Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

Inventory and facility costs increase as the number of facilities in a supply chain increase.

Accepted Answer

A) True 
 B)False

Question 3

Supply chain network design decisions include

Accepted Answer

A) only the location of manufacturing,storage,or transportation-related facilities. 
B) only the allocation of capacity and roles to each facility. 
C) both the location of manufacturing,storage,or transportation-related facilities and the allocation of capacity and roles to each facility. 
D) neither the location of manufacturing,storage,or transportation-related facilities nor the allocation of capacity and roles to each facility. 
A) only the location of manufacturing,storage,or transportation-related facilities. 
B) only the allocation of capacity and roles to each facility. 
C) both the location of manufacturing,storage,or transportation-related facilities and the allocation of capacity and roles to each facility. 
D) neither the location of manufacturing,storage,or transportation-related facilities nor the allocation of capacity and roles to each facility.

Question 4

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 constraint associated with Atlanta for the existing set of plants and regional centers?

Accepted Answer

A) 75x1A + 88x2A + 82x3A = 350 
B) x1A + x2A + x3A = 350 
C) 75x1A + 88x2A + 82x3A ≤ 350 
D) x1A + x2A + x3A ≤ 350 
A) 75x1A + 88x2A + 82x3A = 350 
B) x1A + x2A + x3A = 350 
C) 75x1A + 88x2A + 82x3A ≤ 350 
D) x1A + x2A + x3A ≤ 350

Question 5

The facilities in a supply chain network must

Accepted Answer

A) at least maximize total logistics cost. 
B) at least equal the number that maximizes total logistics cost. 
C) at least equal the number that minimizes total logistics cost. 
D) at least minimize total logistics cost. 
A) at least maximize total logistics cost. 
B) at least equal the number that maximizes total logistics cost. 
C) at least equal the number that minimizes total logistics cost. 
D) at least minimize total logistics cost.

Question 6

Models that minimize total costs are used

Accepted Answer

A) from the start to make the final location decision among the entire array of possibilities. 
B) as a final step to make the final location decision among a subset of desirable location possibilities. 
C) from the start to identify broad geographic areas that may be considered further. 
D) as a final step to expand the possible locations from those that meet other criteria. 
A) from the start to make the final location decision among the entire array of possibilities. 
B) as a final step to make the final location decision among a subset of desirable location possibilities. 
C) from the start to identify broad geographic areas that may be considered further. 
D) as a final step to expand the possible locations from those that meet other criteria.

Question 7

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 constraint associated with Plant 2 for the existing set of plants and regional centers?

Accepted Answer

A) 120x2P + 88x2A + 103x2D + 93x2L = 400 
B) x2P + x2A + x2D + x2L ≤ 400 
C) x2P+ x2A + x2D + x2L = 400 
D) 120x2P + 88x2A + 103x2D + 93x2L ≤ 400 
A) 120x2P + 88x2A + 103x2D + 93x2L = 400 
B) x2P + x2A + x2D + x2L ≤ 400 
C) x2P+ x2A + x2D + x2L = 400 
D) 120x2P + 88x2A + 103x2D + 93x2L ≤ 400

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

Inventory and facility costs increase as the number of facilities in a supply chain increase.

Supply chain network design decisions include

The facilities in a supply chain network must

Models that minimize total costs are used

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

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

Inventory and facility costs increase as the number of facilities in a supply chain increase.

Supply chain network design decisions include

The facilities in a supply chain network must

Models that minimize total costs are used

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