Exam 13: Supply Chain Logistic Networks

The Burdell Company has four distribution centers located at the location coordinates given as follows. The monthly demand at each center is also given. Management wants to build a new plant that would be located at the center of gravity of the four distribution centers. Which of the following options best represents the coordinates of the new plant location?

A national drugstore chain prefers to operate one outlet in a town that has four major market segments. The number of potential customers in each segment, along with the location coordinates, are given below. Which would be the best location using the center of gravity method?

The transportation method of production planning is a special case of:

Forward placement is a reduction in inventory and safety stock because of the merging of variable demands from customers.

A geographic information system contains demographic information.

Table 13.4 Royal Flush Plumbing Supplies has the following demand forecasts for the five markets that it serves: -Use the information in Table 13.4. What is the center of gravity?

The load-distance model is used to minimize the total:

Bill Burns, district manager of the Pizza Palace, wishes to locate a new store in the metropolitan areas. Using the following information, what are the x and y coordinates for the center of gravity? Don't round your answer up or down before making your choice.

Which of the following is not a step in setting up a transportation tableau?

If the total supply does not equal the total number of units demanded, then the modeler should use a(n) ________ warehouse as part of the transportation method.

Acme Fasteners desires to locate a new facility. Based on preliminary analysis, the choice has been reduced to four locations: A, B, C, and D. These four locations were rated on a scale from 1 (worst) to 10 (best) on each of four criteria. Each criterion was also weighted to indicate its importance (i.e., the higher the weight, the more important). The list of ratings and weights follows. Based on weighted scores, where should Acme locate its new facility?

Two conditions must be met by factors selected to evaluate location decisions: the factors must have a high impact on the company's ability to meet its goals and the factors themselves must be affected by the location decision.

When using the load-distance method to select a new location, the decision maker can represent the number of trips to be made, the number of customers needing a physical presence, or number of tons per week, among other measures, as loads.

When comparing several sites, typically a company will pick specific available site locations, then broaden their choices to communities, and finally to alternate regions.

A quantitative method used to evaluate single locations based primarily on proximity is:

Table 13.1 Four departments are located in adjacent bays in the same loading dock. The distance between adjacent bays is 30 feet, the distance between bays separated by another (Alpha and Charlie, Bravo and Delta) is 60 feet, and the distance between Alpha and Delta is 90 feet. Material flows (loads) between departments are shown in the Table below. -Use the data in Table 13.1. What is the load distance score for locations Alpha, Bravo, Charlie and Delta? Once your calculation is complete, how might the assignment of departments be improved?

Table 13.10 Sagebrush Company has four warehouses (A, B, C, and D) that require monthly shipments of 250, 200, 300, and 200 units per month, respectively. Its three plants (1, 2, and 3) have monthly capacities of 300, 400, and 450, respectively. Plant capacities, warehouse needs and shipping costs (in $) are shown in the following initial transportation method tableau. For example, the shipping cost from Plant 1 to Warehouse A is $17 per unit. A second table showing POM for Windows results from running this transportation problem is shown below the tableau. -Use the information in Table 13.10. The low cost solution indicates a total cost of:

The Nelson Company has four distribution centers (A, B, C, and D) that require shipments of 20, 30, 40, and 10 units per week, respectively. Its three plants (1, 2, and 3) have monthly capacities of 40, 30, and 30, respectively. Shipping costs (in $) follow.

Table 13.7 Nuts-and-Bolts, Inc. wishes to find the best location for a plant that will satisfy customer demand in the following five areas. -Use the information in Table 13.7. What are the x and y coordinates for the center of gravity?

Table 13.8 An operations manager has narrowed down the search for a new plant for Tim! to three locations. Fixed and variable costs follow. -Use the information in Table 13.8 to determine the best statement.