The Objective of the First Phase of Network Design Is

question 67

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 precise location and capacity allocation for each facility.
• C) select a set of desirable sites within each region where facilities are to be located.
• D) identify regions where facilities will be located, their potential roles, and their approximate capacity.
• E) specify what capabilities the supply chain network must have to support a firm's competitive strategy.

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Definitions:

Backflows

In a systems context, refers to the reverse flow of a liquid, gas, or other substance, counter to the intended or normal direction, which can create issues such as contamination.

Skill Transferability

The ease with which people can shift their work talents from one job, region, or country to another job, region, or country.

Net Benefits

The total positive outcomes or advantages derived from a particular action, subtracting any associated costs or negative effects.

Wage Rates

The standard amount of compensation individuals receive in exchange for their labor or services, measured per hour or unit of work.