University Level Facility Optimization Quiz

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What is the discipline focused on determining the optimal location and size of facilities and the flow through these facilities called?

Network optimization

Facility planning

Logistics management

Supply chain network design (correct)

In a supply chain, what are the main activities associated with the movement of goods?

Manufacturing, distribution, and retailing

Sourcing, procurement, and inventory management

Movement, storage, and transformation (correct)

Marketing, sales, and customer service

Which decision area is NOT related to supply chain network design?

Transportation modes selection

Customer service levels

Inventory policy decisions

Manufacturing process optimization (correct)

What does supply chain network design primarily aim to optimize?

Cost-effective facility location Signup and view all the answers

Which term best describes the function of determining the best routes for transportation within a supply chain?

Transport optimization Signup and view all the answers

Why do firms try to consolidate and limit the number of facilities in their supply chain network?

All of the above Signup and view all the answers

What is the primary purpose of the order fill rate in a supply chain?

Customer demands that are met from stock Signup and view all the answers

How can inbound transportation costs be described in comparison to outbound transportation costs?

Inbound lot sizes are typically larger than outbound lot sizes Signup and view all the answers

What does maximizing the order fill rate aim to achieve in a supply chain?

Maximizing order fill rate Signup and view all the answers

What is the purpose of the objective function in network design?

Compare one solution to another Signup and view all the answers

What is the primary role of the physical supply chain?

To get the product from the source to the final point of consumption Signup and view all the answers

Which activities are considered as main network activities within the supply chain?

Movement, storage, and transformation Signup and view all the answers

What aspect of supply chain network design has a significant effect for a relatively long period of time?

Decisions relating to the network structure Signup and view all the answers

Why is network integration important in supply chain management?

To improve customer service levels Signup and view all the answers

What percentage of a supply chain’s cost structure is determined by network design?

80% Signup and view all the answers

What type of decisions are made involving supply chain network design?

Location and size of stocking points Signup and view all the answers

What are the key considerations in supply chain network design?

Availability of sources of supply and target market locations Signup and view all the answers

What is the purpose of supply chain network design?

Optimizing network structure and process flow Signup and view all the answers

What is one of the primary focuses when determining the optimal location and size of facilities in a supply chain network?

Availability of sources of supply Signup and view all the answers

How does supply chain network design relate to an organization's competitiveness?

By impacting the cost structure and operational efficiency Signup and view all the answers