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8-1
Copyright © 2014 Pearson Education, Inc.
Operations Management, 11e (Heizer/Render)
Chapter 8 Location Strategies
Section 1 The Strategic Importance of Location
1) FedEx chose Memphis, Tennessee, for its central location, or "hub," primarily because of the incentives
offered by the city of Memphis and the state of Tennessee.
Answer: FALSE
Diff: 2
Learning Outcome: Discuss factors affecting location decision and describe common methods for
location selection
2) FedEx chose Memphis, Tennessee, as its U.S. hub because:
A) the city is in the center of the United States, geographically.
B) the airport has relatively few hours of bad weather closures.
C) it needed a means to reach cities to which it did not have direct flights.
D) the firm believed that a hub system was superior to traditional city-to-city flight scheduling.
E) All of the above are true.
Answer: E
Diff: 1
location selection
3) Which of the following statements regarding FedEx is TRUE?
A) Its hub in Memphis, Tennessee, was selected because of its low cost.
B) Memphis, Tennessee, is the only hub in the company's global flight network.
C) FedEx believes the hub system helps reduce mishandling and delays due to better controls.
D) FedEx uses a hub system in the United States, but a city-to-city network in other countries.
E) Memphis is FedEx's only hub airport in the United States.
Answer: C
Diff: 1
Key Term: Global company profile
4) Industrial location analysis typically attempts to:
A) minimize costs.
B) maximize sales.
C) focus more on human resources.
D) avoid countries with strict environmental regulations.
E) ignore exchange rates and currency risks.
Answer: A
Diff: 2
Objective: LO1
location selection

8-2
5) A location decision for an appliance manufacturer would tend to have what type of focus?
A) cost focus
B) focus on finding very highly skilled technicians
C) revenue focus
D) environmental focus
E) education focus
Answer: A
Diff: 2
Objective: LO1
location selection
6) A location decision for a traditional department store (e.g., Macy's) would tend to have what type of
focus?
A) cost focus
B) labor focus
C) revenue focus
D) environmental focus
E) education focus
Answer: C
Diff: 2
Objective: LO1
location selection
7) As described in the book Aerotropolis, nowadays location decisions worldwide are often being based on
what?
A) rivers
B) rail hubs
C) interstate highways
D) ports
E) airports
Answer: E
Diff: 2
Objective: LO1
location selection
8) FedEx schedules its aircraft using a(n) ________ system, which it credits with reducing package
mishandling and delay in transit.
Answer: central hub
Diff: 2
location selection

8-3
9) Why does FedEx use a central hub airline network, rather than a "point-to-point" network? Describe
FedEx's approach to choosing its superhub.
Answer: The hub system is more centralized, and allows for greater control; greater control reduces
package mishandling and transit delays. Also, the hub permits service to a far greater number of points
with fewer aircraft than a point-to-point network would. Their U.S. hub in Memphis reflects a need to be
geographically centralized, and in a location where schedules can more reliably be kept because weather
delays are minimized.
Diff: 2
location selection
10) State the fundamental objective of a firm's location strategy. How is this basic objective carried out by
industrial or goods-producing firms; how does that differ for service firms?
Answer: The fundamental objective is to maximize the benefit of location to the firm. For industrial
location decisions, the focus is frequently on minimizing cost, because cost often varies dramatically from
one location to another. Service location decisions often focus on maximizing revenues.
Diff: 2
Objective: LO1
location selection
Section 2 Factors That Affect Location Decisions
1) Lists have been developed that rank countries on issues such as "competitiveness" and "corruption."
Answer: TRUE
Diff: 1
Objective: LO1
location selection
2) The ratio of labor cost per day to productivity, in units per day, is the labor cost per unit.
Answer: TRUE
Diff: 2
Objective: LO2
location selection
3) For a location decision, labor productivity may be important in isolation, but low wage rates are a more
important criterion.
Answer: FALSE
Diff: 2
Objective: LO1
location selection

8-4
4) Unfavorable exchange rates can offset other savings in a location decision.
Answer: TRUE
Diff: 2
Objective: LO1
location selection
5) An example of an intangible cost, as it relates to location decisions, is the quality of education.
Answer: TRUE
Diff: 2
Key Term: Intangible costs
Objective: LO1
location selection
6) In location decisions, intangible costs are easier to measure than tangible costs.
Answer: FALSE
Diff: 2
Objective: LO1
location selection
7) Location decisions are based on many things, including costs, revenues, incentives, attitudes, and
intangibles, but not on ethical considerations.
Answer: FALSE
Diff: 1
AACSB: Ethical understanding and reasoning abilities
Objective: LO1
location selection
8) Manufacturers may want to locate close to their customers if the transportation of finished goods is
expensive or difficult.
Answer: TRUE
Diff: 2
Objective: LO1
location selection
9) One reason for a firm locating near its competitors is the presence of a major resource it needs.
Answer: TRUE
Diff: 2
Key Term: Clustering
Objective: LO1
location selection

8-5
10) Why is Northern Mexico used as a cluster for electronics firms?
A) high traffic flows
B) venture capitalists located nearby
C) natural resources of land and climate
D) NAFTA
E) high per capita GDP
Answer: D
Diff: 2
AACSB: Dynamics of the global economy
Objective: LO1
location selection
11) Among the following choices, an operations manager might best evaluate political risk of a country
by looking at which type of country ranking?
A) based on competitiveness
B) based on cost of doing business
C) based on corruption
D) based on magnitude of government social programs
E) based on average duration between presidential/prime minister elections
Answer: C
Diff: 1
Objective: LO1
location selection
12) ________ and ________ are to key country success factors as ________ and ________ are to key region
success factors.
A) Cultural issues, location of markets; site size and cost, zoning restrictions
B) Exchange rates, labor availability; site size and cost, environmental impact
C) Labor cost, currency risk; land costs, proximity to customers
D) Land costs, proximity to customers; labor cost, air and rail systems
E) All of the above are accurate relationships.
Answer: C
Diff: 3
Objective: LO1
location selection

8-6
13) Which of the following workers is the most productive?
A) $50 wages, 10 parts produced
B) $10 wages, 1 part produced
C) $30 wages, 5 parts produced
D) $100 wages, 21 parts produced
E) $500 wages, 100 parts produced
Answer: D
Diff: 2
AACSB: Analytic skills
Objective: LO2
location selection
14) A employee produces 15 parts during a shift in which he made $90. What is the labor content of the
product?
A) $90
B) $5
C) $6
D) $0.167
E) $1,350
Answer: C
Diff: 2
Objective: LO2
location selection
15) The reason fast food restaurants often are found in close proximity to each other is:
A) they enjoy competition.
B) location clustering near high traffic flows.
C) low cost.
D) availability of skilled labor.
E) all of the above.
Answer: B
Diff: 2
Objective: LO1
location selection

8-7
16) Currency risk is based on what assumption?
A) Firms that do not continuously innovate will lose market share.
B) Values of foreign currencies continually rise and fall in most countries.
C) Changing product lines by reacting to every current trend may alienate the customer base.
D) The value of one dollar today is greater than the value of one dollar to be received one year from now.
E) The U.S. stock market fluctuates daily.
Answer: B
Diff: 1
Objective: LO1
location selection
17) Governmental attitudes toward issues such as private property, intellectual property, zoning,
pollution, and employment stability may change over time. What is the term associated with this
phenomenon?
A) bureaucratic risk
B) political risk
C) legislative risk
D) judicial risk
E) democratic risk
Answer: B
Diff: 2
Objective: LO1
location selection
18) Globalization of the location decision is the result of all EXCEPT which of the following?
A) market economics
B) higher quality of labor overseas
C) ease of capital flow between countries
D) high differences in labor costs
E) more rapid, reliable travel and shipping
Answer: B
Diff: 2
Objective: LO1
location selection

8-8
19) In location planning, environmental regulations, cost and availability of utilities, and taxes are:
A) global factors.
B) country factors.
C) regional/community factors.
D) site-related factors.
E) none of the above.
Answer: C
Diff: 3
Objective: LO1
location selection
20) Which of the following is usually NOT one of the top considerations in choosing a country for a
facility location?
A) availability of labor and labor productivity
B) exchange rates
C) attitude of governmental units
D) zoning regulations
E) location of markets
Answer: D
Diff: 3
Objective: LO1
location selection
21) When making a location decision at the country level, which of these would be considered?
A) corporate desires
B) land/construction costs
C) air, rail, highway, waterway systems
D) zoning restrictions
E) location of markets
Answer: E
Diff: 3
Objective: LO1
location selection

8-9
22) Which of these factors would be considered when making a location decision at the
region/community level?
A) government rules, attitudes, stability, incentives
B) cultural and economic issues
C) zoning restrictions
D) environmental impact issues
E) proximity to raw materials and customers
Answer: E
Diff: 3
Objective: LO1
location selection
23) When making a location decision at the region/community level, which of these would be considered?
C) cost and availability of utilities
D) zoning restrictions
E) air, rail, highway, waterway systems
Answer: C
Diff: 3
Objective: LO1
location selection
24) Which of these factors would be considered when making a location decision at the site level?
C) zoning regulations
D) cost and availability of utilities
E) proximity to raw materials and customers
Answer: C
Diff: 3
Objective: LO1
location selection

8-10
25) Tangible costs include which of the following?
A) climatic conditions
B) availability of public transportation
C) taxes
D) quality and attitude of prospective employees
E) zoning regulations
Answer: C
Diff: 2
Key Term: Tangible costs
Objective: LO1
location selection
26) Intangible costs include which of the following?
A) quality of prospective employees
B) quality of education
C) availability of public transportation
D) all of the above
E) none of the above
Answer: D
Diff: 2
Objective: LO1
location selection
27) Which of the following statements regarding "proximity" in the location decision is FALSE?
A) Service organizations find that proximity to market is the most critical primary location factor.
B) Manufacturers want to be near customers when their product is bulky, heavy, or fragile.
C) Perishability of raw materials is a good reason for manufacturers to locate near the supplier, not the
customer.
D) Reduction in bulk is a good reason for a manufacturer to locate near the supplier.
E) Clustering among fast food chains occurs because they need to be near their labor supply.
Answer: E
Diff: 2
Objective: LO1
location selection

8-11
28) Which of the following is the best example of the proximity rule that, for service firms, proximity to
market is the most important location factor?
A) Soft drinks are bottled in many local plants, where carbonated water is added to proprietary syrups
that may have been shipped long distances.
B) Few people will travel out-of state for a haircut.
C) Patients will travel very long distances to have their hernia surgeries performed at Shouldice Hospital.
D) Furniture makers choose to locate near the source of good hardwoods, even though it means locating
near other furniture manufacturers.
E) Metal refiners (smelters) locate near mines to accomplish significant weight reduction near the metal's
source.
Answer: B
Diff: 2
Objective: LO1
location selection
29) ________ costs are readily identifiable and can be measured with precision.
Answer: Tangible
Diff: 2
Key Term: Tangible costs
Objective: LO1
location selection
30) Political risk, cultural issues, and exchange rates are among those ________ that affect which country
will be selected for a location decision.
Answer: key success factors
Diff: 2
Objective: LO1
location selection
31) Labor cost per unit is also referred to as ________.
Answer: labor content
Diff: 2
Objective: LO1
location selection
32) ________ occurs when competing companies locate near each other because of a critical mass of
information, talent, venture capital, or natural resources.
Answer: Clustering
Diff: 2
Objective: LO1
location selection

8-12
33) Identify five factors that have fostered globalization.
Answer: Globalization has taken place because of the development of: (1) market economics; (2) better
international communications; (3) more rapid, reliable travel and shipping; (4) ease of capital flow
between countries; and (5) high differences in labor costs.
Diff: 3
Objective: LO1
location selection
34) Identify five factors that affect location decisions at the site level.
Answer: Factors that affect location decisions at the site level include site size and cost; air, rail, highway,
waterway systems; zoning restrictions; nearness of services/supplies needed; and environmental impact
issues.
Diff: 3
Objective: LO1
location selection
35) What is the role of labor productivity in location decisions?
Answer: Labor productivity is the number of units output per hour of labor input. For location decisions,
this is more often displayed in the form of "labor content," which is the dollar labor cost per unit. Labor
content provides a useful comparison in cases where wage rates and productivities vary greatly from
country to country. In short, low productivity can negate low wages.
Diff: 2
Objective: LO2
location selection
36) What is the impact of exchange rates on location decisions?
Answer: Exchange rates fluctuate, and they can negate savings from low wage rates.
Diff: 2
Objective: LO1
location selection

8-13
37) Why is "quality of life" an element of intangible costs associated with location decisions? Provide an
example as part of your discussion.
Answer: Quality of life affects location decisions in at least one indirect way. Consider a firm that has
narrowed its location to two cities. One city has an abundance of educational and recreational facilities,
good hospitals and parks. The other has very little of these elements. If you were a prospective employee,
in which city would you rather live? Low quality of life can drive up labor costs, and it might also have
an impact on training costs and health care costs.
Diff: 2
AACSB: Reflective thinking skills
Objective: LO1
location selection
38) "Proximity" or closeness implies that a firm should locate "close" to something. What are the three
kinds of proximity described in the text? What are the basic conditions under which each is appropriate?
What kinds of firms are likely to use each of these?
Answer: The three are proximity to markets, proximity to suppliers, and proximity to competitors.
Proximity to markets is appropriate when customers will not travel far to get the good or service, or
when delivering the product to the customer is costly or difficult. Many services must be close to their
markets, as must home construction. Proximity to suppliers is appropriate when raw materials are
perishable, or when supplies are costly or bulky to transport. Seafood processors need to be near the
docks, and smelters need to be near the mines. Proximity to competitors reflects a kind of synergy–
retailers find that volume is higher when there are more competitors nearby, because this clustering
brings higher traffic counts.
Diff: 3
Objective: LO1
location selection
39) What is it called when competing companies locate next to each other? Why do they do this?
Answer: It is called clustering. In many cases, this occurs because of a critical mass of information, talent,
venture capital, or natural resources. Alternately, clustering occurs because several firms close together
create a larger total market than the same firms separated.
Diff: 2
Objective: LO1
location selection

8-14
Section 3 Methods of Evaluating Location Alternatives
1) The graphic approach to locational cost-volume analysis displays the range of volume over which each
location is preferable.
Answer: TRUE
Diff: 2
Key Term: Locational cost-volume analysis
Objective: LO4
location selection
2) The factor-rating method can consider both tangible and intangible costs.
Answer: TRUE
Diff: 2
Key Term: Factor-rating method
Objective: LO3
location selection
3) The center-of-gravity method finds the location of a centralized facility, such as a distribution center,
that will maximize the organization's revenue.
Answer: FALSE
Diff: 2
Key Term: Center-of-gravity method
Objective: LO5
location selection
4) The transportation model calculates an optimal shipping system between a central facility and several
outlying customers.
Answer: FALSE
Diff: 2
Key Term: Transportation model
location selection

8-15
5) Which of the following statements regarding the center-of-gravity method is FALSE?
A) It is designed to minimize the maximum possible travel distance to any of the locations.
B) The optimal x- and y-coordinates are calculated separately.
C) The optimal solution is unconstrained, so it could suggest a location in the middle of a body of water.
D) The weights used are the quantity of goods moved to or from each location.
E) The origin of the coordinate system and the scale used are arbitrary, just as long as the relative
distances are correctly represented.
Answer: A
Diff: 2
Objective: LO5
location selection
6) Community attitudes, zoning restrictions, and quality of labor force are likely to be considered in
which of the following location decision methods?
A) transportation method
B) locational cost-volume analysis
C) center-of-gravity method
D) simulation
E) factor-rating method
Answer: E
Diff: 2
Objective: LO3
location selection
7) Which of the following methods best considers intangible costs related to a location decision?
A) crossover methods
B) locational cost-volume analysis
C) factor-rating method
D) the transportation method
E) center-of-gravity method
Answer: C
Diff: 2
Objective: LO3
location selection

8-16
8) Evaluating location alternatives by comparing their composite (weighted-average) scores involves
which of the following?
A) factor-rating analysis
B) cost-volume analysis
C) transportation model analysis
D) linear regression analysis
E) crossover analysis
Answer: A
Diff: 2
Objective: LO3
location selection
9) A clothing chain is considering two different locations for a new retail outlet. They have identified the
four factors listed in the following table as the basis for evaluation, and have assigned weights as shown.
The manager has rated each location on each factor, on a 100-point basis, as shown under the respective
columns for Barclay and Chester.
Factor
Factor
Description Weight Barclay Chester
1
Average
community
income .40 30 20
2
Community
growth
potential .25 40 30
3
Availability of
public
transportation .15 20 20
4 Labor cost .20 10 30
What is the score for Chester?
A) 10.00
B) 24.50
C) 25.75
D) 27.00
E) 100.00
Answer: B
Diff: 2
Objective: LO3
location selection

8-17
10) What is an approach to location analysis that includes both qualitative and quantitative
considerations?
A) locational cost-volume analysis
B) factor-rating method
C) transportation model
D) center-of-gravity method
E) make-or-buy analysis
Answer: B
Diff: 2
Objective: LO3
location selection
11) On the crossover chart where the costs of two or more location alternatives have been plotted, the
quantity at which two cost curves cross is the quantity at which:
A) fixed costs are equal for two alternative locations.
B) variable costs are equal for two alternative locations.
C) total costs are equal for all alternative locations.
D) fixed costs equal variable costs for one location.
E) total costs are equal for two alternative locations.
Answer: E
Diff: 2
Objective: LO4
location selection

8-18
12) A full-service restaurant is considering opening a new facility in a specific city. The table below shows
its ratings of four factors at each of two potential sites.
Factor Weight Gary Mall Belt Line
Affluence of local population .20 30 30
Traffic flow .40 50 20
Parking availability .20 30 40
Growth potential .20 10 30
The score for Gary Mall is ________ and the score for Belt Line is ________.
A) 120; 120
B) 22; 24
C) 18; 120
D) 34; 28
E) none of the above
Answer: D
Diff: 2
Objective: LO3
location selection
13) A firm is considering two location alternatives. At location A, fixed costs would be $4,000,000 per
year, and variable costs $0.30 per unit. At alternative B, fixed costs would be $3,600,000 per year, with
variable costs of $0.35 per unit. If annual demand is expected to be 10 million units, which plant offers the
lowest total cost?
A) Plant A, because it is cheaper than Plant B for all volumes over 8,000,000 units.
B) Plant B, because it is cheaper than Plant A for all volumes over 8,000,000 units.
C) Plant A, because it is cheaper than Plant B for all volumes.
D) Plant B, because it has the lower variable cost per unit.
E) Neither Plant A nor Plant B, because the crossover point is at 10 million units.
Answer: A
Diff: 2
Objective: LO4
location selection

8-19
14) The center-of-gravity method is used primarily to determine what type of locations?
A) service locations
B) manufacturing locations
C) distribution center locations
D) supplier locations
E) call center locations
Answer: C
Diff: 2
Objective: LO5
location selection
15) A regional bookstore chain wants to build a distribution center that is centrally located for its eight
retail outlets. It will most likely employ which of the following tools of analysis?
A) assembly line balancing
B) load-distance analysis
C) center-of-gravity method
D) linear programming
E) locational cost-volume analysis
Answer: C
Diff: 2
Objective: LO5
location selection

8-20
16) East Texas Seasonings is preparing to build one processing center to serve its four sources of
seasonings. The four source locations are at coordinates shown below. Also, the volume from each source
is provided. What is the center of gravity?
X-coordinate Y-coordinate Volume
Athens, Texas 30 30 150
Beaumont, Texas 20 10 350
Carthage, Texas 10 70 100
Denton, Texas 50 50 200
A) X = 28.125; Y = 31.25
B) X = 22000; Y = 24000
C) X = 27.5; Y = 40
D) center of gravity = 28
E) X = 25; Y = 40
Answer: A
Diff: 2
Objective: LO5
location selection
17) A county wants to build one centrally-located processing facility to serve the county's four recycling
drop-off locations. The four drop-offs have characteristics as given in the table below. What is the
approximate center of gravity of these four locations?
Location X-coordinate Y-coordinate Tonnage
Drop-off point A 1 8 10
Drop-off point B 6 7 35
Drop-off point C 6 2 25
Drop-off point D 4 7 50
A) (4.75, 6.04)
B) (17, 24)
C) (33.5, 135.4)
D) (6, 4.25)
E) (570, 725)
Answer: A
Diff: 2
Objective: LO5
location selection

8-21
18) Production and transportation costs are always considered in which of the following location decision
methods?
A) traffic counts
B) transportation model
C) purchasing power
D) proximity of markets
E) clustering
Answer: B
Diff: 2
location selection
19) The transportation model, when applied to location analysis:
A) minimizes total fixed costs.
B) minimizes total production and transportation costs.
C) minimizes total transportation costs.
D) maximizes revenues.
E) minimizes the movement of goods.
Answer: B
Diff: 2
location selection
20) The ________ method is popular because a wide variety of factors, from education to recreation to
labor skills, can be objectively included.
Answer: factor-rating
Diff: 2
Objective: LO3
location selection
21) The ________ is a mathematical technique used for finding the best location for a single distribution
point that services several stores or areas.
Answer: center-of-gravity method
Diff: 2
Objective: LO5
location selection

8-22
22) The ________ is used to determine the best pattern of shipments from several points of supply to
several points of demand.
Answer: transportation model
Diff: 2
location selection
23) Identify the four major quantitative methods for solving location problems.
Answer: Factor-rating method, locational cost-volume analysis, center-of-gravity method, and
transportation model.
Diff: 2
location selection
24) What are the advantages and disadvantages of the use of the factor-rating method?
Answer: Factor rating can handle a mix of quantitative and qualitative variables; its calculations are
simple and straightforward. Factor rating is subject to sensitivity to small swings in weights and scores,
and is subject to subjectivity (different judges see different scores for same site).
Diff: 2
Objective: LO3
location selection
25) What kinds of location decisions are appropriate for the use of locational cost-volume analysis? Write
a brief paragraph explaining how the method can assist an operations manager in choosing among
alternative sites in making a location decision.
Answer: Crossover analysis is appropriate when the primary focus of a location decision is cost. For each
alternative site, crossover analysis constructs a total cost curve composed of a fixed cost and a variable
cost that depends upon volume. Where these cost curves intersect (or cross over) is the point at which
two alternatives have the same cost. The graph of the cost curves of all alternative sites will display the
range of volumes over which each site has the lowest cost of all alternatives.
Diff: 2
Objective: LO4
location selection

8-23
26) What kinds of location decisions are appropriate for the use of center-of-gravity analysis? What
variable is being optimized in this analysis?
Answer: The center-of-gravity technique is appropriate when the location decision must find a single
centrally-located site to serve any number of outlying points; locating a distribution center to serve a
dozen retail stores is an example. The analysis leads to a location that (approximately) minimizes the
distribution cost (or total distance traveled) between all outlying points and the center or hub.
Diff: 2
Objective: LO5
location selection
27) A manufacturing company preparing to build a new plant is considering three potential locations for
it. The fixed and variable costs for the three alternative locations are presented below.
a. Complete a numeric locational cost-volume analysis.
b. Indicate over what range each of the alternatives A, B, C is the low-cost choice.
c. Is any alternative never preferred? Explain.
Costs A B C
Fixed ($) 2,500,000 2,000,000 3,500,000
Variable ($ per unit) 21 25 15
Answer: B is cheapest up to 125,000 units; C is cheapest after 166,667 units. A is cheapest in between. The
B-C crossover is not relevant. Thus each alternative has an attractive range.
Break-even points Units Dollars
Option A vs. Option B 125,000 5,125,000
Option A vs. Option C 166,667 6,000,000
Option B vs. Option C 150,000 5,750,000
Diff: 2
Objective: LO4
location selection

8-24
28) A farmers' cooperative association plans to build a new sugar mill in Southwestern Louisiana. The
primary objective of the mill is to provide the farmers with a place to take their crop for processing that
will reduce their transportation costs. The members of the co-op believe that the center-of-gravity method
is appropriate for this objective. While there are over 200 sugar cane farms in the region, they are tightly
clustered around six villages. Using the data below, use the center-of-gravity method to calculate the
coordinates of the best location for this mill. All mileage references use the city of Lake Charles as (0,0).
Village
Miles East of
Lake Charles
Miles North of
Lake Charles
Sugar Cane
tonnage
Arceneaux 90 10 240,000
Boudreaux 140 60 320,000
Cancienne 20 70 450,000
Darbonne 50 20 120,000
Evangeline 100 80 60,000
Fontenot 10 120 140,000
Answer: The center of gravity, weighted by the tonnage at each village cluster, is about 66.8 miles east of
Lake Charles and 58.0 miles north of Lake Charles.
Sugar Mill Solution
Weighted #
trips x-coord y-coord X multiplied Y multiplied
A 240. 90. 10. 21,600. 2,400.
B 320. 140. 60. 44,800. 19,200.
C 450. 20. 70. 9,000. 31,500.
D 120. 50. 20. 6,000. 2,400.
E 60. 100. 80. 6,000. 4,800.
F 140. 10. 120. 1,400. 16,800.
Total 1330. 410. 360. 88,800. 77,100.
Average 68.333 60.
Weighted
Average 66.7669 57,9699
Median 665. 50. 60.
Diff: 2
Objective: LO5
location selection

8-25
29) A clothing chain is considering two different locations for a new retail outlet. The organization has
identified the four factors listed in the following table as the basis for evaluation, and it has assigned
weights as shown. The manager has rated each location on each factor, on a 100-point basis (higher scores
are better), as shown under the respective columns for Barclay and Chester.
a. Calculate the composite score for each alternative location.
b. Which site should be chosen?
c. Are you concerned about the sensitivity and subjectivity of this solution? Comment.
Factor
Factor
Description Weight Barclay Chester
1
Average
community
income .40 75 70
2
Community
growth
potential .25 60 80
3
Availability of
public
transportation .15 45 90
4 Labor cost .20 80 60
Answer: The higher rated site is Chester, 74.5 to 67.75. There is a margin of nearly seven points, which
should overcome most levels of subjectivity. The site factor scores are quite different, so that a small
swing in weights could produce swings in scores of a few points, but probably not the seven necessary to
reverse the findings.
Weight Barclay Chester
Factor 1 0.40 75 70
Factor 2 0.25 60 80
Factor 3 0.15 45 90
Factor 4 0.20 80 65
Total 1.00
Weighted sum 67.75 74.5
Weighted average 67.75 74.5
Diff: 2
Objective: LO3
location selection

8-26
30) A manufacturing company is considering two alternative locations for a new facility. The fixed and
variable costs for the two locations are found in the table below. For which volume of business would the
two locations be equally attractive? If the company plans on producing 50,000 units, which location
would be more attractive?
Glen Rose Mesquite
Fixed Costs $1,000,000 $1,500,000
Variable Costs ($ per unit) 25 23
Answer: Crossover is at 250,000 units. Below the crossover, Glen Rose must be cheaper as it has the
lower fixed cost. Thus, for an estimated unit volume of 50,000, Glen Rose should be chosen.
Break-even points Units Dollars
Option 1 vs. Option 2 250,000 7,250,000
Volume analysis at 50,000 units
Option 1 Option 2
total cost $2,250,000.00 $2,650,000.00
Diff: 2
Objective: LO4
location selection

8-27
31) East Texas Seasonings is preparing to build one processing center to serve its four sources of
seasonings. The four source locations are at coordinates shown below. Also, the volume from each source
is provided.
a. Calculate the volume-weighted center of gravity.
b. Calculate the simple center of gravity (all cities weighted equally).
c. Explain why the two calculations differ.
X-coordinate Y-coordinate Volume
Athens, Texas 30 40 100
Beaumont, Texas 20 15 400
Carthage, Texas 55 60 150
Denton, Texas 20 70 250
Answer: The weighted center of gravity is located at X = 24,250 / 900 = 26.9, Y = 36,500 / 900 = 40.6. The
simple center of gravity is located at X = 125 / 4 = 31.25. Y = 185 / 4 = 46.25. The simple center is more to
the east and north than the weighted center of gravity. A partial explanation is that the heaviest tonnage
is from Beaumont, which is far to the west and south. Its influence pulls the weighted center toward the
west and south.
East Texas Seasonings Solutions
Weighted #
trips x-coord y-coord X multiplied Y multiplied
A 100. 30. 40. 3,000. 4,000.
B 400. 20. 15. 8,000. 6,000.
C 150. 55. 60. 8,250. 9,000.
D 250. 20. 70. 5,000. 17,500.
Total 900. 125. 185. 24,250. 36,500.
Average 31.25 46.25
Weighted
Average 26.9444 40,5556
Median 450. 20. 40.
Diff: 2
Objective: LO5
location selection

8-28
32) Location A would result in annual fixed costs of $300,000 and variable costs of $55 per unit. Annual
fixed costs at Location B are $600,000 with variable costs of $32 per unit. Sales volume is estimated to be
30,000 units per year. Which location has the lower cost at this volume? How large is its cost advantage?
At what volume are the two facilities equal in cost?
Answer: At 30,000 units, Location A has total costs of $1,950,000, while Location B has total costs of
$1,560,000. Location B is cheaper by $390,000. The crossover occurs where 600,000 + 32X = 300,000 + 55X,
or at X = 300,000 / 23 = 13,043 units
Diff: 2
Objective: LO4
location selection
33) Using the factor ratings shown below, determine which location alternative should be chosen on the
basis of maximum composite score.
Location
Factor Weight A B C
Easy access 0.15 86 72 90
Parking facilities 0.20 72 77 91
Display area 0.18 86 90 90
Shopper (walking) traffic 0.21 94 86 80
Neighborhood wealth 0.16 99 89 81
Neighborhood safety 0.10 96 85 75
Answer: A is best (87.96), followed by C (85.16). B is somewhat further behind (83.20).
Diff: 2
Objective: LO3
location selection

8-29
34) A manager has received an analysis of several cities being considered for a new order fulfillment
center (warehouse) for Shop at Home Network. The scores (scale is 10 points = best) are contained in the
table below.
a. If the manager weights the factors equally, how would the locations be ranked?
b. If transportation costs and operating costs are given weights that are double the weights of the others,
should the locations be ranked differently?
Location
Factor W X Y Z
Business services 7 9 5 4
Community services 5 7 6 7
Real estate cost 7 3 8 6
Construction costs 8 6 6 5
Operating costs 5 4 7 6
Business taxes 6 9 6 4
Transportation costs 8 6 7 8
Answer: The locations are ranked W, Y, X, Z with equal weights; but W and Y tie for highest, and Z and
X tie for lowest as revised.
Factor Weight W X Y Z
Business services 1 7 9 5 4
Community services 1 5 7 6 7
Real estate cost 1 7 3 8 6
Construction costs 1 8 6 6 5
Operating costs 1 5 4 7 6
Business taxes 1 6 9 6 4
Transportation costs 1 8 6 7 8
Total 7 46 44 45 40
Weighted average 6.579 6.286 6.429 5.714
Weight W X Y Z
Business services 1 7 9 5 4
Community services 1 5 7 6 7
Real estate cost 1 7 3 8 6
Construction costs 1 8 6 6 5
Operating costs 2 5 4 7 6
Business taxes 1 6 9 6 4
Transportation costs 2 8 6 7 8
Total 9
Weighted sum 59 54 59 54
Weighted average 6.56 6 6.56 6
Diff: 3
Objective: LO3

8-30
location selection
35) A telecommunications firm is planning to lay fiber optic cable from several community college
distance learning sites to a central studio, in such a way that the miles of cable are minimized. Some
locations require more than one set of cables (these are the loads). Where should the studio be located to
accomplish the objective?
College Map Coordinate (x, y) Load
A (2,10) 3
B (6,8) 2
C (4,9) 4
D (9,5) 1
E (8,1) 3
F (3,2) 2
G (2,6) 1
Answer: This is a center-of-gravity problem, even though it is not about shipping tangible items. The
center of gravity is at coordinates X = 4.69, Y = 6.25
Weight X coord Y coord
Location 1 3 2 10
Location 2 2 6 8
Location 3 4 4 9
Location 4 1 9 5
Location 5 3 8 1
Location 6 2 3 2
Location 7 1 2 6
Sum 16 34 41
Average 4.857 5.857
Weighted Average 4.6875 6.25
Diff: 3
Objective: LO5
location selection

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regie avevan combattuto eroicamente a Pastrengo, a Crocebianca, a
Santa Lucia ed ora assediavano strettamente Peschiera, mentre il
generale Nugent scendeva con grandi sforzi nel Veneto e costringeva
il generale Durando a ripiegare su Vicenza.
Il generale Ferrari era stato richiamato in Toscana, e da due giorni lo
aveva sostituito il De Laugier, quando il generale Bava, sotto gli
ordini del quale era il corpo dei Toscani, con ripetuti dispacci lo
avvisa che forti distaccamenti di austriaci sono entrati in Mantova e
si preparano ad attaccare all'indomani le posizioni occupate dai
nostri; che occorrendo ripieghi su Goito, dove l'aiuto suo non gli
sarebbe mancato.
La linea guardata dai Toscani si stendeva undici chilometri da Goito
per Sacca e Rivalta fino a Montanara; aveva una fronte rivolta a
Mantova di oltre 3 chilometri di lunghezza, con la sinistra a
Curtatone appoggiata al lago formato dal Mincio, e la destra a
Montanara. La posizione era debole t mal difesa, A Curtatone, invece
di coprirci con l'Osone, canale non guadabile, e con i suoi argini, si
eran formate le nostre trincee al di là del canale e del solo ponte,
che sulla via maestra lo traversava, più alto del piano di campagna,
non coperto ne difeso. Montanara aveva la destra affatto scoperta e
poteva facilmente essere attaccata e girata di fianco. Sulla linea di
battaglia tra Curtatone e Montanara, il generale De Laugier non
aveva che sei cannoni e 4600 combattenti, mentre Radetzky era
uscito da Mantova con 40,000 uomini e 60 pezzi d'artiglieria.
Alle 9 e mezzo della mattina comincia a tonare il cannone nemico, e
in breve il fuoco dei fucili si fa su tutta la linea vivissimo. Il generale
De Laugier per invitare, come egli disse, i suoi giovani soldati a
sprezzare il pericolo, esce con i suoi aiutanti al di fuori delle trincee e
percorre a cavallo, sotto il fuoco nemico, la parte della linea che dalla
strada va a sinistra fino al lago, e al suo passaggio i soldati e i
volontari, alzando i fucili, lo salutano col grido di Viva l'Italia. Di là il
Generale corre a Montanara, tutti animando colla speranza della
vittoria.

Anche il Battaglione Universitario, che era accampato alle Grazie, e
che il Generale aveva ordine di tenere in riserva, è portato sulla
strada di Mantova per attendere in colonna serrata l'ordine di
avanzare. Una densa nube di fumo si alza al di là del ponte e si ode
un terribile rombo; era un cassone di munizioni, che i fuochi
dell'artiglieria nemica ci aveano incendiato. Passano sulla strada i
feriti in gran numero; fra questi il tenente colonnello Chigi e il
tenente Niccolini, che si erano eroicamente battuti. «Viva l'Italia!
Vendicateci!» grida, passando, il Niccolini ai giovani universitari, dei
quali, a quel grido, non è più possibile contenere l'ardore. Il
Battaglione, formato com'era in colonna serrata, si muove senza che
nessuno glielo abbia comandato, e fu fortuna che nel breve tratto da
percorrere prima di salire il ponte, lo incontrassero l'aiutante
maggiore Milani e il capitano Caminati e lo facessero sfilare per due
e passare alla corsa sul ponte, dove fulminavano i fuochi incrociati
dell'artiglieria nemica, che ad alcuni di quei giovani furono pur
nonostante fatali. Il fuoco dei nostri fucili durò a lungo e sempre
vivace, mentre un solo cannone poteva di tanto in tanto, per
mancanza d'artiglieri e di munizioni, far sentire i suoi colpi.
Alle 4 pomeridiane, dopo sei ore e mezzo di combattimento, gli
austriaci in forti masse si avanzano sulla strada dalla parte del lago,
e il De Laugier assicuratosi della impossibilità di resistere ancora,
ordina la ritirata e la fa batter più volte, perchè molti parevan decisi
a morire sulle trincee piuttosto che voltar le spalle al nemico. Gli
austriaci, convinti di avere avuto a fronte un grosso corpo di
esercito, che avesse ripresa posizione alle Grazie, avanzano
cautamente, e intanto i nostri, discretamente ordinati, si ritirano per
Rivalta e Goito.
Nè con minor valore si eran battuti i Toscani comandati dal
colonnello Giovannetti a Montanara. Attaccati sul fianco destro da
grandi forze nemiche, più volte si erano slanciati al di là delle trincee,
ed eran riusciti a respingerle: l'artiglieria aveva fatto prodigii con i tiri
bene aggiustati dei suoi due cannoni, ma artiglieri e ufficiali erano
morti feriti sui loro pezzi. Nuove schiere nemiche ripetevano i loro
attacchi, e quando sul tardi il Giovannetti, cui non era pervenuto

l'ordine di ritirarsi inviatogli dal De Laugier, si accorse di avere a
fronte un esercito poderoso e ordinò la ritirata, il generale
Lichtenstein lo aveva girato di fianco e, sbarrandogli la via, lo
attaccava alle spalle. Molti di quei valorosi perirono, molti non pratici
del terreno furon circondati e rimasero prigioni.
Dal maresciallo Radetzky, nella sua relazione sulla campagna del
1848, quella battaglia è chiamata memorabile e quella giornata
gloriosa per l'esercito austriaco. E noi possiamo dire sulla
indiscutibile autorità di lui, che dieci volte più memorabile fu quella
battaglia e dieci volte più gloriosa fu quella giornata per i toscani,
che dell'esercito austriaco non eran che la decima parte.
L'eroica resistenza dei nostri aveva dato tempo alle truppe regie di
raccogliersi a Goito, dove giunto Radetzky la mattina di poi e data
battaglia, fu vinto e costretto a tornare indietro e chiudersi in
Mantova. In quel medesimo giorno capitolava Peschiera. Ma fin
d'allora il valore dell'esercito, l'eroismo del re Carlo Alberto e dei
Principi suoi figli, non bastarono a rialzare le sorti delle armi italiane.
L'esercito piemontese, non ostante che prodigii di valore avesse
compiuti, pure due mesi dopo dovea fatalmente ripassare il Ticino.
Nel 26 di giugno si era adunato per la prima volta il Parlamento
toscano, che al discorso del trono, caldo di sentimenti patriottici e
avvivato dalla fede nell'avvenire d'Italia, rispose con fragorosi,
unanimi applausi. Ma nel mese successivo, quando la fortuna aveva
voltato le spalle alle armi italiane, il governo, colpito dalla grave
sciagura, era ricaduto nelle solite lentezze e incertezze. Si attendeva
la presentazione di una legge sui volontari, perchè il timore degli
austriaci vittoriosi faceva sentire il bisogno d'uomini e subito; ma il
30 luglio un movimento repubblicano, presa a pretesto la necessità
di difendere il paese, messe tutta Firenze sottosopra, la Guardia
civica non rispose all'appello, e la truppa piegò di fronte al popolo
che invase l'aula dei Deputati. Niuna deliberazione fu presa
dall'Assemblea sopraffatta, e ne seguì la dimissione del ministero
Ridolfi. Gli succede un ministero Capponi, che ebbe una vita agitata
di soli settanta giorni; durante i quali Livorno, conturbata dai

sobillamenti del Guerrazzi e irritata per la espulsione del padre
Gavazzi, si levò a tumulto, e rotto il telegrafo e arrestato il
Governatore, pretendeva dettare la legge. Inviato dal Governo a
sedare quei tumulti Leonetto Cipriani, ne avvenne fra il popolo e la
truppa una lotta sanguinosa. Per il che dipartitosi il Cipriani da
Livorno, a calmare gli animi esacerbati vi fu dal Governo inviato il
professor Montanelli, e questi blandendo il popolo per farsene
strumento a salire, gli promise la istituzione di una Costituente
italiana, la quale avrebbe dovuto deliberare sopra la forma del
reggimento politico e anche sulla conservazione della dinastia di
Lorena.
Intanto i partiti estremi rossi e neri, d'accordo sempre nel
distruggere, avevano messo sottosopra anche Roma; e ucciso il
Rossi, e minacciato il Vaticano, avean costretto il Papa a fuggire.
Caduto in Toscana anche il ministero Capponi, il Montanelli e il
Guerrazzi eran riusciti ad afferrare il potere. Le due Costituenti, la
Costituente federativa dei trattati, piemontese, toscano e romano,
che doveva risedere in Roma ed esser la personificazione vivente
dell'Italia, e la Costituente legislativa sopra l'ordinamento interno di
ciascuno Stato, costituivano il programma del nuovo Ministero
democratico: concetto questo, cui prima aderì, poi respinse il
Gioberti, allora presidente del Ministero Piemontese; concetto che
più tardi doveva sollevare gli scrupoli di Leopoldo e indurlo ad
abbandonare la Toscana. Sciolta la Camera dei Deputati, o Consiglio
Generale, come allora chiamavasi, e riconvocati i Collegi elettorali, il
Governo democratico nel dubbio di non aver favorevole il giudizio
popolare, avea lasciato che in Firenze, in Pisa e in altre parti del
Granducato il giorno delle elezioni si tumultuasse, si spezzassero le
urne e fossero messi in fuga gli elettori dalla plebaglia eccitata. In sì
triste modo si chiudeva il 1848, quell'anno di tante speranze, di tante
prove, di tante sciagure.
Il risorgimento italiano, cui l'elezione di Giovanni Mastai a Pontefice
aveva dato come il suggello della giustizia divina, si era arrestato,
ma non per sempre. Se al principio del 1848 era esso una fede nella
coscienza del popolo, al cader di quell'anno fortunoso non era per

altro che un debole ricordo di un sogno svanito. La speranza, non
che spenta, era resa anzi più viva per l'ammaestramento che ci
veniva dagli errori commessi.
Se il 1848 aveva strappato dalle nostre mani inesperte le sorti della
patria, le vegliava un destino benevolo. Gli errori del popolo le
avevano compromesse, gli errori del principato dovevano prepararne
la grande riscossa. Se Pio IX, se Leopoldo di Lorena si involavano, e
con ragione, alla tirannia della piazza, era il fato benevolo dell'Italia,
che doveva spingerli a rifugiarsi presso il Borbone sotto le ali
tristamente tutelari dell'Aquila austriaca. Era il fato benevolo
dell'Italia, che doveva nella tenebrosa fucina di Gaeta far preparare
la violazione dei patti giurati, e la chiamata delle armi straniere sopra
i popoli ancor fedeli della Toscana. Era il fato benevolo dell'Italia, che
doveva offrire a noi medesimi, che avevamo errato, l'occasione della
riscossa. Era il fato benevolo dell'Italia, che invece di un Papa,
liberale senza saperlo, doveva darci in Vittorio Emanuele un Re
Galantuomo, e far dello Statuto Sabaudo il gran faro cui potessero
rivolgersi tutti i cuori e tutte le menti degli italiani. Era il fato
benevolo dell'Italia, che doveva con gli errori del Granduca ravvivare
il sentimento dell'unità nazionale, sopito ma non spento, nel popolo
toscano, e dare a questo la fermezza di volontà e la temperanza di
modi, che più tardi lo avrebbe fatto appellare un popolo di
diplomatici, che sotto la guida salda e robusta del Ricasoli, avrebbe
potuto render vani i patti di Villafranca, i suggerimenti amichevoli, gli
autorevoli consigli delle potenze straniere, e, spezzando la propria
corona, dare il primo e il più forte cemento all'unità della patria!
Il vaticinio del poeta toscano si avverò: furono lacerate all'Italia
Le molteplici bende
Onde gelida a lei correa la vita.
Il generoso disegno fu opera grande e fortunatamente compiuta.
Dopo lungo servaggio alzata a regno

l'Italia fu libera, fu indipendente, fu una. Possa la mente del popolo
non ricadere sotto il fàscino di coloro, i quali, negando persino il
sublime affetto di patria, non aborrono dal gridar viva ai nemici di lei,
di coloro che saranno sempre, come nel 1848, causa non dubbia di
grandi sciagure; possano gli errori d'allora essere a tutti di un
ammaestramento costante; e l'Italia, ricostituita in nazione, per virtù
di Re e di Popolo, possa per virtù di Popolo e di Re serbarsi grande e
potente!

Principles of Operations Management 9th Edition Heizer Test Bank

INDICE
Pio IX e Pellegrino Rossi Pag. 5
I moti di Napoli del 1848 57
La Sicilia e la rivoluzione 113
I moti toscani del 1847 e 1848: loro cause ed
effetti 137

Nota del Trascrittore
Ortografia e punteggiatura originali sono state
mantenute, correggendo senza annotazione minimi errori
tipografici.

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