True or false: A supply network can fail to meet demand even when its total capacity is ample, if that capacity is located or assigned poorly.
8 Supply Chain Network Design and Integration Online Quiz Questions
Use this free practice quiz with 20 questions to review 8 Supply Chain Network Design and Integration, test your knowledge, and prepare for your next test or exam.
True or false: Cross-functional integration is achieved simply by combining reports from demand planning, procurement, operations, and logistics.
- A
True
- B
False
What term means the maximum output or throughput a resource can support over a defined period? Enter the single term.
Which named service measure in the material concerns the proportion of customer orders that are filled? Enter the exact measure name.
A supply network consists of , such as suppliers and warehouses, and that connect them through transportation and information flows.
In the practical planning cycle, after creating and comparing network alternatives, planners next before choosing and monitoring the design.
A retailer is comparing one central distribution center with several regional centers. Which assessment best captures the trade-off described in the material?
- A
Regional centers always lower total cost because they shorten delivery distances.
- B
A central center may reduce facility overhead, while regional centers may improve local availability and delivery speed but require more sites and potentially duplicate inventory.
- C
The number of facilities alone determines which design is best.
- D
A central center guarantees faster delivery because all inventory is held together.
Two plants can supply regional warehouses, but the lowest-cost plant may not have enough capacity to serve all demand. Which planning approach is most appropriate?
- A
Send all volume through the plant with the lowest production cost, regardless of its capacity.
- B
Choose the plant with the shortest delivery time and ignore production and transportation costs.
- C
Assign flows while accounting for relevant costs, plant capacity, and delivery-time requirements.
- D
Divide volume equally between plants, regardless of demand or resource limits.
A company wants to make a transparent network-design choice that controls cost without abandoning its delivery promise. Which objective best fits this goal?
- A
Maximize speed and service without considering cost.
- B
Minimize total cost while requiring a specified share of orders to arrive within a defined delivery window.
- C
Minimize transportation cost alone, even if delivery promises are missed.
- D
Maximize each performance measure independently.
A retailer is evaluating alternative distribution-center arrangements. Select all factors identified as relevant to deciding which arrangement fits.
- A
Demand density
- B
Delivery promises
- C
Product characteristics
- D
Replenishment lead times
- E
Inventory and transportation costs
- F
Facility count alone
Sales promotes a product without informing operations. Select all outcomes the material identifies as possible consequences of this kind of coordination failure.
- A
Shortages
- B
Excess stock
- C
Expediting costs
- D
Missed delivery promises
- E
Guaranteed lower total cost
A shared demand forecast rises for a product. Which response best reflects cross-functional integration?
- A
Use the revised forecast to coordinate capacity, purchasing, production, and inventory plans.
- B
Update only the sales report and wait for each other function to make independent decisions.
- C
Increase inventory targets but leave capacity and purchasing plans unchanged.
- D
Ask logistics to change routes without revisiting supply or production assumptions.
A retailer wants faster delivery and better local product availability but is concerned about the added expense of regional distribution centers. Explain how it should compare network alternatives and what trade-offs it should consider.
True or false: Operating every asset near its maximum capacity may lower unit cost in steady conditions, but can leave little room to recover from demand surges or downtime.
- A
True
- B
False
What term describes planning decisions that assign quantities and paths for products moving through a supply network?
Why should facility location, capacity, sourcing, inventory placement, and transportation choices be assessed together in supply chain network design?
- A
Each decision can be optimized separately because facility location does not affect inventory or transportation.
- B
The choices should be assessed together because changing a facility or flow can affect capacity, inventory, transportation, and customer delivery performance.
- C
Sourcing decisions determine the entire network, so capacity and inventory placement do not need to be considered.
- D
Transportation choices affect delivery time but cannot change facility or inventory requirements.
In the ASCM SCOR framework, what is the strategy-level process placed above Plan, Order, Source, Transform, Fulfill, and Return?
Procurement is considering a lower-price supplier whose lead times are longer. Which action best integrates this sourcing decision with the rest of the supply chain?
- A
Select the supplier based only on price because lead times do not affect inventory or production.
- B
Coordinate the sourcing decision with inventory and operating plans, accounting for the longer lead time when setting commitments and buffers.
- C
Increase production capacity without changing purchasing commitments or inventory targets.
- D
Leave the decision to logistics because supplier lead times do not affect procurement or operations.
Procurement finds a lower-price supplier whose materials take longer to arrive. What is the most appropriate way to evaluate this sourcing choice?
- A
Select the supplier because the lowest purchase price always minimizes total supply chain cost.
- B
Account for the longer lead time when coordinating sourcing with inventory and operating plans.
- C
Ignore the lead time if the supplier can provide the material eventually.
- D
Increase customer delivery promises without changing any other plans.
A company has compared several network alternatives. Before selecting one, what should it do to test whether the proposed design can actually be carried out?
- A
Confirm that production, storage, transportation, labor, and systems can execute the proposed plan.
- B
Check only whether the proposed facility locations minimize purchasing costs.
- C
Assume that a plan is feasible if the demand forecast is shared across functions.
- D
Select the alternative with the shortest customer delivery distance without checking resource limits.