Deck 12: Supply Chain Network Analysis and Design

Question 1

The location selection team formed for the facility location decision process

A) must be aware of the firm's overall business and corporate strategies and the supply chain.
B) makes broad recommendations on the location decision.
C) includes workers from divisional levels only.
D) is usually senior level officers who can make decisions.

Answer 1

A

Question 2

Which major locational determinant considers locating near the competition?

A) labor climate
B) quality of life
C) company preference
D) supplier networks

Answer 2

C

Question 3

Reengineering is often a reason for examining the firm's current logistics network.

Answer 3

True

Question 4

The efficiency and effectiveness of a logistics operation are constrained by the location of plants and warehouses in its logistics system.

Question 5

One impact that the transit privilege has on facility location is that intermediate locations can be optimum.

Question 6

Labor-intensive industries emphasize a labor climate as a locational determinant.

Question 7

Facilities may sometimes be located where senior officers prefer.

Question 8

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

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

Question 9

What type of change may suggest a need to reevaluate and/or redesign a firm's logistics network?

A) change in customer service requirements
B) change in corporate ownership
C) cost pressures and competitive capabilities
D) shifting locations of customer and/or supply markets

Question 10

The grid technique determines the highest cost location in an area to avoid movement of materials and goods.

Question 11

Which is not true regarding logistics network design?

A) the logistics network reengineering team is responsible for all elements of the logistics network design process.
B) the logistics audit provides members of the reengineering team with a comprehensive perspective on the firm's logistics process.
C) subsequent "what-if" types of analysis do not need to be conducted to test the sensitivity of recommended network designs
D) the implementation plan serves as a useful road map for moving from the current logistics network to the desired one

Question 12

The grid approach is used to determine a fixed facility location that is the least cost center for moving both raw materials and finished goods within a geographic grid.This least cost center is also referred to as

A) a zero point.
B) a source point.
C) grid zero.
D) a center of gravity.

Question 13

Logistics facilities and their locations are variable and easily modified in the short-run.

Question 14

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

Question 15

The grid technique will evaluate all transportation rates equally.

Question 16

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

A) cross-docking
B) use of third-party suppliers
C) direct,plant-to-customer shipments
D) decentralized facilities

Question 17

Which is true regarding optimization models?

A) Optimization models are based on precise mathematical procedures that are guaranteed to find the "best" solution.
B) Optimization models do not always provide an optimum solution,but are able to accommodate broad problem definitions.
C) The Grid Technique is an approach to optimization modeling.
D) Optimization models will guarantee increased profits.

Question 18

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

Question 19

The optimization model is based on

A) precise mathematical procedures.
B) subsequent what-if types of analyses.
C) complex model structures.
D) operations.

Question 20

Which is true regarding the facility location decision?

A) the facility's impact on other functional areas should be considered,but it is not as important
B) should be coordinated closely with the identification and implementation of key corporate and overall business strategies
C) business conditions anticipated two or three years in the future have the greatest weight in selection
D) generally,qualitative criteria are considered first

Question 21

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

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 solution remaining optimum over many time periods
D) topographic conditions are considered in choosing the optimum location

Question 22

List and discuss potential supply chain modeling pitfalls to avoid.

Question 23

Heuristic models

A) do not provide an optimum solution.
B) are able to accommodate broad problem definitions.
C) have fallen from use because of SAILS.
D) are unable to incorporate certain rules into the decision-making process.

Question 24

Application of the grid technique to the location of a city warehouse

A) is no different from applying it in any other situation.
B) incorporates a blanket rate structure that applies the same rate from an origin to any point within the city zone.
C) leads to consideration of the costs of moving raw materials into the facility,and finished goods to the customers.
D) enables the decision maker to disregard highway access to the specific site because this factor is accounted for in the technique.

Question 25

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

Question 26

The classic objective of a network design model has been

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

Question 27

What are simulation models and how are they used to assist with determination of facility locations.

Question 28

Define and discuss the Grid Technique,including its advantages and disadvantages?

Question 29

Define the principal of tapering rates; blanket rates; and commercial zone and the implication of each on location selection.

Question 30

Simulation models are designed to

A) produce optimum solutions.
B) incorporate relatively comprehensive and detailed problem descriptions.
C) generate SAILS reports.
D) produce feasible network design alternatives.

Question 31

What advantage does the transit privilege give to shippers located at intermediate locations?

A) a lower,long-distance through rate charged for the shipment
B) Freight All Kinds (FAK)rates charged for the shipment
C) not having to pay terminal charges for each intermediate stop
D) the right to change consignees

Question 32

Which is correct regarding the transit privilege?

A) application of the concept results in only an end point,either an origin or destination,being the optimum location
B) allows the rates quoted to a particular city to also apply to various shipping points in the surrounding area
C) the shipper is permitted to stop the shipment in transit and physically alter the product
D) is normally available for nearly all locations and commodities

Question 33

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

A) inventory costs
B) transportation rate
C) raw material sources
D) market sources

Question 34

What are the six major steps that are recommended for a logistics network design process?

Question 35

What is the effect of tapering rates on facility location?

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

Question 36

Which is correct regarding tapering rates?

A) the principle is based on the carrier's ability to spread certain fixed cost over a greater number of miles
B) transportation rates increase with distance directly in proportion to the distance
C) in a one-source,one-market situation,the impact of the tapering rate will be to pull the location toward a point midway between the source and the market
D) Tapering rates are overexaggerated.

Question 37

What are the current trends governing site selection?

Question 38

The grid approach

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) deals with multiple locations.