Supply Chain Management 5Th Edition Chopra Test Bank Full Chapter PDF
Supply Chain Management 5Th Edition Chopra Test Bank Full Chapter PDF
1) 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.
Answer: TRUE
Diff: 2
Topic: 5.1 The Role of Network Design in the Supply Chain
AACSB: Analytic Skills
Learning Outcome: Compare common approaches to supply chain design
2) 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.
Answer: FALSE
Diff: 2
Topic: 5.1 The Role of Network Design in the Supply Chain
AACSB: Analytic Skills
Learning Outcome: Compare common approaches to supply chain design
3) 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.
Answer: FALSE
Diff: 1
Topic: 5.1 The Role of Network Design in the Supply Chain
AACSB: Analytic Skills
Learning Outcome: Compare common approaches to supply chain design
4) Capacity allocation decisions have a significant impact on supply chain performance because
they tend to stay in place for several years.
Answer: TRUE
Diff: 2
Topic: 5.1 The Role of Network Design in the Supply Chain
AACSB: Analytic Skills
Learning Outcome: Compare common approaches to supply chain design
5) 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.
5-1
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Answer: TRUE
Diff: 1
Topic: 5.1 The Role of Network Design in the Supply Chain
Learning Outcome: Compare common approaches to supply chain design
5-2
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
6) 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.
Answer: TRUE
Diff: 2
Topic: 5.1 The Role of Network Design in the Supply Chain
Learning Outcome: Compare common approaches to supply chain design
7) 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.
Answer: TRUE
Diff: 2
Topic: 5.1 The Role of Network Design in the Supply Chain
Learning Outcome: Compare common approaches to supply chain design
8) Firms focusing on cost leadership tend to find the lowest cost location for their manufacturing
facilities, but only if that means locating very far from the markets they serve.
Answer: FALSE
Diff: 1
Topic: 5.2 Factors Influencing Network Design Decisions
Learning Outcome: Compare common approaches to supply chain design
9) If production technology displays significant economies of scale, many local locations are the
most effective.
Answer: FALSE
Diff: 2
Topic: 5.2 Factors Influencing Network Design Decisions
Learning Outcome: Compare common approaches to supply chain design
10) If facilities have lower fixed costs, many local facilities are preferred because this helps
lower transportation costs.
Answer: TRUE
Diff: 2
Topic: 5.2 Factors Influencing Network Design Decisions
Learning Outcome: Compare common approaches to supply chain design
11) If the production technology is very inflexible and product requirements vary from one
country to another, a firm has to set up local facilities to serve the market in each country.
Answer: TRUE
Diff: 3
Topic: 5.2 Factors Influencing Network Design Decisions
Learning Outcome: Compare common approaches to supply chain design
5-3
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
12) If the technology is flexible, it becomes more difficult to consolidate manufacturing in a few
large facilities.
Answer: FALSE
Diff: 3
Topic: 5.2 Factors Influencing Network Design Decisions
Learning Outcome: Compare common approaches to supply chain design
13) Tariffs have a minor influence on location decisions within a supply chain.
Answer: FALSE
Diff: 2
Topic: 5.2 Factors Influencing Network Design Decisions
Learning Outcome: Compare common approaches to supply chain design
14) High tariffs lead to more production locations within a supply chain network, with each
location having a lower allocated capacity.
Answer: TRUE
Diff: 3
Topic: 5.2 Factors Influencing Network Design Decisions
Learning Outcome: Compare common approaches to supply chain design
15) When designing supply chain networks, companies must build appropriate flexibility to help
counter fluctuations in exchange rates and demand across different countries.
Answer: TRUE
Diff: 2
Topic: 5.2 Factors Influencing Network Design Decisions
Learning Outcome: Compare common approaches to supply chain design
16) Inventory and facility costs increase as the number of facilities in a supply chain increase.
Answer: TRUE
Diff: 2
Topic: 5.2 Factors Influencing Network Design Decisions
Learning Outcome: Compare common approaches to supply chain design
18) A firm may increase the number of facilities beyond the point that minimizes total logistics
cost to improve the response time to its customers.
Answer: TRUE
Diff: 1
Topic: 5.2 Factors Influencing Network Design Decisions
Learning Outcome: Compare common approaches to supply chain design
5-4
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
19) When faced with a network design decision, the goal of a manager is to design a network
that minimizes the firm's costs while satisfying customer needs in terms of demand and
responsiveness.
Answer: FALSE
Diff: 3
Topic: 5.3 Framework for Network Design Decisions
Learning Outcome: Compare common approaches to supply chain design
20) The supply chain network is designed to maximize total profits, taking into account the
expected margin and demand in each market, various logistics and facility costs, and the taxes
and tariffs at each location.
Answer: TRUE
Diff: 1
Topic: 5.3 Framework for Network Design Decisions
Learning Outcome: Compare common approaches to supply chain design
21) Decisions concerning the role of each facility are significant because they determine the
amount of flexibility the supply chain has in changing the way it meets demand.
Answer: TRUE
Diff: 1
Topic: 5.1 The Role of Network Design in the Supply Chain
AACSB: Analytic Skills
Learning Outcome: Compare common approaches to supply chain design
22) Network design decisions have a significant impact on performance because they determine
the supply chain configuration and set constraints within which the other supply chain drivers
can be used either to decrease supply chain cost or to increase responsiveness.
Answer: TRUE
Diff: 1
Topic: 5.1 The Role of Network Design in the Supply Chain
AACSB: Analytic Skills
Learning Outcome: Compare common approaches to supply chain design
23) If facilities have higher fixed costs, many local facilities are preferred because this helps
lower transportation costs.
Answer: FALSE
Diff: 1
Topic: 5.2 Factors Influencing Network Design Decisions
AACSB: Analytic Skills
Learning Outcome: Compare common approaches to supply chain design
5-5
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
5.2 Multiple Choice Questions
2) Supply chain network design decisions classified as facility role are concerned with
A) what processes are performed at each facility.
B) where facilities should be located.
C) how much capacity should be allocated to each facility.
D) what markets each facility should serve and which supply sources should feed each facility.
E) none of the above
Answer: A
Diff: 2
Topic: 5.1 The Role of Network Design in the Supply Chain
Learning Outcome: Compare common approaches to supply chain design
3) Supply chain network design decisions classified as facility location are concerned with
A) what processes are performed at each facility.
B) where facilities should be located.
C) how much capacity should be allocated to each facility.
D) what markets each facility should serve and which supply sources should feed each facility.
E) none of the above
Answer: B
Diff: 1
Topic: 5.1 The Role of Network Design in the Supply Chain
Learning Outcome: Compare common approaches to supply chain design
4) Supply chain network design decisions classified as capacity allocation are concerned with
A) what processes are performed at each facility.
B) where facilities should be located.
C) how much capacity should be allocated to each facility.
D) what markets each facility should serve and which supply sources should feed each facility.
E) none of the above
Answer: C
Diff: 1
Topic: 5.1 The Role of Network Design in the Supply Chain
5-6
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
5) Supply chain network design decisions classified as market and supply allocation are
concerned with
A) what processes are performed at each facility.
B) where facilities should be located.
C) how much capacity should be allocated to each facility.
D) what markets each facility should serve and which supply sources should feed each facility.
E) none of the above
Answer: D
Diff: 1
Topic: 5.1 The Role of Network Design in the Supply Chain
Learning Outcome: Compare common approaches to supply chain design
7) Facility location decisions have a long-term impact on a supply chain's performance because
A) it is very expensive to shut down a facility or move it to a different location.
B) it is not expensive to shut down a facility or move it to a different location.
C) it is advisable to shut down a facility or move it to a different location.
D) it is cost effective to shut down a facility or move it to a different location.
E) none of the above
Answer: A
Diff: 2
Topic: 5.1 The Role of Network Design in the Supply Chain
Learning Outcome: Compare common approaches to supply chain design
8) Capacity allocation decisions have a significant impact on supply chain performance because
A) capacity decisions tend to be permanent.
B) capacity decisions tend to be changed frequently.
C) capacity decisions do not tend to stay in place for several years.
D) capacity decisions tend to stay in place for several years.
E) none of the above
Answer: D
Diff: 2
Topic: 5.1 The Role of Network Design in the Supply Chain
Learning Outcome: Compare common approaches to supply chain design
5-7
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
9) Allocating too much capacity to a location results in
A) permanent damage.
B) poor utilization, and as a result, higher costs.
C) high utilization, and as a result, higher costs.
D) poor utilization, and as a result, lower costs.
E) high utilization, and as a result, lower costs.
Answer: B
Diff: 2
Topic: 5.1 The Role of Network Design in the Supply Chain
Learning Outcome: Compare common approaches to supply chain design
11) The allocation of supply sources and markets to facilities has a significant impact on
performance because
A) it cannot affect total production, inventory, and transportation costs incurred by the supply
chain to satisfy customer demand.
B) it cannot affect customer demand.
C) it affects total production, inventory, and transportation costs incurred by the supply chain to
satisfy customer demand.
D) it cannot satisfy customer demand.
E) none of the above
Answer: C
Diff: 2
Topic: 5.1 The Role of Network Design in the Supply Chain
Learning Outcome: Compare common approaches to supply chain design
5-8
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
12) The allocation of supply sources and markets to facilities should be reconsidered on a regular
basis so that
A) the allocation can be held constant as market conditions or plant capacities expand.
B) the allocation can be changed as market conditions or plant capacities stagnate.
C) the allocation can be held constant as market conditions or plant capacities change.
D) the allocation can be changed as market conditions or plant capacities change.
E) none of the above
Answer: D
Diff: 2
Topic: 5.1 The Role of Network Design in the Supply Chain
Learning Outcome: Compare common approaches to supply chain design
13) Network design decisions have a significant impact on performance because they
A) determine the supply chain configuration.
B) determine the supply chain conflagration.
C) set constraints within which inventory, transportation, and information can be used to either
decrease supply chain cost or increase responsiveness.
D) set constraints within which inventory, transportation, and information can be used to either
increase supply chain cost or decrease responsiveness.
E) A and C only
Answer: E
Diff: 3
Topic: 5.1 The Role of Network Design in the Supply Chain
15) Which of the following is not a factor influencing network design decisions in supply
chains?
A) Strategic factors
B) Tactical factors
C) Macroeconomic factors
D) Political factors
E) Infrastructure factors
Answer: B
Diff: 2
Topic: 5.1 The Role of Network Design in the Supply Chain
5-9
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
16) Firms focusing on cost leadership tend to
A) locate facilities close to the market they serve.
B) locate facilities very far from the market they serve.
C) find the lowest cost location for their manufacturing facilities.
D) select a high-cost location to be able to react quickly.
E) none of the above
Answer: C
Diff: 2
Topic: 5.2 Factors Influencing Network Design Decisions
Learning Outcome: Compare common approaches to supply chain design
18) Which of the following is not one of Kasra Ferdows' classifications of possible strategic
roles for various facilities in a global supply chain network?
A) Offpost facility
B) Source facility
C) Server facility
D) Contributor facility
E) Outpost facility
Answer: A
Diff: 2
Topic: 5.2 Factors Influencing Network Design Decisions
19) A facility that serves the role of being a low-cost supply source for markets located outside
the country where the facility is located is
A) an offshore facility.
B) a source facility.
C) a server facility.
D) a contributor facility.
E) an outpost facility.
Answer: A
Diff: 2
Topic: 5.2 Factors Influencing Network Design Decisions
5-10
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
20) A facility that also has low cost as its primary objective, but its strategic role is broader than
that of an offshore facility is
A) an offshore facility.
B) a source facility.
C) a server facility.
D) a contributor facility.
E) an outpost facility.
Answer: B
Diff: 2
Topic: 5.2 Factors Influencing Network Design Decisions
21) A facility built because of tax incentives, local content requirement, tariff barriers, or high
logistics cost to supply the region from elsewhere with the objective to supply the market where
it is located is
A) an offshore facility.
B) a source facility.
C) a server facility.
D) a contributor facility.
E) an outpost facility.
Answer: C
Diff: 2
Topic: 5.2 Factors Influencing Network Design Decisions
Learning Outcome: Compare common approaches to supply chain design
22) A facility located primarily to obtain access to knowledge or skills that may exist within a
certain region is
A) an offshore facility.
B) a source facility.
C) a server facility.
D) a contributor facility.
E) an outpost facility.
Answer: E
Diff: 2
Topic: 5.2 Factors Influencing Network Design Decisions
Learning Outcome: Compare common approaches to supply chain design
23) A facility that serves the market where it is located but also assumes responsibility for
product customization, process improvements, product modifications, or product development is
A) an offshore facility.
B) a source facility.
C) a server facility.
D) a contributor facility.
E) an outpost facility.
Answer: D
Diff: 2
Topic: 5.2 Factors Influencing Network Design Decisions
5-11
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
24) A facility that creates new products, processes, and technologies for the entire network is
A) an offshore facility.
B) a source facility.
C) a server facility.
D) a lead facility.
E) an outpost facility.
Answer: D
Diff: 2
Topic: 5.2 Factors Influencing Network Design Decisions
27) If the production technology is very inflexible and product requirements vary from one
country to another, a firm has to set up
A) local facilities to serve the market in each country.
B) a few high-capacity facilities to serve the market in each country.
C) many local facilities because this helps lower transportation costs.
D) a few high-capacity facilities because this helps lower transportation costs.
E) many high-capacity facilities because this helps lower transportation costs.
Answer: A
Diff: 3
Topic: 5.2 Factors Influencing Network Design Decisions
5-12
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
28) If the technology is flexible,
A) it becomes more difficult to consolidate manufacturing in a few large facilities.
B) it becomes more difficult to distribute manufacturing in many local facilities.
C) it becomes easier to consolidate manufacturing in a few large facilities.
D) it becomes easier to consolidate manufacturing in many local facilities.
E) the firm should have one central facility.
Answer: C
Diff: 3
Topic: 5.2 Factors Influencing Network Design Decisions
Learning Outcome: Compare common approaches to supply chain design
29) Duties that must be paid when products and/or equipment are moved across international,
state, or city boundaries are referred to as
A) taxes.
B) tax incentives.
C) tariffs.
D) incentives.
E) none of the above
Answer: C
Diff: 2
Topic: 5.2 Factors Influencing Network Design Decisions
Learning Outcome: Compare common approaches to supply chain design
5-13
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
32) Building some over-capacity in the supply chain network and making the capacity flexible
allows a firm to alter production flows within the supply chain to
A) produce less in facilities that have a lower cost based on current exchange rates.
B) produce more in facilities that have a lower cost based on current exchange rates.
C) produce more in facilities that have a higher cost based on current exchange rates.
D) produce less in facilities that have the same cost based on current exchange rates.
E) None of the above are accurate.
Answer: B
Diff: 2
Topic: 5.2 Factors Influencing Network Design Decisions
35) When faced with a network design decision, the goal of a manager is to design a network
that
A) maximizes the firm's profits.
B) minimizes the firm's costs.
C) satisfies customer needs in terms of demand and responsiveness.
D) maximizes the firm's profits while satisfying customer needs in terms of demand and
responsiveness.
E) none of the above
Answer: D
Diff: 2
Topic: 5.3 Framework for Network Design Decisions
5-14
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
36) Which of the following is not a phase in the design of a global supply chain network?
A) Define a supply chain strategy
B) Define the regional facility configuration
C) Select desirable sites
D) Location choices
E) Implement supply chain strategy
Answer: E
Diff: 2
Topic: 5.3 Framework for Network Design Decisions
Learning Outcome: Compare common approaches to supply chain design
37) Which of the following is the first phase in the design of a global supply chain network?
A) Define a supply chain strategy
B) Define the regional facility configuration
C) Select desirable sites
D) Location choices
E) Implement supply chain strategy
Answer: A
Diff: 2
Topic: 5.3 Framework for Network Design Decisions
5-15
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Another random document with
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That was in March. In the Christmas following, when the mere was
locked in stillness, and the wan reflection of snow mingled on the
ceiling with the red dance of firelight, one morning the old man came
hurrying and panting to Tryphena’s door.
“Tryphena! Come down quickly! My boy, my Jason, has come
back! It was a lie that they told us about his being lost at sea!”
Her heart leapt like a candle-flame! What new delusion of the old
man’s was this? She hurried over her dressing and descended. A
garrulous old voice mingled with a childish treble in the breakfast-
room. Hardly breathing, she turned the handle of the door, and saw
Jason before her.
But it was Jason, the prattling babe of her first knowledge; Jason,
the flaxen-headed, apple-cheeked cherub of the nursery; Jason, the
confiding, the merry, the loving, before pride had come to warp his
innocence. She fell on her knees to the child, and with a burst of
ecstasy caught him to her heart.
She asked no question of the old man as to when or whence this
apparition had come, or why he was here. For some reason she
dared not. She accepted him as some waif, whom an accidental
likeness had made glorious to their hungering hearts. As for the
father, he was utterly satisfied and content. He had heard a knock at
the door, he said, and had opened it and found this. The child was
naked, and his pink, wet body glazed with ice. Yet he seemed
insensible to the killing cold. It was Jason—that was enough. There
is no date nor time for imbecility. Its phantoms spring from the clash
of ancient memories. This was just as actually his child as—more so,
in fact, than—the grown young figure which, for all its manhood, had
dissolved into the mist of waters. He was more familiar with, more
confident of it, after all. It had come back to be unquestioningly
dependent on him; and that was likest the real Jason, flesh of his
flesh.
“Who are you, darling?” said Tryphena.
“I am Jason,” answered the child.
She wept, and fondled him rapturously.
“And who am I?” she asked. “If you are Jason, you must know
what to call me.”
“I know,” he said; “but I mustn’t, unless you ask me.”
“I won’t,” she answered, with a burst of weeping. “It is Christmas
Day, dearest, when the miracle of a little child was wrought. I will ask
you nothing but to stay and bless our desolate home.”
He nodded, laughing.
“I will stay, until you ask me.”
They found some little old robes of the baby Jason, put away in
lavender, and dressed him in them. All day he laughed and prattled;
yet it was strange that, talk as he might, he never once referred to
matters familiar to the childhood of the lost sailor.
In the early afternoon he asked to be taken out—seawards, that
was his wish. Tryphena clothed him warmly, and, taking his little
hand, led him away. They left the old man sleeping peacefully. He
was never to wake again.
As they crossed the narrow causeway, snow, thick and silent,
began to fall. Tryphena was not afraid, for herself or the child. A
rapture upheld her; a sense of some compelling happiness, which
she knew before long must take shape on her lips.
They reached the seaward dunes—mere ghosts of foothold in that
smoke of flakes. The lap of vast waters seemed all around them,
hollow and mysterious. The sound flooded Tryphena’s ears,
drowning her senses. She cried out, and stopped.
“Before they go,” she screamed—“before they go, tell me what you
were to call me!”
The child sprang a little distance, and stood facing her. Already his
lower limbs seemed dissolving in the mists.
“I was to call you ‘mother’!” he cried, with a smile and toss of his
hand.
Even as he spoke, his pretty features wavered and vanished. The
snow broke into him, or he became part with it. Where he had been,
a gleam of iridescent dust seemed to show one moment before it
sank and was extinguished in the falling cloud. Then there was only
the snow, heaping an eternal chaos with nothingness.