Deck 11: Network Design

Question 1

The relationship between uncertainty and inventory is called the square root rule.

Answer 1

False

Question 2

The threshold service level is:

A)The level of service associated with the least cost system design
B)The level of service only associated with an optimum system design
C)The level of service existing in a system prior to redesign
D)None of the above

Answer 2

A

Question 3

In a typical static location analysis customer service fill rate and delivery time is calculated based on distance.

Answer 3

False

Question 4

Each unique location analysis has a unique threshold service level.

Question 5

Which of the following problems is not appropriate for a transportation analysis tool?

A)Which routes should be assigned to which vehicle types?
B)How should deliveries be grouped together to form routes?
C)What delivery sequence should be used to accommodate customer time restrictions?
D)How many distribution centers should there be to best serve customers?

Question 6

When designing a warehouse network,if the overall safety stock increases as the number of warehouses increase then:

A)Network uncertainty is decreasing
B)Network uncertainty is increasing
C)Network uncertainty in constant
D)Safety stock is appropriately linked to average stock

Question 7

A trade-off is best described by which of the following:

A)The relationship between two variables
B)The sum of two variables
C)One variable minus the other variable
D)One variable plus the other variable

Question 8

Market based Assembly To Order (ATO)is a form of:

A)Manufacturing justified warehousing
B)Procurement justified warehousing
C)Customer justified warehousing
D)None of the above.

Question 9

Cost prevention benefits:

A)Represent a one-time reduction in financial or managerial resources required to operate the logistics system
B)Represent reduced out-of-pocket or variable expenses
C)Represent initiatives to reduce sales volumes
D)Represent initiatives to reduce activities in areas where cost drivers are increasing

Question 10

The threshold service level is the starting point for cost revenue sensitivity analysis.

Question 11

Which of the following is not a component of the feasibility assessment of the Planning Methodology?

A)Situation analysis
B)Statement of objectives
C)Cost/benefit estimate
D)Supporting logic

Question 12

Threshold service level is:

A)Limited to measures of availability
B)Limited to measures of capability
C)Unique to each location situation
D)The result of service sensitivity analysis

Question 13

In system design the lowest total cost configuration is typically;

A)Not the lowest cost of either transportation or inventory
B)the lowest cost of either transportation or inventory
C)Not related to transportation or inventory
D)Difficult to generalize

Question 14

Business assumptions focus on all of the following except

A)Resource availability
B)Competitive actions
C)Mode utilization
D)Consumer trends

Question 15

In terms of warehouse justification which of the following statements is true?

A)A warehouse is justified if it offers a way to achieve competitively superior service.
B)A warehouse is justified if it offers a way to provide service at lowest cost
C)A warehouse is justified if it offers lowest total cost assembly support.
D)All of the above

Question 16

Transit stock inventory can be available to promise.

Question 17

Supply chain design decisions focus on?

A)How much inventory is necessary to meet service requirements?
B)How many warehouses should the firm use and where should they be located?
C)How should the firm route trucks for deliveries?
D)Which channels of distribution should the firm use?
E)B and D above

Question 18

Local Presence is considered an obsolete paradigm because:

A)Local presence was replaced by regional warehousing
B)Having inventory immediately available is no longer required
C)Customers are willing to wait for delivery
D)The advent of timely and consistent transportation

Question 19

Which of the following is the best method to determine inventory parameters such as safety stock and order quantity?

A)Inventory simulation
B)Supply chain design optimization
C)Analytic inventory formulation
D)Transportation analysis tool

Question 20

The internal review topics should focus on all of the following except:

A)Customer service
B)Suppliers
C)Warehousing
D)Inventory

Question 21

Warehouses can be justified on the basis of cost,specific service objective or generalized local presence.

Question 22

Mathematical modeling supported by computer analysis has rendered the optimization of warehouse networks a relatively easy analysis.

Question 23

Transit time to customer is typically estimated on the basis of highway route miles when performing a static warehouse analysis.

Question 24

Service sensitivity analysis is a form of cost-revenue analysis.

Question 25

The manufacturing strategy of a firm will determine to a large degree the appropriate supporting warehouse structure.

Question 26

The local presence paradigm is increasingly obsolete because of improved inventory control.

Question 27

A supply facing warehouse is one that is focused on supplying key customers.