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Study%20Guide%20for%20Exam%2020 - BUS 144 Supply Chain...

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BUS 144 Supply Chain Management 1/3 E XAM 2 Tuesday, April 08 th , In-Class, 50 minutes, Closed-book Y OU S HOULD B RING One SCANTRON sheet (FORM NO. 882-E) #2 pencil and eraser Calculator One page study paper F ORMAT True / False, Multiple Choice (25 questions) o Answer on the SCANTRON sheet S TUDY G UIDE CH 3: N ETWORK P LANNING Covers lecture notes and textbook chapter 3: 3.1, 3.2, 3.3 (ignore the case, example, and math in 3.3), 3.4, ignore the case at the end of the chapter. Having the most effective network of facilities is a key dimension to reducing costs through the supply chain. In this chapter, techniques and strategies for how a company can develop a model representing its logistics network is discussed. Associated factors include the aspects of aggregating customers and products in order to have a manageable problem regarding the network; strategies on how a company decides on where to position inventory, the impact of demand uncertainty and variability on inventory positioning. Since the network decision is an infrastructure related decision with long- term effects, it is more critical to have the right decisions when a company sources its products from different plants; an associated issue discussed is regarding the capacity built in the network - how a company knows whether, when, and where to expand its production capacity.
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