Site Selection | MCQ

Which of the following explain the need for facility location selection?

• When the existing business unit has outgrown its original facilities and expansion is not possible.

• When a business is newly started

• When the lease expires and the landlord does not renew the lease.

• All of these.

Which of the following is the first step in making a correct location choice?

• Develop location alternatives

• Decide the criteria for evaluating location alternatives

• Evaluate the alternatives

• Make a decision and select the location

Transportation cost mainly depends on which of the following factors?

• Distance

• Weight of merchandise

• Time required for transportation

• All of the above

TRUE or FALSE

Location decisions are basically one-time

decisions usually made by new

organizations.

TRUE or FALSE

The first step in developing location alternatives is identifying important factors.

TRUE or FALSE

A strategy that emphasizes convenience

for the customers would probably select a

single very large facility.

TRUE or FALSE

For service organizations, the dominant

factors in location analysis usually are

market-related.

TRUE or FALSE

Retail businesses generally prefer

locations that are not near other retailers, as

this reduces their competition.

TRUE or FALSE

Factor rating is limited to quantitative

information concerning location

decisions.

TRUE or FALSE

For service and retail stores, a prime

factor in location analysis is customer

access.