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Which two factors affect a service location decision? -ANSWERS-Proximity to
customers
Quality of life issues
Which is a key factor of a location analysis for a service company? -ANSWERS-
Proximity to customers
What helps an organization identify and plan the actions necessary to meet current and
future customer demands? -ANSWERS-capacity planning
Which capacity planning measurement tells how much capacity a company is using? -
ANSWERS-Capacity utilization
Which two statements are true about effective capacity? -ANSWERS-An effective
capacity is a permanent measure used to achieve design capacity
An effective capacity is lower than design capacity
When is capacity measurement at the best operating level? -ANSWERS-When the
average unit cost is minimized
Which two capacity measurement concepts should a firm consider when conducting a
location analysis? -ANSWERS-proximity to sources of supply
site considerations
, What is a major factor in the decision to locate a business near its primary market
territory? -ANSWERS-proximity to customers
A manufacturing company decides to open a new distribution center location in order to
minimize distribution costs to warehouses or stores.
What tool should the manufacturing company use to determine where the new
distribution center should be located? -ANSWERS-by using the center-of-gravity
approach
Which two types of operations include repetitive processes? -ANSWERS-continuous
process
line process
A comprehensive automobile collision shop offers body and engine repair as well as
custom vehicle paint options.
Which two operational processes would suit this shop? -ANSWERS-batch process
project process
What is a bottleneck in a flowchart? -ANSWERS-The longest task in the process
Which formula would compute process velocity? -ANSWERS-throughput time/value-
added time
Which formula would indicate that a fast-food restaurant was performing at, above, or
below its benchmark? -ANSWERS-actual output/standard output
In which organizational layout would one expect to see items arranged by type? -
ANSWERS-process