Supply Chain Logistics Management 5th Edition By Donald Bowersox – Test Bank

Overview

Chapter 11
Network Design

1) The threshold service level is:
A) The level of service associated with the least cost system design
B) The level of service only associated with an optimum system design
C) The level of service existing in a system prior to redesign
D) None of the above

Answer: A
Difficulty: 1 Easy
Topic: Formulating Logistical Strategy
Learning Objective: 11-05 Formulating Logistical Strategy
Bloom’s: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation

2) A trade-off is best described by which of the following:
A) The relationship between two variables
B) The sum of two variables
C) One variable minus the other variable
D) One variable plus the other variable

Answer: A
Difficulty: 1 Easy
Topic: Systems Concept and Analysis
Learning Objective: 11-03 Systems Concept and Analysis
Bloom’s: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation

3) Local Presence is considered an obsolete paradigm because:
A) Local presence was replaced by regional warehousing
B) Having inventory immediately available is no longer required
C) Customers are willing to wait for delivery
D) The advent of timely and consistent transportation

Answer: D
Difficulty: 1 Easy
Topic: Enterprise Facility Network
Learning Objective: 11-01 Enterprise Facility Network
Bloom’s: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation

4) In terms of warehouse justification which of the following statements is true?
A) A warehouse is justified if it offers a way to achieve competitively superior service.
B) A warehouse is justified if it offers a way to provide service at lowest cost
C) A warehouse is justified if it offers lowest total cost assembly support.
D) All of the above

Answer: D
Difficulty: 2 Medium
Topic: Warehouse Requirements
Learning Objective: 11-02 Warehouse Requirements
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation

5) Market based Assembly To Order (ATO) is a form of:
A) Manufacturing justified warehousing
B) Procurement justified warehousing
C) Customer justified warehousing
D) None of the above.

Answer: C
Difficulty: 2 Medium
Topic: Warehouse Requirements
Learning Objective: 11-02 Warehouse Requirements
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation

6) When designing a warehouse network, if the overall safety stock increases as the number of warehouses increase then:
A) Network uncertainty is decreasing
B) Network uncertainty is increasing
C) Network uncertainty in constant
D) Safety stock is appropriately linked to average stock

Answer: B
Difficulty: 1 Easy
Topic: Total Cost Integration
Learning Objective: 11-04 Total Cost Integration
Bloom’s: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation

7) In system design the lowest total cost configuration is typically;
A) Not the lowest cost of either transportation or inventory
B) the lowest cost of either transportation or inventory
C) Not related to transportation or inventory
D) Difficult to generalize

Answer: B
Difficulty: 2 Medium
Topic: Total Cost Integration
Learning Objective: 11-04 Total Cost Integration
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation

8) Threshold service level is:
A) Limited to measures of availability
B) Limited to measures of capability
C) Unique to each location situation
D) The result of service sensitivity analysis

Answer: C
Difficulty: 2 Medium
Topic: Formulating Logistical Strategy
Learning Objective: 11-05 Formulating Logistical Strategy
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation

9) Which of the following is not a component of the feasibility assessment of the Planning Methodology?
A) Situation analysis
B) Statement of objectives
C) Cost/benefit estimate
D) Supporting logic

Answer: B
Difficulty: 1 Easy
Topic: Planning Methodology
Learning Objective: 11-07 Planning Methodology
Bloom’s: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation

10) The internal review topics should focus on all of the following except:
A) Customer service
B) Suppliers
C) Warehousing
D) Inventory

Answer: B
Difficulty: 1 Easy
Topic: Phase I: Problem Definition and Planning
Learning Objective: 11-08 Phase I: Problem Definition and Planning
Bloom’s: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation