11. Which of the following is not a component of facilities decisions?
a. Location
b. Capacity
c. Operations methodology
d. Warehousing methodology
e. All of the above are components of facilities decisions.
Answer: e
Difficulty: Moderate
12. Which of the following is not a component of facilities decisions?
a. Warehousing methodology
b. Forecasting methodology
c. Operations methodology
d. Capacity
e. Location
Answer: b
Difficulty: Moderate
13. Which of the following statements concerning decisions regarding location of facilities
is false?
a. Deciding where a company will locate its facilities constitutes a large part of the design
of a supply chain.
b. A basic trade-off here is whether to centralize to gain economies of scale or decentralize
to become more responsive by being closer to the customer.
c. Companies must also consider a host of issues related to the various characteristics of
the local area in which the facility may be situated.
d. All of these statements are true.
e. None of these statements are true.
Answer: d
Difficulty: Moderate
14. Which of the following is not an issue companies need to consider in facility location
decisions?
a. quality of workers
b. product development
c. proximity to customers and the rest of the network
d. cost of facility
e. tax effects