Deck 12: Network Design

Question 1

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 1

D

Question 2

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 2

D

Question 3

Transit stock inventory can be available to promise.

Answer 3

True

Question 4

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

Question 5

In a typical static location analysis customer service fill rate and delivery time is calculated based on distance.

Question 6

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

Question 7

system design the lowest total cost configuration is typically;

A)Not the lowest cost of either transportation or inventory
B)Typically the lowest cost of either transportation or inventory
C)Not related to transportation or inventory
D)Difficult to generalize

Question 8

Mathematical modeling supported by computer analysis has rendered the optimization of warehouse networks a relatively easy analysis.

Question 9

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

Question 10

Which of the following expressions best describes the synergy of the systems concept

A)2 plus 2 equals 4
B)2+2 equals less than 4
C)2+2 equals more than 4
D)2+2 always equals 4

Question 11

The manufacturing strategy of a firm will determine to a large degree the appropriate supporting warehouse structure.

Question 12

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.

Question 13

Spatial/temporal integration means:

A)The solution only considers the impact of space or time
B)The solution is based on the average of both spatial and temporal variables
C)The solution is based on the simultaneous impact of time and space
D)None of the above

Question 14

Each unique location analysis has a unique threshold service level

Question 15

Warehouses can be justified on the basis of cost, specific service objective or generalized local presence

Question 16

A supply facing warehouse is one that is focused on supplying key customers

Question 17

The local presence paradigm is increasingly obsolete because of improved inventory control.

Question 18

The relationship between uncertainty and inventory is called the square root rule.

Question 19

Threshold service level is:

A)Limited to measures of availability
B)Is limited to measures of capability
C)Is unique to each location situation
D)Is the result of service sensitivity analysis

Question 20

The threshold service level is the starting point for cost revenue sensitivity analysis

Question 21

Transit time to customer is typically estimated on the basis of highway route miles when performing a static warehouse analysis.

Question 22

Service sensitivity analysis is a form of cost-revenue analysis