Hi.

1. A company wants to determine where they should locate a new warehouse. They have two existing production plants (i.e., Plant A and Plant B) that will ship units of a product to this warehouse. Plant A is located at the (X, Y) coordinates of (50, 100) and will have volume of shipping of 250 units a day. Plant B is located at the (X, Y) coordinates of (150, 200) and will have a volume of shipping of 150 units a day. Using the centroid method, which of the following are the X and Y coordinates for the new plant location?

A) (81, 117)

B) (88, 138)

C) (117, 102)

D) (76, 123)

E) X and Y coordinates cannot be computed from the data given

2. What transportation mode has very high initial investment costs but gives a very low cost per mile for products that are highly specialized and require no packaging?

A) Highway

B) Rail

C) Water

D) Pipeline

E) Air

3. Very few products are moved without at least part of their journey being by which mode of transportation?

A) Highway

B) Rail

C) Water

D) Pipeline

E) Air

4. According to the text, an important decision for multinational companies is the nation in which to locate the home base for each business. Which of the following business activities does not happen at the business's home base?

A) Core process technology is created

B) A critical mass of production takes place

C) The largest profits are recorded

D) Strategy is created

E) Core products are created

5. Which of the following is not mentioned in the text as a technique for identifying potential sites for plants or other types of facilities?

A) The centroid method

B) Factor-rating systems

C) Linear programming

D) The transportation method of decision analysis

E) Regression analysis