The classic objective of a network design model has been
A) to establish the number, location, and size of finished goods distribution centers and associated product flows.
B) to find the best location for a forward facing warehouse.
C) to examine the finished goods flow from the warehouse to the customer.
D) to measure and control site locations.

Question

Quizplus · Accepted Answer

A classic objective of a network design model is to establish the optimal number, location, and size of distribution centers in order to minimize transportation costs and satisfy customer demand. Option B, finding the best location for a forward facing warehouse, and option D, measuring and controlling site locations, are both part of the larger objective of network design, but do not fully capture the scope of the classic objective. Option C, examining the finished goods flow from the warehouse to the customer, is more specific and focused on the downstream portion of the distribution network, and thus not as comprehensive as the classic objective.

The Classic Objective of a Network Design Model Has Been