LSCM Ch. 4

The CBL Exam Company is attempting to locate a new plant to serve the Midwest. The company has two raw material sources and three market areas. You want to centrally locate a plant relative to all sources and markets based on transportation rates. The least cost location for the new plant is at the grid VERTICAL coordinate of:

3.95

The CBL Exam Company is attempting to locate a new plant to serve the Midwest. The company has two raw material sources and three market areas. You want to centrally locate a plant relative to all sources and markets based on transportation rates. The least cost location for the new plant is at the grid HORIZONTAL coordinate of:

7.11

Heuristic models A. provide an optimum solution. B. are able to accommodate broad problem definitions. C. have fallen from use because of SAILS. D. are typically "seat of the pants" solutions.

B. are able to accommodate broad problem definitions.

The grid technique A. is a variation of SAILS. B. assumes that the raw materials sources and finished goods markets are fixed. C. assumes that the raw materials sources and finished goods markets are variable. D. assumes non-linear transportation rates.

B. assumes that the raw materials sources and finished goods markets are fixed.

The manufacturer must lead the channel design process regardless of the relative market power and financial strength of the members of the supply chain A. true B. false

B. false

For most firms, the MOST important measure of customer service is: A. profitability of the particular channel of distribution B. inventory availability within a specified order cycle time C. the length of the oder cycle D.

B. inventory availability within a specified order cycle time

Which is true regarding the facility/supply chain network design decision? A. the facility's impact on other functional areas should be considered, but it is not as important B. it should be coordinated closely with the corporate and overall business strategies that may be in place C. global locations should not be considered D. generally, qualitative criteria are considered first

B. it should be coordinated closely with the corporate and overall business strategies that may be in place

Which is true regarding optimization models? A. Optimization models are based on precise mathematical procedures that are guaranteed to find the "best" solution for the problem under evaluation. B. Optimization models are able to accommodate broad problem definitions, rather than provide an optimum solution. C. The Grid Technique is a powerful optimization model. D. Optimization models will guarantee increased profits.

A. Optimization models are based on precise mathematical procedures that are guaranteed to find the "best" solution for the problem under evaluation.

The logistics/supply chain network transformation team A. must be aware of the firm's overall business and corporate strategies and the supply chain in which it participates. B. will not consider the potential involvement of third-party logistics suppliers as part of their responsibilities. C. includes workers from divisional levels only. D. should not include outside consultants.

A. must be aware of the firm's overall business and corporate strategies and the supply chain in which it participates.

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.

A. to establish the number, location, and size of finished goods distribution centers and associated product flows.

What is the effect of tapering rates on facility location? A. pushes the raw materials sources toward the location B. pulls the facility toward the location C. pulls the location toward the source or the market D. makes the optimum location at the midpoint between raw material sources and the marketplace

C. pulls the location toward the source or the market

The grid technique is used to determine a fixed facility location that represents the least-cost center for moving incoming materials and outbound product within a geographic grid. This least cost center is also referred to as A. a zero point. B. a source point. C. a breakeven point. D. a center of gravity.

D. a center of gravity.

What type of change may suggest a need to reevaluate and/or redesign a firm's logistics network? A. change in customer service requirements B. change in corporate ownership C. shifting locations of customer and/or supply markets D. all of these

D. all of these