The Objective of the First Phase of Network Design Is

question 20

Multiple Choice

The objective of the first phase of network design is to

• A)maximize total profits,taking into account the expected margin and demand in each market.
• B)select a set of desirable sites within each region where facilities are to be located.
• C)identify regions where facilities will be located,their potential roles,and their approximate capacity.
• D)specify what capabilities the supply chain network must have to support a firm's competitive strategy.

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Definitions:

Machine-Hours

A measure of production or work volume that indicates the amount of time a machine has been operating.

Predetermined Overhead Rate

A calculated rate used to allocate indirect costs to products or services, based on estimated or budgeted overhead costs and an allocation base.

Manufacturing Overhead

All indirect costs related to the manufacturing process, such as utilities and salaries for managers.

Machine-Hours

A measure of the amount of time a machine is operated, used in calculating manufacturing costs and efficiencies.