Exam 4: Supply Chain and Omni Channel Network Design

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The optimization model is based on:

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A

When Zappos, a leading online shoe retailer, receives an online order through its website, the order is sent directly to the most appropriate distribution center for fulfillment. This is an example of:

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B

Heuristic models:

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The quality of life locational determinant is most important to companies that must attract and retain an unskilled, static work force.

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What is the effect of tapering rates on facility location?

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In a commercial zone, the same transportation rate is applied from an origin to any point in the zone.

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Define the principles of tapering rates, blanket rates, and commercial zones and the implication of each on location selection.

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List and discuss potential supply chain modeling pitfalls to avoid.

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Application of the grid technique to the location of a city warehouse:

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What are the current trends governing site selection?

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A channel of distribution is controlled by the marketing department, which selects the physical structures and intermediaries through which the product(s) flow.

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Which of these is not a trend in today's logistics environment that may have significant effects on decisions involving logistics facility location?

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Kelly's firm processes and packages organic nuts and nut butters, and it has just landed a new contract with Costco, the discount retailer. As wonderful as this new opportunity is, the Costco-bound nut butters demand a change in the supply chain network. These products require larger containers (24 oz. containers instead of the usual 16 oz. jars), which in turn require larger shipping cartons. Kelly is currently testing the various containers available from a range of suppliers to determine which are most compatible with the firm's production line. Which step in the supply chain network redesign process is Kelly performing?

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Which major locational determinant considers locating near the competition?

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Briefly describe the six major steps that are recommended for a logistics network design process.

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Logistics facilities and their locations are relatively variable and easily modified in the short term.

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The grid technique is used to determine a fixed facility location that represents the least-cost center for moving incoming materials and outbound product within a geographic grid. This least cost center is also referred to as a:

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The grid technique determines the highest cost facility location in an area.

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An organization's omni-channel strategy must align with its "go to market" strategy, which dictates how consumers will be able to gain access to the firm's products or services.

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Southwest Auto Parts already had a massive distribution center in Utah serving its 147 stores scattered across seven U.S. states when it decided to start selling auto parts online. The firm's management wanted to minimize startup costs by consolidating order fulfillment under the same roof, so which model of order fulfillment did the firm's managers decide to use?

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