University Level Facility Optimization Quiz

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Questions and Answers

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?

<p>Cost-effective facility location (B)</p> Signup and view all the answers

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

<p>Transport optimization (C)</p> Signup and view all the answers

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

<p>All of the above (D)</p> Signup and view all the answers

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

<p>Customer demands that are met from stock (C)</p> Signup and view all the answers

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

<p>Inbound lot sizes are typically larger than outbound lot sizes (A)</p> Signup and view all the answers

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

<p>Maximizing order fill rate (C)</p> Signup and view all the answers

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

<p>Compare one solution to another (D)</p> Signup and view all the answers

What is the primary role of the physical supply chain?

<p>To get the product from the source to the final point of consumption (D)</p> Signup and view all the answers

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

<p>Movement, storage, and transformation (B)</p> Signup and view all the answers

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

<p>Decisions relating to the network structure (A)</p> Signup and view all the answers

Why is network integration important in supply chain management?

<p>To improve customer service levels (B)</p> Signup and view all the answers

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

<p>80% (C)</p> Signup and view all the answers

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

<p>Location and size of stocking points (D)</p> Signup and view all the answers

What are the key considerations in supply chain network design?

<p>Availability of sources of supply and target market locations (A)</p> Signup and view all the answers

What is the purpose of supply chain network design?

<p>Optimizing network structure and process flow (D)</p> 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?

<p>Availability of sources of supply (D)</p> Signup and view all the answers

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

<p>By impacting the cost structure and operational efficiency (C)</p> Signup and view all the answers

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