Question 1a

Clustering occurs when a major resource is found in a region.

	True
	False

Question 1b

A regional bookstore chain is about 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?

	assembly line balancing
	load-distance analysis
	center-of-gravity model
	linear programming
	all of the above

Question 1c

Generally, the objective of the location decision is to maximize the firm's profit.

	True
	False

Question 1d

Companies like to locate close to competitors.

	True
	False

Question 2a

Break-even analysis of location decisions considers both tangible and intangible cost factors.

	True
	False

Question 2b

Both service and industrial location decisions make extensive use of the factor rating method.

	True
	False

Question 2c

Globalization of the location decision is the result of all of the following except

	better international communications
	higher quality of labor overseas
	ease of capital flow between countries
	high differences in labor costs
	more rapid travel and shipping

Question 2d

1. 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? (write out calculation process)

	X-coordinate	Y-coordinate	Volume
Athens, Texas	30	30	100
Beaumont, Texas	20	10	400
Carthage, Texas	10	70	100
Denton, Texas	50	50	200

Type out your working solution:

Question 2e

1. Determine the optimal location to set up a central hub for the below scenario with seven (7) customers, A, B, C, D, E, F and G with shipping loads and location co-ordinates as provided.

Customer	Tons	Grid Co-ordinates(x,y)
A	500	5,10
B	1,000	6,8
C	1,500	4,9
D	500	9,5
E	1,500	7,9
F	1,000	3,2
G	500	2,6

1. Sketch a diagram to indicate the optimal location relative to the customers.

Sketch a diagram of the solution: