Reference no: EM132222202
1. This course starts with network planning because:
a) Planning a network requires some understanding of how logistics activities work together
b) Network planning cannot proceed without the important skill of optimization
c) Network planning can be done without knowing customer demand
c) Networks always have implications for purchase price
2. Typically, the network planning exercise
a) Does not require cost trade-offs among scenarios
b) Requires no qualitative input, even after the quantitative recommendations are made
c) Is used to evaluate possible new activities
d) Recommends suppliers for logistics activities
3. Modern network planning tools take into account inventory costs.
a. True
b. False
4. Network planning can incorporate sustainability concerns because:
a) Every warehouse is a source of carbon emissions
b) Transportation activities generally use fossil fuels
c) The location of warehouses relative to customers is a driver of fossil fuel use and carbonemissions
d) All of the above
5. Network planning should encompass:
a) Suppliers and customers only
b) Suppliers, processors, and customers only
c) Suppliers, processors, processor warehouses, and customers only
c) Suppliers, processors, processor warehouses, field warehouses, and customers only
6. Which of the following are flows in network operations?
a) Material and people
b) Money and capital equipment
c) Material and money
d) Information and personal travel documents
7. Network models recommend:
a) Number of warehouses and their locations
b) Which customers are served by each warehouse
c) How many suppliers and which plants/processors they serve
d) All of the above
8. Network models
a) First consider warehouse location, then plant location
b) First consider plant location, then warehouse location
c) Evaluate warehouse location and plant location at the same time
d) Ignore plant location when considering warehouse location
9. Network models can be constrained so that their recommendations
a) Guarantee that all known demand is fulfilled
b) Guarantee that plants and warehouses will only handle up to their capacity
c) Neither a nor b
d) Both a and b
10. Optimized network models suggest solutions that have:
a) Lowest total costs given constraints
b) Fewest possible fixed assets given constraints
c) A particular transportation mode given constraints
d) Lowest transportation costs given constraints
11. Model validation takes place:
a) When the software is selected
b) When customer demand has been compiled
c) When customer demand and costs have been agreed to
d) When executives have looked at the recommendations
12. Some of the many reasons to implement a network planning exercise include:
a) Potential mergers and/or acquisitions
b) Availability of new technology lessens the need for warehouses
c) Either a or b
d) Neither a nor b
13. During a network planning project, the team is most likely to interact with:
a) Human resources
b) Accounting and finance
c) Individual sales people
d) Government agencies
14. Network models can be set so that some facilities must stay open.
a. True
b. False
15. Data gathering is usually the most time-consuming part of a network planning project because:
a) Customer demand is usually not in the format and detail the network model requires
b) Costs are often not summarized at the level of detail the model requiresc. Only a.
c) Only b.
d) Both a and b.
16. Since the model solutions don’t vary much with certain details, it is customary to:
a) Combine customers at the state/province level
b) Combine individual products into product groups
c) Use the same cost for all transport modes
d) Use the same labor rate for all installations
17. Historical demand is typically the starting point for network models. Ideally:
a) At least one year of history is necessary to account for seasonality.
b) Demand history does not have to reflect actual order destinations
c) Demand can be separated by division, even if warehouses serve multiple divisions
d) Demand can be left in dollars or other currency
18. Freight rates for network planning
a) Vary only with distance
b) Can only be expressed as cost/weight
c) Reflect the differences between mode technologies-air vs. truck, rail vs. water, etc.
d) Have to be obtained from customers
19. Facility costs are a combination of:
a) Internal and external costs
b) Carrier cost and labor cost
c) Fixed and variable cost
d) Fixed asset charges and interest cost
20. The parameters in the network model should be accepted if:
a) Executives approve them
b) The model reproduces historical cost within 3-5%
c) Operating personnel sign off on the parameters
d) The project team has met with sales and accounting and gotten agreement
21. The objective of the network planning exercise is to:
a) Minimize fixed assets
b) Minimize transportation cost
c) Minimize customer service failures
d) Minimize supply chain costs while achieving customer service objectives
22. Recently, network planning models have become much more sophisticated to include:
a) Global network optimization
b) Environmental costs and considerations
c) Inventory cost
d) All of the above
23. The generic network in 1-2 is:
a) A multi-echelon network
b) An incomplete supply chain
c) Representative of a specific industry, only
d) Only U. S. based
24. Information flows are not mapped directly in a network model. However:
a) Information always follows the product flow exactly
b) Information in the form of orders is a critical input to the network model
c) Information in the form of returns is critical to the model
d) Information in the form of ongoing status is critical to the network planning model
25. The best approach to all network planning models is to use optimization techniques.
a. True
b. False