T/F Questions: Need to be completed with preciseness.
1) If the customer must be physically present at the process, location is an important issue.
2) Two conditions must be met by factors selected to evaluate location decisions: the factors must have a high impact on the company's ability to meet its goals and the factors themselves must be affected by the location decision.
3) When outbound transportation costs are a dominant factor, manufacturing facilities should be located close to suppliers and resources needed for production.
4) One dominant factor in locating manufacturing facilities is a favorable labor climate.
5) Traffic flows are one dominant factor in locating manufacturing location.
6) Service location decisions are driven primarily by the operating costs at the locations under consideration.
7) Many firms are concluding that large, centralized manufacturing facilities in low-cost countries with poorly trained workers are not sustainable.
8) Critical mass is a situation whereby several competing firms cluster near one location, and thus attract more customers than the total number who would shop at the same stores in scattered locations.
9) A geographic information system contains demographic information.
10) More than 80 percent of all relocations are within 10 miles of the first location, so usually the existing workforce is displaced.
11) Repeated onsite expansion ultimately leads to diseconomies of scale.
12) When comparing several sites, typically a company will pick specific available site locations, then broaden their choices to communities, and finally to alternate regions.