Question 1

If the technology is flexible, it becomes more difficult to consolidate manufacturing in a few large facilities.

Accepted Answer

A) True 
 B)False

Question 2

The objective of the first phase of network design is to

Accepted Answer

A)  maximize total profits, taking into account the expected margin and demand in each market. 
B)  select a set of desirable sites within each region where facilities are to be located. 
C)  identify regions where facilities will be located, their potential roles, and their approximate capacity. 
D)  specify what capabilities the supply chain network must have to support a firm's competitive strategy. 
A)  maximize total profits, taking into account the expected margin and demand in each market. 
B)  select a set of desirable sites within each region where facilities are to be located. 
C)  identify regions where facilities will be located, their potential roles, and their approximate capacity. 
D)  specify what capabilities the supply chain network must have to support a firm's competitive strategy.

Question 3

A facility located primarily to obtain access to knowledge or skills that may exist within a certain region is

Accepted Answer

A)  an offshore facility. 
B)  a source facility. 
C)  a server facility. 
D)  an outpost facility. 
A)  an offshore facility. 
B)  a source facility. 
C)  a server facility. 
D)  an outpost facility.

Question 4

Capital, growth strategy, existing networks and global competition mostly affect which of the four Global Network Design Decisions?

Accepted Answer

A)  Phase I - Supply Chain Strategy 
B)  Phase II - Regional Facility Configuration 
C)  Phase III - Desirable Sites 
D)  Phase IV - Location Choices 
A)  Phase I - Supply Chain Strategy 
B)  Phase II - Regional Facility Configuration 
C)  Phase III - Desirable Sites 
D)  Phase IV - Location Choices

Question 5

The allocation of supply sources and markets to facilities has a significant impact on performance because

Accepted Answer

A)  it cannot affect total production, inventory, and transportation costs incurred by the supply chain to satisfy customer demand. 
B)  it cannot affect customer demand. 
C)  it affects total production, inventory, and transportation costs incurred by the supply chain to satisfy customer demand. 
D)  it cannot satisfy customer demand. 
A)  it cannot affect total production, inventory, and transportation costs incurred by the supply chain to satisfy customer demand. 
B)  it cannot affect customer demand. 
C)  it affects total production, inventory, and transportation costs incurred by the supply chain to satisfy customer demand. 
D)  it cannot satisfy customer demand.

Question 6

A firm may increase the number of facilities beyond the point that minimizes total logistics cost to improve the response time to its customers.

Accepted Answer

A) True 
 B)False

Question 7

High tariffs lead to more production locations within a supply chain network, with each location having a lower allocated capacity.

Accepted Answer

A) True 
 B)False

Question 8

Total logistics costs are a sum of the

Accepted Answer

A)  inventory and facility costs. 
B)  transportation and facility costs. 
C)  inventory and transportation costs. 
D)  inventory, transportation, and facility costs. 
A)  inventory and facility costs. 
B)  transportation and facility costs. 
C)  inventory and transportation costs. 
D)  inventory, transportation, and facility costs.

Question 9

________ costs increase as the number of facilities in a supply chain increases.

Accepted Answer

A)  Inventory 
B)  Transportation 
C)  Retail operation 
D)  Information 
A)  Inventory 
B)  Transportation 
C)  Retail operation 
D)  Information

Question 10

If facilities have lower fixed costs

Accepted Answer

A)  a few high-capacity facilities are preferred because this helps lower transportation costs. 
B)  a few local facilities are preferred because this helps lower transportation costs. 
C)  many high-capacity facilities are preferred because this helps lower transportation costs. 
D)  many local facilities are preferred because this helps lower transportation costs. 
A)  a few high-capacity facilities are preferred because this helps lower transportation costs. 
B)  a few local facilities are preferred because this helps lower transportation costs. 
C)  many high-capacity facilities are preferred because this helps lower transportation costs. 
D)  many local facilities are preferred because this helps lower transportation costs.

Question 11

If the technology is flexible

Accepted Answer

A)  it becomes more difficult to consolidate manufacturing in a few large facilities. 
B)  it becomes more difficult to distribute manufacturing in many local facilities. 
C)  it becomes easier to consolidate manufacturing in a few large facilities. 
D)  it becomes easier to consolidate manufacturing in many local facilities. 
A)  it becomes more difficult to consolidate manufacturing in a few large facilities. 
B)  it becomes more difficult to distribute manufacturing in many local facilities. 
C)  it becomes easier to consolidate manufacturing in a few large facilities. 
D)  it becomes easier to consolidate manufacturing in many local facilities.

Question 12

A facility that serves the market where it is located but also assumes responsibility for product customization, process improvements, product modifications, or product development is

Accepted Answer

A)  an offshore facility. 
B)  a source facility. 
C)  a server facility. 
D)  a contributor facility. 
A)  an offshore facility. 
B)  a source facility. 
C)  a server facility. 
D)  a contributor facility.

Question 13

Inventory and facility costs increase as the number of facilities in a supply chain increase.

Accepted Answer

A) True 
 B)False

Question 14

A facility that serves the role of being a low-cost supply source for markets located outside the country where the facility is located is

Accepted Answer

A)  an offshore facility. 
B)  a source facility. 
C)  a contributor facility. 
D)  an outpost facility. 
A)  an offshore facility. 
B)  a source facility. 
C)  a contributor facility. 
D)  an outpost facility.

Question 15

When faced with a network design decision, the goal of a manager is to design a network that

Accepted Answer

A)  maximizes the firm's profits. 
B)  minimizes the firm's costs. 
C)  satisfies customer needs in terms of demand and responsiveness. 
D)  maximizes the firm's profits while satisfying customer needs in terms of demand and responsiveness. 
A)  maximizes the firm's profits. 
B)  minimizes the firm's costs. 
C)  satisfies customer needs in terms of demand and responsiveness. 
D)  maximizes the firm's profits while satisfying customer needs in terms of demand and responsiveness.

If the technology is flexible, it becomes more difficult to consolidate manufacturing in a few large facilities.

The objective of the first phase of network design is to

A facility located primarily to obtain access to knowledge or skills that may exist within a certain region is

Capital, growth strategy, existing networks and global competition mostly affect which of the four Global Network Design Decisions?

The allocation of supply sources and markets to facilities has a significant impact on performance because

A firm may increase the number of facilities beyond the point that minimizes total logistics cost to improve the response time to its customers.

High tariffs lead to more production locations within a supply chain network, with each location having a lower allocated capacity.

Total logistics costs are a sum of the

________ costs increase as the number of facilities in a supply chain increases.

If facilities have lower fixed costs

If the technology is flexible

A facility that serves the market where it is located but also assumes responsibility for product customization, process improvements, product modifications, or product development is

Inventory and facility costs increase as the number of facilities in a supply chain increase.

A facility that serves the role of being a low-cost supply source for markets located outside the country where the facility is located is

When faced with a network design decision, the goal of a manager is to design a network that

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

Filters

Exam 5: Network Design in the Supply Chain

If the technology is flexible, it becomes more difficult to consolidate manufacturing in a few large facilities.

The objective of the first phase of network design is to

A facility located primarily to obtain access to knowledge or skills that may exist within a certain region is

Capital, growth strategy, existing networks and global competition mostly affect which of the four Global Network Design Decisions?

The allocation of supply sources and markets to facilities has a significant impact on performance because

A firm may increase the number of facilities beyond the point that minimizes total logistics cost to improve the response time to its customers.

High tariffs lead to more production locations within a supply chain network, with each location having a lower allocated capacity.

Total logistics costs are a sum of the

________ costs increase as the number of facilities in a supply chain increases.

If facilities have lower fixed costs

If the technology is flexible

A facility that serves the market where it is located but also assumes responsibility for product customization, process improvements, product modifications, or product development is

Inventory and facility costs increase as the number of facilities in a supply chain increase.

A facility that serves the role of being a low-cost supply source for markets located outside the country where the facility is located is

When faced with a network design decision, the goal of a manager is to design a network that

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

Filters