Question 1

Discuss some of the key economic and non-economic factors that are evaluated in making a facility location decision.

Accepted Answer

Economic factors include facility costs such as construction, utilities, insurance, taxes, depreciation and maintenance; operating costs, including fuel, direct labor and administrative personnel; and transportation costs associated with moving goods and services from their origins to the final destinations or the opportunity cost of customers coming to the facility.
Non-economic factors in location decisions include the availability of labor, transportation services and utilities; climate, community environment and quality of life; and state and local legal and political factors.

Question 2

If a multisite organization has a stable customer benefit package and many identical and standardized facilities, then a responsive supply chain is the best design.

Accepted Answer

A) True 
 B)False  False

Question 3

Explain the difference between a supply chain and a value chain.

Accepted Answer

A supply chain is a key subsystem of a value chain that focuses primarily on the physical movement of goods and materials along with supporting information flows through the supply production and distribution processes. A value chain is broader in scope and encompasses all pre- and post-production services to create and deliver the entire customer benefit package. Financing and preventive maintenance, for example, are pre- and post-production services that more fully characterize the value chain.

Question 4

Explain the typical structure of a supply chain.

Accepted Answer

A goods-producing supply chain generally

Question 5

An) ____ seeks to balance capacity and demand, might use only a few large distribution centers, and minimize costs of routing products from factories to retail stores and customers.

Accepted Answer

A) Responsive supply chain 
B) Efficient supply chain 
C) Push system 
D) Pull system 
A) Responsive supply chain 
B) Efficient supply chain 
C) Push system 
D) Pull system

Question 6

In the Supply Chain Operations Reference SCOR) model, the "Make" step involves managing orders, transportation, and distribution to provide goods and services.

Accepted Answer

A) True 
 B)False

Question 7

The basic purpose of a supply chain is to coordinate communication among employees and customers in order to maximize customer satisfaction.

Accepted Answer

A) True 
 B)False

Question 8

Describe how supply chains should be designed for multisite management situations.

Accepted Answer

For firms that have a stable customer be

Question 9

The metric "perfect order fulfillment" is often used to measure ____.

Accepted Answer

A) Delivery reliability 
B) Responsiveness 
C) Supply chain efficiency 
D) Supply chain financial performance 
A) Delivery reliability 
B) Responsiveness 
C) Supply chain efficiency 
D) Supply chain financial performance

Question 10

Large order sizes and frequent price changes will reduce the bullwhip effect in a supply chain.

Accepted Answer

A) True 
 B)False

Question 11

Which is true regarding a responsive supply chain?

Accepted Answer

A) Demand is stable and predictable. 
B) Product life cycles are short and change often because of innovation. 
C) Customers require standardization. 
D) Contribution margins are low. 
A) Demand is stable and predictable. 
B) Product life cycles are short and change often because of innovation. 
C) Customers require standardization. 
D) Contribution margins are low.

Question 12

A contract manufacturer can offer significant competitive advantages. Which one of the following is not an advantage of using a contract manufacturer.

Accepted Answer

A) Access to advanced manufacturing technologies 
B) Faster product time-to-market 
C) Lower costs from economies of scale 
D) Standardized design 
A) Access to advanced manufacturing technologies 
B) Faster product time-to-market 
C) Lower costs from economies of scale 
D) Standardized design

Question 13

The facility location decision must attempt to minimize the combined cost of producing the good or service and delivering them to customers.

Accepted Answer

A) True 
 B)False

Question 14

Which one of the following statements is true about vendor-managed inventory VMI)?

Accepted Answer

A) VMI is a form of outsourcing. 
B) VMI often increases the bullwhip effect. 
C) VMI is used only in responsive supply chains. 
D) VMI is identical to contract manufacturing. 
A) VMI is a form of outsourcing. 
B) VMI often increases the bullwhip effect. 
C) VMI is used only in responsive supply chains. 
D) VMI is identical to contract manufacturing.

Question 15

An) ____ produces goods in advance of customer demand using a forecast of sales and moves them to points of sale where they are stored as finished goods inventory.

Accepted Answer

A) Responsive supply chain 
B) Efficient supply chain 
C) Push system 
D) Pull system 
A) Responsive supply chain 
B) Efficient supply chain 
C) Push system 
D) Pull system

Question 16

In the Supply Chain Operations Reference SCOR) model, the "Plan" step involves identifying and selecting suppliers.

Accepted Answer

A) True 
 B)False

Question 17

In designing an efficient supply chain, an organization would need high levels of inventory stored in many small distribution centers.

Accepted Answer

A) True 
 B)False

Question 18

Describe some common supply chain metrics used to evaluate performance.

Accepted Answer

Delivery reliability is often measured b

Question 19

A push system

Accepted Answer

A) can adjust easily to poor forecasts 
B) is more appropriate for make-to-order items 
C) can reduce transportation costs by using full-truckload shipments 
D) works best with variable sales patterns 
A) can adjust easily to poor forecasts 
B) is more appropriate for make-to-order items 
C) can reduce transportation costs by using full-truckload shipments 
D) works best with variable sales patterns

Question 20

The bullwhip effect could be reduced if all members of the supply chain would use demand data from the point of the supply chain closest to the customer.

Accepted Answer

A) True 
 B)False

Exam 9: Supply Chain Design

Discuss some of the key economic and non-economic factors that are evaluated in making a facility location decision.

If a multisite organization has a stable customer benefit package and many identical and standardized facilities, then a responsive supply chain is the best design.

Explain the difference between a supply chain and a value chain.

Explain the typical structure of a supply chain.

An) ____ seeks to balance capacity and demand, might use only a few large distribution centers, and minimize costs of routing products from factories to retail stores and customers.

In the Supply Chain Operations Reference SCOR) model, the "Make" step involves managing orders, transportation, and distribution to provide goods and services.

The basic purpose of a supply chain is to coordinate communication among employees and customers in order to maximize customer satisfaction.

Describe how supply chains should be designed for multisite management situations.

The metric "perfect order fulfillment" is often used to measure ____.

Large order sizes and frequent price changes will reduce the bullwhip effect in a supply chain.

Which is true regarding a responsive supply chain?

A contract manufacturer can offer significant competitive advantages. Which one of the following is not an advantage of using a contract manufacturer.

The facility location decision must attempt to minimize the combined cost of producing the good or service and delivering them to customers.

Which one of the following statements is true about vendor-managed inventory VMI)?

An) ____ produces goods in advance of customer demand using a forecast of sales and moves them to points of sale where they are stored as finished goods inventory.

In the Supply Chain Operations Reference SCOR) model, the "Plan" step involves identifying and selecting suppliers.

In designing an efficient supply chain, an organization would need high levels of inventory stored in many small distribution centers.

Describe some common supply chain metrics used to evaluate performance.

A push system

The bullwhip effect could be reduced if all members of the supply chain would use demand data from the point of the supply chain closest to the customer.

Goods, Services, and Operations Management

Value Chains

Measuring Performance in Operations

Operations Strategy

Technology and Operations Management

Goods and Service Design

Process Selection, Design, and Analysis

Facility and Work Design

Capacity Management

Forecasting and Demand Planning

Managing Inventories

Resource Management

Operations Scheduling and Sequencing

Quality Management

Quality Control and Spc

Lean Operating Systems

Project Management

Work Measurement, Learning Curves, and Standards

Queuing Analysis

Modeling Using Linear Programming

Simulation

Work Measurement, Learning Curves, and Standards

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