Question 1

Transportation costs increase as the number of facilities is increased.

Accepted Answer

A) True 
 B)False

Question 2

What is one assumption made when using linear programming to optimize the assignment of shipping amounts from plants to regional centers?

Accepted Answer

A) Supply must equal demand. 
B) All costs and volumes are known with certainty. 
C) There must be a solution. 
D) Supply cannot exceed demand. 
A) Supply must equal demand. 
B) All costs and volumes are known with certainty. 
C) There must be a solution. 
D) Supply cannot exceed demand.

Question 3

What is the total (construction plus operating)cost if the supply chain manager chooses Location A for the new plant?

Accepted Answer

A) $148,350 
B) $148,550 
C) $148,450 
D) $148,650 
A) $148,350 
B) $148,550 
C) $148,450 
D) $148,650

Question 4

When faced with a network design decision,the goal of a manager is to design a network that minimizes the firm's costs while satisfying customer needs in terms of demand and responsiveness.

Accepted Answer

A) True 
 B)False

Question 5

The availability of suppliers,transportation services,communication,utilities,and warehousing infrastructure 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 6

________ 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 7

If the production technology is very inflexible and product requirements vary from one country to another,a firm has to set up

Accepted Answer

A) local facilities to serve the market in each country. 
B) a few high-capacity facilities to serve the market in each country. 
C) many local facilities because this helps lower transportation costs. 
D) a few high-capacity facilities because this helps lower transportation costs. 
A) local facilities to serve the market in each country. 
B) a few high-capacity facilities to serve the market in each country. 
C) many local facilities because this helps lower transportation costs. 
D) a few high-capacity facilities because this helps lower transportation costs.

Question 8

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.

Question 9

If no positive externalities exist,then

Accepted Answer

A) a company will avoid making a location decision. 
B) a competitor's presence will help spur the development of critical infrastructure. 
C) a company will locate near its competitors. 
D) a company will locate to capture the largest possible share of the market. 
A) a company will avoid making a location decision. 
B) a competitor's presence will help spur the development of critical infrastructure. 
C) a company will locate near its competitors. 
D) a company will locate to capture the largest possible share of the market.

Question 10

Allocating too much capacity to a location results in

Accepted Answer

A) poor utilization,and as a result,higher costs. 
B) high utilization,and as a result,higher costs. 
C) poor utilization,and as a result,lower costs. 
D) high utilization,and as a result,lower costs. 
A) poor utilization,and as a result,higher costs. 
B) high utilization,and as a result,higher costs. 
C) poor utilization,and as a result,lower costs. 
D) high utilization,and as a result,lower costs.

Question 11

Duties that must be paid when products and/or equipment are moved across international,state,or city boundaries are referred to as

Accepted Answer

A) taxes. 
B) tax incentives. 
C) tariffs. 
D) incentives. 
A) taxes. 
B) tax incentives. 
C) tariffs. 
D) incentives.

Question 12

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

Accepted Answer

A) capacity decisions tend to be permanent. 
B) capacity decisions tend to be changed frequently. 
C) capacity decisions do not tend to stay in place for several years. 
D) capacity decisions tend to stay in place for several years. 
A) capacity decisions tend to be permanent. 
B) capacity decisions tend to be changed frequently. 
C) capacity decisions do not tend to stay in place for several years. 
D) capacity decisions tend to stay in place for several years.

Question 13

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.

Accepted Answer

A) True 
 B)False

Question 14

If facilities have lower fixed costs,many local facilities are preferred because this helps lower transportation costs.

Accepted Answer

A) True 
 B)False

Question 15

Which of these assignments is associated with the minimum cost solution for the original set of plants and regional centers?

Accepted Answer

A) 50 units from Plant 2 to Dallas 
B) 350 units from Plant 1 to Atlanta 
C) 300 units from Plant 3 to Philadelphia 
D) 150 units from Plant 1 to Los Angeles 
A) 50 units from Plant 2 to Dallas 
B) 350 units from Plant 1 to Atlanta 
C) 300 units from Plant 3 to Philadelphia 
D) 150 units from Plant 1 to Los Angeles

Question 16

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 17

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

Accepted Answer

Managers use network design models in tw

Question 18

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 demand at Firm 2 is given by

Accepted Answer

A) a + $\frac { 1 + b - a } { 2 }$ 
B) a + $\frac { 1 - b - a } { 2 }$ 
C)  $\frac { 1 + b - a } { 2 }$ 
D)  $\frac { 1 - b + a } { 2 }$ 
A) a + $\frac { 1 + b - a } { 2 }$ 
B) a + $\frac { 1 - b - a } { 2 }$ 
C)  $\frac { 1 + b - a } { 2 }$ 
D)  $\frac { 1 - b + a } { 2 }$

Question 19

Allocating too little capacity results in

Accepted Answer

A) good responsiveness if demand is not satisfied or low cost if demand is filled from a distant facility. 
B) good responsiveness if demand is not satisfied or high cost if demand is filled from a distant facility. 
C) poor responsiveness if demand is not satisfied or low cost if demand is filled from a distant facility. 
D) poor responsiveness if demand is not satisfied or high cost if demand is filled from a distant facility. 
A) good responsiveness if demand is not satisfied or low cost if demand is filled from a distant facility. 
B) good responsiveness if demand is not satisfied or high cost if demand is filled from a distant facility. 
C) poor responsiveness if demand is not satisfied or low cost if demand is filled from a distant facility. 
D) poor responsiveness if demand is not satisfied or high cost if demand is filled from a distant facility.

Question 20

Network design decisions have a significant impact on performance because they

Accepted Answer

A) determine the customer demand. 
B) determine the supply chain conflagration. 
C) set constraints within which inventory,transportation,and information can be used to either decrease supply chain cost or increase responsiveness. 
D) set constraints within which inventory,transportation,and information can be used to either increase supply chain cost or decrease responsiveness. 
A) determine the customer demand. 
B) determine the supply chain conflagration. 
C) set constraints within which inventory,transportation,and information can be used to either decrease supply chain cost or increase responsiveness. 
D) set constraints within which inventory,transportation,and information can be used to either increase supply chain cost or decrease responsiveness.

Transportation costs increase as the number of facilities is increased.

What is one assumption made when using linear programming to optimize the assignment of shipping amounts from plants to regional centers?

What is the total (construction plus operating)cost if the supply chain manager chooses Location A for the new plant?

When faced with a network design decision,the goal of a manager is to design a network that minimizes the firm's costs while satisfying customer needs in terms of demand and responsiveness.

The availability of suppliers,transportation services,communication,utilities,and warehousing infrastructure mostly affect which of the four Global Network Design Decisions?

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

If the production technology is very inflexible and product requirements vary from one country to another,a firm has to set up

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

If no positive externalities exist,then

Allocating too much capacity to a location results in

Duties that must be paid when products and/or equipment are moved across international,state,or city boundaries are referred to as

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

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.

If facilities have lower fixed costs,many local facilities are preferred because this helps lower transportation costs.

Which of these assignments is associated with the minimum cost solution for the original set of plants and regional centers?

Total logistics costs are a sum of the

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

Allocating too little capacity results in

Network design decisions have a significant impact on performance because they

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

Exam 5: Network Design in the Supply Chain

Transportation costs increase as the number of facilities is increased.

What is one assumption made when using linear programming to optimize the assignment of shipping amounts from plants to regional centers?

What is the total (construction plus operating)cost if the supply chain manager chooses Location A for the new plant?

When faced with a network design decision,the goal of a manager is to design a network that minimizes the firm's costs while satisfying customer needs in terms of demand and responsiveness.

The availability of suppliers,transportation services,communication,utilities,and warehousing infrastructure mostly affect which of the four Global Network Design Decisions?

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

If the production technology is very inflexible and product requirements vary from one country to another,a firm has to set up

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

If no positive externalities exist,then

Allocating too much capacity to a location results in

Duties that must be paid when products and/or equipment are moved across international,state,or city boundaries are referred to as

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

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.

If facilities have lower fixed costs,many local facilities are preferred because this helps lower transportation costs.

Which of these assignments is associated with the minimum cost solution for the original set of plants and regional centers?

Total logistics costs are a sum of the

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

Allocating too little capacity results in

Network design decisions have a significant impact on performance because they

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