Operations Management: Importance of Location Decision Quiz and Flashcards

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Questions and Answers

What is one of the reasons why location decision is important?

It has no impact on global operations

It requires minimal effort

It is only relevant for small businesses

It has a significant impact on fixed and variable costs (correct)

How has globalization influenced manufacturing and service operations?

It has had no impact on manufacturing and service operations

It has led to increasing dispersion of operations around the world and outsourcing to other foreign locations (correct)

It has restricted operations to a single country and limited market access

It has reduced the need for outsourcing and limited market expansion

What has changed in companies' approach to operations due to globalization?

They are not impacted by globalization

They are limiting their operations to a single country

They are avoiding any kind of strategic expansion

They are finding strategic and tactical reasons to globalize their operations (correct)

How are some companies responding to globalization?

Some companies are profiting from their efforts, while others are finding the going tough Signup and view all the answers

What is the objective of the Load-Distance Technique in facility location evaluation?

To minimize the total weighted loads moving into and out of the facility Signup and view all the answers

What is the load in the context of the Load-Distance Technique?

Shipment weight from suppliers to the facility Signup and view all the answers

How is the distance between two points expressed in the Load-Distance Technique?

By assigning the points to grid coordinates on a map Signup and view all the answers

What is used to calculate the load–distance (ld) score for any potential location in the Load-Distance Technique?

Actual travel distances between points using a GIS system Signup and view all the answers

What is the main factor that the Load-Distance Technique seeks to minimize?

The load–distance (ld) score for any potential location Signup and view all the answers

In the Load-Distance Technique, what is the primary purpose of evaluating various locations using a load-distance value?

To calculate the total weighted loads moving into and out of the facility Signup and view all the answers

What is the main difference between the load-distance method and the center-of-gravity method for determining facility location coordinates?

The load-distance method considers multiple locations, while the center-of-gravity method considers only one Signup and view all the answers

What is the key factor that the Load-Distance Technique seeks to minimize when evaluating potential locations for facilities?

The total weighted loads moving into and out of the facility Signup and view all the answers

What factor is used to express the distance between two points in the Load-Distance Technique?

Actual distance traveled using a GIS system Signup and view all the answers

In the context of the Load-Distance Technique, what type of loads are considered when calculating the load–distance (ld) score for potential locations?

All shipments and travels related to the facility Signup and view all the answers

Study Notes

Importance of Location Decision

One of the reasons why location decision is important is because of its impact on manufacturing and service operations, which has been influenced by globalization.

Impact of Globalization on Operations

Globalization has changed companies' approach to operations, making them more responsive to global market demands.
Companies are now more focused on optimizing their operations to meet global customer needs.

Response to Globalization

Some companies are responding to globalization by adapting their operations to become more agile and responsive to changing market conditions.

Load-Distance Technique

The objective of the Load-Distance Technique is to evaluate potential facility locations based on the load and distance from suppliers, customers, or distribution centers.
The load in the context of the Load-Distance Technique refers to the volume of goods or services to be transported between two points.
The distance between two points is expressed in terms of Euclidean distance (straight-line distance) or rectilinear distance (Manhattan distance).
The load-distance (ld) score is calculated for any potential location using the formula: ld = ∑ (load × distance) for all points.
The main factor that the Load-Distance Technique seeks to minimize is the total load-distance score, which represents the total transportation cost or effort.
The primary purpose of evaluating various locations using a load-distance value is to identify the most cost-effective or efficient location for a facility.
The Load-Distance Technique is different from the center-of-gravity method, as it takes into account the volume of goods or services being transported, not just the geographic location.
The key factor that the Load-Distance Technique seeks to minimize is the total transportation cost or effort, which is influenced by the volume of goods or services being transported.
The Euclidean distance or rectilinear distance is used to express the distance between two points in the Load-Distance Technique.
The type of loads considered when calculating the load-distance score includes the volume of goods or services to be transported between two points.

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Description

Learn about the significance of location decision in production and operations management, and its impact on fixed and variable costs. Explore the steps involved in making location decisions, including identifying countries, regions, and community alternatives.

Importance of Location Decision in Operations Management