Exam 6: Designing Global Supply Chain Networks

The process of evaluating the present value of any stream of future cash flows so that management can compare two streams of cash flows in terms of their financial value is

What rate of return results in a present value of $23 for $25 received one year from now?

When evaluating the total cost of offshoring,the raw material costs

The tailored strategy "Focus on low-cost,decentralized capacity for predictable demand" follows which risk mitigation strategy?

Offshoring to low-cost countries is most attractive for products with

Long-term contracts for both warehousing and transportation requirements will be more effective if the demand and price of warehousing do not change in the future or if the price of warehousing goes up.

In a complex decision tree,there are thousands of possible paths that may result from the first period to the last.

The rate of return k is also referred to as the

Pretzle Wagon is evaluating the possibility of offshoring part of his operation and developing a spreadsheet to help assess the total cost of the decision.What elements should be included in the evaluation?

A labor dispute is a risk driver to be considered during network design.What category does a "labor dispute" belong to?

A negative NPV (net present value)for an option indicates that the option will

The present value of a stream of cash flows is what that stream is worth in today's dollars.

One way to lower transportation costs of globally sourced production is to

Based on the Accenture survey on sources of risk that affect global supply chain performance,which of the following was found to have affected the lowest percentage of supply chains?

Crossing international borders with offshored goods is most closely linked to a change in

Summarize the steps in the decision tree analysis methodology.

The ability to produce a variety of products within a short period of time is called

If price and demand vary over time in a global network,flexible production capacity can be reconfigured to maximize profits in the new environment.

The evaluation of supply chain networks

A firm may choose to build a flexible global supply chain even in the presence of little demand or supply uncertainty if certainty exists in exchange rates or prices.