chopra_scm5_tif_ch05.doc

 Supply Chain Management, 5e (Chopra/Meindl) Chapter 5 Network Design in the Supply Chain

5.1 True/False Questions 1) 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. Anser! T"#$ %iff! & Topic! 5.1 The "ole of 'etor( 'etor( %esign in the Supply hain AAS*! Analytic S(ills +earning utcome! ompare common approaches to supply chain design &) %ecisions concerning the role of each facility are significant ecause they determine the amount of rigidity the supply chain has in changing the ay it meets demand. Anser! FA+S$ %iff! & Topic! 5.1 The "ole of 'etor( 'etor( %esign in the Supply hain AAS*! Analytic S(ills +earning utcome! ompare common approaches to supply chain design ) Facility location decisions hae a long-term impact o n a supply chain0s performance ecause it is cost effectie to shut don a facility or moe it to a different location. Anser! FA+S$ %iff! 1 Topic! 5.1 The "ole of 'etor( 'etor( %esign in the Supply hain AAS*! Analytic S(ills +earning utcome! ompare common approaches to supply chain design ) apacity allocation decisions hae a significant impact on supply chain performance ecause they tend to stay in place for seeral years. Anser! T"#$ %iff! & Topic! 5.1 The "ole of 'etor( 'etor( %esign in the Supply hain AAS*! Analytic S(ills +earning utcome! ompare common approaches to supply chain design 5) The allocation of supply sources and mar(ets to facilities has a significant impact on  performance ecause it affects total production, inentory, inentory, and transportation costs incurred y the supply chain to satisfy customer demand. Anser! T"#$ %iff! 1 Topic! 5.1 The "ole of 'etor( 'etor( %esign in the Supply hain +earning utcome! ompare common approaches to supply chain design

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7) The allocation of supply sources and mar(ets to facilities does not need to e reconsidered on a regular asis so that the allocation can e changed as mar(et conditions con ditions or plant capacities change. Anser! T"#$ %iff! & Topic! 5.1 The "ole of 'etor( 'etor( %esign in the Supply hain +earning utcome! ompare common approaches to supply chain design 8) 'etor( design decisions hae a significant impact on performance ecause they determine the supply chain configuration and set constraints ithin hich inentory, inentory, transportation, and information can e used to either decrease de crease supply chain cost or increase responsieness. Anser! T"#$ %iff! & Topic! 5.1 The "ole of 'etor( 'etor( %esign in the Supply hain +earning utcome! ompare common approaches to supply chain design 9) Firms focusing on cost leadership tend to find the loest cost location for their manufacturing facilities, ut only if that means locating ery far from the mar(ets they sere. Anser! FA+S$ %iff! 1 Topic! 5.& Factors nfluencing nfluencing 'etor( %esign %ecisions +earning utcome! ompare common approaches to supply chain design :) f production technology displays significant economies of scale, many local locations are the most effectie. Anser! FA+S$ %iff! & Topic! 5.& Factors nfluencing nfluencing 'etor( %esign %ecisions +earning utcome! ompare common approaches to supply chain design 13) f facilities hae loer fi;ed costs, many local facilities are preferred ecause this helps loer transportation costs. Anser! T"#$ %iff! & Topic! 5.& Factors nfluencing nfluencing 'etor( %esign %ecisions +earning utcome! ompare common approaches to supply chain design 11) f the production technology is ery infle;ile and product ree total profits, ta(ing into account the e;pected margin and demand in each mar(et, arious logistics and facility costs, and the ta;es and tariffs at each location. Anser! T"#$ %iff! 1 Topic! 5. Frameor( for 'etor( %esign %ecisions +earning utcome! ompare common approaches to supply chain design &1) %ecisions concerning the role of each facility are significant ecause they determine the amount of fle;iility the supply chain has in changing the ay it meets demand. Anser! T"#$ %iff! 1 Topic! 5.1 The "ole of 'etor( %esign in the Supply hain AAS*! Analytic S(ills +earning utcome! ompare common approaches to supply chain design &&) 'etor( design decisions hae a significant impact on performance ecause they determine the supply chain configuration and set constraints ithin hich the other supply chain driers can e used either to decrease supply chain cost or to increase responsieness. Anser! T"#$ %iff! 1 Topic! 5.1 The "ole of 'etor( %esign in the Supply hain AAS*! Analytic S(ills +earning utcome! ompare common approaches to supply chain design &) f facilities hae higher fi;ed costs, many local facilities are preferred ecause this helps loer transportation costs. Anser! FA+S$ %iff! 1 Topic! 5.& Factors nfluencing 'etor( %esign %ecisions AAS*! Analytic S(ills +earning utcome! ompare common approaches to supply chain design

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5.& ?ultiple hoice Questions 1) Supply chain network design decisions include A) only the location of manufacturing, storage, or transportation-related facilities. *) only the allocation of capacity and roles to each facility. ) oth the location of manufacturing, storage, or transportation-related facilities and the allocation of capacity and roles to each facility. %) neither the location of manufacturing, storage, or transportation-related facilities nor the allocation of capacity and roles to each facility. $) none of the aoe Anser!  %iff! 1 Topic! 5.1 The "ole of 'etor( %esign in the Supply hain +earning utcome! ompare common approaches to supply chain design &) Supply chain netor( design decisions classified as facility role are concerned ith A) hat processes are performed at each facility. *) here facilities should e located. ) ho much capacity should e allocated to each facility. %) hat mar(ets each facility should sere and hich supply sources should feed each facility. $) none of the aoe Anser! A %iff! & Topic! 5.1 The "ole of 'etor( %esign in the Supply hain +earning utcome! ompare common approaches to supply chain design ) Supply chain netor( design decisions classified as facility location are concerned ith A) hat processes are performed at each facility. *) here facilities should e located. ) ho much capacity should e allocated to each facility. %) hat mar(ets each facility should sere and hich supply sources should feed each facility. $) none of the aoe Anser! * %iff! 1 Topic! 5.1 The "ole of 'etor( %esign in the Supply hain +earning utcome! ompare common approaches to supply chain design ) Supply chain netor( design decisions classified as capacity allocation are concerned ith A) hat processes are performed at each facility. *) here facilities should e located. ) ho much capacity should e allocated to each facility. %) hat mar(ets each facility should sere and hich supply sources should feed each facility. $) none of the aoe Anser!  %iff! 1 Topic! 5.1 The "ole of 'etor( %esign in the Supply hain

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5) Supply chain netor( design decisions classified as market and supply allocation are concerned ith A) hat processes are performed at each facility. *) here facilities should e located. ) ho much capacity should e allocated to each facility. %) hat mar(ets each facility should sere and hich supply sources should feed each facility. $) none of the aoe Anser! % %iff! 1 Topic! 5.1 The "ole of 'etor( %esign in the Supply hain +earning utcome! ompare common approaches to supply chain design 7) %ecisions concerning the role of each facility are significant ecause A) they determine the amount of fle;iility the supply chain has in demanding change. *) they determine the amount of fle;iility the supply chain has in changing the ay it meets demand. ) they determine the amount of capacity the supply chain has in changing the ay it meets demand. %) they determine the amount of inentory the supply chain has in demanding change. $) 'one of the aoe are true. Anser! * %iff! & Topic! 5.1 The "ole of 'etor( %esign in the Supply hain +earning utcome! ompare common approaches to supply chain design 8) Facility location decisions hae a long-term impact o n a supply chain0s performance ecause A) it is ery e;pensie to shut don a facility or moe it to a different location. *) it is not e;pensie to shut don a facility or moe it to a different location. ) it is adisale to shut don a facility or moe it to a different location. %) it is cost effectie to shut don a facility or moe it to a different location. $) none of the aoe Anser! A %iff! & Topic! 5.1 The "ole of 'etor( %esign in the Supply hain +earning utcome! ompare common approaches to supply chain design 9) apacity allocation decisions hae a significant impact on supply chain performance ecau se A) capacity decisions tend to e permanent. *) capacity decisions tend to e changed frees the firm0s profits. *) minimi>es the firm0s costs. ) satisfies customer needs in terms of demand and responsieness. %) ma;imi>es the firm0s profits hile satisfying customer needs in terms of demand and responsieness. $) none of the aoe Anser! % %iff! & Topic! 5. Frameor( for 'etor( %esign %ecisions

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7) =hich of the folloing is not a phase in the design of a gloal supply chain netor(@ A) %efine a supply chain strategy *) %efine the regional facility configuration ) Select desirale sites %) +ocation choices $) mplement supply chain strategy Anser! $ %iff! & Topic! 5. Frameor( for 'etor( %esign %ecisions +earning utcome! ompare common approaches to supply chain design 8) =hich of the folloing is the first phase in the design of a gloal supply chain netor(@ A) %efine a supply chain strategy *) %efine the regional facility configuration ) Select desirale sites %) +ocation choices $) mplement supply chain strategy Anser! A %iff! & Topic! 5. Frameor( for 'etor( %esign %ecisions 9) The oBectie of the first phase of netor( design is to A) ma;imi>e total profits, ta(ing into account the e;pec ted margin and demand in each mar(et. *) select a precise location and capacity allocation for each facility. ) select a set of desirale sites ithin each region here facilities are to e located. %) identify regions here facilities ill e located, their potential roles, and their appro;imate capacity. $) specify hat capailities the supply chain netor( must hae to support a firm0s competitie strategy. Anser! $ %iff!  Topic! 5. Frameor( for 'etor( %esign %ecisions :) The oBectie of the second phase of netor( design is to A) ma;imi>e total profits, ta(ing into account the e;pec ted margin and demand in each mar(et. *) select a precise location and capacity allocation for each facility. ) select a set of desirale sites ithin each region here facilities are to e located. %) identify regions here facilities ill e located, their potential roles, and their appro;imate capacity. $) specify hat capailities the supply chain netor( must hae to support a firm0s competitie strategy. Anser! % %iff!  Topic! 5. Frameor( for 'etor( %esign %ecisions

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3) The oBectie of the third phase of netor( design is to A) ma;imi>e total profits, ta(ing into account the e;pec ted margin and demand in each mar(et. *) select a precise location and capacity allocation for each facility. ) select a set of desirale sites ithin each region here facilities are to e located. %) identify regions here facilities ill e located, their potential roles, and their appro;imate capacity. $) specify hat capailities the supply chain netor( must hae to support a firm0s competitie strategy. Anser!  %iff!  Topic! 5. Frameor( for 'etor( %esign %ecisions 1) t is ery important that long-term conse