SCM Questions and Answers | 100% Correct Answer | Grade A+

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. Ans: TRUE 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. Ans: FALSE Facility location decisions have a long-term impact on a supply chain's performance because it is cost effective to shut down a facility or move it to a different location. Ans: FALSE Capacity allocation decisions have a significant impact on supply chain performance because they tend to stay in place for several years. Ans: TRUE 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. Ans: TRUE The allocation of supply sources and markets to facilities does not need to be reconsidered on a regular basis so that the allocation can be changed as market conditions or plant capacities change. Ans: TRUE 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 su