MGMT 480

A great servicescape and facility layout can usually overcome a poor location decision.

FALSE

A supply chain is broader in scope than the value chain, and encompasses all pre- and post-production activity

FALSE

A supply chain must be either a push or a pull system.

FALSE

Accurate forecasts are more critical to a pull system.

FALSE

Distribution centers are warehouses that act as intermediaries between suppliers and factories.

FALSE

If a multisite organization has a stable customer benefit package and many identical and standardized facilities, then a responsive supply chain is the best design.

FALSE

In designing an efficient supply chain, an organization would need high levels of inventory stored in many small distribution centers.

FALSE

In the Supply Chain Operations Reference (SCOR) model, the "Make" step involves managing orders, transportation, and distribution to provide goods and services.

FALSE

In the Supply Chain Operations Reference (SCOR) model, the "Plan" step involves identifying and selecting suppliers.

FALSE

Large order sizes and frequent price changes will reduce the bullwhip effect in a supply chain.

FALSE

The basic purpose of a supply chain is to coordinate communication among employees and customers in order to maximize customer satisfaction.

FALSE

The center-of-gravity method determines the best X and Y coordinates (location) for multiple facilities by finding a central location and then assigning the facilities around the periphery of that location.

FALSE

Wal-Mart uses a push supply chain.

FALSE

Water transportation is vital to the efficiency of most consumer-goods supply chains.

FALSE

An automobile company that installs satellite radio at the dealership instead of at the factory is applying a postponement strategy.

TRUE

Both economic and noneconomic factors should play an important role in location decisions in supply and value chains.

TRUE

Contract manufacturers can provide the benefit of lower total costs resulting from economies of scale

TRUE

For Dell Inc., the push-pull boundary is very early in the supply chain, where suppliers store inventory for frequent deliveries.

TRUE

Orders are passed upstream in a supply chain, while materials and finished goods are sent downstream in a supply chain.

TRUE

Supply chains often must be redesigned when a firm's product lines and markets change or expand.

TRUE

The bullwhip effect could be reduced if all members of the supply chain would use demand data from the point of the supply chain closest to the customer.

TRUE

The bullwhip effect results from order amplification in the supply chain.

TRUE

The center-of-gravity model minimizes the weighted distance between the facility to be located and its supply and demand points.

TRUE

The facility location decision must attempt to minimize the combined cost of producing the good or service and delivering them to customers.

TRUE

With vendor-managed inventory, a manufacturer monitors and managers inventory for a customer.

TRUE