True or false: There is one supply chain network design that is best for every product and market.
2 Supply Chain Strategy and Network Design Online Quiz Questions
Use this free practice quiz with 20 questions to review 2 Supply Chain Strategy and Network Design, test your knowledge, and prepare for your next test or exam.
A company competes primarily on low prices. Which supply chain priority best aligns its network design with that business strategy?
- A
Prioritize flexible capacity and shorter lead times above all else.
- B
Prioritize efficient operations.
- C
Distribute inventory to every customer location.
- D
Use the fastest available transportation for every shipment.
What supply chain concept describes the speed of completing customer order-to-delivery activities? Enter the concept.
True or false: Centralizing a supply chain can pool inventory and reduce the number of facilities, but may also increase delivery distances.
- A
True
- B
False
A network design specifies a facility's and which it serves.
A company wants to improve resilience without duplicating every resource. Select all network-design actions that can help it withstand, recover from, or adapt to disruptions.
- A
Qualify alternative suppliers for important inputs.
- B
Maintain backup capacity for important products or flows.
- C
Duplicate every resource, regardless of its importance or risk.
- D
Use flexible routing and contingency plans.
- E
Improve visibility into supply risks.
A planner knows that demand forecasts and transportation conditions may change. How should the planner use a network model to compare designs?
- A
Use the single forecast as certain and optimize only for it.
- B
Avoid comparing alternatives until actual demand is known.
- C
Test several plausible scenarios using different assumptions.
- D
Ignore transportation assumptions because they do not affect network decisions.
What key responsiveness measure does the SCOR framework identify for order fulfillment? Enter the measure's name.
In a hybrid retailer network, keep regional stock for products and centralized stock for items.
Which factors beyond freight transportation can affect environmental or social outcomes in a supply chain network? Select all that apply.
- A
Energy use at facilities.
- B
Packaging choices.
- C
Inventory obsolescence and waste.
- D
Only the number of distribution facilities, without considering their effects.
- E
Labor practices and product returns.
An online retailer wants faster delivery for a product category whose customers value speed. Which approach best improves responsiveness while recognizing that speed may add cost?
- A
Keep all inventory in one distant location and use the slowest transport available.
- B
Place inventory strategically, use flexible capacity, and arrange fast transportation where customers value speed.
- C
Increase lead times and reduce capacity flexibility.
- D
Use fast transportation for every product regardless of customer needs or cost.
A freight manager needs a program to help measure and benchmark transportation efficiency and emissions. Which should the manager use?
- A
SCOR order fulfillment cycle time
- B
A facility-capacity planning model
- C
The EPA SmartWay program
- D
A contingency plan for backup suppliers
Which statement best describes a sustainability trade-off when a company considers consolidating freight shipments?
- A
Consolidation always reduces transport activity without affecting service.
- B
Consolidation can improve vehicle utilization, while faster delivery or a more dispersed network may increase transport activity.
- C
A dispersed network always lowers operating costs and emissions.
- D
Shipment consolidation has no relationship to transportation efficiency.
An online retailer must choose between one national warehouse and several regional facilities. Recommend how it should compare these designs and explain the main trade-offs its decision should address.
A company competes on rapid delivery or customization. Which supply chain design choices may best support this strategy?
- A
Minimize flexibility and rely on long lead times
- B
Use flexible capacity and shorter lead times
- C
Concentrate all inventory in one location regardless of customer location
- D
Choose transportation only by its lowest cost
What term describes a supply chain’s ability to withstand, recover from, and adapt to disruptions?
A company has chosen its facilities and is deciding which regions each one will serve. Which supply chain network design decision is it making?
- A
Which product colors to offer in each market
- B
How often to review employee performance
- C
Which customers or regions each facility will serve
- D
How to set the retail price of each product
An online retailer is considering replacing several regional warehouses with one national warehouse. Which trade-off should it expect to evaluate?
- A
It may pool inventory and reduce facility count, but increase delivery distances.
- B
It always shortens delivery distances while reducing inventory.
- C
It removes the need to coordinate inventory across locations.
- D
It guarantees faster delivery without affecting operating costs.
What term describes determining a supply chain's structure and major flows?
True or false: Shipment consolidation can improve vehicle utilization, while faster delivery or a more dispersed network may increase transport activity.
- A
True
- B
False