Operations Management, 11e (Heizer/Render)
Chapter 9 Layout Strategies
Section 1 The Strategic Importance of Layout Decisions
1) The objective of layout strategy is to develop an effective and efficient layout that will meet the firm’s
competitive requirements.
2) Which of the following is NOT one of McDonald’s “seven major innovations”?
A) the Happy Meal
B) drive-through windows
C) breakfast menus
D) play areas
E) self-service kiosks
3) The objective of layout strategy is to:
A) minimize cost.
B) develop an effective and efficient layout that will meet the firm’s competitive requirements.
C) maximize flexibility.
D) minimize space used.
E) maximize worker satisfaction.
4) Identify McDonald‘s seven major innovations.
5) In what specific areas does the layout decision establish a firm’s competitive priorities?
Section 2 Types of Layout
1) The layout approach that addresses trade-offs between space and material handling is called the fixed–
position layout.
2) The ________ layout’s main objective is to equalize the task time for each station.
A) work cell
B) fixed position
C) office
D) job shop
E) product oriented
3) A hospital’s layout most closely resembles which of the following?
A) product oriented
B) work cell
C) job shop
D) project
E) retail
4) What layout strategy deals with low-volume, high-variety production?
A) fixed-position layout
B) retail layout
C) warehouse layout
D) office layout
E) process-oriented layout
5) “A special arrangement of machinery and equipment to focus on production of a single product or
group of related products” describes what layout type?
A) fixed-position layout
B) intermittent production
C) job shop
D) work cell
E) warehouse layout
6) A good layout requires determining:
A) material handling equipment.
B) capacity and space requirements.
C) environment and aesthetics.
D) cost of moving between various work areas.
E) all of the above
7) Which of the statements below best describes office layout?
A) positions workers, their equipment, and spaces/offices to provide for movement of information
B) addresses the layout requirements of large, bulky projects such as ships and buildings
C) seeks the best personnel and machine utilization in repetitive or continuous production
D) allocates shelf space and responds to customer behavior
E) deals with low-volume, high-variety production
8) To develop a good facility layout, what must be determined?
9) Identify the seven fundamental layout strategies. Describe the use of each one very briefly.
Section 3 Office Layout
1) Utilization of the total “cube” is the dominant consideration in office layout.
2) Deloitte & Touche solved the empty desk problem by:
A) assigning permanent desks.
B) implementing a “hoteling” program.
C) creating open offices.
D) no longer allowing employees to work from home.
E) reducing the number of allowable sick days per employee.
3) In the office relationship chart, which rating reflects the highest importance for two departments’
closeness to each other?
A) A
B) E
C) I
D) O
E) X
4) Which of the following constitutes a major trend influencing office layouts?
A) downsizing
B) globalization
C) environmental issues
D) off-site employees
E) health issues
5) Workspace can inspire informal and productive encounters if it balances what three physical and social
aspects?
A) proximity, privacy, and persuasion
B) privacy, persuasion, and permission
C) proximity, privacy, and permission
D) proximity, persuasion, and permission
E) proximity, persuasion, and passion
6) A(n) ________ groups workers, their equipment, and spaces/offices to provide for comfort, safety, and
movement of information.
7) The ________ uses non-numeric “closeness” ratings to determine which departments should be located
near one another and which departments should be kept farther apart.
Section 4 Retail Layout
1) One guideline for a retail layout is to locate high-draw items around the periphery of the store.
2) Category management is the use of computer software to evaluate the profitability of various
merchandising plans for hundreds of categories.
3) Servicescape refers to the physical surrounding in which the service is delivered.
4) One guideline for determining the arrangement and space allocation of a retail store is to place high–
impulse and high-margin items in prominent locations.
5) The main goal of retail layout is:
A) minimizing material handling cost.
B) minimizing customer confusion regarding location of items.
C) minimizing storage costs.
D) minimizing space required.
E) maximizing profitability per square foot of floor space.
6) Retail layouts are based on the notion that:
A) handling costs should be minimized.
B) storage costs should be minimized.
C) average customer visit duration should be maximized.
D) space used should be minimized.
E) maximizing customer exposure rate maximizes sales and profit.
7) Slotting fees:
A) are charged by retailers to stock a product.
B) can amount to as much as $25,000.
C) are not a part of Walmart’s business practices.
D) can reduce the ability of small businesses to introduce new products.
E) all of the above
8) Which of the following is NOT a retail layout practice?
A) Locate the high-draw items around the periphery of the store.
B) Distribute power items throughout the store.
C) Use end-aisle locations to maximize product exposure.
D) Use prominent locations for high-impulse and high-margin items.
E) All of the above are retail layout practices.
9) What is the primary reason why retailers tend to locate high-draw items around the periphery of the
store?
A) More shelf space for those popular items is available around the periphery.
B) There will be less congestion of customers than there would be in the middle.
C) This arrangement will help to maximize customer exposure to other items in the store.
D) It is easier to put large advertisement signs on the outside walls right next to the items.
E) This arrangement allows customers to travel through the store as quickly as possible.
10) Which of the following does NOT support the retail layout objective of maximizing customer
exposure to products?
A) Locate high-draw items around the periphery of the store.
B) Use prominent locations for high-impulse and high-margin items.
C) Maximize exposure to expensive items.
D) Use end-aisle locations.
E) Convey the store’s mission with the careful positioning of the lead–off department.
11) Ambient conditions; spatial layout and functionality; and signs, symbols, and artifacts are all:
A) indicators of imbalance on an assembly line.
B) indicators that cross-docking has been successful.
C) elements of customization in a warehouse layout.
D) elements of servicescapes.
E) elements of successful office layouts.
12) A(n) ________ addresses flow, allocates space, and responds to customer behavior.
13) ________ are charges that manufacturers pay to get their products displayed.
14) ________ refers to the physical surroundings in which a service takes place, and how they affect
customers and employees.
15) ________ is the use of computer software to evaluate the profitability of merchandising plans in a
retail layout.
16) What design guidelines help retail layouts to maximize customer exposure to products?
17) Briefly explain what “slotting” is. What ethical issues might arise with regard to slotting?
18) What is a servicescape? How is it related to the retail layout problem? What are the three elements of
servicescape for dealing with these human issues?
Section 5 Warehouse and Storage Layouts
1) Cross-docking processes items as they are received, rather than placing them in storage.
2) Balancing low-cost storage with low-cost material handling is important in which of the following?
A) fixed-position layout
B) process-oriented layout
C) office layout
D) repetitive and product-oriented layout
E) warehouse layout
3) Which of the following reduces product handling, inventory, and facility costs, but requires both (1)
tight scheduling and (2) accurate inbound product information?
A) phantom-docking
B) random stocking
C) ASRS
D) customizing
E) cross-docking
4) The major problem addressed by the warehouse layout strategy is:
A) minimizing difficulties caused by material flow varying with each product.
B) requiring frequent close contact between forklift drivers and item pickers.
C) addressing trade-offs between space and material handling.
D) balancing product flow from one work station to the next.
E) locating the docks near a convenient access point to the closest highway.
5) The concept of customizing in a warehouse layout:
A) is possible, but it causes serious loss of oversight of the quality function.
B) cannot be considered seriously in today’s high efficiency factories.
C) is theoretically sound, but several years away in practice.
D) incorporates value-added activities in warehouses.
E) locates stock wherever there is an open location.
6) ASRS stands for which of the following?
A) automated storage and retrieval system
B) automated storage and recovery system
C) automated scan and recognize system
D) automated scan and retail system
E) automated scan and retrieval system
7) Which of the following is TRUE of random stocking?
A) Because items are stocked randomly, accurate inventory records are not necessary.
B) Its results always minimize handling costs.
C) Products have their own permanent storage spot.
D) Each pick can be of only one product.
E) None of the above is true.
8) Cross-docking means which of the following?
A) Avoid placing materials or supplies in storage by processing them as they are received.
B) The same docks can be used either incoming or outbound shipments.
C) The same dock is used to unload and then reload the same truck.
D) Warehouse docks are designed in the shape of a cross.
E) Docks are placed in the warehouse according to the direction (north, south, east, or west) from which
the truck is arriving.
9) ________ avoids placing materials or supplies in storage by processing them as they are received for
shipment.
10) What is cross-docking? What are some of its benefits for manufacturing facilities, distribution centers,
and retailers such as Walmart?
Section 6 Fixed-Position Layout
1) The dominant problem associated with the fixed-position layout is that workers are fixed in position,
and they cannot be reassigned.
2) The fixed-position layout would be MOST appropriate in which of the following settings?
A) a fast-food restaurant
B) a doctor’s office
C) a casual dining restaurant
D) a cruise ship assembly facility
E) a washing machine assembly line
3) For which of the following operations would a fixed-position layout be MOST appropriate?
A) assembling automobiles
B) producing TV sets
C) constructing a highway tunnel
D) refining of crude oil
E) running an insurance agency
4) Because problems with fixed-position layouts are so difficult to solve well onsite, operations managers:
A) virtually never employ this layout strategy.
B) utilize this approach only for construction projects such as bridges and office towers.
C) increase the size of the site.
D) often complete as much of the project as possible offsite.
E) utilize this layout only for defense contractors.
5) Which of the following is NOT one of the factors complicating the techniques for addressing the fixed–
position layout?
A) The volume of materials needed is dynamic.
B) At different stages of a project, different materials are needed; therefore, different items become critical
as the project develops.
C) Takt times at workstations are dynamic.
D) There is limited space at virtually all sites.
E) All of the above are complicating factors.
6) The project remains in one place and workers and equipment come to that one work area in a(n)
________ layout.
7) The techniques for addressing the fixed-position layout are complicated by what three factors? What is
an alternative strategy to address these?
Section 7 Process-Oriented Layout
1) A process-oriented layout is the traditional way to support a product differentiation strategy.
2) Job lots are groups or batches of parts processed together.
3) Process-oriented layouts typically have low levels of work–in-process inventory.
4) The most common tactic to arrange departments in a process-oriented layout is to minimize material
handling costs.
5) Which type of layout features departments or other functional groupings in which similar activities are
performed?
A) process-oriented
B) product-oriented
C) fixed-position
D) mass production
E) unit production
6) One of the major advantages of process-oriented layouts is:
A) high equipment utilization.
B) large work-in-process inventories.
C) flexibility in equipment and labor assignment.
D) smooth and continuous flow of work.
E) small work-in-process inventories.
7) The main issue in designing process-oriented layouts concerns the relative positioning of:
A) safety devices.
B) departments or work centers.
C) raw materials.
D) entrances, loading docks, etc.
E) supervisors to their employees.
8) Which of the following is NOT an information requirement for solving a load-distance problem to
design a process layout?
A) a list of departments or work centers
B) a projection of work flows between the work centers
C) the distance between locations
D) a list of product cycle times
E) the cost per unit of distance to move loads
9) The major problem addressed by the process-oriented layout strategy is:
A) the movement of material to the limited storage areas around the site.
B) how to design a continuous flow process.
C) the provision of low-cost storage with low-cost material handling.
D) minimizing difficulties caused by material flow varying with each product.
E) balancing product flow from one work station to the next.
10) The most common tactic followed in process-layout planning is to arrange departments or work
centers so they:
A) minimize the cost of skilled labor.
B) maximize the machine utilization.
C) are equally allocated within the available space.
D) minimize the costs of material handling.
E) produce a perfectly balanced assembly line.
11) A big advantage of a process-oriented layout is:
A) its flexibility in equipment and labor assignments.
B) its low cost.
C) the simplified scheduling problem presented by this layout strategy.
D) the ability to employ low-skilled labor.
E) its high equipment utilization.
12) The disadvantages of process-oriented layout come from:
A) the use of special purpose equipment.
B) machine maintenance, which tends to seriously degrade the capacity of the entire system.
C) the use of specialized material handling equipment.
D) the need for stable demand.
E) the flexibility of general-purpose equipment.
13) The typical goal used when developing a process-oriented layout strategy is to:
A) minimize the distance between adjacent departments.
B) minimize the material handling costs.
C) maximize the number of different tasks that can be performed by an individual machine.
D) minimize the level of operator skill necessary.
E) maximize job specialization.
14) A process layout problem consists of 4 departments, each of which can be assigned to one of four
rooms. The number of different solutions to this problem is ________, although all of them may not have
different material handling costs.
A) 1
B) 4
C) 16
D) 24
E) unknown
15) Solving a load-distance problem for a process-oriented layout requires that:
A) the difficulty of movement be the same for all possible paths.
B) pickup and setdown costs vary from department to department.
C) the cost to move a load be the same for all possible paths.
D) takt time be less than 1.
E) Proplanner software examines all possible department configurations.
16) ________ layouts deal with low-volume, high-variety production with like machines and equipment
grouped together.
17) Explain how a load-distance model helps solve problems in process layout.