Exam 12: Network Design

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The threshold service level is the starting point for cost revenue sensitivity analysis

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Warehouses can be justified on the basis of cost, specific service objective or generalized local presence

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terms of warehouse justification which of the following statements is true.

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Threshold service level is:

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Transit stock inventory can be available to promise.

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The relationship between uncertainty and inventory is called the square root rule.

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Each unique location analysis has a unique threshold service level

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Which of the following expressions best describes the synergy of the systems concept

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In a typical static location analysis customer service fill rate and delivery time is calculated based on distance.

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The manufacturing strategy of a firm will determine to a large degree the appropriate supporting warehouse structure.

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threshold service level is:

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system design the lowest total cost configuration is typically;

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A supply facing warehouse is one that is focused on supplying key customers

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Spatial/temporal integration means:

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Service sensitivity analysis is a form of cost-revenue analysis

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designing a warehouse network if the overall safety stock increases as the number of warehouses increase then:

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Mathematical modeling supported by computer analysis has rendered the optimization of warehouse networks a relatively easy analysis.

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Local Presence is considered an obsolete paradigm because:

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trade-off is best described by which of the following:

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Transit time to customer is typically estimated on the basis of highway route miles when performing a static warehouse analysis.

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