The objective of the second phase of network design is to
A) select a precise location and capacity allocation for each facility.
B) select a set of desirable sites within each region where facilities are to be located.
C) identify regions where facilities will be located, their potential roles, and their
approximate capacity.
D) specify what capabilities the supply chain network must have to support a firm’s
competitive strategy.
The average inventory in the supply chain due to either production or purchases in lot
sizes that are larger than those demanded by the customer is
A) annual inventory.
B) distribution inventory.
C) cycle inventory.
D) physical inventory.
Under tailored postponement, a firm produces the amount that is very likely to sell
using
A) the lower cost production method with postponement and produces the portion of
demand that is uncertain using postponement.
B) the lower cost production method without postponement and produces the portion of
demand that is uncertain using postponement.
C) the higher cost production method with postponement and produces the portion of
demand that is uncertain using postponement.
D) the higher cost production method without postponement and produces the portion
of demand that is uncertain using postponement.
Customer value is
A) the sum of the supply chain surplus and supply chain cost.
B) the remainder after supply chain cost is subtracted from supply chain surplus.
C) the remainder after supply chain surplus is subtracted from supply chain cost.
D) supply chain profitability minus the supply chain cost.
Which of the following customer needs will cause implied uncertainty of demand to
increase?
A) Product margin
B) Lead time decreases
C) Average stockout rate
D) Average forced season end markdown
Whether the optimal level of product availability is high or low depends on where a
particular company believes they can
A) minimize cost.
B) maximize revenue.
C) maximize profits.
D) maximize product availability.
Which of the following is a disadvantage of distributor storage with carrier delivery?
A) Information infrastructure is simpler than manufacturer storage.
B) Response time is faster than with manufacturer storage.
C) Returnability is easier than with manufacturer storage.
D) Product variety is lower than with manufacturer storage.
The warehousing methodology that uses a traditional warehouse to store all of one type
of product together is
A) warehouse unit storage.
B) stock keeping unit (SKU) storage.
C) job lot storage.
D) cross-docking.
A manufacturer of cat towers wishes to locate a super assembly facility to meet their cat
tower assembly needs for the next millennium. Currently, carpet, cylinders, yarn and
fasteners are purchased in bulk from suppliers in North Haverbrook, Ogden, and
Springfield in the quantities shown in the table. The super assembly facility would ship
to distribution centers located in Seattle, Lubbock, Nashville, and Philadelphia. The
locations of all of these cities on an x-y grid, outbound transportation costs on a ton per
mile basis, and total tonnage are all contained in the table.
What is the minimal shipping cost that satisfies all market demand?
A) $2,546,632
B) $2,586,342
C) $2,451,668
D) $2,522,982
For products where the firm has market power, coordination in the supply chain can be
achieved and supply chain profits maximized through the use of
A) two-part tariffs or volume based quantity discounts.
B) marginal unit quantity discounts.
C) all unit quantity discounts.
D) basic quantity discounts.
The authors cite IKEA as achieving an intercompany scope of strategic fit which serves
to
A) minimize IKEA’s costs.
B) align the strategic fit with the consumer surplus.
C) minimize the costs of all supply chain elements.
D) increase the supply chain surplus.