Network Design In The Supply Chain

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Questions Bank

Understanding the Supply Chain
Supply Chain Performance: Achieving Strategic Fit and Scope
Supply Chain Drivers and Metrics
Designing Distribution Networks and Applications to e-Business
Network Design in the Supply Chain
Designing Global Supply Chain Networks
Demand Forecasting in a Supply Chain
Aggregate Planning in a Supply Chain
Sales and Operations Planning: Planning Supply and Demand in a Supply Chain
Coordination in a Supply Chain
Managing Economies of Scale in the Supply Chain: Cycle Inventory
Managing Uncertainty in a Supply Chain: Safety Inventory
Determining the Optimal Level of Product Availability
Transportation in a Supply Chain
Sourcing Decisions in a Supply Chain
Pricing and Revenue Management in a Supply Chain
Sustainability and the Supply Chain

All Questions

Question 1

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Supply chain network design decisions include the location of manufacturing, storage, or transportation-related facilities and the allocation of capacity and roles to each facility.

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Question 2

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Decisions concerning the role of each facility are significant because they determine the amount of rigidity the supply chain has in changing the way it meets demand.

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Question 3

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Facility location decisions have a long-term impact on a supply chain's performance because it is cost effective to shut down a facility or move it to a different location.

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Question 4

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Capacity allocation decisions have a significant impact on supply chain performance because they tend to stay in place for several years.

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Question 5

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The allocation of supply sources and markets to facilities has a significant impact on performance because it affects total production, inventory, and transportation costs incurred by the supply chain to satisfy customer demand.

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Question 6

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Network design decisions have a significant impact on performance because they determine the supply chain configuration and set constraints within which inventory, transportation, and information can be used to either decrease supply chain cost or increase responsiveness.

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Question 7

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Decisions concerning the role of each facility are significant because they determine the amount of flexibility the supply chain has in changing the way it meets demand.

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Question 8

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Network design decisions have a significant impact on performance because they determine the supply chain configuration and set constraints within which the other supply chain drivers can be used either to decrease supply chain cost or to increase responsiveness.

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Question 9

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If facilities have higher fixed costs, many local facilities are preferred because this helps lower transportation costs.

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Question 10

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Firms focusing on cost leadership tend to find the lowest cost location for their manufacturing facilities, but only if that means locating very far from the markets they serve.

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Question 11

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If production technology displays significant economies of scale, many local locations are the most effective.

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Question 12

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If facilities have lower fixed costs, many local facilities are preferred because this helps lower transportation costs.

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Question 13

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If the technology is flexible, it becomes more difficult to consolidate manufacturing in a few large facilities.

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Question 14

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High tariffs lead to more production locations within a supply chain network, with each location having a lower allocated capacity.

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Question 15

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When designing supply chain networks, companies must build appropriate flexibility to help counter fluctuations in exchange rates and demand across different countries.

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Question 16

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Inventory and facility costs increase as the number of facilities in a supply chain increase.

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Question 17

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Transportation costs increase as the number of facilities is increased.

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Question 18

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A firm may increase the number of facilities beyond the point that minimizes total logistics cost to improve the response time to its customers.

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Question 19

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When faced with a network design decision, the goal of a manager is to design a network that minimizes the firm's costs while satisfying customer needs in terms of demand and responsiveness.

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Question 20

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The supply chain network is designed to maximize total profits, taking into account the expected margin and demand in each market, various logistics and facility costs, and the taxes and tariffs at each location.

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