Network Design Decisions Have a Significant Impact on Performance Because

question 40

Multiple Choice

Network design decisions have a significant impact on performance because they

• A)determine the customer demand.
• B)determine the supply chain conflagration.
• C)set constraints within which inventory,transportation,and information can be used to either decrease supply chain cost or increase responsiveness.
• D)set constraints within which inventory,transportation,and information can be used to either increase supply chain cost or decrease responsiveness.

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Definitions:

Neoclassical Economic Model

An economic theory that focuses on how the equilibrium state of markets is reached through supply and demand forces, emphasizing utility maximization and profit maximization.

Behavioral Economics

A field of economics that studies the effects of psychological, cognitive, emotional, cultural, and social factors on the economic decisions of individuals and institutions.

Overconfidence Effect

The bias where an individual's subjective confidence in their judgments is greater than their objective accuracy.

Cognitive Bias

A cognitive bias is a systematic pattern of deviation from norm or rationality in judgment, whereby inferences about other people and situations may be drawn in an illogical fashion.