Exam 13: Supply Chain Logistic Networks

A quantitative method used to evaluate multiple locations based on total cost of production or service operations is called:

Geographical Information System (GIS) tools are useful in solving single-facility location problems, but because of software limitations, cannot be used for determining multiple-facility locations.

On average, it is less expensive to relocate a service-oriented business than a manufacturing business.

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. Which of the following statements is False?

Discuss the trade-offs with locating the inventory at the factory versus locating it closer to the customer at a warehouse, distribution center, wholesaler, or retailers.

A national firm has beef jerky processing facilities in Locations 1, 2, 3, and 4. They ship to central distributors (represented as A, B, C, and D) handling four regions of the country. The per-unit shipping costs between each possible combination of locations are shown in the following table. The processing facility locations are capable of monthly production (in tons) as follows: Location 1: 600 Location 2: 350 Location 3: 475 Location 4: 850 The central distributors have firm commitments for the following quantities: Distributor A: 650 Distributor B: 725 Distributor C: 400 Distributor D: 500 What is the lowest-cost shipping arrangement that can be made between the plant locations and distributors and what is the annual shipping cost?

Break-even analysis can help a manager compare location alternatives on the basis of quantitative factors that can be expressed in terms of total cost.

Which of the following invalidates any analysis using the transportation method?

Cornelius Controlfreak insisted that his manufacturing plant also be the sole location for all finished goods inventory. If any customer placed an order, they knew it would come from the only place on Earth that had a ready supply, Cornelius' plant warehouse. ________ was alive and well thanks to this approach.

What does this diagram represent?

Sweet Candy, Inc. wishes to open two new stores. Based on the following subjective criteria, where should the new stores be located? The higher the score, the better.

Table 13.9 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 250, 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. -Use the information in Table 13.9. What is the cost of a plan that ships 150 units from 1 to C, 150 units from 1 to D, 250 units from 2 to A, 150 units from 2 to C, 200 units from 3 to B, and 50 units from 3 to D?

The point has been reached where a biotechnology research and development company must expand by building a new facility. The search has been narrowed to four locations, all of which are acceptable to management. The assessment of these sites is being made on the basis of the six subjective location factors that follow. Management has agreed to use a five-point scale (Excellent = 5, Very good = 4, Good = 3, Fair = 2, Poor = 1) to quantify and compare their subjective opinions about the relative goodness of the sites. The weight reflects the importance of each factor in the decision. Calculate the weighted score for each alternative. Which location would you recommend?

When using Geographical Information System (GIS) tools to solve multiple-facility location problems, an analyst may also use load-distance scores and center of gravity data to arrive at trial locations.

Costs that are represented in each cell of a transportation tableau are based on ________.

Each cell in the interior of a transportation tableau not in the requirements row or capacity column is a(n) ________.

Table 13.11 The Neale Company has four distribution centers (A, B, C, and D) that require monthly shipments of 30,000, 24,000, 36,000, and 24,000 gallons of diesel fuel per month, respectively. Three wholesalers (1, 2, and 3) are willing to supply up to 36,000, 48,000 and 30,000 gallons, respectively. Total costs (in $) for both shipping and price per gallon follow. A transportation method tableau is provided below. -Use the information in Table 13.11. What can be said about a plan that ships 18,000 gallons from 1 to C; 18,000 gallons from 1 to D; 30,000 gallons from 2 to A; 18,000 gallons from 2 to C; 24,000 gallons from 3 to B; and 30,000 from 3 to D?

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. If the plant is located at the coordinates (5, 5), what is the total load-distance score, assuming Euclidean (straight line) distance?

A grower and shipper of fresh gourmet herbs has determined the following demand forecast for the five metropolitan markets that the firm serves. Based on your calculations of the center of gravity, where should the new herb farm be located?

When outbound transportation costs are a dominant factor, manufacturing facilities should be located close to suppliers and resources needed for production.