Which of the Following Statements Concerning the Use of the Geographical

question 14

Multiple Choice

Which of the following statements concerning the use of the Geographical Information System (GIS) method for locating multiple facilities is True?

• A) GIS helps with general facility locations, but is not able to identify specific locations because the transportation structure of roads and interstate highways can't be included in the GIS databases.
• B) Load-distance scores and center of gravity data can be merged with customer databases to arrive at trial locations for facilities.
• C) When locating two new facilities, the entire operating area is split into four subregions, two for each new facility, so the best two locations from the four subregions can be selected.
• D) One weakness of the GIS method is that it is slow and cumbersome, and significant time must be allowed in order to reach a reasonable multiple-facility location decision.

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Definitions:

Variable Cost

Costs that vary directly with the level of production or output, such as raw materials and labor expenses, adjusting as the volume of production increases or decreases.

Credit Policy

Guidelines that a company follows to determine the creditworthiness of customers and the terms and conditions for extending credit.

Incremental Cash Flow

The extra money a company gains by embarking on a project or investment.

Credit Policies

Guidelines a company follows to determine credit terms for customers, including who is eligible for credit and on what terms.