Chapter 5 Network Design in the Supply Chain Tru e/False 1. Supply chain netw ork design decisions include the location of manufacturing, storage, or transportation-related facilities and the allocation of capacity and roles to each facility. Answer: True Difficulty: Moderate 2. 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 Difficulty: Moderate 3. 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 Difficulty: Moderate 4. 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 Difficulty: Easy 5. Capacity allocation decisions have a significant impact on supply chain performance because they tend to stay in place for several years. Answer: True Difficulty: Moderate 6. 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. Answer: True Difficulty: Easy 7. 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 Difficulty: Moderate 8. Network design decisions have a significant impact on performance because they determine the supply chain configuration and set constraints within which inventory,...
