Question 1

As the number of stocking points (DCs) is decreased in a distribution network, fixed costs will _____ and variable costs will _____.

Accepted Answer

A)  decrease; decrease 
B)  decrease; increase 
C)  increase; increase 
D)  increase; decrease

Question 2

As the length and complexity of a supply chain increases, a firm's inventory levels:

Accepted Answer

A)  increase. 
B)  decrease. 
C)  stay the same. 
D)  can't be determined.

Question 3

Heuristic models:

Accepted Answer

A)  provide an optimum solution. 
B)  are able to accommodate broad problem definitions. 
C)  have fallen from use because of SAILS. 
D)  are typically "seat of the pants" solutions.

Question 4

Distinguish between the locational determinants of labor climate, and quality of life.

Accepted Answer

The answer of Distinguish between the locational determinants of labor...

Question 5

Demand for transportation at the microeconomic level is _____ while the demand for transportation at the macroeconomic level is _____.
a. elastic; elastic
b. elastic; inelastic
c. inelastic; inelastic
d. inelastic; elastic

Accepted Answer

The answer of Demand for transportation at the microeconomic level...

Question 6

Simulation models:

Accepted Answer

A)  guarantee optimum solutions. 
B)  generate SAILS reports. 
C)  search directly for the best warehouse configuration. 
D)  allow the decision maker to test the effects of alternative locations.

Question 7

Which of these is NOT a trend in today's logistics environment that may have significant effects on decisions involving logistics facility location?

Accepted Answer

A)  Strategically located cross-docking facilities 
B)  Use of third-party logistics services 
C)  Customer-direct delivery 
D)  Addition of many wholesaler/distributor operations

Question 8

In the short run, the firm's network is _____ while in the long run it is _____.

Accepted Answer

A)  fixed; variable 
B)  adoptable; reversible 
C)  variable; reversible 
D)  reversible; fixed

Question 9

In a commercial zone, the same transportation rate is applied from an origin to any point in the zone.

Accepted Answer

A) True 
 B)False

Question 10

The quality of life locational determinant is most important to companies that must attract and retain an unskilled, static work force.

Accepted Answer

A) True 
 B)False

Question 11

Which is an advantage of the grid technique for facility location?

Accepted Answer

A)  It establishes the final determination of the best site. 
B)  Computationally, it is relatively easy to use. 
C)  It is a dynamic approach with solutions remaining optimum over many time periods. 
D)  It considers topographic conditions in choosing the optimum location.

Question 12

The grid technique:

Accepted Answer

A)  is a variation of SAILS. 
B)  assumes that the raw materials sources and finished goods markets are fixed. 
C)  assumes that the raw materials sources and finished goods markets are variable. 
D)  assumes nonlinear transportation rates.

Question 13

When a blanket rate structure is used, which factor is eliminated as a locational determinant?

Accepted Answer

A)  Labor rate 
B)  Transportation rate 
C)  Raw material sources 
D)  Market sources

Question 14

Facilities may sometimes be located where senior officers prefer.

Accepted Answer

A) True 
 B)False

Question 15

The classic objective of a network design model has been to:

Accepted Answer

A)  establish the number, location, and size of finished goods distribution centers and associated product flows. 
B)  find the best location for a forward facing warehouse. 
C)  examine the finished goods flow from the warehouse to the customer. 
D)  measure and control site locations.

Question 16

Logistics facilities and their locations are relatively variable and easily modified in the short term.

Accepted Answer

A) True 
 B)False

Question 17

What is the effect of tapering rates on facility location?

Accepted Answer

A)  It pushes the raw materials sources toward the location. 
B)  It pulls the facility toward the location. 
C)  It pulls the location toward the source or the market. 
D)  It makes the optimum location at the midpoint between raw material sources and the marketplace.

Question 18

List and discuss potential supply chain modeling pitfalls to avoid.

Accepted Answer

The answer of List and discuss potential supply chain modeling...

Exam 4: Distribution and Omni Channel Network Design

As the number of stocking points (DCs) is decreased in a distribution network, fixed costs will _ and variable costs will _.

As the length and complexity of a supply chain increases, a firm's inventory levels:

Heuristic models:

Distinguish between the locational determinants of labor climate, and quality of life.

Demand for transportation at the microeconomic level is _ while the demand for transportation at the macroeconomic level is _. a. elastic; elastic b. elastic; inelastic c. inelastic; inelastic d. inelastic; elastic

Simulation models:

Which of these is NOT a trend in today's logistics environment that may have significant effects on decisions involving logistics facility location?

In the short run, the firm's network is _ while in the long run it is _.

In a commercial zone, the same transportation rate is applied from an origin to any point in the zone.

The quality of life locational determinant is most important to companies that must attract and retain an unskilled, static work force.

Which is an advantage of the grid technique for facility location?

The grid technique:

When a blanket rate structure is used, which factor is eliminated as a locational determinant?

Facilities may sometimes be located where senior officers prefer.

The classic objective of a network design model has been to:

Logistics facilities and their locations are relatively variable and easily modified in the short term.

What is the effect of tapering rates on facility location?

List and discuss potential supply chain modeling pitfalls to avoid.

Exam 4: Distribution and Omni Channel Network Design

As the number of stocking points (DCs) is decreased in a distribution network, fixed costs will _____ and variable costs will _____.

As the length and complexity of a supply chain increases, a firm's inventory levels:

Heuristic models:

Distinguish between the locational determinants of labor climate, and quality of life.

Demand for transportation at the microeconomic level is _____ while the demand for transportation at the macroeconomic level is _____. a. elastic; elastic b. elastic; inelastic c. inelastic; inelastic d. inelastic; elastic

Simulation models:

Which of these is NOT a trend in today's logistics environment that may have significant effects on decisions involving logistics facility location?

In the short run, the firm's network is _____ while in the long run it is _____.

In a commercial zone, the same transportation rate is applied from an origin to any point in the zone.

The quality of life locational determinant is most important to companies that must attract and retain an unskilled, static work force.

Which is an advantage of the grid technique for facility location?

The grid technique:

When a blanket rate structure is used, which factor is eliminated as a locational determinant?

Facilities may sometimes be located where senior officers prefer.

The classic objective of a network design model has been to:

Logistics facilities and their locations are relatively variable and easily modified in the short term.

What is the effect of tapering rates on facility location?

List and discuss potential supply chain modeling pitfalls to avoid.

As the number of stocking points (DCs) is decreased in a distribution network, fixed costs will _ and variable costs will _.

Demand for transportation at the microeconomic level is _ while the demand for transportation at the macroeconomic level is _. a. elastic; elastic b. elastic; inelastic c. inelastic; inelastic d. inelastic; elastic

In the short run, the firm's network is _ while in the long run it is _.