Unit 5: Operations Management
Topic 5.4: Location Analysis Questions
Practice 20 exam-style questions for IB Business Management Topic 5.4. Review the question stems below, then unlock the full Question Bank to access markschemes, model answers, and AI grading.
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Define the term relocation in a business context.
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State two methods a business can use to compare location options.
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Explain one advantage of outsourcing non-core activities.
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Define the term relocation in a business context.
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State two methods a business can use to compare location options.
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Using the data, calculate the payback period for a relocation investment.
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Using the data, calculate the payback period for a relocation investment.
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Define the term outsourcing.
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Define the term offshoring.
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Define the term offshoring.
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Explain one advantage of outsourcing non-core activities.
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Define the term outsourcing.
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Using the data, calculate the net annual benefit of Location A.
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Using the data, calculate the annual labour cost saving from offshoring.
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A business is relocating and expects one-off moving costs of $120,000. Explain one reason why these costs should be included in the final decision.
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Explain one limitation of using quantitative scoring when choosing a location.
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Explain two possible risks of relocating a manufacturing operation to a new region.
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Explain one benefit to a business of using quantitative scoring when comparing two locations.
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Explain one reason why a business might choose an international location even if labour costs are not lower.
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Using the data, calculate the annual labour cost saving from offshoring.
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