Exam 5: Network Design in the Supply Chain

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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 optimal location for the Super Assembly Center?

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Supply chain network design decisions classified as capacity allocation are concerned with

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

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Which of the following is the first phase in the design of a global supply chain network?

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If production technology displays significant economies of scale, many local locations are the most effective.

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Decisions concerning the role of each facility are significant because they determine the amount of flexibility the supply chain has in changing the way it meets demand.

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Developing countries often create free trade zones where

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Explain how supply chain network design decisions are classified.

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Explain the two situations in which managers use network design models.

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Decisions concerning the role of each facility are significant because they determine the amount of rigidity the supply chain has in changing the way it meets demand.

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Supply chain network design decisions classified as facility role are concerned with

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Capacity allocation decisions have a significant impact on supply chain performance because

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Firms focusing on responsiveness tend to

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The allocation of supply sources and markets to facilities has a significant impact on performance because it affects total production, inventory, and transportation costs incurred by the supply chain to satisfy customer demand.

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Allocating too much capacity to a location results in

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Facility location decisions have a long-term impact on a supply chain's performance because

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The implications of culture should not be glossed over because

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Supply chain network design decisions include the location of manufacturing, storage, or transportation-related facilities and the allocation of capacity and roles to each facility.

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Supply chain network design decisions classified as facility location are concerned with

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If a country has very high tariffs

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