OPS 571T Wk 6 – Apply Week 6 Assignment

Which of the following is not a criterion that influences manufacturing plant or warehouse facility location decisions?

Multiple Choice

Government barriers

Trading blocs

Environmental regulation

Immigration rules

Local labor costs

If the average aggregate inventory value is $1,200,000 and the cost of goods sold is $600,000, which of the following is inventory turnover?

Multiple Choice

60

10.4

2

0.5

None of these

Facility location analysis considers the competitive imperative of a favorable business climate as indicated by the presence of other companies in the same industry.

True or False

In the sourcing/purchasing design matrix, there are three variables: contract duration, transaction costs and specificity (assume levels as short, medium and long for contractduration and for the rest, low, medium and high).Vendor managed inventory belongs to

Multiple Choice

long contract duration, high transaction costs and low specificity.

short contract duration, high transaction costs and low specificity.

long contract duration, low transaction costs and low specificity.

long contract duration, high transaction costs and high specificity.

long contract duration, low transaction costs and high specificity.

A favorable business climate in facility location decision making might include government legislation of tax abatements.

True or False

If the average aggregate inventory value is $45,000 and the cost of goods sold is $10,000, which of the following is weeks of supply?

Multiple Choice

45,000

234

120

23.4

4.5

Facility location analysis considers the competitive imperative of locating near the appropriate labor pool to take advantage of low wage costs and/or skill levels.

True or False

Hub-and-spoke systems combine the idea of consolidation and that of cross-docking.

True or False

Which of the following is not an improvement-driven reason to outsource?

Multiple Choice

Improve risk management.

Increase commitment in a noncore area.

Shorten cycle time.

Improve quality and productivity.

Obtain expertise, skills, and technologies that are otherwise not available.

The centroid method for plant location uses which of the following data?

Multiple Choice

Volume of goods to be shipped between existing points

Inbound transportation costs

Transport times between facilities

Correlation matrix of existing facilities

Probabilities and payoffs

If the average aggregate inventory value is $1,200,000 and the cost of goods sold is $600,000, which of the following is weeks of supply?

Multiple Choice

1,040

606

104

60.6

2.0

Issues of product mix and capacity are strongly interconnected to the facility location decision.

True or False

First Among Best Solar Inc. announces thatthey will take back free of cost, all of their solar panels that are no longer useful. Till now, the cost of disposal was significant. This action reduces

Multiple Choice

Acquisition cost

Total cost of ownership

post-ownership costs

B and C

None of the above

Two common measures to evaluate supply chain efficiency are the inventory turnover and weeks-of-supply ratios.

True or False

In conducting a total cost of ownership analysis, it is probably best to use a team representing the key functional areas.

True or False

The objective of facility location analysis is to select the site with the lowest total cost.

True or False

In Hau Lee’s uncertainty framework to classify supply chains, a supply chain for innovative products with a stable supply process is called which of the following?

Multiple Choice

Efficient

Forward looking

Agile

Risk hedging

Responsive

Acquisition costs include which of the following costs?

Multiple Choice

Quality costs

Maintenance and repair costs

Environmental costs

Supply chain costs

Customer dissatisfaction costs

In facility location decision making, the factor-rating system is one of the least used general location techniques.

True or False

Ownership costs are incurred after the initial purchase and are associated with the ongoing use of the product or material. Which of the following is not an ownership cost listed in the text?

Multiple Choice

Financing costs

Energy costs

Taxes

Maintenance and repair costs

Supply network costs

The total cost of ownership (TCO) can be categorized into three areas: acquisition costs, ownership costs, and post-ownership costs.

True or False

Facility location analysis considers the competitive imperative of locating near the appropriate labor pool to take advantage of high technical skills.

True or False

Which of the following is a criterion that influences manufacturing plant or warehouse facility location decisions?

Multiple Choice

Proximity to customers

Corporate policy

Competitor’s locations

Competitive advantage

Host-community politics

In outsourcing, which of the following internal activities and decision responsibilities cannot be transferred to outside contractors?

Multiple Choice

Activities involving people

Activities involving facilities

Activities involving equipment

Activities involving shareholders

Activities involving technology

Inventory turnover and weeks of supply are mathematically the inverse of one another.

True or False