Question 1

The allocation of supply sources and markets to facilities has a significant impact on performance because

Accepted Answer

A) it cannot affect total production,inventory,and transportation costs incurred by the supply chain to satisfy customer demand. 
B) it cannot affect customer demand. 
C) it affects total production,inventory,and transportation costs incurred by the supply chain to satisfy customer demand. 
D) it cannot satisfy customer demand. 
A) it cannot affect total production,inventory,and transportation costs incurred by the supply chain to satisfy customer demand. 
B) it cannot affect customer demand. 
C) it affects total production,inventory,and transportation costs incurred by the supply chain to satisfy customer demand. 
D) it cannot satisfy customer demand.

Question 2

Decisions concerning the role of each facility are significant because they determine the amount of rigidity the supply chain has in changing the way it meets demand.

Accepted Answer

A) True 
 B)False

Question 3

The objective of the second phase of network design is to

Accepted Answer

A) select a precise location and capacity allocation for each facility. 
B) select a set of desirable sites within each region where facilities are to be located. 
C) identify regions where facilities will be located,their potential roles,and their approximate capacity. 
D) specify what capabilities the supply chain network must have to support a firm's competitive strategy. 
A) select a precise location and capacity allocation for each facility. 
B) select a set of desirable sites within each region where facilities are to be located. 
C) identify regions where facilities will be located,their potential roles,and their approximate capacity. 
D) specify what capabilities the supply chain network must have to support a firm's competitive strategy.

Question 4

The quality of life at selected facility locations has a significant impact on performance 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) the location of a facility has a significant impact on the extent and form of communication that develops in the supply chain network. 
D) it influences the work force available and their morale. 
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) the location of a facility has a significant impact on the extent and form of communication that develops in the supply chain network. 
D) it influences the work force available and their morale.

Question 5

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.Note that the capacity and the total demand are both measured in truckloads.
 $$\begin{array} { | l | c | c | c | c | c | } 
\hline & \text { Philadelphia } & \text { Atlanta } & \text { Dallas } & \text { Los Angeles } & \text { Capacity } \
\hline \text { Plant 1 } & 89 & 75 & 93 & 115 & 400 \
\hline \text { Plant 2 } & 120 & 88 & 103 & 93 & 400 \
\hline \text { Plant 3 } & 95 & 82 & 112 & 98 & 400 \
\hline \text { Total Demand } & 350 & 350 & 350 & 350 & \
\hline
\end{array}$$ 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.
 $$\begin{array} { | l | c | c | c | c | c | } 
\hline & \text { Philadelphia } & \text { Atlanta } & \text { Dallas } & \text { Los Angeles } & \text { Cost to Build } \
\hline \text { Plant A } & 94 & 78 & 95 & 95 & \$ 23,500 \
\hline \text { Plant B } & 95 & 88 & 88 & 94 & \$ 26,000 \
\hline
\end{array}$$
-How many constraints does the linear programming formulation of a lowest cost solution for the existing set of plants and regional centers contain?

Accepted Answer

A) 10 
B) 7 
C) 4 
D) 3 
A) 10 
B) 7 
C) 4 
D) 3

Question 6

Managers making facility location decisions should carefully consider tariffs and tax incentives,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 7

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 1 is given by

Accepted Answer

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

Question 8

If production technology displays significant economies of scale,many local locations are the most effective.

Accepted Answer

A) True 
 B)False

Question 9

Explain how supply chain network design decisions are classified.

Accepted Answer

Supply chain network design decisions in

Question 10

Network design decisions have a significant impact on performance because they determine the supply chain configuration and set constraints within which inventory,transportation,and information can be used to either decrease supply chain cost or increase responsiveness.

Accepted Answer

A) True 
 B)False

Question 11

Building some over-capacity in the supply chain network and making the capacity flexible allows a firm to alter production flows within the supply chain to

Accepted Answer

A) produce less in facilities that have a lower cost based on current exchange rates. 
B) produce more in facilities that have a lower cost based on current exchange rates. 
C) produce more in facilities that have a higher cost based on current exchange rates. 
D) produce less in facilities that have the same cost based on current exchange rates. 
A) produce less in facilities that have a lower cost based on current exchange rates. 
B) produce more in facilities that have a lower cost based on current exchange rates. 
C) produce more in facilities that have a higher cost based on current exchange rates. 
D) produce less in facilities that have the same cost based on current exchange rates.

Question 12

The objective of the third phase of network design is to

Accepted Answer

A) maximize total profits,taking into account the expected margin and demand in each market. 
B) select a precise location and capacity allocation for each facility. 
C) select a set of desirable sites within each region where facilities are to be located. 
D) identify regions where facilities will be located,their potential roles,and their approximate capacity. 
A) maximize total profits,taking into account the expected margin and demand in each market. 
B) select a precise location and capacity allocation for each facility. 
C) select a set of desirable sites within each region where facilities are to be located. 
D) identify regions where facilities will be located,their potential roles,and their approximate capacity.

Question 13

Supply chain network design decisions classified as facility role 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

When designing supply chain networks,companies must build appropriate flexibility to help counter fluctuations in exchange rates and demand across different countries.

Accepted Answer

A) True 
 B)False

Question 15

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 optimal location for the Super Assembly Center?

Accepted Answer

A) (550,808) 
B) (513,772) 
C) (526,795) 
D) (538,784) 
A) (550,808) 
B) (513,772) 
C) (526,795) 
D) (538,784)

Question 16

Tariffs,economies of scale and aggregate factor costs 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 17

How does the model change from the original network configuration when Plant A is under consideration?

Accepted Answer

A) The plant constraints switch from "less than" to "equal to." 
B) The plant constraints switch from "less than or equal to" to "equal to." 
C) The plant constraints switch from "equal to" to "less than or equal to." 
D) The plant constraints switch from "equal to" to "less than." 
A) The plant constraints switch from "less than" to "equal to." 
B) The plant constraints switch from "less than or equal to" to "equal to." 
C) The plant constraints switch from "equal to" to "less than or equal to." 
D) The plant constraints switch from "equal to" to "less than."

Question 18

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.Note that the capacity and the total demand are both measured in truckloads.
 $$\begin{array} { | l | c | c | c | c | c | } 
\hline & \text { Philadelphia } & \text { Atlanta } & \text { Dallas } & \text { Los Angeles } & \text { Capacity } \
\hline \text { Plant 1 } & 89 & 75 & 93 & 115 & 400 \
\hline \text { Plant 2 } & 120 & 88 & 103 & 93 & 400 \
\hline \text { Plant 3 } & 95 & 82 & 112 & 98 & 400 \
\hline \text { Total Demand } & 350 & 350 & 350 & 350 & \
\hline
\end{array}$$ 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.
 $$\begin{array} { | l | c | c | c | c | c | } 
\hline & \text { Philadelphia } & \text { Atlanta } & \text { Dallas } & \text { Los Angeles } & \text { Cost to Build } \
\hline \text { Plant A } & 94 & 78 & 95 & 95 & \$ 23,500 \
\hline \text { Plant B } & 95 & 88 & 88 & 94 & \$ 26,000 \
\hline
\end{array}$$
-What is the lowest cost solution for the existing set of plants and regional centers?

Accepted Answer

A) $106,850 
B) $107,450 
C) $108,650 
D) $109,750 
A) $106,850 
B) $107,450 
C) $108,650 
D) $109,750

Question 19

Available infrastructure,skill needs and response time 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 20

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.
  
-If the two firms compete on price and the customer incurs transportation cost,it may be optimal for the two firms to locate at the point(s)

Accepted Answer

A) a = 0;b = 1 
B) a = 1 - 3b;b = $\frac { 1 - a } { 3 }$ 
C) a = ;b = 1 - 3a $\frac { 1 - b } { 3 }$ 
D) a = ;b = $\frac { 1 } { 2 }$ $\frac { 1 } { 2 }$ 
A) a = 0;b = 1 
B) a = 1 - 3b;b = $\frac { 1 - a } { 3 }$ 
C) a = ;b = 1 - 3a $\frac { 1 - b } { 3 }$ 
D) a = ;b = $\frac { 1 } { 2 }$ $\frac { 1 } { 2 }$

The allocation of supply sources and markets to facilities has a significant impact on performance because

Decisions concerning the role of each facility are significant because they determine the amount of rigidity the supply chain has in changing the way it meets demand.

The objective of the second phase of network design is to

The quality of life at selected facility locations has a significant impact on performance because

Managers making facility location decisions should carefully consider tariffs and tax incentives,because

If production technology displays significant economies of scale,many local locations are the most effective.

Explain how supply chain network design decisions are classified.

Network design decisions have a significant impact on performance because they determine the supply chain configuration and set constraints within which inventory,transportation,and information can be used to either decrease supply chain cost or increase responsiveness.

Building some over-capacity in the supply chain network and making the capacity flexible allows a firm to alter production flows within the supply chain to

The objective of the third phase of network design is to

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

When designing supply chain networks,companies must build appropriate flexibility to help counter fluctuations in exchange rates and demand across different countries.

Tariffs,economies of scale and aggregate factor costs mostly affect which of the four Global Network Design Decisions?

How does the model change from the original network configuration when Plant A is under consideration?

Available infrastructure,skill needs and response time mostly affect which of the four Global Network Design Decisions?

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

The allocation of supply sources and markets to facilities has a significant impact on performance because

Decisions concerning the role of each facility are significant because they determine the amount of rigidity the supply chain has in changing the way it meets demand.

The objective of the second phase of network design is to

The quality of life at selected facility locations has a significant impact on performance because

Managers making facility location decisions should carefully consider tariffs and tax incentives,because

If production technology displays significant economies of scale,many local locations are the most effective.

Explain how supply chain network design decisions are classified.

Network design decisions have a significant impact on performance because they determine the supply chain configuration and set constraints within which inventory,transportation,and information can be used to either decrease supply chain cost or increase responsiveness.

Building some over-capacity in the supply chain network and making the capacity flexible allows a firm to alter production flows within the supply chain to

The objective of the third phase of network design is to

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

When designing supply chain networks,companies must build appropriate flexibility to help counter fluctuations in exchange rates and demand across different countries.

Tariffs,economies of scale and aggregate factor costs mostly affect which of the four Global Network Design Decisions?

How does the model change from the original network configuration when Plant A is under consideration?

Available infrastructure,skill needs and response time mostly affect which of the four Global Network Design Decisions?

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