Question 1

As the response time desired by the customer decreases, the required number of facilities in the distribution network

Accepted Answer

A)   decreases.
B)   remains the same.
C)   increases.
D)   increases and then decreases. C

Question 2

A customer does not necessarily want the highest level of performance along all dimensions of customer service, including response time, product variety, product availability, customer experience, order visibility, and returnability.

Accepted Answer

A) True 
 B)False  True

Question 3

Which of the following is an advantage of retail storage with customer pickup?

Accepted Answer

A)   Inventory cost is higher than all other options.
B)   Transportation cost is lower than all other options.
C)   Facilities and handling costs are higher than other options.
D)   Product variety is lower than all other options. B

Question 4

The costs incurred in bringing material into a facility are

Accepted Answer

A)   sourcing transportation costs.
B)   outbound transportation costs.
C)   crossbound transportation costs.
D)   inbound transportation costs.

Question 5

As long as inbound transportation economies of scale are maintained, increasing the number of facilities decreases total transportation cost.

Accepted Answer

A) True 
 B)False

Question 6

It is much easier to return a product to an online retailer than to a traditional bricks and mortar seller.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is an advantage of distributor storage with last mile delivery?

Accepted Answer

A)   It is more expensive to provide product availability than any other option except retail stores.
B)   Inventory cost is higher than distributor storage with package carrier delivery.
C)   Response time is very quick ranging from same day to next day delivery.
D)   Transportation cost is higher than any other distribution option.

Question 8

Compared to a business with many retail outlets, an online seller with aggregated inventories tends to have lower per unit transportation costs across the entire supply chain.

Accepted Answer

A) True 
 B)False

Question 9

________ is a cost factor performance characteristic of Manufacturer or Distributor Storage with Customer Pickup that is lower than the use of package carriers, especially if using an existing delivery network.

Accepted Answer

A)   Transportation
B)   Inventory
C)   Information
D)   Facilities and Handling

Question 10

In general, traditional brick and mortar retail sales outperform online sales along the dimension of

Accepted Answer

A)   product variety.
B)   request fulfillment.
C)   time to market for a new product.
D)   order status tracking.

Question 11

Explain the six distinct distribution network designs that may be used to move products from factory to customer.

Accepted Answer

The answer of Explain the six distinct distribution network designs...

Question 12

In general, traditional brick and mortar retail sales outperform online sales along the dimension of

Accepted Answer

A)   product variety.
B)   efficient funds transfer.
C)   product returns.
D)   order status tracking.

Question 13

The main advantage of in-transit merge over drop-shipping is the somewhat lower transportation cost and improved customer experience.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is a disadvantage of distributor storage with last mile delivery?

Accepted Answer

A)   Transportation cost is higher than any other distribution option.
B)   Information cost is similar to distributor storage with package carrier delivery.
C)   Customer experience is very good, particularly for bulky items.
D)   Returnability is easier to implement than other options.

Question 15

Which of the following is an advantage of distributor storage with carrier delivery?

Accepted Answer

A)   Inventory cost is higher than with manufacturer storage.
B)   Product variety is lower than with manufacturer storage.
C)   Order visibility for the customer is easier than with manufacturer storage.
D)   Higher cost to provide the same level of product availability as manufacturer storage.

Question 16

It is more common for a manufacturer to not own the distribution network.

Accepted Answer

A) True 
 B)False

Question 17

Improvement in supply chain performance at the result of distributors occurs for which of the following reasons?

Accepted Answer

A)   Reduction in transportation cost because of LTL shipments from manufacturers to distributor.
B)   Reduction in outbound transportation cost because the distributor combines products from many customers into a single outbound shipment.
C)   Reduction in inventory costs because distributor disaggregates safety inventory rather than aggregating at each retailer.
D)   A more stable order stream from distributor to manufacturer (compared to erratic orders from each retailer)  allows manufacturers to lower cost by planning production more effectively.

Question 18

The number of different products/configurations that a customer desires from the distribution network is

Accepted Answer

A)   response time.
B)   product variety.
C)   product availability.
D)   customer experience.

Question 19

Transportation costs are high with drop-shipping because the average outbound distance to the end consumer is large and package carriers are used to shipping the product.

Accepted Answer

A) True 
 B)False

Question 20

________ is a service factor performance characteristic of Manufacturer or Distributor Storage with Customer Pickup that is lower than other options because of the lack of home delivery. Experience is very sensitive to capability of pickup location.

Accepted Answer

A)   Response time
B)   Product variety
C)   Customer experience
D)   Time to market

Exam 4: Designing Distribution Networks and Applications to e-Business

As the response time desired by the customer decreases, the required number of facilities in the distribution network

A customer does not necessarily want the highest level of performance along all dimensions of customer service, including response time, product variety, product availability, customer experience, order visibility, and returnability.

Which of the following is an advantage of retail storage with customer pickup?

The costs incurred in bringing material into a facility are

As long as inbound transportation economies of scale are maintained, increasing the number of facilities decreases total transportation cost.

It is much easier to return a product to an online retailer than to a traditional bricks and mortar seller.

Which of the following is an advantage of distributor storage with last mile delivery?

Compared to a business with many retail outlets, an online seller with aggregated inventories tends to have lower per unit transportation costs across the entire supply chain.

________ is a cost factor performance characteristic of Manufacturer or Distributor Storage with Customer Pickup that is lower than the use of package carriers, especially if using an existing delivery network.

In general, traditional brick and mortar retail sales outperform online sales along the dimension of

Explain the six distinct distribution network designs that may be used to move products from factory to customer.

In general, traditional brick and mortar retail sales outperform online sales along the dimension of

The main advantage of in-transit merge over drop-shipping is the somewhat lower transportation cost and improved customer experience.

Which of the following is a disadvantage of distributor storage with last mile delivery?

Which of the following is an advantage of distributor storage with carrier delivery?

It is more common for a manufacturer to not own the distribution network.

Improvement in supply chain performance at the result of distributors occurs for which of the following reasons?

The number of different products/configurations that a customer desires from the distribution network is

Transportation costs are high with drop-shipping because the average outbound distance to the end consumer is large and package carriers are used to shipping the product.

________ is a service factor performance characteristic of Manufacturer or Distributor Storage with Customer Pickup that is lower than other options because of the lack of home delivery. Experience is very sensitive to capability of pickup location.