Question 1

________ 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 A

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

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  True

Question 4

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 5

Which of the following is a disadvantage of manufacturer/distributor storage with customer pickup?

Accepted Answer

A)   Customer experience is lower than other options because of the lack of home delivery.
B)   Response time is similar to package carrier delivery with manufacturer or distributor storage.
C)   Returnability is somewhat easier given that pickup location can handle returns.
D)   Product availability is similar to other manufacturer or distributor storage options.
E)   Facilities costs are lower if existing facilities are used.

Question 6

________ is a service factor performance characteristic of Retail Storage at Consumer Pickup Sites that is lower than all other options.

Accepted Answer

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

Question 7

Distributors add value to a supply chain between a supply stage and a customer stage if there are many small players at the customer stage,each requiring a small amount of the product at a time.

Accepted Answer

A) True 
 B)False

Question 8

Explain how distributors add value to a supply chain and improve its performance.

Accepted Answer

The answer of Explain how distributors add value to a...

Question 9

________ is the amount of time it takes for a customer to receive an order.

Accepted Answer

A)   Time to market
B)   Product Availability
C)   Returnability
D)   Response Time

Question 10

The steps taken to move and store a product from the supplier stage to a customer stage in the supply chain is referred to as

Accepted Answer

A)   transportation.
B)   retailing.
C)   wholesaling.
D)   distribution.
E)   manufacturing.

Question 11

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.
E)   Product variety is higher than all other options.

Question 12

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.
E)   By carrying inventory closer to the point of sale, manufacturers are able to provide a better response time than distributors can.

Question 13

On which dimensions should the performance of a distribution network be evaluated at the highest level?

Accepted Answer

A)   Profitability of individual supply chain components
B)   Efficiency of overall supply chain network
C)   Customer needs that are met
D)   Cost of meeting customer needs
E)   C and D only

Question 14

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 15

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

Accepted Answer

A)   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.
E)   Returnability is harder and more expensive than a retail network.

Question 16

The major disadvantage of a distribution network with local storage is the increased inventory and facility costs.

Accepted Answer

A) True 
 B)False

Question 17

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
E)   Manufacturer/distributor storage with customer pickup

Question 18

Distribution is a key driver of the overall profitability of a firm because

Accepted Answer

A)   the addition of distributors only adds cost to the supply chain.
B)   it directly impacts both the supply chain cost and the customer experience.
C)   it slows down the responsiveness of the supply chain.
D)   it cannot be developed as a part of supply chain strategy.
E)   Distribution is not a key driver of profitability.

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

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.
E)   Product availability is more expensive to provide than all other options.

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

________ 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.

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.

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

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.

Which of the following is a disadvantage of manufacturer/distributor storage with customer pickup?

________ is a service factor performance characteristic of Retail Storage at Consumer Pickup Sites that is lower than all other options.

Distributors add value to a supply chain between a supply stage and a customer stage if there are many small players at the customer stage,each requiring a small amount of the product at a time.

Explain how distributors add value to a supply chain and improve its performance.

________ is the amount of time it takes for a customer to receive an order.

The steps taken to move and store a product from the supplier stage to a customer stage in the supply chain is referred to as

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

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

On which dimensions should the performance of a distribution network be evaluated at the highest level?

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 an advantage of distributor storage with last mile delivery?

The major disadvantage of a distribution network with local storage is the increased inventory and facility costs.

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) ?

Distribution is a key driver of the overall profitability of a firm because

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

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