1. The primary reason a supply chain map should be created is to:

ensure a link between supply chain strategy and company strategy.

ensure customers can be shielded from where product is produced.

have a computer program that warns of unusual supply chain events.

hold logistics accountable for long transportation times.

2. A company has two alternatives for locating a new plant. At location X, fixed costs would be $4,000,000 per year, and variable costs 0.30 per unit. At alternative Y, fixed costs would be $3,600,000 per year, with variable costs of $0.35 per unit. If demand is expected to be 10 million units, which plant offers the lowest total cost?

location Y, because it is cheaper than location X for 10,000,000 units.

location X, because it is cheaper than location Y for 10,000,000 units.

location X, because variable costs are lower.

neither location X nor location Y, because the fixed costs are too high compared to the variable costs.

3. Supply chain design means

making decisions about the locations and capacities of facilities.

designing products with components that are low cost and produced locally.

defining a process for how to provide customer service.

designing manufacturing plants.