Practice Quiz

Supply Chain Management

Category - Sustainability

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Network design decisions have a major impact on performance because they determine the supply chain configuration and set constraints within which transportation, inventory, and information can be used to either _________________ or ______________.
  1. Decrease the supply chain cost; increase responsiveness.
  2. Increase the supply chain cost; decrease responsiveness.
  3. Increase predictability; decrease it.
  4. Increase revenue; decrease it.
Explanation
Answer: A - Network design decisions have a significant impact on performance because they determine the supply chain configuration and set constraints within which inventory, transportation, and information can be used to either decrease the supply chain cost or increase responsiveness. A company has to pay attention to network design decisions to ensure that its current configuration does not become too expensive or provide poor responsiveness.
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