1、Chapter 5Network Design in the Supply ChainTrue/False1. 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.Answer: TrueDifficulty: Moderate2. Decisions concerning the rol

2、e of each facility are significant because they determine the amount of flexibility the supply chain has in changing the way it meets demand.Answer: TrueDifficulty: Moderate3. Decisions concerning the role of each facility are significant because they determine the amount of rigidity the supply chai

3、n has in changing the way it meets demand.Answer: FalseDifficulty: Moderate4. Facility location decisions have a long-term impact on a supply chains performance because it is cost effective to shut down a facility or move it to a different location.Answer: FalseDifficulty: Easy5. Capacity allocation

4、 decisions have a significant impact on supply chain performance because they tend to stay in place for several years.Answer: TrueDifficulty: Moderate6. The allocation of supply sources and markets to facilities has a significant impact on performance because it affects total production, inventory,

5、and transportation costs incurred by the supply chain to satisfy customer demand.Answer: TrueDifficulty: Easy7. The allocation of supply sources and markets to facilities does not need to be reconsidered on a regular basis so that the allocation can be changed as market conditions or plant capacitie

6、s change.Answer: TrueDifficulty: Moderate8. 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

7、 responsiveness.Answer: TrueDifficulty: Moderate9. Network design decisions have a significant impact on performance because they determine the supply chain conflagration and set constraints within which inventory, transportation, and information can be used to either increase supply chain cost or r

8、educe responsiveness.Answer: FalseDifficulty: Easy10. 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.Answer: FalseDifficulty: Easy11. Firms focusing on responsiveness ten

9、d to locate facilities closer to the market and may select a high-cost location if this choice allows the firm to quickly react to changing market needs.Answer: True Difficulty: Moderate12. If production technology displays significant economies of scale, many local locations are the most effective.

10、Answer: FalseDifficulty: Moderate13. If facilities have lower fixed costs, many local facilities are preferred because this helps lower transportation costs.Answer: TrueDifficulty: Moderate14. If the production technology is very inflexible and product requirements vary from one country to another,

11、a firm has to set up local facilities to serve the market in each country.Answer: TrueDifficulty: Hard15. If the technology is flexible, it becomes more difficult to consolidate manufacturing in a few large facilities.Answer: FalseDifficulty: Hard16. Tariffs have a minor influence on location decisi

12、ons within a supply chain.Answer: FalseDifficulty: Easy17. High tariffs lead to more production locations within a supply chain network, with each location having a lower allocated capacity.Answer: TrueDifficulty: Hard18. When designing supply chain networks, companies must build appropriate flexibi

13、lity to help counter fluctuations in exchange rates and demand across different countries.Answer: TrueDifficulty: Moderate19. Inventory and facility costs increase as the number of facilities in a supply chain increase. Answer: TrueDifficulty: Moderate20. Transportation costs increase as the number

14、of facilities is increased.Answer: FalseDifficulty: Moderate21. A firm may increase the number of facilities beyond the point that minimizes total logistics cost to improve the response time to its customers.Answer: TrueDifficulty: Easy22. When faced with a network design decision, the goal of a man

15、ager is to design a network that minimizes the firms costs while satisfying customer needs in terms of demand and responsiveness.Answer: FalseDifficulty: Hard23. The supply chain network is designed to maximize total profits, taking into account the expected margin and demand in each market, various

16、 logistics and facility costs, and the taxes and tariffs at each location.Answer: TrueDifficulty: EasyMultiple Choice1. Supply chain network design decisions includea. only the location of manufacturing, storage, or transportation-related facilities.b. only the allocation of capacity and roles to ea

17、ch facility.c. both the location of manufacturing, storage, or transportation-related facilities and the allocation of capacity and roles to each facility.d. neither the location of manufacturing, storage, or transportation-related facilities nor the allocation of capacity and roles to each facility

18、.e. none of the aboveAnswer: cDifficulty: Easy2. Supply chain network design decisions classified as facility role are concerned with a. what processes are performed at each facility.b. where facilities should be located.c. how much capacity should be allocated to each facility.d. what markets each

19、facility should serve and which supply sources should feed each facility.e. none of the aboveAnswer: aDifficulty: Moderate3. Supply chain network design decisions classified as facility location are concerned witha. what processes are performed at each facility.b. where facilities should be located.

20、c. how much capacity should be allocated to each facility.d. what markets each facility should serve and which supply sources should feed each facility.e. none of the aboveAnswer: bDifficulty: Easy4. Supply chain network design decisions classified as capacity allocation are concerned witha. what pr

21、ocesses are performed at each facility.b. where facilities should be located.c. how much capacity should be allocated to each facility.d. what markets each facility should serve and which supply sources should feed each facility.e. none of the aboveAnswer: cDifficulty: Easy5. Supply chain network de

22、sign decisions classified as market and supply allocation are concerned witha. what processes are performed at each facility.b. where facilities should be located.c. how much capacity should be allocated to each facility.d. what markets each facility should serve and which supply sources should feed

23、 each facility.e. none of the aboveAnswer: dDifficulty: Easy6. Decisions concerning the role of each facility are significant becausea. they determine the amount of flexibility the supply chain has in demanding change.b. they determine the amount of flexibility the supply chain has in changing the w

24、ay it meets demand.c. they determine the amount of capacity the supply chain has in changing the way it meets demand.d. they determine the amount of inventory the supply chain has in demanding change.e. None of the above are true.Answer: bDifficulty: Moderate7. Facility location decisions have a lon

25、g-term impact on a supply chains performance becausea. it is very expensive to shut down a facility or move it to a different location.b. it is not expensive to shut down a facility or move it to a different location.c. it is advisable to shut down a facility or move it to a different location.d. it

26、 is cost effective to shut down a facility or move it to a different location.e. none of the aboveAnswer: aDifficulty: Moderate8. Capacity allocation decisions have a significant impact on supply chain performance becausea. capacity decisions tend to be permanent.b. capacity decisions tend to be cha

27、nged frequently.c. capacity decisions do not tend to stay in place for several years.d. capacity decisions tend to stay in place for several years.e. none of the aboveAnswer: dDifficulty: Moderate9. Allocating too much capacity to a location results ina. permanent damage.b. poor utilization, and as

28、a result, higher costs.c. high utilization, and as a result, higher costs.d. poor utilization, and as a result, lower costs.e. high utilization, and as a result, lower costs.Answer: bDifficulty: Moderate10. Allocating too little capacity results ina. temporary damage.b. good responsiveness if demand

29、 is not satisfied or low cost if demand is filled from a distant facility.c. good responsiveness if demand is not satisfied or high cost if demand is filled from a distant facility.d. poor responsiveness if demand is not satisfied or low cost if demand is filled from a distant facility.e. poor respo

30、nsiveness if demand is not satisfied or high cost if demand is filled from a distant facility.Answer: eDifficulty: Moderate11. The allocation of supply sources and markets to facilities has a significant impact on performance becausea. it cannot affect total production, inventory, and transportation

31、 costs incurred by the supply chain to satisfy customer demand.b. it cannot affect customer demand.c. it affects total production, inventory, and transportation costs incurred by the supply chain to satisfy customer demand.d. it cannot satisfy customer demand.e. none of the aboveAnswer: cDifficulty:

32、 Moderate12. The allocation of supply sources and markets to facilities should be reconsidered on a regular basis so thata. the allocation can be held constant as market conditions or plant capacities expand.b. the allocation can be changed as market conditions or plant capacities stagnate.c. the al

33、location can be held constant as market conditions or plant capacities change.d. the allocation can be changed as market conditions or plant capacities change.e. none of the aboveAnswer: dDifficulty: Moderate13. Network design decisions have a significant impact on performance because theya. determi

34、ne the supply chain configuration.b. determine the supply chain conflagration.c. set constraints within which inventory, transportation, and information can be used to either decrease supply chain cost or increase responsiveness.d. set constraints within which inventory, transportation, and informat

35、ion can be used to either increase supply chain cost or decrease responsiveness.e. a and c onlyAnswer: eDifficulty: Hard14. Customer order entry isa. the point in time when the customer has access to choices and makes a decision regarding a purchase.b. the customer informing the retailer of what the

36、y want to purchase and the retailer allocating product to the customer.c. the process where product is prepared and sent to the customer.d. the process where the customer receives the product and takes ownership.e. none of the aboveAnswer: bDifficulty: Moderate15. Which of the following is not a fac

37、tor influencing network design decisions in supply chains?a. Strategic factorsb. Tactical factorsc. Macroeconomic factorsd. Political factorse. Infrastructure factorsAnswer: bDifficulty: Moderate16. Firms focusing on cost leadership tend toa. locate facilities close to the market they serve.b. locat

38、e facilities very far from the market they serve.c. find the lowest cost location for their manufacturing facilities.d. select a high-cost location to be able to react quickly.e. none of the aboveAnswer: cDifficulty: Moderate17. Firms focusing on responsiveness tend toa. locate facilities close to t

39、he market they serve.b. locate facilities very far from the market they serve.c. find the lowest cost location for their manufacturing facilities.d. select a high-cost location to be able to react slowly.e. none of the aboveAnswer: aDifficulty: Moderate18. Which of the following is not one of Kasra

40、Ferdows classifications of possible strategic roles for various facilities in a global supply chain network?a. Offpost facilityb. Source facilityc. Server facilityd. Contributor facilitye. Outpost facilityAnswer: aDifficulty: Moderate19. A facility that serves the role of being a low-cost supply sou

41、rce for markets located outside the country where the facility is located is a. an offshore facility.b. a source facility.c. a server facility.d. a contributor facility.e. an outpost facility.Answer: aDifficulty: Moderate20. A facility that also has low cost as its primary objective, but its strateg

42、ic role is broader than that of an offshore facility isa. an offshore facility.b. a source facility.c. a server facility.d. a contributor facility.e. an outpost facility.Answer: bDifficulty: Moderate21. A facility built because of tax incentives, local content requirement, tariff barriers, or high l

43、ogistics cost to supply the region from elsewhere with the objective to supply the market where it is located isa. an offshore facility.b. a source facility.c. a server facility.d. a contributor facility.e. an outpost facility.Answer: cDifficulty: Moderate22. A facility located primarily to obtain a

44、ccess to knowledge or skills that may exist within a certain region isa. an offshore facility.b. a source facility.c. a server facility.d. a contributor facility.e. an outpost facility.Answer: eDifficulty: Moderate23. A facility that serves the market where it is located but also assumes responsibil

45、ity for product customization, process improvements, product modifications, or product development isa. an offshore facility.b. a source facility.c. a server facility.d. a contributor facility.e. an outpost facility.Answer: dDifficulty: Moderate24. A facility that creates new products, processes, an

46、d technologies for the entire network isa. an offshore facility.b. a source facility.c. a server facility.d. a lead facility.e. an outpost facility.Answer: dDifficulty: Moderate25. If production technology displays significant economies of scale,a. many high-capacity locations are the most effective

47、.b. few high-capacity locations are the most effective.c. few high-capacity locations are the least effective.d. few low-capacity locations are the most effective.e. few low-capacity locations are the least effective.Answer: bDifficulty: Moderate26. If facilities have lower fixed costs,a. a few high

48、-capacity facilities are preferred because this helps lower transportation costs.b. a few local facilities are preferred because this helps lower transportation costs.c. many high-capacity facilities are preferred because this helps lower transportation costs.d. many local facilities are preferred b

49、ecause this helps lower transportation costs.e. one central facility is preferred because this helps lower transportation costs.Answer: dDifficulty: Moderate27. If the production technology is very inflexible and product requirements vary from one country to another, a firm has to set upa. local fac

50、ilities to serve the market in each country.b. a few high-capacity facilities to serve the market in each country.c. many local facilities because this helps lower transportation costs.d. a few high-capacity facilities because this helps lower transportation costs.e. many high-capacity facilities be

51、cause this helps lower transportation costs.Answer: aDifficulty: Hard28. If the technology is flexible,a. it becomes more difficult to consolidate manufacturing in a few large facilities.b. it becomes more difficult to distribute manufacturing in many local facilities.c. it becomes easier to consoli

52、date manufacturing in a few large facilities.d. it becomes easier to consolidate manufacturing in many local facilities.e. the firm should have one central facility.Answer: cDifficulty: Hard29. Which of the following is a macroeconomic factor influencing network design decisions?a. Taxesb. Tariffsc.

53、 Exchange ratesd. all of the abovee. none of the aboveAnswer: dDifficulty: Easy30. Duties that must be paid when products and/or equipment are moved across international, state, or city boundaries are referred to asa. taxes.b. tax incentives.c. tariffs.d. incentives.e. none of the aboveAnswer: cDiff

54、iculty: Moderate31. If a country has very high tariffs,a. companies either do not serve the local market or set up manufacturing plants within the country to save on duties.b. companies do not serve the local market.c. companies set up manufacturing plants within the country to save on duties.d. com

55、panies will not serve the local market or set up manufacturing plants within the country to save on duties.e. companies will serve the local market by setting up regional manufacturing plants.Answer: aDifficulty: Moderate32. Developing countries often create free trade zones wherea. duties and tarif

56、fs are imposed as long as production is used primarily for export.b. duties and tariffs are imposed as long as production is used primarily for import.c. duties and tariffs are relaxed as long as production is used primarily for export.d. duties and tariffs are relaxed as long as production is used

57、primarily for import.e. duties and tariffs are increased as long as production is used primarily for export.Answer: cDifficulty: Easy33. Building some over-capacity in the supply chain network and making the capacity flexible allows a firm to alter production flows within the supply chain toa. produce less in facilities that have a lower cost based on current exchange rates.b. produce