1. Identify a true statement about responsive supply chains.
They use only a few, large distribution centers to generate economies of scale.
They use optimization models that minimize costs of routing products from factory through distribution centers to retail stores and customers.
They are designed for efficiency and low cost by minimizing inventory and maximizing efficiencies in process flow.
They are supported by information technology that provides real-time information to managers across the supply chain.
2. Which of the following statements is true of outsourcing decisions?
Break-even analysis can be used to provide insight into outsourcing decisions.
The simplest outsourcing decision is a single supplier versus multiple suppliers.
If a company decides to make a part in-house, it does not incur any fixed costs.
If a company outsources its work to external supplier, the variable cost per unit will be low.