Ids 454

Front 1

Supply chain network design decisions include

Back 1

both the location of manufacturing, storage, or transportation-related facilities and the allocation of capacity and roles to each facility

Front 2

Supply chain network design decisions classified as facility role are concerned with

Back 2

what processes are performed at each facility

Front 3

Supply chain network design decisions classified as facility location are concerned with

Back 3

where facilities should be located

Front 4

Supply chain network design decisions classified as capacity allocation are concerned with

Back 4

how much capacity should be allocated to each facility

Front 5

Supply chain network design decisions classified as market and supply allocation are concerned with

Back 5

what markets each facility should serve and which supply sources should feed each facility

Front 6

Decisions concerning the role of each facility are significant because

Back 6

they determine the amount of flexibility the supply chain has in changing the way it meets demand

Front 7

Facility location decisions have a long-term impact on a supply chain’s performance because

Back 7

it is very expensive to shut down a facility or move it to a different location

Front 8

Capacity allocation decisions have a significant impact on supply chain performance because

Back 8

capacity decisions tend to stay in place for several years

Front 9

Allocating too much capacity to a location results in

Back 9

poor utilization, and as a result, higher costs.

Front 10

Allocating too little capacity results in

Back 10

poor responsiveness if demand is not satisfied or high cost if demand is filled from a distant facility

Front 11

The allocation of supply sources and markets to facilities has a significant impact on performance because

Back 11

it affects total production, inventory, and transportation costs incurred by

Front 12

The allocation of supply sources and markets to facilities should be reconsidered on a regular basis so that

Back 12

the allocation can be changed as market conditions or plant capacities change

Front 13

Network design decisions have a significant impact on performance because they

Back 13

1) determine the supply chain configuration

2) set constraints within which inventory, transportation, and information can be used to either decrease supply chain cost or increase responsiveness

Front 14

Customer order entry is

Back 14

the customer informing the retailer of what they want to purchase and the retailer allocating product to the customer

Front 15

Which of the following is not a factor influencing network design decisions in supply chains?

Back 15

Tactical factors

Front 16

Firms focusing on cost leadership tend to

Back 16

find the lowest cost location for their manufacturing facilities

Front 17

Firms focusing on responsiveness tend to

Back 17

locate facilities close to the market they serve

Front 18

Which of the following is NOTTT one of Kasra Ferdows’ classifications of possible strategic roles for various facilities in a global supply chain network?

Back 18

Offpost facility

Front 19

A facility that serves the role of being a low-cost supply source for markets located outside the country where the facility is located is

Back 19

an offshore facility

Front 20

A facility that also has low cost as its primary objective, but its strategic role is broader than that of an offshore facility is

Back 20

a source facility

Front 21

A facility built because of tax incentives, local content requirement, tariff barriers, or high logistics cost to supply the region from elsewhere with the objective to supply the market where it is located is

Back 21

a server facility

Front 22

A facility located primarily to obtain access to knowledge or skills that may exist within a certain region is

Back 22

an outpost facility

Front 23

A facility that serves the market where it is located but also assumes responsibility for product customization, process improvements, product modifications, or product development is

Back 23

a contributor facility

Front 24

A facility that creates new products, processes, and technologies for the entire network is

Back 24

a lead facility

Front 25

If production technology displays significant economies of scale

Back 25

few high-capacity locations are the most effective

Front 26

If facilities have lower fixed costs

Back 26

many local facilities are preferred because this helps lower transportation costs

Front 27

If the production technology is very inflexible and product requirements vary from one country to another, a firm has to set up

Back 27

local facilities to serve the market in each country

Front 28

If the technology is flexible

Back 28

it becomes easier to consolidate manufacturing in a few large facilities

Front 29

Which of the following is a macroeconomic factor influencing network design decisions?

Back 29

Taxes

Tariffs

Exchange rates

- all of the above-

Front 30

Duties that must be paid when products and/or equipment are moved across international, state, or city boundaries are referred to as

Back 30

tariffs

Front 31

If a country has very high tariffs

Back 31

companies either do not serve the local market or set up manufacturing plants within the country to save on duties

Front 32

Developing countries often create free trade zones where

Back 32

duties and tariffs are relaxed as long as production is used primarily for export

Front 33

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 to

Back 33

produce more in facilities that have a lower cost based on current exchange rates

Front 34

Positive externalities are instances where

Back 34

the collocation of multiple firms benefits all of them

Front 35

Inventory and facility costs

Back 35

increase as the number of facilities in a supply chain increases

Front 36

Transportation costs

Back 36

decrease as the number of facilities is increased

Front 37

Total logistics costs are a sum of the

Back 37

inventory, transportation, and facility costs

Front 38

The facilities in a supply chain network must

Back 38

at least equal the number that minimizes total logistics cost.

Front 39

When faced with a network design decision, the goal of a manager is to design a network that

Back 39

maximizes the firm’s profits while satisfying customer needs in terms of demand and responsiveness

Front 40

Which of the following is not a phase in the design of a global supply chain network?

Back 40

Implement supply chain strategy

Front 41

Which of the following is the first phase in the design of a global supply chain network?

Back 41

Define a supply chain strategy

Front 42

The objective of the first phase of network design is to

Back 42

specify what capabilities the supply chain network must have to support a firm’s competitive strategy

Front 43

The objective of the third phase of network design is to

Back 43

select a set of desirable sites within each region where facilities are to be located

Front 44

The objective of the third phase of network design is to

Back 44

select a precise location and capacity allocation for each facility

Front 45

The implications of culture should not be glossed over because

Back 45

tariffs and tax incentives should be carefully considered

Front 46

The quality of life at selected facility locations has a significant impact on performance because

Back 46

it influences the work force available and their morale

Front 47

Managers making facility location decisions should carefully consider tariffs and tax incentives, because

Back 47

it is astounding how often tax incentives drive the choice of location