Network Design and Facility Location Quizzes for Supply Chain Management

Question 1

In determining the optimal location for a production facility, which of the following factors is NOT considered?

Accepted Answer

Availability of skilled labor

Answer

Cost

Answer

Capacity

Answer

Proximity to suppliers

Question 2

When selecting the location for a new distribution center to serve customers in a specific region, which criterion should be prioritized?

Accepted Answer

Proximity to major transportation routes

Answer

Low land costs

Answer

Availability of skilled labor

Answer

Favorable tax incentives

Question 3

Which network design model incorporates both facility capacity constraints and product flow through the network?

Accepted Answer

Capacitated location-allocation model

Answer

Transshipment model

Answer

Minimum spanning tree model

Answer

Hub-and-spoke model

Question 4

In facility layout design, what is the primary objective?

Accepted Answer

Minimize material handling time and distance

Answer

Maximize space utilization

Answer

Improve employee safety

Answer

Enhance product quality

Question 5

What is the fundamental difference between a pull and a push supply chain strategy?

Accepted Answer

Pull strategies initiate production based on customer demand, while push strategies rely on forecasts

Answer

Push strategies initiate production based on customer demand, while pull strategies rely on forecasts

Answer

Pull strategies aim to minimize inventory levels, while push strategies prioritize production efficiency

Answer

Push strategies aim to minimize inventory levels, while pull strategies prioritize production efficiency

Question 6

The process of determining the optimal locations and number of facilities in a supply chain is known as:

Accepted Answer

Network design

Answer

Site selection

Answer

Facility planning

Answer

Distribution planning

Question 7

Which quantitative method is commonly used to assess the monetary implications of establishing a facility at a particular location?

Accepted Answer

Discounted cash flow analysis

Answer

Transportation cost analysis

Answer

Activity-based costing

Answer

Monte Carlo Simulation

Question 8

The concept of logistics network clustering involves:

Accepted Answer

Grouping facilities with similar functions or products

Answer

Using hub-and-spoke distribution systems

Answer

Implementing cross-docking operations

Answer

Applying advanced forecasting techniques

Question 9

Which of the following factors is NOT considered in determining the optimal location for facilities in network design?

Accepted Answer

Political climate

Answer

Cost

Answer

Capacity

Answer

Customer proximity

Question 10

When choosing a location for a distribution center, which criterion typically takes precedence?

Accepted Answer

Proximity to customers

Answer

Proximity to suppliers

Answer

Lowest land acquisition cost

Answer

Availability of skilled labor

Question 11

Which of the following is NOT a method used to evaluate network designs?

Accepted Answer

Expert judgment

Answer

Linear programming

Answer

Simulation

Answer

Cost-benefit analysis

Question 12

What is the primary objective of network design in supply chain management?

Accepted Answer

Balancing costs and service levels

Answer

Minimizing total costs

Answer

Maximizing customer service levels

Answer

Reducing waste and inefficiency

Question 13

When designing a supply chain network with complex constraints and decisions that can only be whole numbers, which type of model is most appropriate?

Accepted Answer

Mixed-Integer Programming

Answer

Linear Programming

Answer

Heuristic Approaches

Question 14

In analyzing case studies on network design and facility location, which factor is critical to consider?

Accepted Answer

Industry Type

Answer

Political Climate

Answer

Average Customer Income

Question 15

How does environmental sustainability impact facility location decisions?

Accepted Answer

Prioritizing facilities with lower energy consumption

Answer

Selecting facilities near major transportation routes

Answer

Avoiding locations with stringent environmental regulations

Answer

Choosing sites with the lowest land acquisition costs

Question 16

Which of the following factors is NOT relevant when selecting a location for a distribution center?

Accepted Answer

Proximity to competitors

Answer

Customer proximity

Answer

Transportation costs

Answer

Proximity to suppliers

Question 17

Which network design is most suitable for businesses with high inventory volume and rapid distribution requirements?

Accepted Answer

Hub-and-spoke network

Answer

Hierarchical network

Answer

Cellular network

Answer

Ring network

Question 18

The primary purpose of facility layout in supply chain management is to:

Accepted Answer

Optimize the flow of goods and materials

Answer

Improve customer satisfaction

Answer

Minimize inventory levels

Answer

Reduce employee downtime

Question 19

What is a key benefit of using a geographic information system (GIS) in network design?

Accepted Answer

Visualization of network components

Answer

Improved customer communication

Answer

Automated calculations

Answer

Error-free data entry

Question 20

When designing a distribution network, a major challenge lies in:

Accepted Answer

Balancing capacity and demand

Answer

Managing inventory levels

Answer

Selecting the optimal transportation modes

Answer

Coordinating with suppliers

Question 21

Quantitative modeling in facility location decisions plays a vital role in:

Accepted Answer

Predicting outcomes and optimizing solutions

Answer

Guaranteeing accurate results

Answer

Reducing the time required for decision-making

Answer

Eliminating the need for qualitative analysis

Question 22

The primary objective of supply chain network optimization is to:

Accepted Answer

Minimize total supply chain costs

Answer

Reduce environmental impact

Answer

Increase inventory turnover

Answer

Maximize customer satisfaction

Question 23

A common barrier to effective network design includes:

Accepted Answer

Lack of data and information

Answer

Insufficient technology

Answer

Unrealistic expectations

Answer

Poor communication