A manufacturer of cat towers wishes to locate a super assembly facility to meet their cat tower assembly needs for the next millennium. Currently, carpet, cylinders, yarn and fasteners are purchased in bulk from suppliers in North Haverbrook, Ogden, and Springfield in the quantities shown in the table. The super assembly facility would ship to distribution centers located in Seattle, Lubbock, Nashville, and Philadelphia. The locations of all of these cities on an x-y grid, transportation costs on a ton per mile basis, and total tonnage are all contained in the table. $\begin{array} { | l | c | c | c | c | } \hline \text { Sources/Markets } & \begin{array} { c } \text { Transportation } \\ \text { Cost } \$ / \text { ton mile } \\ \left( \mathbf { F } _ { \mathbf { n } } \right) \end{array} & \begin{array} { c } \text { Quantity } \\ \text { in Tons } \\ \left( \mathrm { D } _ { \mathbf { n } } \right) \end{array} & \mathbf { X } _ { \mathbf { n } } & \mathbf { Y } _ { \mathbf { n } } \\ \hline \text { Supply } & & & & \\ \hline \text { North Haverbrook } & 1.1 & 650 & 700 & 1200 \\ \hline \text { Ogden } & 1.2 & 450 & 250 & 600 \\ \hline \text { Springfield } & 1.4 & 400 & 225 & 825 \\ \hline \text { Market } & & & & \\ \hline \text { Seattle } & 2.25 & 300 & 50 & 1200 \\ \hline \text { Lubbock } & 2.25 & 200 & 450 & 300 \\ \hline \text { Nashville } & 2.25 & 500 & 800 & 250 \\ \hline \text { Philadelphia } & 2.25 & 500 & 950 & 1100 \\ \hline \end{array}$ -What is the distance between the Ogden and Seattle locations?

A) 450 miles B) 350 miles C) 630 miles D) 1050 miles A) 450 miles B) 350 miles C) 630 miles D) 1050 miles C

A manufacturer of cat towers wishes to locate a super assembly facility to meet their cat tower assembly needs for the next millennium. Currently, carpet, cylinders, yarn and fasteners are purchased in bulk from suppliers in North Haverbrook, Ogden, and Springfield in the quantities shown in the table. The super assembly facility would ship to distribution centers located in Seattle, Lubbock, Nashville, and Philadelphia. The locations of all of these cities on an x-y grid, outbound transportation costs on a ton per mile basis, and total tonnage are all contained in the table. $\begin{array} { | l | c | c | c | c | } \hline \text { Sources/Markets } & \begin{array} { c } \text { Transportation } \\ \text { Cost } \$ / \text { ton mile } \\ \left( \mathbf { F } _ { \mathbf { n } } \right) \end{array} & \begin{array} { c } \text { Quantity } \\ \text { in Tons } \\ \left( \mathrm { D } _ { \mathbf { n } } \right) \end{array} & \mathbf { X } _ { \mathbf { n } } & \mathbf { Y } _ { \mathbf { n } } \\ \hline \text { Supply } & & & & \\ \hline \text { North Haverbrook } & 1.1 & 650 & 700 & 1200 \\ \hline \text { Ogden } & 1.2 & 450 & 250 & 600 \\ \hline \text { Springfield } & 1.4 & 400 & 225 & 825 \\ \hline \text { Market } & & & & \\ \hline \text { Seattle } & 2.25 & 300 & 50 & 1200 \\ \hline \text { Lubbock } & 2.25 & 200 & 450 & 300 \\ \hline \text { Nashville } & 2.25 & 500 & 800 & 250 \\ \hline \text { Philadelphia } & 2.25 & 500 & 950 & 1100 \\ \hline \end{array}$ -What is the minimal shipping cost that satisfies all market demand?

A) $2,546,632 B) $2,586,342 C) $2,451,668 D) $2,522,982 A) $2,546,632 B) $2,586,342 C) $2,451,668 D) $2,522,982

Exam 5: Network Design in the Supply Chain

Network design decisions have a significant impact on performance because they determine the supply chain configuration and set constraints within which inventory, transportation, and information can be used to either decrease supply chain cost or increase responsiveness.

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(True/False)

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Question 1

Correct Answer:

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True

Network design decisions have a significant impact on performance because they

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(Multiple Choice)

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Question 2

Correct Answer:

Verified

C

A manufacturer of cat towers wishes to locate a super assembly facility to meet their cat tower assembly needs for the next millennium. Currently, carpet, cylinders, yarn and fasteners are purchased in bulk from suppliers in North Haverbrook, Ogden, and Springfield in the quantities shown in the table. The super assembly facility would ship to distribution centers located in Seattle, Lubbock, Nashville, and Philadelphia. The locations of all of these cities on an x-y grid, transportation costs on a ton per mile basis, and total tonnage are all contained in the table. Sources/Markets Transportation Cost \ / ton mile Quantity in Tons Supply North Haverbrook 1.1 650 700 1200 Ogden 1.2 450 250 600 Springfield 1.4 400 225 825 Market Seattle 2.25 300 50 1200 Lubbock 2.25 200 450 300 Nashville 2.25 500 800 250 Philadelphia 2.25 500 950 1100 -What is the distance between the Ogden and Seattle locations?

Free

(Multiple Choice)

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Question 3

Correct Answer:

Verified

C

Transportation costs increase as the number of facilities is increased.

(True/False)

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Question 4

It is very important that long-term consequences be thought through when making facility decisions, because

(Multiple Choice)

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Question 5

Allocating too little capacity results in

(Multiple Choice)

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Question 6

The objective of the third phase of network design is to

(Multiple Choice)

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Question 7

The objective of the second phase of network design is to

(Multiple Choice)

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Question 8

The availability of suppliers, transportation services, communication, utilities, and warehousing infrastructure mostly affect which of the four Global Network Design Decisions?

(Multiple Choice)

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Question 9

The supply chain network is designed to maximize total profits, taking into account the expected margin and demand in each market, various logistics and facility costs, and the taxes and tariffs at each location.

(True/False)

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Question 10

Building some over-capacity in the supply chain network and making the capacity flexible allows a firm to alter production flows within the supply chain to

(Multiple Choice)

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Question 11

When designing supply chain networks, companies must build appropriate flexibility to help counter fluctuations in exchange rates and demand across different countries.

(True/False)

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Question 12

If facilities have higher fixed costs, many local facilities are preferred because this helps lower transportation costs.

(True/False)

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Question 13

The quality of life at selected facility locations has a significant impact on performance because

(Multiple Choice)

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Question 14

Firms that focus on cost leadership tend to find the lowest-cost location might

(Multiple Choice)

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Question 15

A facility built because of tax incentives, local content requirement, tariff barriers, or high logistics cost to supply the region from elsewhere with the objective to supply the market where it is located is

(Multiple Choice)

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Question 16

The allocation of supply sources and markets to facilities should be reconsidered on a regular basis so that

(Multiple Choice)

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Question 17

A manufacturer of cat towers wishes to locate a super assembly facility to meet their cat tower assembly needs for the next millennium. Currently, carpet, cylinders, yarn and fasteners are purchased in bulk from suppliers in North Haverbrook, Ogden, and Springfield in the quantities shown in the table. The super assembly facility would ship to distribution centers located in Seattle, Lubbock, Nashville, and Philadelphia. The locations of all of these cities on an x-y grid, outbound transportation costs on a ton per mile basis, and total tonnage are all contained in the table. Sources/Markets Transportation Cost \ / ton mile Quantity in Tons Supply North Haverbrook 1.1 650 700 1200 Ogden 1.2 450 250 600 Springfield 1.4 400 225 825 Market Seattle 2.25 300 50 1200 Lubbock 2.25 200 450 300 Nashville 2.25 500 800 250 Philadelphia 2.25 500 950 1100 -What is the minimal shipping cost that satisfies all market demand?

(Multiple Choice)

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Question 18

If facilities have lower fixed costs, many local facilities are preferred because this helps lower transportation costs.

(True/False)

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(75)

Question 19

If the production technology is very inflexible and product requirements vary from one country to another, a firm has to set up

(Multiple Choice)

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Question 20

Network design decisions have a significant impact on performance because they determine the supply chain configuration and set constraints within which inventory, transportation, and information can be used to either decrease supply chain cost or increase responsiveness.

Network design decisions have a significant impact on performance because they

Transportation costs increase as the number of facilities is increased.

It is very important that long-term consequences be thought through when making facility decisions, because

Allocating too little capacity results in

The objective of the third phase of network design is to

The objective of the second phase of network design is to

The availability of suppliers, transportation services, communication, utilities, and warehousing infrastructure mostly affect which of the four Global Network Design Decisions?

The supply chain network is designed to maximize total profits, taking into account the expected margin and demand in each market, various logistics and facility costs, and the taxes and tariffs at each location.

Building some over-capacity in the supply chain network and making the capacity flexible allows a firm to alter production flows within the supply chain to

When designing supply chain networks, companies must build appropriate flexibility to help counter fluctuations in exchange rates and demand across different countries.

If facilities have higher fixed costs, many local facilities are preferred because this helps lower transportation costs.

The quality of life at selected facility locations has a significant impact on performance because

Firms that focus on cost leadership tend to find the lowest-cost location might

A facility built because of tax incentives, local content requirement, tariff barriers, or high logistics cost to supply the region from elsewhere with the objective to supply the market where it is located is

The allocation of supply sources and markets to facilities should be reconsidered on a regular basis so that

If facilities have lower fixed costs, many local facilities are preferred because this helps lower transportation costs.

If the production technology is very inflexible and product requirements vary from one country to another, a firm has to set up

Understanding the Supply Chain

Supply Chain Performance: Achieving Strategic Fit and Scope

Supply Chain Drivers and Metrics

Designing Distribution Networks and Applications to e-Business

Designing Global Supply Chain Networks

Demand Forecasting in a Supply Chain

Aggregate Planning in a Supply Chain

Sales and Operations Planning: Planning Supply and Demand in a Supply Chain

Coordination in a Supply Chain

Managing Economies of Scale in the Supply Chain: Cycle Inventory

Managing Uncertainty in a Supply Chain: Safety Inventory

Determining the Optimal Level of Product Availability

Transportation in a Supply Chain

Sourcing Decisions in a Supply Chain

Pricing and Revenue Management in a Supply Chain

Sustainability and the Supply Chain

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