Question 14 Our Bottoms Up Bottling Co. activity focused on network design. For soft drink products, what is the appropriate network model? O Centralize the bottling plants and regionalize the concentrate factory O Centralize the concentrate factory and regionalize the bottling plants O Centralize the entire network with a single site making the concentrate and bottling the drinks

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Question 14
Our Bottoms Up Bottling Co. activity focused on network design. For soft drink products, what is
the appropriate network model?
O Centralize the bottling plants and regionalize the concentrate factory
O Centralize the concentrate factory and regionalize the bottling plants
O Centralize the entire network with a single site making the concentrate and bottling the drinks
Question 15
A properly designed network project focuses on optimizing which type of cost?
Production & IT costs
Inbound transportation cost
Individual facility cost
Total network operating cost
Transcribed Image Text:Question 14 Our Bottoms Up Bottling Co. activity focused on network design. For soft drink products, what is the appropriate network model? O Centralize the bottling plants and regionalize the concentrate factory O Centralize the concentrate factory and regionalize the bottling plants O Centralize the entire network with a single site making the concentrate and bottling the drinks Question 15 A properly designed network project focuses on optimizing which type of cost? Production & IT costs Inbound transportation cost Individual facility cost Total network operating cost
Question 16
As the number of distribution facilities in your network decreases and becomes highly centralized,
what happens to your costs:
O Cost of lost sales go down thanks to greater understanding of customer requirements
Outbound delivery costs to customers rise due to greater distance to customers
O Inventory costs go up due to greater safety stock requirements
Overhead costs go up because you have more faci
es
Question 17
Which network fulfillment option offers the following advantages and ideal uses?
Advantages: rémoves labor from the system, reduces freight costs, provide quick sorting and
mixing capabilities
Ideal Uses: supplier to factory consolidation, promotional goods, high volume, bulky products
O Direct store delivery
O Cross-dock
O Factory fulfillment
Warehouse/ Distribution Center
oooO
Transcribed Image Text:Question 16 As the number of distribution facilities in your network decreases and becomes highly centralized, what happens to your costs: O Cost of lost sales go down thanks to greater understanding of customer requirements Outbound delivery costs to customers rise due to greater distance to customers O Inventory costs go up due to greater safety stock requirements Overhead costs go up because you have more faci es Question 17 Which network fulfillment option offers the following advantages and ideal uses? Advantages: rémoves labor from the system, reduces freight costs, provide quick sorting and mixing capabilities Ideal Uses: supplier to factory consolidation, promotional goods, high volume, bulky products O Direct store delivery O Cross-dock O Factory fulfillment Warehouse/ Distribution Center oooO
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