Question 1

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. 
E)  order visibility.

Question 2

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. 
E)  Cost of facilities and handling is somewhat higher than manufacturer storage.

Question 3

Facility costs decrease as the number of facilities is reduced.Which company employs a network design like this?

Accepted Answer

A)  Barnes and Noble 
B)  Books-A-Million 
C)  Starbucks 
D)  Amazon

Question 4

The choice of the distribution network can be used to achieve supply chain objectives such as

Accepted Answer

A)  low cost. 
B)  high responsiveness. 
C)  high cost. 
D)  high responsibility. 
E)  A and B only

Question 5

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 6

Explain the measures of customer service that are influenced by the structure of the distribution network.

Accepted Answer

The answer of Explain the measures of customer service that...

Question 7

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 
E)  Retail storage with customer pickup

Question 8

Changing the distribution network design DOES NOT affect the following supply chain costs

Accepted Answer

A)  transportation. 
B)  inventories. 
C)  information. 
D)  sourcing.

Question 9

The major disadvantage of in-transit merge compared to drop-shipping is

Accepted Answer

A)  transportation costs are high because the average outbound distance to the end consumer is large and package carriers are used to shipping the product. 
B)  response times tend to be large because the order has to be transmitted from the retailer to the manufacturer and shipping distances are on average longer from the manufacturer's centralized site. 
C)  order tracking becomes harder to implement because it requires complete integration of information systems at both the retailer and the manufacturer. 
D)  the additional effort during the merge itself. 
E)  the handling of returns is likely to be difficult and more expensive, hurting customer satisfaction.

Question 10

Which of the following are key decisions in the design of a distribution network?

Accepted Answer

A)  Will product be delivered to the customer location or picked up from a pre-ordained site? 
B)  Will product flow through a production facility? 
C)  Will product flow through an intermediary (or intermediate location)? 
D)  all of the above 
E)  A and C only

Question 11

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 
E)  Retail storage with customer pickup

Question 12

Which of the following is not a measure of customer service that is influenced by the structure of the distribution network?

Accepted Answer

A)  Returnability 
B)  Customer experience 
C)  Customer maturity 
D)  Product availability 
E)  All of the above are measures of customer service.

Question 13

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 
E)  Retail storage with customer pickup

Question 14

The main advantage of a distribution network with local storage is that it can lower the delivery cost and provide a faster response than other networks.

Accepted Answer

A) True 
 B)False

Question 15

Distribution occurs between every pair of stages in the supply chain.

Accepted Answer

A) True 
 B)False

Question 16

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. 
E)  none of the above

Question 17

Customers always want the highest level of performance along all the dimensions response time,product variety and returnability.

Accepted Answer

A) True 
 B)False

Question 18

The main advantage of a distribution network with local storage is that it can lower the inventory and facility costs.

Accepted Answer

A) True 
 B)False

Question 19

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. 
E)  none of the above

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

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

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

Facility costs decrease as the number of facilities is reduced.Which company employs a network design like this?

The choice of the distribution network can be used to achieve supply chain objectives such as

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

Explain the measures of customer service that are influenced by the structure of the distribution network.

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?

Changing the distribution network design DOES NOT affect the following supply chain costs

The major disadvantage of in-transit merge compared to drop-shipping is

Which of the following are key decisions in the design of a distribution network?

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 the following is not a measure of customer service that is influenced by the structure of the distribution network?

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?

The main advantage of a distribution network with local storage is that it can lower the delivery cost and provide a faster response than other networks.

Distribution occurs between every pair of stages in the supply chain.

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

Customers always want the highest level of performance along all the dimensions response time,product variety and returnability.

The main advantage of a distribution network with local storage is that it can lower the inventory and facility costs.

The costs incurred in bringing material into a facility are

________ 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.