

A manufacturer of cat towers wishes to locate a super assembly facility to

meet their cat tower assembly needs for the next millennium. Currently,
carpet, cylinders, yarn and fasteners are purchased in bulk from suppliers in
North Haverbrook, Ogden, and Springfield in the quantities shown in the
table. The super assembly facility would ship to distribution centers located
in Seattle, Lubbock, Nashville, and Philadelphia. The locations of all of these
cities on an x-y grid, outbound transportation costs on a ton per mile basis,
and total tonnage are all contained in the table.

Transportation
Quantity in
Sources/Markets Cost $/ton mile Xn Yn
Tons (Dn)
(Fn)
Supply
North Haverbrook 1.1 650 700 1200
Ogden 1.2 450 250 600
Springfield 1.4 400 225 825
Market
Seattle 2.25 300 50 1200
Lubbock 2.25 200 450 300
Nashville 2.25 500 800 250
Philadelphia 2.25 500 950 1100

What is the cost to transport 500 tons of material between the Springfield
and Seattle locations?
Selected  
Answer:
$289,6
77
Answers:  
$289,6
77
$682,7
77
$192,6
77
$325,7
77
 Question 2
5 out of 5 points
Supply chain network design decisions classified as market and supply
allocation are concerned with
Selected  
Answer: what markets each facility should serve and which supply
sources should feed each facility.
 Answers: what processes are performed at each facility.
where facilities should be located.
how much capacity should be allocated to each facility.
 
what markets each facility should serve and which supply
sources should feed each facility.
 Question 3
Needs Grading
Explain how supply chain network design decisions are classified.
Selected  Supply chain network design decisions include the location of
Answer: manufacturing, storage, or transportation-related facilities and the allocation
of capacity and roles to each facility. Supply chain network design decisions
are classified as follows:
1. Strategy /design: Define firms broad supply chain design such as stages in
supply chain whether each supply chain function will be inhouse or
outsourced etc
2. Regional Facility configuration: To identify regions where facilities are
located, their capacity and role. Identify fixed/variable costs etc
3. Select desirable potential site: Using models that minimize costs, potential
sites in large geographical area are selected. Hard and soft infrastructures are
analyzed.
4. Location choices and market allocation: Finally select a location from
potential sites and allocate capacity for facilities. More speific estimation on
markets, fixed  and variable costs, tarriffs and tax incentives are all
accounted. Allocation of markets to facilities must be revised as demands and
costs change.
Correct  
Answer: Supply chain network design decisions include the location of
manufacturing, storage, or transportation-related facilities and
the allocation of capacity and roles to each facility. Supply chain
network design decisions are classified as follows:
Facility role: What role should each facility play? What processes
are performed at each facility?
Facility location: Where should facilities be located?
Capacity allocation: How much capacity should be allocated to
each facility?
Market and supply allocation: What markets should each facility
serve? Which supply sources should feed each facility?
Response [None Given]
Feedback:
 Question 4
5 out of 5 points
Capital, growth strategy, existing networks and global competition mostly
affect which of the four Global Network Design Decisions?
Selected  
 Answer: Phase I - Supply Chain Strategy
Answers:  
Phase I - Supply Chain Strategy
Phase II - Regional Facility
Configuration
Phase III - Desirable Sites
Phase IV - Location Choices
 Question 5
5 out of 5 points
A manufacturer of cat towers wishes to locate a super assembly facility to
meet their cat tower assembly needs for the next millennium. Currently,
carpet, cylinders, yarn and fasteners are purchased in bulk from suppliers
in North Haverbrook, Ogden, and Springfield in the quantities shown in the
table. The super assembly facility would ship to distribution centers
located in Seattle, Lubbock, Nashville, and Philadelphia. The locations of
all of these cities on an x-y grid, transportation costs on a ton per mile
basis, and total tonnage are all contained in the table.

Transportation
Quantity in
Sources/Markets Cost $/ton mile Xn Yn
Tons (Dn)
(Fn)
Supply
North Haverbrook 1.1 650 700 1200
Ogden 1.2 450 250 600
Springfield 1.4 400 225 825
Market
Seattle 2.25 300 50 1200
Lubbock 2.25 200 450 300
Nashville 2.25 500 800 250
Philadelphia 2.25 500 950 1100

What is the distance between the Ogden and Seattle locations?

Selected  
Answer:
630
miles
Answers: 1050
miles
450
miles
350
miles
 
 630
miles
 Question 6
5 out of 5 points
If production technology displays significant economies of scale, many
local locations are the most effective.
Selected  Fals
Answer: e
Answers: True
 Fals
e
 Question 7
5 out of 5 points
________ costs increase as the number of facilities in a supply chain
increases.
Selected  
Answer: Inventory
Answers:  
Inventory
Retail
operation
Information
Transportatio
n
 Question 8
5 out of 5 points
Assume that total demand in a market is 1 and that customers are
uniformly spread across the line segment from 0 to 1. There are only two
companies in the market and there is no cost or service advantage held
be either Firm 1 or Firm 2. Firm 1 locates at point a, and Firm 2 locates at
point 1-b as shown in the figure. A customer chooses one firm or the other
solely on the basis of distance travelled.

The demand at Firm 1 is given by

Selected  
Answer: a  + 
 Answers: a  - 

a  - 

a  + 

 
a  + 

 Question 9
5 out of 5 points
A manufacturer of cat towers wishes to locate a super assembly facility to
meet their cat tower assembly needs for the next millennium. Currently,
carpet, cylinders, yarn and fasteners are purchased in bulk from suppliers
in North Haverbrook, Ogden, and Springfield in the quantities shown in the
table. The super assembly facility would ship to distribution centers
located in Seattle, Lubbock, Nashville, and Philadelphia. The locations of
all of these cities on an x-y grid, outbound transportation costs on a ton
per mile basis, and total tonnage are all contained in the table.

Transportation
Quantity in
Sources/Markets Cost $/ton mile Xn Yn
Tons (Dn)
(Fn)
Supply
North Haverbrook 1.1 650 700 1200
Ogden 1.2 450 250 600
Springfield 1.4 400 225 825
Market
Seattle 2.25 300 50 1200
Lubbock 2.25 200 450 300
Nashville 2.25 500 800 250
Philadelphia 2.25 500 950 1100

What is the minimal shipping cost that satisfies all market demand?
Selected  
Answer: $2,586,3
42
Answers: $2,546,6
32
 $2,522,9
82
$2,451,6
68
 
$2,586,3
42
 Question 10
5 out of 5 points
FlexSteal, marketed as a miracle brush-on sealant and baldness cure, is
manufactured at three plants that are struggling to keep up with the
demand at the four regional centers. The cost to ship a truckload from
each of the existing plants to the regional centers is shown in the table.
Note that the capacity and the total demand are both measured in
truckloads.

Philadelphia Atlanta Dallas Los Angeles Capacity

Plant 1 89 75 93 115 400
Plant 2 120 88 103 93 400
Plant 3 95 82 112 98 400
Total
350 350 350 350
Demand

The supply chain manager has explored plant construction costs in two
other cities as well as the cost to ship a truckload from each of the plants
to the regional centers. The current plan is to build another plant with a
capacity of 400 to allow room for sales growth. The construction cost for
the new plants and cost to ship to each of the regional centers is shown
here.

Philadelphia Atlanta Dallas Los Angeles Cost to Build

Plant A 94 78 95 95 $23,500
Plant B 95 88 88 94 $26,000

Which of these assignments is associated with the minimum cost solution

for the original set of plants and regional centers?
Selected  
Answer: 50 units from Plant 2 to Dallas
Answers:  
50 units from Plant 2 to Dallas
300 units from Plant 3 to
Philadelphia
150 units from Plant 1 to Los
 Angeles
350 units from Plant 1 to
Atlanta
 Question 11
5 out of 5 points
Available infrastructure, skill needs and response time mostly affect which
of the four Global Network Design Decisions?
Selected  
Answer: Phase III - Desirable Sites
Answers: Phase I - Supply Chain Strategy
Phase II - Regional Facility
Configuration
 
Phase III - Desirable Sites
Phase IV - Location Choices
 Question 12
5 out of 5 points
Supply chain network design decisions  include the location of manufacturing,
storage, or transportation-related facilities and the allocation of capacity
and roles to each facility.
Selected  Tru
Answer: e
Answers:  Tru
e
False
 Question 13
5 out of 5 points
Decisions concerning the role of each facility are significant because
Selected  
Answer:
they determine the amount of flexibility the supply chain has
in changing the way it meets demand.
Answers:  
they determine the amount of flexibility the supply chain has
in changing the way it meets demand.
they determine the amount of flexibility the supply chain has
in demanding change.
they determine the amount of inventory the supply chain has
in demanding change.
they determine the amount of capacity the supply chain has
 in changing the way it meets demand.
 Question 14
5 out of 5 points
Transportation costs increase as the number of facilities is increased.
Selected  Fals
Answer: e
Answers: True
 Fals
e
 Question 15
5 out of 5 points
If facilities have lower fixed costs
Selected  
Answer: many local facilities are preferred because this helps lower
transportation costs.
Answers: a few local facilities are preferred because this helps lower
transportation costs.
a few high-capacity facilities are preferred because this helps
lower transportation costs.
many high-capacity facilities are preferred because this helps
lower transportation costs.
 
many local facilities are preferred because this helps lower
transportation costs.
 Question 16
5 out of 5 points
Decisions concerning the role of each facility are significant because they
determine the amount of rigidity the supply chain has in changing the way
it meets demand.
Selected  Fals
Answer: e
Answers: True
 Fals
e
 Question 17
5 out of 5 points
The allocation of supply sources and markets to facilities should be
reconsidered on a regular basis so that
Selected  
Answer:
the allocation can be changed as market conditions or plant
capacities change.
 Answers: the allocation can be held constant as market conditions or
plant capacities change.
the allocation can be changed as market conditions or plant
capacities stagnate.
 
the allocation can be changed as market conditions or plant
capacities change.
the allocation can be held constant as market conditions or
plant capacities expand.
 Question 18
5 out of 5 points
A firm may increase the number of facilities beyond the point that
minimizes total logistics cost to improve the response time to its
customers.
Selected  Tru
Answer: e
Answers:  Tru
e
False
 Question 19
5 out of 5 points
The facilities in a supply chain network must
Selected  
Answer:
at least equal the number that minimizes total
logistics cost.
Answers: at least maximize total logistics cost.
at least minimize total logistics cost.
 
at least equal the number that minimizes total
logistics cost.
at least equal the number that maximizes total
logistics cost.
 Question 20
5 out of 5 points
Which of these is considered a hard infrastructure requirement?
Selected  
Answer: Utilities
Answers: Community receptivity to
business
  
Utilities
Availability of skilled labor
Workforce turnover
Sunday, February 9, 2020 10:16:43 AM CST