Question 1

The evaluation of supply chain networks

Accepted Answer

A)   should use only one metric.
B)   should use multiple metrics.
C)   should not use more than one metric.
D)   should not use multiple metrics.
E)   should be subjective. B

Question 2

Uncertainty in demand and economic factors should be included in the financial evaluation of supply chain design decisions,because

Accepted Answer

A)   the exclusion of certainty may have a significant impact on this evaluation.
B)   the exclusion of uncertainty may have a significant impact on this evaluation.
C)   the inclusion of certainty may have a significant impact on this evaluation.
D)   the inclusion of uncertainty may have a significant impact on this evaluation.
E)   none of the above D

Question 3

Strategic planning and financial planning should be combined during supply chain network design.

Accepted Answer

A) True 
 B)False  True

Question 4

The degree of demand and price uncertainty has a significant influence on the appropriate portfolio of long- and short-term warehousing space that a firm should carry.

Accepted Answer

A) True 
 B)False

Question 5

For a global supply chain,exchange rates and inflation are

Accepted Answer

A)   likely to vary over time in different locations.
B)   not likely to vary over time in different locations.
C)   not likely to vary over time in any locations.
D)   likely to be stable over time in all locations.
E)   none of the above

Question 6

Globalization has offered tremendous opportunity as well as decreased risk in the development of supply chains due to improved information flow.

Accepted Answer

A) True 
 B)False

Question 7

In reality,demand and prices are

Accepted Answer

A)   highly certain and not likely to fluctuate during the life of any supply chain decision.
B)   highly certain and likely to fluctuate during the life of any supply chain decision.
C)   highly uncertain and not likely to fluctuate during the life of any supply chain decision.
D)   highly uncertain and likely to fluctuate during the life of any supply chain decision.
E)   none of the above

Question 8

Discuss the ideas that managers should consider to make better supply chain network design decisions under uncertainty.

Accepted Answer

The answer of Discuss the ideas that managers should consider...

Question 9

If price and demand do vary over time in a global network,

Accepted Answer

A)   flexible production capacity should not be used in the new environment.
B)   flexible production capacity will be ineffective in the new environment.
C)   flexible production capacity can be reconfigured to minimize profits in the new environment.
D)   flexible production capacity can be reconfigured to maximize profits in the new environment.
E)   flexible production capacity should never be used in an uncertain environment.

Question 10

Long-term contracts for both warehousing and transportation requirements will be more effective if the demand and price of warehousing do not change in the future or if the price of warehousing goes up.

Accepted Answer

A) True 
 B)False

Question 11

Decisions made during the supply chain design phase regarding significant investments in the supply chain,such as the number and size of plants to build,the number of trucks to purchase or lease,and whether to build or lease warehouse space,cannot be altered in the short term.

Accepted Answer

A) True 
 B)False

Question 12

Decisions made during the supply chain design phase regarding significant investments in the supply chain,such as the number and size of plants to build,the number of trucks to purchase or lease,and whether to build or lease warehouse space,rarely remain in place for several years.

Accepted Answer

A) True 
 B)False

Question 13

If price and demand vary over time in a global network,flexible production capacity can be reconfigured to maximize profits in the new environment.

Accepted Answer

A) True 
 B)False

Question 14

The value of flexibility increases with an increase in uncertainty.

Accepted Answer

A) True 
 B)False

Question 15

A logical objection to both the multiplicative and additive binomial is the fact that the underlying factor takes on two values at the end of each period.

Accepted Answer

A) True 
 B)False

Question 16

Simulation methods are very good at evaluating a decision where the path itself is decision dependent.

Accepted Answer

A) True 
 B)False

Question 17

Decision tree analysis is based on Bellman's principle,which states that for any choice of strategy in a given state,

Accepted Answer

A)   the optimal strategy is the one that is selected if the entire analysis is assumed to begin in the first period.
B)   the optimal strategy is the one that is selected if the entire analysis is assumed to begin in the last period.
C)   the optimal strategy in the next period is the one that is selected if the entire analysis is assumed to begin in the last period.
D)   the optimal strategy in the next period is the one that is selected if the entire analysis is assumed to begin in the next period.
E)   none of the above

Question 18

What is the present value of a $27 revenue that will be received in one year where the rate of return is 8% (.08)?

Accepted Answer

A)   $2.50
B)   $15.00
C)   $25.00
D)   $30.00
E)   none of the above

Question 19

Decisions made during the supply chain design phase regarding significant investments in the supply chain,such as the number and size of plants to build,the number of trucks to purchase or lease,and whether to build or lease warehouse space,

Accepted Answer

A)   are realigned every few weeks.
B)   only remain in place for several years.
C)   rarely remain in place for several years.
D)   only remain in place for a few weeks.
E)   often remain in place for several years.

Question 20

Explain additive and multiplicative binomial representations of uncertainty.

Accepted Answer

The answer of Explain additive and multiplicative binomial representations of...

Exam 6: Designing Global Supply Chain Networks

The evaluation of supply chain networks

Uncertainty in demand and economic factors should be included in the financial evaluation of supply chain design decisions,because

Strategic planning and financial planning should be combined during supply chain network design.

The degree of demand and price uncertainty has a significant influence on the appropriate portfolio of long- and short-term warehousing space that a firm should carry.

For a global supply chain,exchange rates and inflation are

Globalization has offered tremendous opportunity as well as decreased risk in the development of supply chains due to improved information flow.

In reality,demand and prices are

Discuss the ideas that managers should consider to make better supply chain network design decisions under uncertainty.

If price and demand do vary over time in a global network,

Long-term contracts for both warehousing and transportation requirements will be more effective if the demand and price of warehousing do not change in the future or if the price of warehousing goes up.

Decisions made during the supply chain design phase regarding significant investments in the supply chain,such as the number and size of plants to build,the number of trucks to purchase or lease,and whether to build or lease warehouse space,cannot be altered in the short term.

Decisions made during the supply chain design phase regarding significant investments in the supply chain,such as the number and size of plants to build,the number of trucks to purchase or lease,and whether to build or lease warehouse space,rarely remain in place for several years.

If price and demand vary over time in a global network,flexible production capacity can be reconfigured to maximize profits in the new environment.

The value of flexibility increases with an increase in uncertainty.

A logical objection to both the multiplicative and additive binomial is the fact that the underlying factor takes on two values at the end of each period.

Simulation methods are very good at evaluating a decision where the path itself is decision dependent.

Decision tree analysis is based on Bellman's principle,which states that for any choice of strategy in a given state,

What is the present value of a $27 revenue that will be received in one year where the rate of return is 8% (.08) ?

Decisions made during the supply chain design phase regarding significant investments in the supply chain,such as the number and size of plants to build,the number of trucks to purchase or lease,and whether to build or lease warehouse space,

Explain additive and multiplicative binomial representations of uncertainty.