Question 1

Discuss the ideas that managers should consider to make better supply chain network design decisions under uncertainty.

Accepted Answer

Managers should consider the following i

Question 2

A global supply chain with offshoring would tend to see which of these performance dimensions decrease?

Accepted Answer

A) Working capital 
B) Hidden costs 
C) Supply chain visibility 
D) Product returns 
A) Working capital 
B) Hidden costs 
C) Supply chain visibility 
D) Product returns

Question 3

Scenario 6.1 - The Big Box
Bahouth Ltd.is planning for the next two years of production and debating whether to construct a large cross-dock facility with 40 truck bays or a smaller one with 20 truck bays.The cost to build the large facility is $2 million and the cost to build the small one is $1.2 million.If they construct a large facility and demand is as high as they hope,then operating costs are $450,000 annually.If they construct a large facility and demand is low,then operating costs are $300,000.If they construct a small facility and demand is low,the operating costs are $275,000 but if they experience high demand,the operating cost of a small facility increases to $600,000.After having conducted some market research,they feel that the likelihood of high demand is 0.7 and the likelihood of small demand is 0.3.
-Use the information from Scenario 6.1 to determine the likelihood of high demand that would make the decision maker indifferent between the two alternatives for a two-year operating time.

Accepted Answer

A) 0.86 
B) 0.72 
C) 0.28 
D) 0.14 
A) 0.86 
B) 0.72 
C) 0.28 
D) 0.14

Question 4

A global supply chain with offshoring would tend to see which of these performance dimensions increase?

Accepted Answer

A) Labor costs 
B) On time delivery 
C) Supply chain visibility 
D) Minimum order quantity 
A) Labor costs 
B) On time delivery 
C) Supply chain visibility 
D) Minimum order quantity

Question 5

Simulation models

Accepted Answer

A) require a higher setup cost to start and operate compared to decision tree tools. 
B) require a lower setup cost to start and operate compared to decision tree tools. 
C) require a higher setup cost to start but less to operate compared to decision tree tools. 
D) require a lower setup cost to start but more to operate compared to decision tree tools. 
A) require a higher setup cost to start and operate compared to decision tree tools. 
B) require a lower setup cost to start and operate compared to decision tree tools. 
C) require a higher setup cost to start but less to operate compared to decision tree tools. 
D) require a lower setup cost to start but more to operate compared to decision tree tools.

Question 6

The net present value (NPV)of a stream of cash flows is equal to

Accepted Answer

A) the sum of all cash flows for all periods being considered. 
B) the sum of all cash flows for all periods being considered divided by the number of periods. 
C) the average of all cash flows for all periods being considered multiplied by the number of periods. 
D) the sum of all cash flows for all periods being considered discounted by the rate of return for each period. 
A) the sum of all cash flows for all periods being considered. 
B) the sum of all cash flows for all periods being considered divided by the number of periods. 
C) the average of all cash flows for all periods being considered multiplied by the number of periods. 
D) the sum of all cash flows for all periods being considered discounted by the rate of return for each period.

Question 7

Firms should use simulation for evaluating decisions when

Accepted Answer

A) underlying decision trees are simple and explicit solutions for the underlying decision tree are difficult to obtain. 
B) underlying decision trees are very complex and explicit solutions for the underlying decision tree are difficult to obtain. 
C) underlying decision trees are simple and explicit solutions for the underlying decision tree are easy to obtain. 
D) underlying decision trees are very complex and explicit solutions for the underlying decision tree are easy to obtain. 
A) underlying decision trees are simple and explicit solutions for the underlying decision tree are difficult to obtain. 
B) underlying decision trees are very complex and explicit solutions for the underlying decision tree are difficult to obtain. 
C) underlying decision trees are simple and explicit solutions for the underlying decision tree are easy to obtain. 
D) underlying decision trees are very complex and explicit solutions for the underlying decision tree are easy to obtain.

Question 8

If price and demand do vary over time in a global network,

Accepted Answer

A) flexible production capacity should not be used in the new environment. 
B) flexible production capacity will be ineffective in the new environment. 
C) flexible production capacity can be reconfigured to maximize profits in the new environment. 
D) flexible production capacity should never be used in an uncertain environment. 
A) flexible production capacity should not be used in the new environment. 
B) flexible production capacity will be ineffective in the new environment. 
C) flexible production capacity can be reconfigured to maximize profits in the new environment. 
D) flexible production capacity should never be used in an uncertain environment.

Question 9

A global supply chain with offshoring

Accepted Answer

A) reduces the duration of the cash flow and reduces the length of the product flow. 
B) increases the length of the product flow and increases the duration of the information flow. 
C) increases the duration of the cash flow but reduces the duration of the information flow. 
D) reduces the length of the product flow and reduces the length of the information flow. 
A) reduces the duration of the cash flow and reduces the length of the product flow. 
B) increases the length of the product flow and increases the duration of the information flow. 
C) increases the duration of the cash flow but reduces the duration of the information flow. 
D) reduces the length of the product flow and reduces the length of the information flow.

Question 10

Simulation methods are very good at evaluating a decision where the path itself is decision dependent.

Accepted Answer

A) True 
 B)False

Question 11

Discounted cash flow (DCF)analysis evaluates the present value of any stream of future cash flows and allows management to compare two streams of cash flows in terms of their financial value.

Accepted Answer

A) True 
 B)False

Question 12

A global supply chain with offshoring would tend to see metrics associated with which of these performance dimensions decline in performance?

Accepted Answer

A) Inventories 
B) On time delivery 
C) Supply chain visibility 
D) Clarity of order communication 
A) Inventories 
B) On time delivery 
C) Supply chain visibility 
D) Clarity of order communication

Question 13

Short-term contracts for both warehousing and transportation requirements will be more effective

Accepted Answer

A) if the demand and price of warehousing do not change in the future. 
B) if the price of warehousing goes up in the future. 
C) if either demand or the price of warehousing drops in the future. 
D) only if demand drops in the future. 
A) if the demand and price of warehousing do not change in the future. 
B) if the price of warehousing goes up in the future. 
C) if either demand or the price of warehousing drops in the future. 
D) only if demand drops in the future.

Question 14

Which technique can be used to lower shipping costs if several components are being sourced globally from different locations?

Accepted Answer

A) Offshoring all components rather than a subset of them 
B) Use of faster modes of transportation 
C) Assembly and retail in offshored locations 
D) Use of supplier hubs 
A) Offshoring all components rather than a subset of them 
B) Use of faster modes of transportation 
C) Assembly and retail in offshored locations 
D) Use of supplier hubs

Discuss the ideas that managers should consider to make better supply chain network design decisions under uncertainty.

A global supply chain with offshoring would tend to see which of these performance dimensions decrease?

A global supply chain with offshoring would tend to see which of these performance dimensions increase?

Simulation models

The net present value (NPV)of a stream of cash flows is equal to

Firms should use simulation for evaluating decisions when

If price and demand do vary over time in a global network,

A global supply chain with offshoring

Simulation methods are very good at evaluating a decision where the path itself is decision dependent.

Discounted cash flow (DCF)analysis evaluates the present value of any stream of future cash flows and allows management to compare two streams of cash flows in terms of their financial value.

A global supply chain with offshoring would tend to see metrics associated with which of these performance dimensions decline in performance?

Short-term contracts for both warehousing and transportation requirements will be more effective

Which technique can be used to lower shipping costs if several components are being sourced globally from different locations?

Understanding the Supply Chain

Achieving Strategic Fit in a Supply Chain

Supply Chain Drivers and Metrics

Designing Distribution Networks and Applications to E-Business

Network Design in the Supply Chain

Demand Forecasting in a Supply Chain

Aggregate Planning in a Supply Chain

Sales and Operations Planning: Planning Supply and Demand

Coordination in a Supply Chain

Managing Economies of Scale in a Supply Chain: Cycle Inventory

Managing Uncertainty in a Supply Chain: Safety Inventory

Linking Product Availability to Profits

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 6: Designing Global Supply Chain Networks

Discuss the ideas that managers should consider to make better supply chain network design decisions under uncertainty.

A global supply chain with offshoring would tend to see which of these performance dimensions decrease?

A global supply chain with offshoring would tend to see which of these performance dimensions increase?

Simulation models

The net present value (NPV)of a stream of cash flows is equal to

Firms should use simulation for evaluating decisions when

If price and demand do vary over time in a global network,

A global supply chain with offshoring

Simulation methods are very good at evaluating a decision where the path itself is decision dependent.

Discounted cash flow (DCF)analysis evaluates the present value of any stream of future cash flows and allows management to compare two streams of cash flows in terms of their financial value.

A global supply chain with offshoring would tend to see metrics associated with which of these performance dimensions decline in performance?

Short-term contracts for both warehousing and transportation requirements will be more effective

Which technique can be used to lower shipping costs if several components are being sourced globally from different locations?

Understanding the Supply Chain

Achieving Strategic Fit in a Supply Chain

Supply Chain Drivers and Metrics

Designing Distribution Networks and Applications to E-Business

Network Design in the Supply Chain

Demand Forecasting in a Supply Chain

Aggregate Planning in a Supply Chain

Sales and Operations Planning: Planning Supply and Demand

Coordination in a Supply Chain

Managing Economies of Scale in a Supply Chain: Cycle Inventory

Managing Uncertainty in a Supply Chain: Safety Inventory

Linking Product Availability to Profits

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