OPS Test 2

For the network model, the objective is to:

• minimize total miles on routes utilized in the network

• meet a desired service level

• minimize total production and shipping costs

• maximize profits

Total shipping costs in the network are:

• inflows minus outflows

• sumproduct of units shipped (flow) and unit shipping costs on each route

• sum of all units shipped with destination equal to the criteria on the current row

• an assumption given in the problem

Total costs in the model are:

• total annual inventory costs are minimized

• sum of all units shipped with destination equal to the criteria on the current row

• total shipping costs plus total production costs

• sumproduct of units shipped and unit production costs

Amounts shipped (flows) on each route in the network are:

• the objective in the model

• decision variables (changing cells) in the model

• an assumption given in the problem

• constraints in the model

For wholesalers, goods primarily flow into these locations to ultimately satisfy retailer demand, so the net flows are calculated as:

• outflows minus inflows

• sum of all units shipped with destination equal to the criteria on the current row

• inflows minus outflows

• sumproduct of units shipped and unit shipping costs

The net flow at each location compares inflows and outflows. For factories, this cell is entered as
outflows minus inflows, since goods primarily flow out of factories.

• true

• false

Required net flows at the wholesaler are calculated as:

• Demand at Wholesaler+Required Safety Stock at Wholesaler−Current Inventory

• unit production cost minus unit shipping cost

• sumproduct of units shipped and unit shipping costs

• inflows minus outflows

Which is the best description of the decentralized model in the supply chain coordination model?

• a coordination mechanism is introduced to provide an incentive to act in the best interests of the supply chain

• the parties combine their decisions to minimize costs throughout the supply chain

• the factory ships goods directly to customers

• each stage makes a decision to minimize its own costs without regard to the other parties

• each stage makes a decision to minimize its own costs without regard to the other parties

In the supply chain coordination problem, the distributor orders goods from:

• customers

• distributor

• factory

• wholesaler

• retailer

A decision variable for the Distributor in the supply chain coordination model is:

• distributor order multiple

• fixed ordering cost

• reorder point

• holding cost per unit