Exam 13: Supply Chain Logistic Networks

What are the dominant factors that a manufacturing firm must consider when making a location decision?

What is a dummy plant or warehouse and when is it needed?

Which one of the following statements on inventory placement of finished goods is BEST?

Table 13.2 A single facility is needed to meet the demands of four markets.The locations and demands of these four markets are shown below. -Use the information from Table 13.2.What are the x and y coordinates for the center of gravity?

Use the information in Table 13.8 to determine the best statement.

A dummy plant is useful for problems where the sum of the plant capacities equals the sum of the demands.

If the customer must be physically present at the process,location is an important issue.

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 Hunan Restaurant wishes to locate a new facility.Based on the following subjective criteria,where should the new facility be located? (Very good = 5,Good = 4,Fair = 3,Poor = 2,and Very poor = 1)

A decision maker using break-even analysis must assume that suppliers do not provide discounts for large orders.

Repeated onsite expansion ultimately leads to diseconomies of scale.

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?

Which of these distance calculation methods provides the most accurate input to a load-distance calculation?

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

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?

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 can be said about a plan that ships 200 units from 1 to A,100 units from 1 to B,100 units from 2 to B,300 units from 2 to C,and 250 units from 3 to D?

An operations manager has narrowed down the search for a new King Kola plant to three locations.Fixed and variable costs follow. Plot the total cost curves in the chart provided and identify the range over which each location would be best.Then use break-even analysis to calculate exactly the break-even quantity that defines each range. Which of the following statements is correct?

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

________ involves locating the stock closer to customers at a warehouse,distribution center,or retailer.