1. T/F Company can always shut down facilities without incurring high cost: thus facility location decisions only have a short-term impact on making a supply chain responsive while keeping its cost low

2. T/F Having a large excess capacity is desirable because responsiveness of a supply chain can be improved without reducing efficiency (without increasing cost)

3. T/F As the number of facilities in a supply chain increase, inventory and facility costs increase, and transportation costs decrease

4. T/F The goal of designing a supply chain network is to maximize company's profit (and supply chain surplus) while satisfying customer needs in terms of demand and responsiveness.