Question 1

Define and discuss the Grid Technique, including its advantages and disadvantages.

Accepted Answer

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Question 2

List and discuss potential supply chain modeling pitfalls to avoid.

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Question 3

Heuristic models:

Accepted Answer

Heuristic models are problem-solving approaches that prioritize practicality over optimality. They are designed to be flexible and able to accommodate broad problem definitions, making them useful in a variety of situations. While they may not always provide the most optimal solution, they can be useful in quickly generating potential solutions or in situations where a perfect solution is not necessary. The statement about SAILS is irrelevant and the statement about "seat of the pants" solutions is not necessarily true for heuristic models.

Question 4

When a blanket rate structure is used, which factor is eliminated as a locational determinant?

Accepted Answer

When a blanket rate structure is used, transportation rate is eliminated as a locational determinant since the same rate applies to all locations regardless of distance or mode of transportation used.

Question 5

Which is an advantage of the grid technique for facility location?

Accepted Answer

The grid technique is computationally easy to use, making it a practical tool for facility location analysis. However, it does not establish the final determination of the best site or consider topographic conditions, and it is not necessarily a dynamic approach that remains optimal over time.

Question 6

When Zappos, a leading online shoe retailer, receives an online order through its website, the order is sent directly to the most appropriate distribution center for fulfillment. This is an example of:

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Question 7

Simulation models:

Accepted Answer

Simulation models allow the decision maker to test the effects of alternative locations, but they do not guarantee optimum solutions or generate SAILS reports. They search for possible solutions through trial and error.

Question 8

Distinguish between the locational determinants of labor climate and quality of life.

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Question 9

Application of the grid technique to the location of a city warehouse:

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Question 10

The classic objective of a network design model has been to:

Accepted Answer

The classic objective of a network design model has been to establish the number, location, and size of finished goods distribution centers and associated product flows. This includes determining the optimal placement of warehouses and distribution centers to minimize transportation costs and improve efficiency in the supply chain. Options B, C, and D are all part of this larger objective.

Question 11

Briefly describe the six major steps that are recommended for a logistics network design process.

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Question 12

The grid technique:

Accepted Answer

The grid technique assumes that the raw materials sources and finished goods markets are fixed, making it different from SAILS, which assumes they are variable. It also assumes linear transportation rates, making it a useful tool for optimizing transportation costs in supply chain management.

Question 13

Define the principles of tapering rates, blanket rates, and commercial zones and the implication of each on location selection.

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Question 14

Which is correct regarding tapering rates?

Accepted Answer

Tapering rates are based on the carrier's ability to spread certain fixed shipment costs over a greater number of miles, which reduces the cost per mile for longer hauls.

Question 15

The optimization model is based on:

Accepted Answer

The optimization model is based on precise mathematical procedures to find the best solution for a given problem. Sampling experiments and rule of thumb approaches may not provide the most accurate or efficient results. Broad problem definitions can be useful, but they must be translated into precise mathematical models for optimization.

Question 16

Southwest Auto Parts already had a massive distribution center in Utah serving its 147 stores scattered across seven U.S. states when it decided to start selling auto parts online. The firm's management wanted to minimize startup costs by consolidating order fulfillment under the same roof, so which model of order fulfillment did the firm's managers decide to use?

Accepted Answer

The firm's decision to consolidate online order fulfillment with its existing distribution operations for physical stores under the same roof indicates an integrated model. This approach combines both online and offline fulfillment processes to minimize costs and streamline operations.

Question 17

What are the current trends governing site selection?

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Question 18

What is the effect of tapering rates on facility location?

Accepted Answer

Tapering rates refer to a situation where transportation costs decrease as the distance between the facility and the source or the market decreases. This means that the optimal location for a facility is closer to either the source or the market. Therefore, tapering rates pull the location towards the source or the market, rather than pushing raw materials sources or pulling the facility towards the location.

Quiz 4: Supply Chain and Omni Channel Network Design