4) About the gravity method to decide facility location, which the following is incorrect A) Only one facility is built. B) The objective is to minimize the total transportation cost and is linear. C) There is not capacity constraint in the optimization model. D) The problem can be solved with Excel solver. E) A and C. 5) Tariffs, economies of scale and aggregate factor costs mostly affect which of the four Global Network Design Decisions? A) Phase I - Supply Chain Strategy B) Phase II - Regional Facility Configuration C) Phase III - Desirable Sites D) Phase IV - Location Choices 6) The appropriate level of safety inventory is determined by A) the uncertainty of both demand and supply. B) the product design and planning. C) the desired level of product availability. D) none of the above E) A and C only 7) Continuous review policies for inventory replenishment require safety inventory to cover demand during A) lead time only. B) the review interval only. C) both lead time and the review interval. D) neither lead time or the review interval. 8) Which distribution network is also referred to as drop-shipping with product delivered directly from the manufacturer to the customer location? A) Manufacturer storage with direct shipping B) Manufacturer storage with direct shipping and in-transit merge C) Distributor storage with package carrier delivery D) Distributor storage with last mile delivery 9) The manager of a store currently orders 800 item every cycle when the inventory level reaches 300 units. Due to demand uncertainty, the average shortage is 80 per cycle. Which of the following is correct? A). The product fill rate is 95% B). The cycle service level is 95% C). The cycle service level is 90% D). The product fill rate is 90% 10) Assume Toronto has 25 hospitals which take COVID patients. Toronto's Medical Officer wants to compare the decentralized and centralized safety inventory policy of ventilators. Assume the demand at each hospital is independent and follows the same distribution. Which of the following is correct? A) The safety inventory of centralized policy will be five times of total safety inventory of decentralized policy if keeping the same service level. B) Under decentralized policy, the total safety inventory will be five times of the safety inventory of each store if keeping the same service level. C) The total safety inventory of decentralized policy will be five times of safety inventory of centralized policy if keeping the same service level. D) If the total safety inventory for each policy is the same, then the service levels of both policies are the same. E) None of the above