Nhóm 18

1. Phạm Ngọc Minh Anh - 2111113021

2. Nguyễn Hoàng Như Hiếu - 2111113038
3. Nguyễn Vi Kiên - 2111113107
4. Thái Nhật Huy -2111113093
5. Phan Thế Thùy Linh - 2111113138
6. Trương Thị Phượng Lin - 2111113135
7. Lê Trần Ngọc Trâm – 211113641
MULTIPLE CHOICE

1. Which of the following strategic foreign facilities is set up in a location with an abundance of advanced
suppliers, competitors, research facilities, and knowledge centers to get access to the most current
information on materials, components, technologies, and products?
a. Offshore factory
b. Server factory
c. Source factory
d. Outpost factory
2. According to the text, which of the following would be an example of Coca-Cola’s international bottling
plants, each serving a small geographic region?

a. Offshore factory
b. Server factory
c. Source factory
d. Outpost factory
3. Once a decision on locating a facility is made, it is ________ to move or shut down that facility.
a. Easy
b. Costly
c. Cheap
d. None of the above
4. Facility location has ____________on the supply chain.
a. A short-term impact
b. Minimal impact
c. A long-term impact
d. No impact
5. Which of the following issues is (are) important to consider when trying to determine the location of a
firm's facilities?
a. The stability in the location considered
b. Environmental issues regulated by domestic laws or international trade agreements
c. Access to suppliers from the location considered
d. All of the above
6. Which of the following would be considered a quality of life factor?
a. Wage rates
b. Foreign exchange rates
c. Community safety
d. All of the above
 7. Choosing to manufacture in China to sell to Chinese customers would likely involve which location
decision consideration?
a. Proximity to markets
b. Environmental issues
c. Land availability and cost
d. Utility availability and cost
8. Which of the following secures the right of employees to decide whether to join or financially support a
union?
a. Union shop laws
b. Union planning forums
c. Ethical union initiatives
d. Right-to-work laws

9. A firm wanting to import items duty free and then use the component for local production of a product
that is then exported would most likely utilize a(n):
a. Duty-free Territory
b. International Cross Docking Zone
c. Foreign Trade Zone
d. International Processing Center

10. Which of the following is a factor in choosing a location?

a. Currency stability
b. Freight forwarders
c. Yokoten
d. All of the above
11. Organizations that primarily compete on speed of delivery, such as FedEx and UPS, utilize which of the
following approaches for location determination?
a. Sourcing center
b. Air and ground
c. Hub and spoke
d. LTL consolidation
12. Regional trade agreements assist with which of the following?
a. Monitor national trade policies
b. Provide technical assistance for developing countries
c. Handle trade disputes
d. All of the above
13. Examples of regional trade agreements include all of the following EXCEPT:
a. Association of Southeast Asian Nations (ASEAN)
b. Association of Indian Markets (AIM)
c. European Union (EU)
d. Southern Common Market (MERCOSUR)

14. Which of the following trade agreements created the world’s largest free trade area, currently with over
450 million people and GDP of more than US$20 trillion?
a. Association of Southeast Asian Nations (ASEAN)
b. European Union (EU)
 c. North American Free Trade Agreement (NAFTA)
d. Southern Common Market (MERCOSUR)

15. The World Trade Organization (WTO) is critical to the facility location decision process because of their
impact on:
a. Southeast Asian Nations
b. Tariffs
c. Innovation
d. Relationship marketing

16. Use the breakeven model to determine which of the statements below is TRUE according to the
information provided in the table relating to two different location considered for a new manufacturing
facility.

LOCATION ANNUAL FIXED COSTS UNIT VARIABLE COSTS

Site A $25,000 $11
Site B $20,000 $19

a. The breakeven point for these two locations is 625 units per year
b. The breakeven point for these two locations is 600 units per year
c. Site A is the desired location if the production rate is 500 units per year
d. Site B is the desired location if the production rate is 800 units per year

17. Use the breakeven model to determine which of the statements below is TRUE according to the
information provided in the table relating to three different locations considered for a new manufacturing
facility.

LOCATION ANNUAL FIXED COSTS UNIT VARIABLE COSTS

Site A $35,000 $15
Site B $30,000 $21
Site C $20,000 $25

a. The breakeven point for Site A and B is 1500 units per year
b. Choose site C if you are producing 1000 units per year
c. Choose site C if you are producing more than 1500 units per year
d. Site B is the desired location if the production rate is 833 units per year

18. A certain organization trying to decide where to locate their future factory is considering three locations.
They are taking into account three factors: labor costs, currency stability, and proximity to market. Using
the weights for each factor listed below and the scores achieved by each of the three considered locations,
determine which location should be chosen for the new facility based on the weighted factory location
model.

SCORES (Maximum 100)

FACTOR WEIGHT SITE A SITE B SITE C

 Labor Cost 0.25 92 82 84

Currency Stability 0.35 75 85 88

Proximity to Market 0.30 80 50 60

Taxes 0.10 69 88 91

a. Site A
b. Site B
c. Site C
d. All sites are equally attractive

19. A company is considering Denver, Seattle, and Portland as candidate locations for a new facility. For the
weighted-factor rating technique, the company is evaluating each location on three factors (distance to
customers, labor costs, and utility costs). The factors are weighted 0.5, 0.3, and 0.2, respectively. Denver
received scores of 90, 77, and 65 for the three factors. Seattle received scores of 87, 82, and 70. Portland
received scores of 84, 86, and 75. Which of the three cities is ranked second by the weighted-factor rating
technique?

a. Denver
b. Seattle
c. Portland
d. All sites are equally attractive

20. The first step in the weighted-factor rating technique is to:

a. Assign a weight to each factor
b. Multiply each factor score by its weight and sum the weighted scores for each location
c. Identify all factors considered important to the facility location decision
d. Assign a performance score to each factor for each location
21. The following facility location technique uses fixed and variable costs to analyze potential locations:
a. Break-even model
b. Business cluster analysis model
c. Weighted-factor rating model
d. Mean absolute deviation model

22. Which of the following is NOT a reason for locating in a business cluster?
a. Technology sharing
b. Supply chain improvements
c. Sophisticated retailers
d. Competition

23. Milan, Wall Street, and Detroit are examples of ____________.

a. Business conglomerates
b. Business clusters
c. Regional trade agreements
 d. Strategic supplier alliances

24. Interconnected companies and institutions from a particular field which are located in a single geographic
location, are referred to is a(n):
a. Business cluster
b. Metroplex
c. Regional business center
d. Industrial point

25. ________________ is important because what we do today will affect future generations.
a. Customer churn
b. Sustainable development
c. An offshore factory
d. Progressive design

26. Which of the following is a critical issue in sustainable development?

a. Labor and legal problems
b. Countertrade
c. Climate change
d. Supply base optimization