Question 1

Describe the four phases in the framework for network design decisions.

Accepted Answer

Phase I: Define a Supply Chain Strategy

Question 2

Capacity allocation decisions have a significant impact on supply chain performance because they tend to stay in place for several years.

Accepted Answer

A) True 
 B)False

Question 3

Positive externalities cause

Accepted Answer

A) a supplier to locate close to needed raw materials. 
B) a customer to locate close to a highway. 
C) a company to locate near its competitors. 
D) a company to make a political contribution. 
A) a supplier to locate close to needed raw materials. 
B) a customer to locate close to a highway. 
C) a company to locate near its competitors. 
D) a company to make a political contribution.

Question 4

Supply chain network design decisions classified as market and supply allocation are concerned with

Accepted Answer

A) what processes are performed at each facility. 
B) where facilities should be located. 
C) how much capacity should be allocated to each facility. 
D) what markets each facility should serve and which supply sources should feed each facility. 
A) what processes are performed at each facility. 
B) where facilities should be located. 
C) how much capacity should be allocated to each facility. 
D) what markets each facility should serve and which supply sources should feed each facility.

Question 5

Should the company add Location A or Location B based on total construction plus operating cost and why?

Accepted Answer

A) Location B because it is cheaper by $350. 
B) Location A because it is cheaper by $2500. 
C) Location B because it is cheaper by $200. 
D) Location A because it is cheaper by $200. 
A) Location B because it is cheaper by $350. 
B) Location A because it is cheaper by $2500. 
C) Location B because it is cheaper by $200. 
D) Location A because it is cheaper by $200.

Question 6

Supply chain network design decisions classified as capacity allocation are concerned with

Accepted Answer

A) what processes are performed at each facility. 
B) where facilities should be located. 
C) how much capacity should be allocated to each facility. 
D) what markets each facility should serve and which supply sources should feed each facility. 
A) what processes are performed at each facility. 
B) where facilities should be located. 
C) how much capacity should be allocated to each facility. 
D) what markets each facility should serve and which supply sources should feed each facility.

Question 7

Facility location decisions have a long-term impact on a supply chain's performance because

Accepted Answer

A) it is very expensive to shut down a facility or move it to a different location. 
B) it is not expensive to shut down a facility or move it to a different location. 
C) it is advisable to shut down a facility or move it to a different location. 
D) it is cost effective to shut down a facility or move it to a different location. 
A) it is very expensive to shut down a facility or move it to a different location. 
B) it is not expensive to shut down a facility or move it to a different location. 
C) it is advisable to shut down a facility or move it to a different location. 
D) it is cost effective to shut down a facility or move it to a different location.

Question 8

Decisions concerning the role of each facility are significant because

Accepted Answer

A) they determine the amount of flexibility the supply chain has in demanding change. 
B) they determine the amount of flexibility the supply chain has in changing the way it meets demand. 
C) they determine the amount of capacity the supply chain has in changing the way it meets demand. 
D) they determine the amount of inventory the supply chain has in demanding change. 
A) they determine the amount of flexibility the supply chain has in demanding change. 
B) they determine the amount of flexibility the supply chain has in changing the way it meets demand. 
C) they determine the amount of capacity the supply chain has in changing the way it meets demand. 
D) they determine the amount of inventory the supply chain has in demanding change.

Question 9

Firms focusing on cost leadership tend to find the lowest cost location for their manufacturing facilities,but only if that means locating very far from the markets they serve.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

The allocation of supply sources and markets to facilities should be reconsidered on a regular basis so that

Accepted Answer

A) the allocation can be held constant as market conditions or plant capacities expand. 
B) the allocation can be changed as market conditions or plant capacities stagnate. 
C) the allocation can be held constant as market conditions or plant capacities change. 
D) the allocation can be changed as market conditions or plant capacities change. 
A) the allocation can be held constant as market conditions or plant capacities expand. 
B) the allocation can be changed as market conditions or plant capacities stagnate. 
C) the allocation can be held constant as market conditions or plant capacities change. 
D) the allocation can be changed as market conditions or plant capacities change.

Question 12

It is very important that long-term consequences be thought through when making facility decisions,because

Accepted Answer

A) network designers can use this fact to influence the role of the new facility and the focus of people working there. 
B) facilities last a long time and have an enduring impact on a firm's performance. 
C) it is astounding how often tax incentives drive the choice of location. 
D) the location of a facility has a significant impact on the extent and form of communication that develops in the supply chain network. 
A) network designers can use this fact to influence the role of the new facility and the focus of people working there. 
B) facilities last a long time and have an enduring impact on a firm's performance. 
C) it is astounding how often tax incentives drive the choice of location. 
D) the location of a facility has a significant impact on the extent and form of communication that develops in the supply chain network.

Question 13

Supply chain network design decisions classified as facility location are concerned with

Accepted Answer

A) what processes are performed at each facility. 
B) where facilities should be located. 
C) how much capacity should be allocated to each facility. 
D) what markets each facility should serve and which supply sources should feed each facility. 
A) what processes are performed at each facility. 
B) where facilities should be located. 
C) how much capacity should be allocated to each facility. 
D) what markets each facility should serve and which supply sources should feed each facility.

Question 14

Firms that must split the market do so

Accepted Answer

A) by locating closest to the customer. 
B) when one has a clear price advantage. 
C) by holding both a price and a distance advantage over their competitor. 
D) by holding neither a price nor a distance advantage over their competitor. 
A) by locating closest to the customer. 
B) when one has a clear price advantage. 
C) by holding both a price and a distance advantage over their competitor. 
D) by holding neither a price nor a distance advantage over their competitor.

Question 15

Firms focusing on responsiveness tend to

Accepted Answer

A) locate facilities close to the market they serve. 
B) locate facilities very far from the market they serve. 
C) find the lowest cost location for their manufacturing facilities. 
D) select a high-cost location to be able to react slowly. 
A) locate facilities close to the market they serve. 
B) locate facilities very far from the market they serve. 
C) find the lowest cost location for their manufacturing facilities. 
D) select a high-cost location to be able to react slowly.

Question 16

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,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 distance between the Ogden and Seattle locations?

Accepted Answer

A) 450 miles 
B) 350 miles 
C) 630 miles 
D) 1050 miles 
A) 450 miles 
B) 350 miles 
C) 630 miles 
D) 1050 miles

Question 17

The allocation of supply sources and markets to facilities has a significant impact on performance because it affects total production,inventory,and transportation costs incurred by the supply chain to satisfy customer demand.

Accepted Answer

A) True 
 B)False

Question 18

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 19

Firms that focus on cost leadership tend to find the lowest-cost location might

Accepted Answer

A) locate far from their customers. 
B) locate in a higher cost area to provide faster response. 
C) have many facilities to take advantage of economies of scale. 
D) increase inventory levels to reduce stockouts. 
A) locate far from their customers. 
B) locate in a higher cost area to provide faster response. 
C) have many facilities to take advantage of economies of scale. 
D) increase inventory levels to reduce stockouts.

Question 20

Which of these is considered a soft infrastructure requirement?

Accepted Answer

A) Utilities 
B) Community receptivity to business 
C) Warehousing facilities 
D) Transportation services 
A) Utilities 
B) Community receptivity to business 
C) Warehousing facilities 
D) Transportation services

Describe the four phases in the framework for network design decisions.

Capacity allocation decisions have a significant impact on supply chain performance because they tend to stay in place for several years.

Positive externalities cause

Supply chain network design decisions classified as market and supply allocation are concerned with

Should the company add Location A or Location B based on total construction plus operating cost and why?

Supply chain network design decisions classified as capacity allocation are concerned with

Facility location decisions have a long-term impact on a supply chain's performance because

Decisions concerning the role of each facility are significant because

Firms focusing on cost leadership tend to find the lowest cost location for their manufacturing facilities,but only if that means locating very far from the markets they serve.

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

The allocation of supply sources and markets to facilities should be reconsidered on a regular basis so that

It is very important that long-term consequences be thought through when making facility decisions,because

Supply chain network design decisions classified as facility location are concerned with

Firms that must split the market do so

Firms focusing on responsiveness tend to

The allocation of supply sources and markets to facilities has a significant impact on performance because it affects total production,inventory,and transportation costs incurred by the supply chain to satisfy customer demand.

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

Firms that focus on cost leadership tend to find the lowest-cost location might

Which of these is considered a soft infrastructure requirement?

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

Describe the four phases in the framework for network design decisions.

Capacity allocation decisions have a significant impact on supply chain performance because they tend to stay in place for several years.

Positive externalities cause

Supply chain network design decisions classified as market and supply allocation are concerned with

Should the company add Location A or Location B based on total construction plus operating cost and why?

Supply chain network design decisions classified as capacity allocation are concerned with

Facility location decisions have a long-term impact on a supply chain's performance because

Decisions concerning the role of each facility are significant because

Firms focusing on cost leadership tend to find the lowest cost location for their manufacturing facilities,but only if that means locating very far from the markets they serve.

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

The allocation of supply sources and markets to facilities should be reconsidered on a regular basis so that

It is very important that long-term consequences be thought through when making facility decisions,because

Supply chain network design decisions classified as facility location are concerned with

Firms that must split the market do so

Firms focusing on responsiveness tend to

The allocation of supply sources and markets to facilities has a significant impact on performance because it affects total production,inventory,and transportation costs incurred by the supply chain to satisfy customer demand.

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

Firms that focus on cost leadership tend to find the lowest-cost location might

Which of these is considered a soft infrastructure requirement?

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