Operation Management C4

What is the main objective of a location strategy?

• Increase product variety

• Lower marketing costs

• Reduce employee turnover

• Maximize location benefit to firm

Which of the following is a critical success factor for country decision in location strategy?

• Environmental regulations

• Labor costs

• Political risks

• Proximity to suppliers

What is a key factor that affects location decisions regarding labor?

• Government incentives

• Cultural differences

• Availability and productivity

• Proximity to customers

Which of the following is NOT a critical success factor for site decision?

• Access to transportation

• Zoning restrictions

• Site size and cost

• Proximity to competitors

What does a good layout strategy aim to improve?

• Number of employees

• Flow of information and materials

• Cost of materials

• Employee turnover

Which layout type focuses on grouping workers and their equipment for comfort?

• Product-oriented

• Warehouse

• Process-oriented

• Office

What is the purpose of cross-docking in warehousing?

• To move materials directly from receiving to shipping

• To store materials for long periods

• To reduce employee workload

• To increase storage space

What is a disadvantage of process-oriented layout?

• Easy product handling

• High scheduling difficulty

• Low material handling costs

• High flexibility

Which of the following is a benefit of work cells?

• Increased raw material inventory

• Reduced work-in-process inventory

• More floor space needed

• Higher machinery investment

What is a key consideration in layout strategy?

• Market trends

• Material handling equipment

• Number of products

• Employee salaries