔organizes people, machines, and functions into concentrated
group to create focused effort advantages (less floor spaces, less work in progress inventory, reduce
labor cost, enhance employee interactions, high utilization of equipment)
Cross-Docking - correct answer ✔✔instead of unloading inventory and placing it into storage, offloaded
inventory is immediately loaded into outbound delivery; eliminates need for storage space but requires
additional loading/unloading capacities
,Random Stocking - correct answer ✔✔inventory is stored randomly throughout warehouse; relies on
information system management via barcodes and RFID tags; eliminates time and effort put into storing
inventory in specific area and retrieving it when needed
Layout Redesigns - correct answer ✔✔new processes, machines, and technologies may lead to changing
layout to increase productivity and reduce workload, inventory, and waste
Customized Warehousing - correct answer ✔✔warehouse becomes extension of factory where product
and operations functions are conducted; eliminates need to transfer inventory between factory and
warehouse
Importance of Location - correct answer ✔✔tradeoff between cost of operating in high density, higher
cost locations with higher potential revenue generation vs. low density, lower cost locations with lower
potential revenue generation; tradeoff between cost of operating in populated location vs. logistic
constraints (willingness to travel to facility) (for warehouses and manufacturers)
Factors Affecting Location Decisions - correct answer ✔✔-Labor productivity
-Political and legal risk
-Culture and values
-Ease of access to markets and suppliers
-Supply chain logistics (locations of suppliers, manufacturers, and markets)
National Location Factors - correct answer ✔✔-Political and legal risk
-Culture and values
-Supply chain logistics
-Strategic alignment with corporate goals and strategies
-Country attractiveness (incentives, opportunities, and risks)
-Availability of resources (labor, energy, natural resources)
-Cost of doing business (currency exchange rate and financial risk)
-Ease of communication and movement of goods, services, and people
, Regional Location Factors - correct answer ✔✔-Supply chain logistics
-Strategic alignment with corporate goals and strategies
-Regional attractiveness (tax incentives, regional advantages, climate)
-Availability of resources
-Cost of doing business
-Conducive to operations
-Sustainability initiatives
-Infrastructure (utilities, communications, support services)
Local Location Factors - correct answer ✔✔-Supply chain logistics
-Sustainability initiatives
-Infrastructure
-Size and cost of site
-Zoning restrictions
-Business incentives
-Customer and labor density
Political Risk - correct answer ✔✔government's perspective towards private businesses seen through
lower tariffs, tax breaks, subsidies, and other incentives; stability of region
Legal Risk - correct answer ✔✔laws and regulations relative to ownership of property, labor laws,
environmental regulations, and rights of individuals
Culture and Values - correct answer ✔✔behaviors, attitudes, social norms, language, religion, and ethical
standards
Access to Markets - correct answer ✔✔transit time and cost to access markets (for manufacturers),
proximity to customers (for retail and service providers), location in densely populated areas can be
directly related to sales volume (for businesses)
