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. \[\begin{array} { | l | c | c | c | c | } \hline \text { Sources/Markets } & \begin{array} { c } \text { Transportation Cost } \\ \$ \text { /ton mile } \left( F _ { \mathrm { n } } \right) \end{array} & \begin{array} { c } \text { Quantity in } \\ \text { Tons } \left( \mathrm { D } _ { \mathrm { n } } \right) \end{array} & \mathrm { X } _ { \mathrm { n } } & \mathrm { Y } _ { \mathrm { n } } \\ \hline \text { Supply } & & & & \\ \hline \text { North Haverbrook } & 1.1 & 650 & 700 & 1200 \\ \hline \text { Ogden } & 1.2 & 450 & 250 & 600 \\ \hline \text { Springfield } & 1.4 & 400 & 225 & 825 \\ \hline \text { Market } & & & & \\ \hline \text { Seattle } & 2.25 & 300 & 50 & 1200 \\ \hline \text { Lubbock } & 2.25 & 200 & 450 & 300 \\ \hline \text { Nashville } & 2.25 & 500 & 800 & 250 \\ \hline \text { Philadelphia } & 2.25 & 500 & 950 & 1100 \\ \hline \end{array}\] 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

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. \[\begin{array} { | l | c | c | c | c | } \hline \text { Sources/Markets } & \begin{array} { c } \text { Transportation Cost } \\ \$ \text { /ton mile } \left( F _ { \mathrm { n } } \right) \end{array} & \begin{array} { c } \text { Quantity in } \\ \text { Tons } \left( \mathrm { D } _ { \mathrm { n } } \right) \end{array} & \mathrm { X } _ { \mathrm { n } } & \mathrm { Y } _ { \mathrm { n } } \\ \hline \text { Supply } & & & & \\ \hline \text { North Haverbrook } & 1.1 & 650 & 700 & 1200 \\ \hline \text { Ogden } & 1.2 & 450 & 250 & 600 \\ \hline \text { Springfield } & 1.4 & 400 & 225 & 825 \\ \hline \text { Market } & & & & \\ \hline \text { Seattle } & 2.25 & 300 & 50 & 1200 \\ \hline \text { Lubbock } & 2.25 & 200 & 450 & 300 \\ \hline \text { Nashville } & 2.25 & 500 & 800 & 250 \\ \hline \text { Philadelphia } & 2.25 & 500 & 950 & 1100 \\ \hline \end{array}\] What is the cost to transport 500 tons of material between the Springfield and Seattle locations?

A) $325,777 B) $192,677 C) $682,777 D) $289,677 A) $325,777 B) $192,677 C) $682,777 D) $289,677

Exam 5: Network Design in the Supply Chain

Assume that total demand in a market is 1 and that customers are uniformly spread across the line segment from 0 to 1.There are only two companies in the market and there is no cost or service advantage held be either Firm 1 or Firm 2.Firm 1 locates at point a,and Firm 2 locates at point 1-b as shown in the figure.A customer chooses one firm or the other solely on the basis of distance travelled. -The market share is maximized for both firms if they locate at the point(s)

Free

(Multiple Choice)

4.8/5

(94)

Question 1

Correct Answer:

Verified

D

FlexSteal,marketed as a miracle brush-on sealant and baldness cure,is manufactured at three plants that are struggling to keep up with the demand at the four regional centers.The cost to ship a truckload from each of the existing plants to the regional centers is shown in the table. Philadelphia Atlanta Dallas Los Angeles Capacity Plant 1 89 75 93 115 400 Plant 2 120 88 103 93 400 Plant 3 95 82 112 98 400 Total Demand 350 350 350 350 The supply chain manager has explored plant construction costs in two other cities as well as the cost to ship a truckload from each of the plants to the regional centers.The current plan is to build another plant with a capacity of 400 to allow room for sales growth.The construction cost for the new plants and cost to ship to each of the regional centers is shown here. Philadelphia Atlanta Dallas Los Angeles Cost to Build Plant A 94 78 95 95 \ 23,500 Plant B 95 88 88 94 \ 26,000 -What is the lowest cost solution for the adding a new plant?

Free

(Essay)

4.7/5

(90)

Question 2

Correct Answer:

Verified

Adding Plant A will result in the lowest possible supply chain configuration of $148,350.Of this amount $23,500 is the fixed cost and $124,850 the shipping cost.The assignments appear in the table.
$\begin{array} { | l | c | c | c | c | c | } \hline & \text { Philadelphia } & \text { Atlanta } & \text { Dallas } & \text { Los Angeles } & \text { Capacity } \\\hline \text { Plant 1 } & 100 & 300 & 0 & 0 & 400 \\\hline \text { Plant 2 } & 0 & 0 & 0 & 350 & 350 \\\hline \text { Plant 3 } & 250 & 0 & 0 & 0 & 250 \\\hline \text { A } & 0 & 50 & 350 & 0 & 400 \\\hline \text { Total Demand } & 350 & 350 & 350 & 350 & \\\hline\end{array}$

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

Free

(True/False)

4.9/5

(80)

Question 3

Correct Answer:

Verified

True

Developing countries often create free trade zones where

(Multiple Choice)

4.9/5

(88)

Question 4

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.

(True/False)

4.7/5

(86)

Question 5

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)

4.7/5

(72)

Question 6

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.

(True/False)

4.8/5

(77)

Question 7

If the technology is flexible,

(Multiple Choice)

4.9/5

(81)

Question 8

If a country has very high tariffs,

(Multiple Choice)

5.0/5

(75)

Question 9

Which of these is considered a hard infrastructure requirement?

(Multiple Choice)

4.8/5

(85)

Question 10

Firms focusing on cost leadership tend to

(Multiple Choice)

4.9/5

(97)

Question 11

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)

4.8/5

(75)

Question 12

Customer order entry is

(Multiple Choice)

4.7/5

(83)

Question 13

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 cost to transport 500 tons of material between the Springfield and Seattle locations?

(Multiple Choice)

4.9/5

(76)

Question 14

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

(True/False)

4.8/5

(86)

Question 15

Facility location decisions have a long-term impact on a supply chain's performance because it is easy to shut down a facility or move it to a different location.

(True/False)

4.8/5

(79)

Question 16

If facilities have lower fixed costs

(Multiple Choice)

4.9/5

(81)

Question 17

Describe the factors that influence supply chain network design decisions.

(Essay)

4.9/5

(86)

Question 18

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

(Multiple Choice)

4.8/5

(68)

Question 19

The objective of the first phase of network design is to

(Multiple Choice)

5.0/5

(85)

Question 20

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

Developing countries often create free trade zones where

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.

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.

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.

If the technology is flexible,

If a country has very high tariffs,

Which of these is considered a hard infrastructure requirement?

Firms focusing on cost leadership tend to

Customer order entry is

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

Facility location decisions have a long-term impact on a supply chain's performance because it is easy to shut down a facility or move it to a different location.

If facilities have lower fixed costs

Describe the factors that influence supply chain network design decisions.

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

The objective of the first phase of network design is to

Understanding the Supply Chain

Achieving Strategic Fit in a Supply Chain

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

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