Lesson 9

Question 1

what are the drivers of supply chain design?

Answer 1

• demand
• geography
• transportation (economies of scale & proximity to market)
• resources
• economic support
• political and tax policy

Question 2

what pertains to the spatial/temporal integration?

Answer 2

network design

Question 3

this pertains to the right place and right time

Answer 3

temporal-spatial nature of logistics function

Question 4

product availability

Answer 4

temporal formation

Question 5

transportation

Answer 5

spatial elements

Question 6

this also pertains to the framework for total cost implementation

Answer 6

network design

Question 7

warehouse requirements for PROCUREMENT drivers

Answer 7

closed-loop focus

Question 8

warehouse requirements for MANUFACTURING drivers

Answer 8

make-to-plan (MTP)
make-to-order (MTO)
assemble-to-order (ATO)

Question 9

warehouse requirements for CUSTOMER RELATIONSHIP drivers

Answer 9

rapid replenishment
market-based ATO

Question 10

what is a set of interrelationships designed to achieve the desired objective?

Answer 10

systems analysis

Question 11

what is the total integrated effort to accomplish the desired objective?

Answer 11

systems analysis

Question 12

what is the functional relationship that exists between components that may enhance or hinder system performance?

Answer 12

trade-offs

Question 13

components linked together in a balanced system will produce ________ than the sum of individual components

Answer 13

greater end results

Question 14

what are the key trade-offs?

Answer 14

cost to cost
cost to serve

Question 15

what are the manufacturing/distribution integration?

Answer 15

economy-of-scale
economy-of-scope

Question 16

pertains to the total cost-service integration like transportation (spatial) and inventory (temporal)

Answer 16

facility network integration

Question 17

economies of transportation cost integration (spatial)

Answer 17

basic and transportation economies and generalized relationship

Question 18

basic economies include

Answer 18

economy of size and distance

Question 19

transportation economies include

Answer 19

quantity discount and tapering principle

Question 20

what are the logistics system design requirements?

Answer 20

commodity
integrated service
customized service

Question 21

commodity

Answer 21

• direct bulk or cross-dock delivery
• limited product requirements
• unique information reqs and capabilities
• precise management reqs

Question 22

TRUE OR FALSE

major opportunities are economy of scale and economy of scope

Answer 22

true

Question 23

integrated service

Answer 23

delivery to customer DC
broad product offering
range of info reqs and capabilities
accept more generic strategies

Question 23

customized service

Answer 23

delivery in small qty
select products
tracking of individual behavior
indiv focused strategies

Question 24

TRUE OR FALSE

all supply chains have same requirements

Answer 24

false; not all

Question 25

what are the supply chain criteria?

Answer 25

design to MINIMIZE landed cost and risk
design to MAXIMIZE asset utilization, competitive positioning (relevancy), and control

Question 26

formula for total cost analysis approach

Answer 26

handling + inbound transport + DC handling + inventory + customer transport