IAF716-Exam reviewManagement
IAF716-Operations OPERATIONAL MANAGEMENT
Final Exam Study Package
Part 1: 25 MCQs
Chapter 8:
23) FedEx chose Memphis, Tennessee, as its U.S. hub because
A) the city is in the centre of the U.S., geographically.
B) the airport has relatively few hours of bad weather closures.
C) it needed a means to reach cities to which it did not have direct flights.
D) the firm believed that a hub system was superior to traditional city-to-city flight scheduling.
E) All of the above are true.
24) 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 U.S.
25) 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.
26) Which of the following statements regarding the centre-of-gravity method is false?
A) It is designed to minimize the maximum possible travel distance to any location.
B) The optimal x- and y-coordinates are calculated separately.
C) The optimal solution is unconstrained, so it could suggest a location in the middle of a body of water.
D) The weights used are the quantity of goods moved to or from each location.
E) The origin of the coordinate system and the scale used are arbitrary, just as long as the relative distances are correctly
represented.
27) 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
28) Which of the following was not a factor in determining the location of Intel's Arizona plant?
A) skilled labour availability
B) U.S. laws to protect intellectual property
C) tax breaks from local and regional government
D) proximity to Intel's California headquarters
E) lax labour laws
29) 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
,30) ________ and ________ are to key country success factors as ________ and ________ are to key region success
factors.
A) Cultural issues; location of markets; site size and cost; zoning restrictions
B) Exchange rates; labour availability; site size and cost; environmental impact
C) Labour cost; currency risk; land costs; proximity to customers
D) Land costs; proximity to customers; labour cost; air and rail systems
E) Cultural issues; proximity to customers; environmental impact; zoning restrictions.
31) Which of the following workers is the most productive?
A) $50 wages, 10 parts produced
B) $10 wages, 1 part produced
C) $30 wages, 5 parts produced
D) $100 wages, 21 parts produced
E) $500 wages, 100 parts produced
32) An employee produces 15 parts during a shift in which he made $90. The labour content of the product is
A) $90.
B) $5.
C) $6.
D) $.167.
E) $60.
33) Instead of comparing the salaries of Detroit autoworkers to foreign autoworkers to determine if Union labour prices are
the cause of Detroit's financial woes, which of the following should be used?
A) labour content per vehicle
B) labour productivity
C) total production
D) average productivity
E) salary is the best comparison
34) The reason fast food restaurants often are found in close proximity to each other is
A) they enjoy competition.
B) location clustering near high traffic flows.
C) low cost.
D) availability of skilled labour.
E) by-law requirements.
35) Currency risk is based on what assumption?
A) Firms that do not continuously innovate will lose market share.
B) Values of foreign currencies continually rise and fall in most countries.
C) Changing product lines by reacting to every current trend may alienate the customer base.
D) The value of one dollar today is greater than the value of one dollar to be received one year from now.
E) The U.S. stock market fluctuates daily.
36) Governmental attitudes toward issues such as private property, intellectual property, zoning, pollution, and
employment stability may change over time. The term associated with this phenomenon is
A) bureaucratic risk.
B) political risk.
C) legislative risk.
D) judicial risk.
E) democratic risk.
37) A location decision for an appliance manufacturer would tend to have a(n)
A) cost focus.
B) focus on finding very highly skilled technicians.
C) revenue focus.
D) environmental focus.
E) education focus.
38) A location decision for a traditional department store (The Bay) would tend to have a(n)
,A) cost focus.
B) labour focus.
C) revenue focus.
D) environmental focus.
E) education focus.
39) Globalization of the location decision is the result of all of the following except
A) market economics.
B) higher quality of labour overseas.
C) ease of capital flow between countries.
D) high differences in labour costs.
E) more rapid, reliable travel and shipping.
40) In location planning, environmental regulations, cost and availability of utilities, and taxes are
A) global factors.
B) country factors.
C) regional/community factors.
D) site-related factors.
E) cultural factors.
41) A manufacturing firm finds a location that has a significant cost advantage over alternatives, but rejects that location
because the educational infrastructure was insufficient to train the firm's workers in its special production technologies.
The firm's action illustrates the link between ________ and location.
A) innovation
B) clustering
C) tax incentives
D) globalization
E) proximity
42) Which of the following is usually not one of the top considerations in choosing a country for a facility location?
A) availability of labour and labour productivity
B) exchange rates
C) attitude of governmental units
D) zoning regulations
E) location of markets
, 43) When making a location decision at the country level, which of these would be considered?
A) corporate desires
B) land/construction costs
C) air, rail, highway, waterway systems
D) zoning restrictions
E) location of markets
44) Which of these factors would be considered when making a location decision at the region/community level?
A) government rules, attitudes, stability, incentives
B) cultural and economic issues
C) zoning restrictions
D) environmental impact issues
E) proximity to raw materials and customers
45) When making a location decision at the region/community level, which of these would be considered?
A) government rules, attitudes, stability, incentives
B) cultural and economic issues
C) cost and availability of utilities
D) zoning restrictions
E) air, rail, highway, waterway systems
46) Which of these factors would be considered when making a location decision at the site level?
A) government rules, attitudes, stability, incentives
B) cultural and economic issues
C) zoning regulations
D) cost and availability of utilities
E) proximity to raw materials and customers
47) Tangible costs include which of the following?
A) climatic conditions
B) availability of public transportation
C) taxes
D) quality and attitude of prospective employees
E) zoning regulations
48) Intangible costs include all of the following except
A) quality of prospective employees.
B) quality of education.
C) availability of public transportation.
D) availability of health care.
E) entry-level training for new employees.
49) Operations managers will need to consider ethical and social responsibility issues when location decisions involve
A) child labour issues.
B) sweatshop conditions.
C) allegiance to the firm's current location.
D) corruption.
E) all of the above.
50) A firm is seeking a new factory location, and is considering several countries worldwide. In some of these countries,
child labour is prevalent; in others, working conditions and worker safety are inferior to conditions in the U.S. An
operations manager paying attention to ________ will factor these issues into the location decision.
A) ethical and social responsibility issues
B) key success factors
C) factor-rating systems
D) geographic information systems
E) regression models
IAF716-Operations OPERATIONAL MANAGEMENT
Final Exam Study Package
Part 1: 25 MCQs
Chapter 8:
23) FedEx chose Memphis, Tennessee, as its U.S. hub because
A) the city is in the centre of the U.S., geographically.
B) the airport has relatively few hours of bad weather closures.
C) it needed a means to reach cities to which it did not have direct flights.
D) the firm believed that a hub system was superior to traditional city-to-city flight scheduling.
E) All of the above are true.
24) 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 U.S.
25) 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.
26) Which of the following statements regarding the centre-of-gravity method is false?
A) It is designed to minimize the maximum possible travel distance to any location.
B) The optimal x- and y-coordinates are calculated separately.
C) The optimal solution is unconstrained, so it could suggest a location in the middle of a body of water.
D) The weights used are the quantity of goods moved to or from each location.
E) The origin of the coordinate system and the scale used are arbitrary, just as long as the relative distances are correctly
represented.
27) 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
28) Which of the following was not a factor in determining the location of Intel's Arizona plant?
A) skilled labour availability
B) U.S. laws to protect intellectual property
C) tax breaks from local and regional government
D) proximity to Intel's California headquarters
E) lax labour laws
29) 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
,30) ________ and ________ are to key country success factors as ________ and ________ are to key region success
factors.
A) Cultural issues; location of markets; site size and cost; zoning restrictions
B) Exchange rates; labour availability; site size and cost; environmental impact
C) Labour cost; currency risk; land costs; proximity to customers
D) Land costs; proximity to customers; labour cost; air and rail systems
E) Cultural issues; proximity to customers; environmental impact; zoning restrictions.
31) Which of the following workers is the most productive?
A) $50 wages, 10 parts produced
B) $10 wages, 1 part produced
C) $30 wages, 5 parts produced
D) $100 wages, 21 parts produced
E) $500 wages, 100 parts produced
32) An employee produces 15 parts during a shift in which he made $90. The labour content of the product is
A) $90.
B) $5.
C) $6.
D) $.167.
E) $60.
33) Instead of comparing the salaries of Detroit autoworkers to foreign autoworkers to determine if Union labour prices are
the cause of Detroit's financial woes, which of the following should be used?
A) labour content per vehicle
B) labour productivity
C) total production
D) average productivity
E) salary is the best comparison
34) The reason fast food restaurants often are found in close proximity to each other is
A) they enjoy competition.
B) location clustering near high traffic flows.
C) low cost.
D) availability of skilled labour.
E) by-law requirements.
35) Currency risk is based on what assumption?
A) Firms that do not continuously innovate will lose market share.
B) Values of foreign currencies continually rise and fall in most countries.
C) Changing product lines by reacting to every current trend may alienate the customer base.
D) The value of one dollar today is greater than the value of one dollar to be received one year from now.
E) The U.S. stock market fluctuates daily.
36) Governmental attitudes toward issues such as private property, intellectual property, zoning, pollution, and
employment stability may change over time. The term associated with this phenomenon is
A) bureaucratic risk.
B) political risk.
C) legislative risk.
D) judicial risk.
E) democratic risk.
37) A location decision for an appliance manufacturer would tend to have a(n)
A) cost focus.
B) focus on finding very highly skilled technicians.
C) revenue focus.
D) environmental focus.
E) education focus.
38) A location decision for a traditional department store (The Bay) would tend to have a(n)
,A) cost focus.
B) labour focus.
C) revenue focus.
D) environmental focus.
E) education focus.
39) Globalization of the location decision is the result of all of the following except
A) market economics.
B) higher quality of labour overseas.
C) ease of capital flow between countries.
D) high differences in labour costs.
E) more rapid, reliable travel and shipping.
40) In location planning, environmental regulations, cost and availability of utilities, and taxes are
A) global factors.
B) country factors.
C) regional/community factors.
D) site-related factors.
E) cultural factors.
41) A manufacturing firm finds a location that has a significant cost advantage over alternatives, but rejects that location
because the educational infrastructure was insufficient to train the firm's workers in its special production technologies.
The firm's action illustrates the link between ________ and location.
A) innovation
B) clustering
C) tax incentives
D) globalization
E) proximity
42) Which of the following is usually not one of the top considerations in choosing a country for a facility location?
A) availability of labour and labour productivity
B) exchange rates
C) attitude of governmental units
D) zoning regulations
E) location of markets
, 43) When making a location decision at the country level, which of these would be considered?
A) corporate desires
B) land/construction costs
C) air, rail, highway, waterway systems
D) zoning restrictions
E) location of markets
44) Which of these factors would be considered when making a location decision at the region/community level?
A) government rules, attitudes, stability, incentives
B) cultural and economic issues
C) zoning restrictions
D) environmental impact issues
E) proximity to raw materials and customers
45) When making a location decision at the region/community level, which of these would be considered?
A) government rules, attitudes, stability, incentives
B) cultural and economic issues
C) cost and availability of utilities
D) zoning restrictions
E) air, rail, highway, waterway systems
46) Which of these factors would be considered when making a location decision at the site level?
A) government rules, attitudes, stability, incentives
B) cultural and economic issues
C) zoning regulations
D) cost and availability of utilities
E) proximity to raw materials and customers
47) Tangible costs include which of the following?
A) climatic conditions
B) availability of public transportation
C) taxes
D) quality and attitude of prospective employees
E) zoning regulations
48) Intangible costs include all of the following except
A) quality of prospective employees.
B) quality of education.
C) availability of public transportation.
D) availability of health care.
E) entry-level training for new employees.
49) Operations managers will need to consider ethical and social responsibility issues when location decisions involve
A) child labour issues.
B) sweatshop conditions.
C) allegiance to the firm's current location.
D) corruption.
E) all of the above.
50) A firm is seeking a new factory location, and is considering several countries worldwide. In some of these countries,
child labour is prevalent; in others, working conditions and worker safety are inferior to conditions in the U.S. An
operations manager paying attention to ________ will factor these issues into the location decision.
A) ethical and social responsibility issues
B) key success factors
C) factor-rating systems
D) geographic information systems
E) regression models
