1. Webvan designed a supply chain with large warehouses in several major cities in the United States, from which groceries were delivered to customer homes. They failed partly because of A) low demand for their service. B) slow inventory turnover compared to industry averages. C) higher labor costs for picking orders. D) poor quality products.

2. The allocation of supply sources and markets to facilities should be reconsidered on a regular basis so that

A) the allocation can be held constant as market conditions or plant capacities expand. B) the allocation can be changed as market conditions or plant capacities stagnate. C) the allocation can be held constant as market conditions or plant capacities change. D) the allocation can be changed as market conditions or plant capacities change.