SCM week test 4

Supply chain network design decisions include

• only the location of manufacturing, storage, or transportation-related facilities.
• only the allocation of capacity and roles to each facility.
• both the location of manufacturing, storage, or transportation-related facilities and the allocation of capacity and roles to each facility.
• neither the location of manufacturing, storage, or transportation-related facilities nor the allocation of capacity and roles to each facility.

The probability of having a product in stock when a customer order arrives is

• response time.
• product variety.
• product availability.
• customer experience

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

• true
• false

As the number of facilities in a supply chain increases

• the inventory and resulting inventory costs also increase.
• the inventory and resulting inventory costs decrease.
• the inventory increases and resulting inventory costs decrease.
• the inventory decreases and resulting inventory costs increase.

Allocating too much capacity to a location results in

• poor utilization, and as a result, higher costs.
• high utilization, and as a result, higher costs.
• poor utilization, and as a result, lower costs.
• high utilization, and as a result, lower costs.

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

• Phase I - Supply Chain Strategy
• Phase II - Regional Facility Configuration
• Phase III - Desirable Sites
• Phase IV - Location Choices

Which of the following is not a distinct distribution network design that may be used to move products from factory to customer?

• Manufacturer storage with direct shipping
• Manufacturer storage with distributor pickup
• Distributor storage with package carrier delivery
• Distributor storage with last mile delivery

As the response time desired by the customer decreases, the required number of facilities in the distribution network

• decreases.
• remains the same.
• increases.
• increases and then decreases.

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

• maximizes the firm's profits.
• minimizes the firm's costs.
• satisfies customer needs in terms of demand and responsiveness.
• maximizes the firm's profits while satisfying customer needs in terms of demand and responsiveness.

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

• true
• false