MGMT 5370 EXAM 2 QUESTIONS & ANSWERS
1. "One way to lower transportation costs of globally sourced production is
to - Answers - redesign components for greater transport density.
2. Offshoring to low-cost countries is most attractive for products with -
Answers - large production volume.
3. "Available infrastructure, skill needs and response time mostly affect which
of the four Global Network Design Decisions? - Answers - Phase III - Desirable Sites
4. "Developing countries often create free trade zones where - Answers - duties
and taritts are relaxed as long as production is used primarily for export.
5. When faced with a network design decision, the goal of a manager is to
design a network that - Answers - maximizes the firm's profits while satisfying customer needs in terms of
demand and responsiveness.
6. Network design decisions have a significant impact on performance because
they determine the supply chain configuration and set constraints within which
inventory, transportation, and information can be used to either decrease
supply chain cost or increase responsiveness. - Answers - True
7. "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. - Answers - a = 1/2 ; b = 1/2
8. The allocation of supply sources and markets to facilities has a significant
impact on performance because it affects total production, inventory, and
transportation costs incurred by the supply chain to satisfy customer demand.-
- Answers - TRUE
1/
11
, 9. Decisions made during the supply chain design phase regarding significant
investments in the supply chain, such as the number and size of plants to
build, the number of trucks to purchase or lease, and whether to build or lease
warehouse space, - Answers - often remain in place for several years
10. "The tailored strategy ""Focus on low-cost, decentralized capacity for pre-
dictable demand"" follows which risk mitigation strategy? - Answers - Increase
capacity
2/
11
1. "One way to lower transportation costs of globally sourced production is
to - Answers - redesign components for greater transport density.
2. Offshoring to low-cost countries is most attractive for products with -
Answers - large production volume.
3. "Available infrastructure, skill needs and response time mostly affect which
of the four Global Network Design Decisions? - Answers - Phase III - Desirable Sites
4. "Developing countries often create free trade zones where - Answers - duties
and taritts are relaxed as long as production is used primarily for export.
5. When faced with a network design decision, the goal of a manager is to
design a network that - Answers - maximizes the firm's profits while satisfying customer needs in terms of
demand and responsiveness.
6. Network design decisions have a significant impact on performance because
they determine the supply chain configuration and set constraints within which
inventory, transportation, and information can be used to either decrease
supply chain cost or increase responsiveness. - Answers - True
7. "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. - Answers - a = 1/2 ; b = 1/2
8. The allocation of supply sources and markets to facilities has a significant
impact on performance because it affects total production, inventory, and
transportation costs incurred by the supply chain to satisfy customer demand.-
- Answers - TRUE
1/
11
, 9. Decisions made during the supply chain design phase regarding significant
investments in the supply chain, such as the number and size of plants to
build, the number of trucks to purchase or lease, and whether to build or lease
warehouse space, - Answers - often remain in place for several years
10. "The tailored strategy ""Focus on low-cost, decentralized capacity for pre-
dictable demand"" follows which risk mitigation strategy? - Answers - Increase
capacity
2/
11
