SmartBook Ch. 11

Which is not a goal of relational buying?

Reduce relationships

The relative economic growth in the regions where a firm might want to locate a plant or distribution center is referred to as?

Regional economy

What are the analysis questions based on?

Research objectives Constraints

Which of the following are types of supply chain principles?

Risk focus

Which of the following are common techniques for planning?

Validate

What is essential to phase 1 of logistics system design and planning?

a thorough and well documented problem definition and plan

Analysis process does not include which of the following?

Data collection

The forward deployment of inventory in a logistical system potentially improves service response time and also increases overall system inventory, resulting in greater cost and .

risk

Manufacturing requires warehouses to , sort, and sequence materials and components.

store

The selection of individual locations, as well as the composite locational network, represents important competitive and cost-related decisions.

logistical

Given the same demand and customer service goals, total inventory increases at a decreasing rate as the number of in a logistical network increases.

warehouses

Demand facing warehouses are warehouses used to support which of the following for the customers?

Accommodations

Identifying value proposition, supporting logic development and lastly, the process of developing supporting logic are three ways to build on which of the following processes?

Comprehensive review

Which aspect of integration has the goal of identification of the least-total-cost network design?

Logistics

Measurement standards should include definitions regarding how cost components, such as which of the following, are quantified?

Order processing Transportation Inventory

The comparison between actual and modeling results should focus on identifying significant differences and determining sources for which of the following?

Errors

Analysis involves use of the technique and data to evaluate strategic and tactical logistics .

alternatives

Alternative and sensitivity analysis results provide the to finalize managerial recommendations.

basis

The first task defines the implementation plan in terms of individual events, the sequences and .

dependencies

Which of the following is execution of the plan or design?

Plan implementation

Who must match the firm's cultural expectations?

Region Suppliers

The social consideration focuses on the need to meet which of the following requirement?

Sustainability Social justice

What is the analysis term applied to logistics, which seeks to quantify trade-offs?

System

Benefits should be categorized in terms of service improvements, cost _______ and cost _______.

reduction prevention

True or false: Since 2010, the network design decision has become much more complex because there are many new considerations.

True

The actual plan or design implementation is the process activity.

final

The end result of a risk appraisal is to provide a evaluation of the downside risk if planning assumptions fail to materialize.

financial

In order to define the completion sequence, the plan dependencies identify the interrelationship between which of the following?

Events

What are the alternatives and sensitivity analysis considering when identifying the best options?

Implementation

Which two dimensions do the framework build upon?

Platform Factor drivers

The analysis of alternatives should quantify the impact of changes in what aspect of management?

Policies and practices

What is not included in a managerial presentation that suggests change?

Qualifying

Strategy Dimensions include all of the following except:

Quality assurance

Estimating costs and benefits, identifying the best alternative, developing a risk assessment and developing a presentation are four processing tasks that serve which purpose?

Recommendation

Implementing and time-phasing the identified assignments is known as which of the following?

Scheduling

Which of the following is not included in specific considerations?

Technological synchronizing

Phase lll operationalize planning and design efforts by making specific management recommendation and developing implementation .

plans

The purpose of developing a statement of constraint is to have a well defined starting for the planning effort.

point

The presentation and accompanying report must identify specific operating and strategic changes, provide a rationale as to why such change is appropriate and then quantitatively justify the changes.

qualitative

The options for analysis of alternatives should determine the relevant performance characteristics for each alternative design or .

strategy

While the exogenous drivers are outside the control of the firm, the strategy drivers reflect the firm's decisions.

strategy

The schedule must allow adequate time for acquiring facilities and , negotiating agreements, developing procedures, and training.

equipment

While the traditional application of supply chain principles focuses on manufacturing operations, there are many other applications in process and resources .

management

Sensitivity analysis in conjunction with an assessment of potential scenario probabilities is used in a decision tree to identify the best alternative to meet expectations.

managerial

An analytical approach uses tools such as spreadsheets to evaluate each logistical alternative.

numerical

Acceptance is defined as having a criteria for evaluating the success of a .

plan

The exogenous drivers, which are outside the firm's control, influence a firm's make or distribution strategy, including economics, talent, product, sales/marketing/distribution and social.

product

What does phase III involve?

recommendations implementations

The sales/marketing/distribution consideration focuses on the need to have consistent sales, marketing, and distribution strategies in each .

region

The major consideration driving logistics network design are demand location, _______ costs, _______ cost, and _______ cost, in decreasing priority order.

transportation material labor

The drivers reflect the environment that the firm chooses to operate in (exogenous) and the strategies that it chooses to employ (strategy).

uncontrollable

In what capacity is the typical starting point for customer service availability analysis determined?

Acceptable fill rate

Which focus relates to whether the firm's consumers want standardized global designs with supply chain economies of scale or more flexible regional designs?

Customer

True or false: Cost trade-offs do not exist between inventory and transportation.

False

True or false: Exogenous drivers are within a firm's control.

False

What is the process of evaluating change referred to as?

Feasibility assessment

The establishment of a customer relationship warehouse is the result of forward inventory deployment that is classified as which type of forecasting?

Future

Which of the following is not an acceptance criteria?

Improved evaluation

Which of the following is not a broad task of implementation?

Improving the plan

In combination, both quantity and tapering principles serve to spread the fixed cost related to transportation in which of the following?

Miles and weight

For overall inventory, the average inventory is the safety stock in addition to which other quantity?

Order

What does validation data accurately verify and reflect after it has been collected?

Reality

In order to provide an economical justification of a warehouse, the potential cost savings of consolidated transportation must be provided. This will occur when the customer orders tend to be what size?

Small

Which of the following is not an uncontrollable factor varied to assess design alternative's ability to operate under different conditions?

Speed and space

Consistency in product, process, and technology will likely lead to centralization to a limited number of sites with the following resulting factor?

Standardization

Which of the following is the term for facilities used for inbound materials and components?

Supply facing warehouses

The product consideration focuses on materials, expectations, intellectual property, technical risk, and desired consumer .

differences

The consideration includes the regional economy, local labor rate, regional technologies and regional market potential.

economic

Situational analysis is the collection of performance measures, characteristics, and information describing the current logistics .

environment

Implementation must include adequate controls to ensure performance as anticipated and that criteria are carefully monitored.

acceptance

When evaluating the potential of a particular logistics strategy, an analysis comparing present cost and service capabilities with projected performance should be completed for each .

alternative

The talent consideration focuses on the of management, design, production, and customer focus.

availability

It is important to recognize that care must be taken to define the analysis questions so that a wide range of possible options can be without requiring time consuming modification of the model or additional data collection.

evaluated

What must be completed before phase II of the research process begins?

feasibility assessment and project plan

Analysis results should be compared with the data to determine the degree of fit between actual and modeling results.

validation

The ideal of what type of analysis compares the alternatives for a base period, then projects comparative operations across a planning horizon?

Cost/benefit

Which of the following are considerations for decision application?

Approval

Risk assessment considers the probability that the actual operating environment will match which of the following?

Assumptions

Regardless of the performance cycle, which of the following is a key driver of inventory economics?

Time

A warehouse is justified if it offers a way to achieve a service or cost advantage.

competitive

Although the concept of best may have different interpretations, it will generally be the alternative that meets desired service objectives at the minimum total .

cost

The statement of objectives define market or industry segments, the time frame for change, and specific expectations.

performance

To finalize logistical , management typically require considering a range of strategic alternatives.

policy

Which of the following does a typical analysis not required in determining existing capabilities and improvement potential?

External operational review

Which of the following is not a driver for customer relationship warehouses?

Reduce communication channels

A typical logistics system designed must a range of service alternatives, cost assumptions, and operating capabilities.

evaluate

The basic economic principle justifying establishment of a warehouse is consolidation.

transportation

A manufacturer's capability to provide a consolidated invoice may be the primary reason to be selected as which of the following?

Preferred supplier

Warehouse locations within the market served is justified as the least-cost way to rapidly replenish an assortment of inventory to which of the following?

End customer Retailer

True or false: The availability of economical transportation will not create the opportunity to establish a competitively superior warehouse network to service customers.

False

True or false: The combination of maintenance and ordering cost, adjusted to take into consideration volume transportation rates and purchase discounts, considers the replenishment EOQ and the resultant base stock.

False

Which of the following is not one of the detailed assumptions and identifying data collection requirements?

Improve data analysis techniques

Which assumption defines the physical and economic characteristics of the current or alternative logistics environment?

Management

Which data category uses sales forecast and percentage of sales by month, as well as seasonality patterns that are necessary to determine logistic volume and patterns?

Sales and customers orders

The threshold service resulting from the least-total-cost logistical design provides a basis for which of the following analysis?

Service sensitivity

The overall level of customer service associated with the least-total-cost system design is referred to as which service level?

Threshold

The project management is responsible for the achievement of expected results within which of the following constrains?

Time and budget

Which data requirement includes the number and type of modes unitized, modal selection criteria, rates, transit times, shipping rules, and policies?

Transportation

To overcome limitations, what needs to be introduced to the analysis?

Transportation alternatives Variations in shipment size

True or false: The ongoing constants are level of inventory availability, performance cycle time, and the specific warehouse locations being evaluated.

True

Phase ll: Data collection and analysis requires definition of assumptions, data collection, and analysis of .

alternatives

To establish a threshold service level, it is necessary to initiate network re-engineering with policies regarding desired inventory and .

availability capability

Total cost related to inventory commitment increases with each additional warehouse.

average

Logistics system complexity requires that any effort to identify and evaluate strategic or tactical alternatives must be planned thoroughly to provide a sound basis for implementing .

change

Consolidated product assortments can rapidly replenish retail inventories because of the geographical proximity.

close

Which of the following is not a question that accommodates service requirement change: a. How many warehouses should a logistics system use and where should they be located? b. What are the inventory/service trade-offs for each warehouse? c. What types of transportation capability should be used? d. Is offloading excess inventory needed? e. Is a redesign of our warehouse network justified?

d

Which of the following is not a reason for location modification: a. High degrees of service are achieved much faster for longer performance intervals. b. Total cost associated with each location added to the logistical network increases dramatically. c. Incremental service is a diminishing function. d. A warehouse is controlled more effectively when its network is involved.

d

As warehouses are added to the logistical network, in which direction will the transportation cost initially take?

decline

On the basis of feasibility assessment, objectives, constraints, standards, and analysis techniques, a project work plan can be and the resources and time required for completion specified.

developed

The activity extends the feasibility assessment and project plan by detailed planning assumptions and identifying data collection requirements.

developing

A strategy of least total cost seeks a logistical system network with the lowest and variable costs.

fixed

Local presence paradigm refers to the customer perception of consistent delivery requiring inventory.

local

While substantial difficulties exist in the measurement of revenue, the comparative evaluation of service performance and related cost offers a way to approximate an ideal logistical system design.

marginal

Total cost integration of logistics cost centers, such as transportation and inventory, should determine a firm's initial of warehouse facilities.

network

The objective of feasibility assessment is to understand the environment, process, problems, and characteristics of the current system and to determine what, if any, modifications appear worthy of consideration.

performance

Specific customer data are also required to add a spatial dimension which reflects the fact that effective logistics to key customer requires that the delivery cost and time associated with precise location be .

quantified

The key to achieving economical transportation is summarized in two basic principles: and tapering.

quantity

Measurement standards direct the analysis by identifying cost assumptions and performance objectives essential to evaluate .

recommendations

The purpose of of the situational analysis is to provide senior management with the best possible vision of the and of existing logistics system capabilities for both the existing and potential future logistical requirements.

strengths weaknesses

What two cost components are involved in the total cost network?

transportation and inventory.

Logistics managers often estimate the inventory impact of adding or deleting warehouses. The relationship between and required inventory is called portfolio effect.

uncertainty

The basic service capabilities of a network can be increased or decreased by variation in number of warehouses, change in one or more performance cycles to increase or consistency of operations.

speed

In assemble-to-order (ATO) situations, common or undifferentiated components are in warehouse inventory in of performing customized manufacturing or assembly at the warehouse upon receipt of customer orders.

stocked anticipation

Cost trade-offs related to transportation and inventory seek to identify?

least total-cost facility network

As long as the combined cost of warehousing and local delivery is to or than the combined cost of shipping direct to customers, the establishment and operation of additional warehouse facilities would be economically justified.

equal less

Which of the following categories do project assumptions not fall into?

Business

-loop focus results from buying practices that directly impact the requirements and functionality of supply facing warehousing. -added services related to procurement are increasingly being debundled from purchase price.

Closed Value

What influences the selection of retail locations?

Competitive conditions Marketing

Which expectations do a statement of objectives document for the logistics systems revisions?

Cost and service

Data collection process includes acquisition and assembly of required data and conversion to appropriate formats for the tool.

analysis

Phase l of logistics system design and planning provides the foundation for the overall .

analysis

What are examples of the highly developed network within transportation?

Air Water Highway Pipeline Rail

All design constraints serve to limit the scope for which of the following?

Analysis

What is the term for a project involving statement of objectives, statement of constraints, measurement standards, assumptive logic, analysis techniques, and project work plan?

Operation planning

The objective of validation is to increase regarding the analysis process.

credibility

Warehouses are justified in a logistical system when a service or cost advantage results from their positioning between suppliers, manufacturers, and .

customers

Service improvement by virtue of added warehouses, involves a high degree of cost and could result in less overall system flexibility.

fixed

The assumptions required to support integrated system design are important from the viewpoint of their impact upon strategy .

formulation

The impact of the safety stock across a total system will shift the average inventory cost curve upward.

increasing

The systems concept is an analytical framework that seeks total of components essential to achieving stated objectives.

integration

A primary advantage of a manufacturing demand facing warehouse is the ability to provide customers full-line product assortment on a single at truckload transportation rates.

invoice

Determining a least-total-cost network, measuring service availability and capability associated with the least-total-cost-system design, conducting sensitivity analysis related to incremental service and cost directly with revenue generation and finalizing the plan are identified as which if the following general concepts towards logistical system design?

Approaches

After increasing safety stock at each warehouse, what will increase in customer service?

Availability

Other than risk, what is a reason for reexamining the continuation of a local warehousing presence?

Costs

The term for a geographic location of the market and shipment profile in terms of relative volume, size and characteristics of the market is which of the following?

Demand location

What does carefully documenting the data collection process identify in addition to maintaining analysis inaccuracy?

Errors

True or false: The minimal total cost point is at least cost for transportation and inventory.

False

Competitive advantage generated by establishing a warehouse network can result from which of the following?

Faster delivery Lower total cost

Which step pertains to establishing a strategy to evaluate the cost of incremental service in terms of generating offsetting revenue?

Final

Which of the following can be used to improve performance cycle service?

Web-based ordering Premium transportation

Cost reduction benefits may be observed as a result of a one time in financial and managerial resources required to operate logistics systems and also cost reductions may be found in the form of reduced out of pocket expenses.

reduction

The inventory related to a warehouse network consists of base, stock, and transit.

safety