Question 1

An online book store has a distinct disadvantage over a traditional model in the area of

Accepted Answer

A)  Product variety 
B)  Transportation 
C)  Product availability 
D)  Flexible pricing

Question 2

Which of the following is a disadvantage of retail storage with customer pickup?

Accepted Answer

A)  Returnability is easier than other options given that pickup location can handle returns. 
B)  Inventory cost is higher than all other options. 
C)  Transportation cost is lower than all other options. 
D)  Facilities and handling costs are lower than other options.

Question 3

For physical products, i.e., products that cannot be downloaded, customer requests take longer to fulfill through online sales than in a retail store setting.

Accepted Answer

A) True 
 B)False

Question 4

In which distribution network design is product shipped directly from the manufacturer to the end customer, bypassing the retailer (who takes the order and initiates the delivery request)?

Accepted Answer

A)  Manufacturer storage with direct shipping 
B)  Manufacturer storage with direct shipping and in-transit merge 
C)  Distributor storage with package carrier delivery 
D)  Distributor storage with last mile delivery

Question 5

Which of the following would not be the result of a poor/inappropriate distribution network?

Accepted Answer

A)  High profitability 
B)  Low level of customer service 
C)  High cost 
D)  Poor profitability

Question 6

Companies in the same industry often select very different distribution networks because

Accepted Answer

A)  some companies are poorly run. 
B)  different companies try to avoid using the same approach. 
C)  different companies have different objectives for their supply chain. 
D)  all of the above

Question 7

Which of these statements about distribution networks is best?

Accepted Answer

A)  A manufacturer that owns their own distribution network cannot control the network's actions. 
B)  Customers are willing to have a relationship built around high value, specialized products. 
C)  Distribution networks that have identical physical flows but different ownership structures have identical performance. 
D)  It is important to have static distribution networks.

Question 8

Only niche companies will end up using a single distribution network.

Accepted Answer

A) True 
 B)False

Question 9

The costs incurred in sending material out of a facility are

Accepted Answer

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

Question 10

Which distribution network design is being used when the distributor/retailer delivers the product to the customer's home instead of using a package carrier?

Accepted Answer

A)  Manufacturer storage with direct shipping 
B)  Manufacturer/distributor storage with customer pickup 
C)  Distributor storage with package carrier delivery 
D)  Distributor storage with last mile delivery

Question 11

Which of these costs was higher for Netflix than for their vanquished competitor, Blockbuster?

Accepted Answer

A)  Property 
B)  Inventory 
C)  Facility 
D)  Transportation

Question 12

The probability of having a product in stock when a customer order arrives is

Accepted Answer

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

Question 13

Which distribution network design is being used when inventory is not held by manufacturers at the factories, but is held by distributors/retailers in intermediate warehouses and package carriers are used to transport products from the intermediate location to the final customer?

Accepted Answer

A)  Manufacturer storage with direct shipping 
B)  Manufacturer storage with direct shipping and in-transit merge 
C)  Distributor storage with package carrier delivery 
D)  Distributor storage with manufacturer pickup

Question 14

The ability of the customer to track their order from placement to delivery is

Accepted Answer

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

Question 15

Which of the following is an advantage of manufacturer/distributor storage with customer pickup?

Accepted Answer

A)  Facility costs can be very high if new facilities have to be built. 
B)  Transportation cost is lower than the use of package carriers, especially if using an existing delivery network. 
C)  Order visibility is difficult but essential. 
D)  Product variety is similar to other manufacturer or distributor storage options.

Question 16

Which distribution network design is similar to pure drop-shipping, except that pieces of the order coming from different locations are combined so that the customer gets a single delivery?

Accepted Answer

A)  Manufacturer storage with direct shipping 
B)  Manufacturer storage with direct shipping and in-transit merge 
C)  Distributor storage with package carrier delivery 
D)  Distributor storage with manufacturer pickup

Question 17

A distribution network designer needs to consider product characteristics as well as network requirements when deciding on the appropriate delivery network.

Accepted Answer

A) True 
 B)False

Question 18

Where does distribution occur in the supply chain?

Accepted Answer

A)  Between every pair of stages 
B)  Everywhere downstream from production 
C)  Between production and the retailer 
D)  Between suppliers and retailers

Question 19

Distributors add value to a supply chain between a supply stage and a customer stage

Accepted Answer

A)  if there is a small number of customers requiring a large amount of product. 
B)  if there is a large number of customers requiring a large amount of product. 
C)  if there are many small players at the customer stage, each requiring a small amount of the product at a time. 
D)  if there are a few large players at the customer stage, each requiring a large amount of the product at a time.

Question 20

Outbound transportation costs per unit tend to be

Accepted Answer

A)  about the same as inbound costs. 
B)  higher than inbound costs. 
C)  lower than inbound costs. 
D)  neither higher or lower than inbound costs.

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

An online book store has a distinct disadvantage over a traditional model in the area of

Which of the following is a disadvantage of retail storage with customer pickup?

For physical products, i.e., products that cannot be downloaded, customer requests take longer to fulfill through online sales than in a retail store setting.

In which distribution network design is product shipped directly from the manufacturer to the end customer, bypassing the retailer (who takes the order and initiates the delivery request) ?

Which of the following would not be the result of a poor/inappropriate distribution network?

Companies in the same industry often select very different distribution networks because

Which of these statements about distribution networks is best?

Only niche companies will end up using a single distribution network.

The costs incurred in sending material out of a facility are

Which distribution network design is being used when the distributor/retailer delivers the product to the customer's home instead of using a package carrier?

Which of these costs was higher for Netflix than for their vanquished competitor, Blockbuster?

The probability of having a product in stock when a customer order arrives is

Which distribution network design is being used when inventory is not held by manufacturers at the factories, but is held by distributors/retailers in intermediate warehouses and package carriers are used to transport products from the intermediate location to the final customer?

The ability of the customer to track their order from placement to delivery is

Which of the following is an advantage of manufacturer/distributor storage with customer pickup?

Which distribution network design is similar to pure drop-shipping, except that pieces of the order coming from different locations are combined so that the customer gets a single delivery?

A distribution network designer needs to consider product characteristics as well as network requirements when deciding on the appropriate delivery network.

Where does distribution occur in the supply chain?

Distributors add value to a supply chain between a supply stage and a customer stage

Outbound transportation costs per unit tend to be