The Overall Objective of Phase II in the Supply Chain

question 68

Multiple Choice

The overall objective of Phase II in the supply chain design and facility location process includes all of the following except ______.

• A)the regions where the facilities will be located
• B)the availability of the necessary infrastructure
• C)the role each facility would play in meeting the market requirements
• D)the number of facilities needed for the supply chain

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Definitions:

Internal Rate of Return

A financial metric used to estimate the profitability of potential investments, calculating the rate of return at which the net present value of all the cash flows (both positive and negative) from a project or investment equal zero.

Discount Factor

A number used to calculate the present value of future cash flows; it reflects the time value of money.

Operating Costs

Expenses involved in the day-to-day functions of a business related to its operations, potentially including both cost of goods sold and operating expenses.

Salvage Value

The estimated resell value of an asset at the end of its useful life.