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Manufacturing site location is an important consideration in determini

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Manufacturing site location is an important consideration in determini [#permalink]

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New post 31 Oct 2016, 05:16
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Manufacturing site location is an important consideration in determining the optimal deployment of a firm's production resources, but one that is usually given only limited attention. Decisions about location are often based purely on quantitative analysis that trade off transportation costs, economies of scales, and other cost-based variables. This practice, however, can lead to focus only on easily quantifiable factors. A further disadvantage of strictly cost-based methods is that they tend to focus on cost advantage factors, which are often transitory. Government regulations, tax systems, and exchange rates can quickly change. Strategies based on such parameters may eventually be rendered obsolete by the very factors that first created an advantage.
In contrast, qualitative issues, which are frequently neglected in choosing manufacturing site locations, are often central to creating and supporting a competitive advantage. For example, the level of skills possessed by the local workforce varies with location; consequently, location can affect the ability of firms to implement skill-based process technologies. When formulating a site location strategy, companies should therefore emphasize qualitative factors to ensure that that the chosen strategy supports the company's overall business strategy. Only after establishing a set of desirable location options should companies refine choices using cost-based factors.

The passage suggests which of the following concerning qualitative methods used in choosing sites?

A) They are more likely than are quantitative methods to identify issues crucial maintaining a competitive advantage

B) They are least useful to companies with relatively low levels of manufacturing technology.

C) They have little value when applied to decisions other than choice of site.

D) They are more risky for decision-makers than are quantitative methods.

E) They are used more frequently by multinational corporations than by companies with strictly domestic operations.



Information in the passage suggests which of the following about a company that gives primary consideration to favorable exchange rates in choosing the locations of its manufacturing sites?

A) It risks losing its competitive advantage as a result of changes in exchange rates.

B) It ignores the more stable nature of other quantitative parameters.

C) It loses the ability to implement sill-based process technologies at a later time.

D) It acquires a competitive advantage over manufacturers with higher transportation costs.

E) It acquires a slight competitive advantage over manufacturers with more highly skilled workforce



According to the passage, analysis of quantitative factors is best used for which of the following?

A) Determining strategies for offsetting qualitative disadvantage in manufacturing site locations

B) Evaluating manufacturing site-location parameters affecting long-term competitive advantage

C) Choosing manufacturing site locations that have access to optimal workforce populations

D) Narrowing manufacturing site-location options arrived at through qualitative analysis

E) Making decisions about business considerations other than location of manufacturing sites


[Reveal] Spoiler: Question #1 OA
[Reveal] Spoiler: Question #2 OA
[Reveal] Spoiler: Question #3 OA

Last edited by broall on 07 Jun 2017, 01:04, edited 1 time in total.
Reformatted question

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Re: Manufacturing site location is an important consideration in determini [#permalink]

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New post 23 May 2017, 05:17
A little confused with Question 1.
Can someone explain?

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Re: Manufacturing site location is an important consideration in determini [#permalink]

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New post 23 May 2017, 14:49
ameyaprabhu
The passage suggests which of the following concerning qualitative methods used in choosing sites?
A) They are more likely than are quantitative methods to identify issues crucial maintaining a competitive advantage
B) They are least useful to companies with relatively low levels of manufacturing technology. - nothing on this in the passage
C) They have little value when applied to decisions other than choice of site. - this is one of the tricky answers, but no where in the passage was mentioned that had little value other than choice of site.
D) They are more risky for decision-makers than are quantitative methods. - opposite
E) They are used more frequently by multinational corporations than by companies with strictly domestic operations. - nothing on this in the passage

The answers is here:
In contrast, qualitative issues, which are frequently neglected in choosing manufacturing site locations, are often central to creating and supporting a competitive advantage.

What maybe confused you is the use of "concerning" in the question - in this case it is used as a synonym for "in connection with".

I hope this helped.

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Re: Manufacturing site location is an important consideration in determini [#permalink]

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New post 23 May 2017, 18:31
I am confused as to why is A the answer.

milano10 wrote:
ameyaprabhu
The passage suggests which of the following concerning qualitative methods used in choosing sites?
A) They are more likely than are quantitative methods to identify issues crucial maintaining a competitive advantage
B) They are least useful to companies with relatively low levels of manufacturing technology. - nothing on this in the passage
C) They have little value when applied to decisions other than choice of site. - this is one of the tricky answers, but no where in the passage was mentioned that had little value other than choice of site.
D) They are more risky for decision-makers than are quantitative methods. - opposite
E) They are used more frequently by multinational corporations than by companies with strictly domestic operations. - nothing on this in the passage

The answers is here:
In contrast, qualitative issues, which are frequently neglected in choosing manufacturing site locations, are often central to creating and supporting a competitive advantage.

What maybe confused you is the use of "concerning" in the question - in this case it is used as a synonym for "in connection with".

I hope this helped.

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Re: Manufacturing site location is an important consideration in determini [#permalink]

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New post 24 May 2017, 21:53
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ameyaprabhu wrote:
I am confused as to why is A the answer.

milano10 wrote:
ameyaprabhu
The passage suggests which of the following concerning qualitative methods used in choosing sites?
A) They are more likely than are quantitative methods to identify issues crucial maintaining a competitive advantage
B) They are least useful to companies with relatively low levels of manufacturing technology. - nothing on this in the passage
C) They have little value when applied to decisions other than choice of site. - this is one of the tricky answers, but no where in the passage was mentioned that had little value other than choice of site.
D) They are more risky for decision-makers than are quantitative methods. - opposite
E) They are used more frequently by multinational corporations than by companies with strictly domestic operations. - nothing on this in the passage

The answers is here:
In contrast, qualitative issues, which are frequently neglected in choosing manufacturing site locations, are often central to creating and supporting a competitive advantage.

What maybe confused you is the use of "concerning" in the question - in this case it is used as a synonym for "in connection with".

I hope this helped.


Hi ameyaprabhu,
The below lines from the passage support answer A .
-Strategies based on such parameters may eventually be rendered obsolete by the very factors that first created an advantage.
-In contrast, qualitative issues, which are frequently neglected in choosing manufacturing site locations, are often central to creating and supporting a competitive advantage
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Re: Manufacturing site location is an important consideration in determini [#permalink]

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New post 25 May 2017, 14:08
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Re: Manufacturing site location is an important consideration in determini [#permalink]

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New post 06 Jun 2017, 20:32
According to the passage, analysis of quantitative factors is best used for which of the following?
A) Determining strategies for offsetting qualitative disadvantage in manufacturing site locations
B) Evaluating manufacturing site-location parameters affecting long-term competitive advantage
C) Choosing manufacturing site locations that have access to optimal workforce populations
D) Narrowing manufacturing site-location options arrived at through qualitative analysis
E) Making decisions about business considerations other than location of manufacturing sites

Can somebody please explain this question?
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Re: Manufacturing site location is an important consideration in determini [#permalink]

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New post 08 Jun 2017, 05:25
According to the passage, analysis of quantitative factors is best used for which of the following?
A) Determining strategies for offsetting qualitative disadvantage in manufacturing site locations
B) Evaluating manufacturing site-location parameters affecting long-term competitive advantage
C) Choosing manufacturing site locations that have access to optimal workforce populations
D) Narrowing manufacturing site-location options arrived at through qualitative analysis
E) Making decisions about business considerations other than location of manufacturing sites

Can somebody please explain this question?

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Re: Manufacturing site location is an important consideration in determini [#permalink]

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New post 31 Jul 2017, 19:47
Yash sehgal wrote:
According to the passage, analysis of quantitative factors is best used for which of the following?
A) Determining strategies for offsetting qualitative disadvantage in manufacturing site locations
B) Evaluating manufacturing site-location parameters affecting long-term competitive advantage
C) Choosing manufacturing site locations that have access to optimal workforce populations
D) Narrowing manufacturing site-location options arrived at through qualitative analysis
E) Making decisions about business considerations other than location of manufacturing sites

Can somebody please explain this question?


Refer this line of the passage:
When formulating a site location strategy, companies should therefore emphasize qualitative factors to ensure that that the chosen strategy supports the company's overall business strategy. Only after establishing a set of desirable location options should companies refine choices using cost-based factors.

Passage/author suggests that if you have 1000 locations to chose from, first narrow it down to say 10 using qualitative factors analysis. Then use quantitative factors such as transportation costs etc to refine it further to say 5.

Now let us take a look on answer choices:

A) Determining strategies for offsetting qualitative disadvantage in manufacturing site locations Offsetting? No! We need both to select manufacturing location.
B) Evaluating manufacturing site-location parameters affecting long-term competitive advantage This talks nonsense. We don't have to evaluate manufacturing site-location parameters using quantitative parameters.
C) Choosing manufacturing site locations that have access to optimal workforce populations optimal workforce population? We need skilled workforse,
and not optimal. And optimal in what btw? Also this option reverses the process of narrowing down locations.

D) Narrowing manufacturing site-location options arrived at through qualitative analysis Bingo! First do qualitative analysis. Then use quantitative analysis to narrow the manufacturing locations!
E) Making decisions about business considerations other than location of manufacturing sites Other than locations...? Total out of scope


Hope I helped.
Also, next time if you could post a specific query, you'll get more/detailed help from anyone. Specific questions to discuss your issue will help you understand better! :)

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Re: Manufacturing site location is an important consideration in determini [#permalink]

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New post 04 Sep 2017, 01:23
my source of Q3 OA is C but i also chose D
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Re: Manufacturing site location is an important consideration in determini   [#permalink] 04 Sep 2017, 01:23
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