Supply Chain Chain Management, Management, 6e (Chopra/Meindl) 6e (Chopra/Meindl) Chapter 4 Designing Distribution Networks and Applications to e-Business
4.1 True/False Questions 1) Distribution occurs between every pair of stages in the supply chain. Answer: T!" Diff: # Topic: 4.1 The ole of Distribution Distribution in the $upply %hain %hain AA%$&: Application of 'nowle(ge b*ective: + 4.1: ,(entify the 'ey factors factors to be consi(ere( when (esigning a (istribution networ'. #) %o-panies in the sa-e in(ustry often select very (ifferent (istribution networ's because the choice of the (istribution networ' can be use( to achieve a variety of supply chain ob*ectives ranging fro- low cost to high responsiveness. Answer: T!" Diff: # Topic: 4.1 The ole of Distribution Distribution in the $upply %hain %hain AA%$&: Application of 'nowle(ge b*ective: + 4.1: ,(entify the 'ey factors factors to be consi(ere( when (esigning a (istribution networ'. ) A custo-er (oes not necessarily want the highest level of perfor-ance along all (i-ensions of custo-er service inclu(ing response ti-e pro(uct variety pro(uct availability availability custo-er e0perience or(er o r(er visibility visibility an( returnability. Answer: T!" Diff: 1 Topic: 4.# Factors ,nfluencing Distribution Distribution etwor' Design AA%$&: Application of 'nowle(ge b*ective: + 4.1: ,(entify the 'ey factors factors to be consi(ere( when (esigning a (istribution networ'. 4) utboun( transportation costs per unit ten( to be lower than inboun( costs because inboun( lot si2es are typically larger. larger. Answer: FA+$" Diff: 1 Topic: 4.# Factors ,nfluencing Distribution Distribution etwor' Design AA%$&: Application of 'nowle(ge b*ective: + 4.1: ,(entify the 'ey factors factors to be consi(ere( when (esigning a (istribution networ'.
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7) Transportation Transportation costs are high with (rop8shipping because the average outboun( (istance to the en( consu-er is large an( pac'age carriers are use( to shipping the pro(uct. Answer: T!" Diff: 1 Topic: 4.# Factors ,nfluencing Distribution Distribution etwor' Design AA%$&: Application of 'nowle(ge b*ective: + 4.1: ,(entify the 'ey factors factors to be consi(ere( when (esigning a (istribution networ'. 5) As long as inboun( transportation econo-ies of scale are -aintaine( increasing the n u-ber of facilities (ecreases total transportation cost. Answer: T!" Diff: 1 Topic: 4.# Factors ,nfluencing Distribution Distribution etwor' Design AA%$&: Application of 'nowle(ge b*ective: + 4.1: ,(entify the 'ey factors factors to be consi(ere( when (esigning a (istribution networ'. 9) %usto-ers always want the highest level of perfor-ance along all the (i-ensions response ti-e pro(uct variety an( returnability. returnability. Answer: FA+$" Diff: # Topic: 4.# Factors ,nfluencing Distribution Distribution etwor' Design AA%$&: Application of 'nowle(ge b*ective: + 4.1: ,(entify the 'ey factors factors to be consi(ere( when (esigning a (istribution networ'. ) A (ecrease in the response ti-e custo-ers (esire increases the nu-ber of facilities re;uire( in the networ'. Answer: T!" Diff: 1 Topic: 4.# Factors ,nfluencing Distribution Distribution etwor' Design AA%$&: Analytical thin'ing b*ective: + 4.1: ,(entify the 'ey factors factors to be consi(ere( when (esigning a (istribution networ'. <) The -ain a(vantage of in8transit -erge over (rop8shipping is the so-ewhat lower transportation cost an( i-prove( custo-er e0perience. Answer: T!" Diff: # Topic: 4. Design ptions for a Distribution etwor' AA%$&: Application of 'nowle(ge b*ective: + 4.#: Discuss the strengths an( wea'nesses of various (istribution options.
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1) The -ain a(vantage of a (istribution networ' with local storage is that it can lower the (elivery cost an( provi(e a faster response than other networ's. Answer: T!" Diff: # Topic: 4. Design ptions for a Distribution etwor' AA%$&: Application of 'nowle(ge b*ective: + 4.#: Discuss the strengths an( wea'nesses of various (istribution options. 11) The -a*or (isa(vantage of a (istribution networ' with local storage is the increase( inventory an( facility costs. Answer: T!" Diff: 1 Topic: 4. Design ptions for a Distribution etwor' AA%$&: Application of 'nowle(ge b*ective: + 4.#: Discuss the strengths an( wea'nesses of various (istribution options. 1#) A (istribution networ' (esigner nee(s to consi(er pro(uct characteristics as well as networ' re;uire-ents when (eci(ing on the appropriate (elivery networ'. Answer: T!" Diff: Topic: 4. Design ptions for a Distribution etwor' AA%$&: Application of 'nowle(ge b*ective: + 4.#: Discuss the strengths an( wea'nesses of various (istribution options. 1) nly niche co-panies will en( up using a single (istribution networ'. Answer: T!" Diff: 1 Topic: 4. Design ptions for a Distribution etwor' AA%$&: Application of 'nowle(ge b*ective: + 4.#: Discuss the strengths an( wea'nesses of various (istribution options. 14) Distributors a(( value to a supply chain between a supply stage an( a custo-er stage if there are -any s-all players at the custo-er stage eac h re;uiring a s-all a-ount of the pro(uct at a ti-e. Answer: T!" Diff: # Topic: 4. Design ptions for a Distribution etwor' AA%$&: Application of 'nowle(ge b*ective: + 4.#: Discuss the strengths an( wea'nesses of various (istribution options.
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17) For physical pro(ucts i.e. pro(ucts that cannot be (ownloa(e( custo-er re;uests ta'e longer to fulfill through online sales than in a retail store setting. Answer: T!" Diff: # Topic: 4.4 nline $ales an( the Distribution etwor' AA%$&: Application of 'nowle(ge b*ective: + 4.: !n(erstan( how online sales have affecte( the (esign of (istribution networ's in (ifferent in(ustries. 15) ,t is -uch easier to return a pro(uct to an online retailer than to a tra(itional bric's an( -ortar seller. Answer: FA+$" Diff: # Topic: 4.4 nline $ales an( the Distribution etwor' AA%$&: Application of 'nowle(ge b*ective: + 4.: !n(erstan( how online sales have affecte( the (esign of (istribution networ's in (ifferent in(ustries. 19) %o-pare( to a business with -any retail outlets an online seller with aggregate( inventories ten(s to have lower per unit transportation costs across the entire supply chain. Answer: FA+$" Diff: # Topic: 4.4 nline $ales an( the Distribution etwor' AA%$&: Application of 'nowle(ge b*ective: + 4.: !n(erstan( how online sales have affecte( the (esign of (istribution networ's in (ifferent in(ustries. 1) ,t is -ore co--on for a -anufacturer to not own the (istribution networ'. Answer: T!" Diff: # Topic: 4.7 Distribution etwor's in 6ractice AA%$&: Application of 'nowle(ge b*ective: + 4.#: Discuss the strengths an( wea'nesses of various (istribution options. 1<) %onsu-ers prefer purchasing co--o(iti2e( pro(ucts at a one8stop shop. Answer: T!" Diff: # Topic: 4.7 Distribution etwor's in 6ractice AA%$&: Application of 'nowle(ge b*ective: + 4.#: Discuss the strengths an( wea'nesses of various (istribution options.
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#) To e0tract the -a0i-u- benefit fro- the online channel for physical goo(s fir-s shoul( 'eep it separate fro- their e0isting supply chain networ's. Answer: FA+$" Diff: # Topic: 4.7 Distribution etwor's in 6ractice AA%$&: Application of 'nowle(ge b*ective: + 4.#: Discuss the strengths an( wea'nesses of various (istribution options. 4.# =ultiple %hoice Questions 1) The steps ta'en to -ove an( store a pro(uct fro- the supplier stage to a custo-er stage in the supply chain are referre( to as A) transportation. &) retailing. %) wholesaling. D) (istribution. Answer: D Diff: 1 Topic: 4.1 The ole of Distribution in the $upply %hain AA%$&: Application of 'nowle(ge b*ective: + 4.1: ,(entify the 'ey factors to be consi(ere( when (esigning a (istribution networ'. #) >here (oes (istribution occur in the supply chain? A) &etween every pair of stages &) "verywhere (ownstrea- fro- pro(uction %) &etween pro(uction an( the retailer D) &etween suppliers an( retailers Answer: A Diff: # Topic: 4.1 The ole of Distribution in the $upply %hain AA%$&: Application of 'nowle(ge b*ective: + 4.1: ,(entify the 'ey factors to be consi(ere( when (esigning a (istribution networ'. ) Distribution is a 'ey (river of the overall profitability of a fir- because A) the a((ition of (istributors only a((s cost to the supply chain. &) it (irectly i-pacts both the supply chain co st an( the custo-er e0perience. %) it slows (own the responsiveness of the supply chain. D) it cannot be (evelope( as a part of supply chain strategy. Answer: & Diff: # Topic: 4.1 The ole of Distribution in the $upply %hain AA%$&: Application of 'nowle(ge b*ective: + 4.1: ,(entify the 'ey factors to be consi(ere( when (esigning a (istribution networ'. 7 %opyright 3 #15 6earson "(ucation ,nc.
4) %o-panies in the sa-e in(ustry often select very (ifferent (istribution networ's because A) so-e co-panies are poorly run. &) (ifferent co-panies try to avoi( using the sa-e approach. %) (ifferent co-panies have (ifferent ob*ectives for their supply chain. D) all of the above Answer: % Diff: # Topic: 4.# Factors ,nfluencing Distribution etwor' Design AA%$&: Application of 'nowle(ge b*ective: + 4.1: ,(entify the 'ey factors to be consi(ere( when (esigning a (istribution networ'. 7) >hich of the following woul( not be the result of a poor/inappropriate (istribution networ'? A) @igh profitability &) +ow level of custo-er service %) @igh cost D) 6oor profitability Answer: A Diff: 1 Topic: 4.# Factors ,nfluencing Distribution etwor' Design AA%$&: Application of 'nowle(ge b*ective: + 4.1: ,(entify the 'ey factors to be consi(ere( when (esigning a (istribution networ'. 5) The nu-ber of (ifferent pro(ucts/configurations that a custo-er (esires fro- the (istribution networ' is A) response ti-e. &) pro(uct variety. %) pro(uct availability. D) custo-er e0perience. Answer: & Diff: 1 Topic: 4.# Factors ,nfluencing Distribution etwor' Design AA%$&: Application of 'nowle(ge b*ective: + 4.1: ,(entify the 'ey factors to be consi(ere( when (esigning a (istribution networ'.
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9) The probability of having a pro(uct in stoc' when a custo-er or(er arrives is A) response ti-e. &) pro(uct variety. %) pro(uct availability. D) custo-er e0perience. Answer: % Diff: 1 Topic: 4.# Factors ,nfluencing Distribution etwor' Design AA%$&: Application of 'nowle(ge b*ective: + 4.1: ,(entify the 'ey factors to be consi(ere( when (esigning a (istribution networ'. ) The ease with which the custo-er can place an( receive their or(er as well as other aspects of value that the sales staff provi(es is A) custo-er e0perience. &) or(er visibility. %) pro(uct availability. D) response ti-e. Answer: A Diff: 1 Topic: 4.# Factors ,nfluencing Distribution etwor' Design AA%$&: Application of 'nowle(ge b*ective: + 4.1: ,(entify the 'ey factors to be consi(ere( when (esigning a (istribution networ'. <) The ability of the custo-er to trac' their or(er fro- place-ent to (elivery is A) custo-er e0perience. &) or(er visibility. %) pro(uct availability. D) response ti-e. Answer: & Diff: 1 Topic: 4.# Factors ,nfluencing Distribution etwor' Design AA%$&: Application of 'nowle(ge b*ective: + 4.1: ,(entify the 'ey factors to be consi(ere( when (esigning a (istribution networ'.
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1) The costs incurre( in bringing -aterial into a facility are A) sourcing transportation costs. &) outboun( transportation costs. %) crossboun( transportation costs. D) inboun( transportation costs. Answer: D Diff: 1 Topic: 4.# Factors ,nfluencing Distribution etwor' Design AA%$&: Application of 'nowle(ge b*ective: + 4.1: ,(entify the 'ey factors to be consi(ere( when (esigning a (istribution networ'. 11) The costs incurre( in sen(ing -aterial out of a facility are A) sourcing transportation costs. &) outboun( transportation costs. %) crossboun( transportation costs. D) inboun( transportation costs. Answer: & Diff: 1 Topic: 4.# Factors ,nfluencing Distribution etwor' Design AA%$&: Application of 'nowle(ge b*ective: + 4.1: ,(entify the 'ey factors to be consi(ere( when (esigning a (istribution networ'. 1#) utboun( transportation costs per unit ten( to be A) about the sa-e as inboun( costs. &) higher than inboun( costs. %) lower than inboun( costs. D) neither higher or lower than inboun( costs. Answer: & Diff: # Topic: 4.# Factors ,nfluencing Distribution etwor' Design AA%$&: Application of 'nowle(ge b*ective: + 4.1: ,(entify the 'ey factors to be consi(ere( when (esigning a (istribution networ'. 1) As the nu-ber of facilities in a supply chain increases A) the inventory an( resulting inventory costs also increase. &) the inventory an( resulting inventory costs (ecrease. %) the inventory increases an( resulting inventory costs (ecrease. D) the inventory (ecreases an( resulting inventory costs increase. Answer: A Diff: # Topic: 4.# Factors ,nfluencing Distribution etwor' Design AA%$&: Application of 'nowle(ge b*ective: + 4.1: ,(entify the 'ey factors to be consi(ere( when (esigning a (istribution networ'. %opyright 3 #15 6earson "(ucation ,nc.
14) As the response ti-e (esire( by the custo-er (ecreases the re;uire( nu-ber of facilities in the (istribution networ' A) (ecreases. &) re-ains the sa-e. %) increases. D) increases an( then (ecreases. Answer: % Diff: # Topic: 4.# Factors ,nfluencing Distribution etwor' Design AA%$&: Analytical thin'ing b*ective: + 4.1: ,(entify the 'ey factors to be consi(ere( when (esigning a (istribution networ'. 17) As the nu-ber of facilities in a supply chain increases total facility costs A) (ecrease. &) increase. %) increase to a point an( then (ecrease. D) (ecrease to a point an( then increase. Answer: & Diff: # Topic: 4.# Factors ,nfluencing Distribution etwor' Design AA%$&: Analytical thin'ing b*ective: + 4.1: ,(entify the 'ey factors to be consi(ere( when (esigning a (istribution networ'. 15) Total logistics costs for a supply chain networ' are a su- of A) inventory an( facility costs. &) inventory facility an( (istributor costs. %) facility transportation an( (istributor costs. D) inventory transportation an( facility costs. Answer: D Diff: # Topic: 4.# Factors ,nfluencing Distribution etwor' Design AA%$&: Analytical thin'ing b*ective: + 4.1: ,(entify the 'ey factors to be consi(ere( when (esigning a (istribution networ'.
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19) ,n which (istribution networ' (esign is pro(uct shippe( ( irectly fro- the -anufacturer to the en( custo-er bypassing the retailer who ta'es the or(er an( initiates the (elivery re;uest)? A) =anufacturer storage with (irect shipping &) =anufacturer storage with (irect shipping an( in8transit -erge %) Distributor storage with pac'age carrier (elivery D) Distributor storage with last -ile (elivery Answer: A Diff: 1 Topic: 4. Design ptions for a Distribution etwor' AA%$&: Application of 'nowle(ge b*ective: + 4.#: Discuss the strengths an( wea'nesses of various (istribution options. 1) >hich (istribution networ' is also referre( to as (rop8shipping with pro(uct (elivere( (irectly fro- the -anufacturer to the custo-er location? A) =anufacturer storage with (irect shipping &) =anufacturer storage with (irect shipping an( in8transit -erge %) Distributor storage with pac'age carrier (elivery D) Distributor storage with last -ile (elivery Answer: A Diff: # Topic: 4. Design ptions for a Distribution etwor' AA%$&: Application of 'nowle(ge b*ective: + 4.#: Discuss the strengths an( wea'nesses of various (istribution options. 1<) >hich of the following is an a(vantage of -anufacturer storage with (irect shipping? A) Transportation costs are low because the average outboun( (istance to the en( consu-er is s-all an( pac'age carriers are use( to shipping the pro(uct. &) $upply chains save on the fi0e( cost of facilities because the nee( for other warehousing space in the supply chain has been eli-inate(. %) esponse ti-es ten( to be s-all because the or(er has to be trans-itte( fro- the retailer to the -anufacturer. D) r(er trac'ing is easy to i-ple-ent because of the co-plete integration of infor-ation syste-s at both the retailer an( the -anufacturer. Answer: & Diff: # Topic: 4. Design ptions for a Distribution etwor' AA%$&: Application of 'nowle(ge b*ective: + 4.#: Discuss the strengths an( wea'nesses of various (istribution options.
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#) >hich of the following woul( be a (isa(vantage of -anufacturer storage with (irect shipping? A) The ability to re(uce cost of inventory by centrali2ing inventories at the -anufacturer. &) The -anufacturer has to postpone custo-i2ation until after the custo-er or(er has been place(. %) $upply chains have to eli-inate other warehousing space to save on the fi0e( cost of facilities. D) esponse ti-es ten( to be large because the or(er has to be trans-itte( fro- the retailer to the -anufacturer an( shipping (istances are on average longer fro- the -anufacturerBs centrali2e( site. Answer: D Diff: # Topic: 4. Design ptions for a Distribution etwor' AA%$&: Application of 'nowle(ge b*ective: + 4.#: Discuss the strengths an( wea'nesses of various (istribution options. #1) >hich (istribution networ' (esign is si-ilar to pure (rop8shipping e0cept that pieces of the or(er co-ing fro- (ifferent locations are co-bine( so that the custo-er gets a single (elivery? A) =anufacturer storage with (irect shipping &) =anufacturer storage with (irect shipping an( in8transit -erge %) Distributor storage with pac'age carrier (elivery D) Distributor storage with -anufacturer pic'up Answer: & Diff: # Topic: 4. Design ptions for a Distribution etwor' AA%$&: Application of 'nowle(ge b*ective: + 4.#: Discuss the strengths an( wea'nesses of various (istribution options. ##) The -ain a(vantage of in8transit -erge over (rop8shipping is A) the ability to re(uce cost of inventory by centrali2ing inventories at the -anufacturer. &) supply chains save on the fi0e( cost of facilities because the nee( for other warehousing space in the supply chain has been eli-inate(. %) so-ewhat lower transportation cost an( i-prove( custo-er e0perience. D) or(er trac'ing is easy to i-ple-ent because of the co-plete integration of infor-ation syste-s at both the retailer an( the -anufacturer. Answer: % Diff: # Topic: 4. Design ptions for a Distribution etwor' AA%$&: Application of 'nowle(ge b*ective: + 4.#: Discuss the strengths an( wea'nesses of various (istribution options.
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#) The -a*or (isa(vantage of in8transit -erge co-pare( to (rop8shipping is A) transportation costs are high because the average outboun( (istance to the en( consu-er is large an( pac'age carriers are use( to shipping the pro(uct. &) response ti-es ten( to be large because the or(er has to be trans-itte( fro- the retailer to the -anufacturer an( shipping (istances are on average longer fro- the -anufacturerBs centrali2e( site. %) or(er trac'ing beco-es har(er to i-ple-ent becau se it re;uires co-plete integration of infor-ation syste-s at both the retailer an( the -anufacturer. D) the a((itional effort (uring the -erge itself. Answer: D Diff: 1 Topic: 4. Design ptions for a Distribution etwor' AA%$&: Application of 'nowle(ge b*ective: + 4.#: Discuss the strengths an( wea'nesses of various (istribution options. #4) >hich (istribution networ' (esign is being use( when inventory is not hel( by -anufacturers at the factories but is hel( by (istributors/retailers in inter-e(iate warehouses an( pac'age carriers are use( to transport pro(ucts fro- the inter-e(iate location to the final custo-er? A) =anufacturer storage with (irect shipping &) =anufacturer storage with (irect shipping an( in8transit -erge %) Distributor storage with pac'age carrier (elivery D) Distributor storage with -anufacturer pic'up Answer: % Diff: 1 Topic: 4. Design ptions for a Distribution etwor' AA%$&: Application of 'nowle(ge b*ective: + 4.#: Discuss the strengths an( wea'nesses of various (istribution options. #7) >hich of the following is an a(vantage of (istributor storage with carrier (elivery? A) ,nventory cost is higher than with -anufacturer storage. &) 6ro(uct variety is lower than with -anufacturer storage. %) r(er visibility for the custo-er is easier than with -anufacturer storage. D) @igher cost to provi(e the sa-e level of pro(uct availability as -anufacturer storage. Answer: % Diff: # Topic: 4. Design ptions for a Distribution etwor' AA%$&: Application of 'nowle(ge b*ective: + 4.#: Discuss the strengths an( wea'nesses of various (istribution options.
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#5) >hich of the following is a (isa(vantage of (istributor storage with carrier (elivery? A) ,nfor-ation infrastructure is si-pler than -anufacturer storage. &) esponse ti-e is faster than with -anufacturer storage. %) eturnability is easier than with -anufacturer storage. D) 6ro(uct variety is lower than with -anufacturer storage. Answer: D Diff: # Topic: 4. Design ptions for a Distribution etwor' AA%$&: Application of 'nowle(ge b*ective: + 4.#: Discuss the strengths an( wea'nesses of various (istribution options. #9) >hich (istribution networ' (esign is being use( when the (istributor/retailer (elivers the pro(uct to the custo-erBs ho-e instea( of using a pac'age carrier? A) =anufacturer storage with (irect shipping &) =anufacturer/(istributor storage with custo-er pic'up %) Distributor storage with pac'age carrier (elivery D) Distributor storage with last -ile (elivery Answer: D Diff: # Topic: 4. Design ptions for a Distribution etwor' AA%$&: Application of 'nowle(ge b*ective: + 4.#: Discuss the strengths an( wea'nesses of various (istribution options. #) >hich of the following is an a(vantage of (istributor storage with last -ile (elivery? A) ,t is -ore e0pensive to provi(e pro(uct availability than any other option e0cept retail stores. &) ,nventory cost is higher than (istributor storage with pac'age carrier (elivery. %) esponse ti-e is very ;uic' ranging fro- sa-e (ay to ne0t (ay (elivery. D) Transportation cost is higher than any other (istribution option. Answer: % Diff: 1 Topic: 4. Design ptions for a Distribution etwor' AA%$&: Application of 'nowle(ge b*ective: + 4.#: Discuss the strengths an( wea'nesses of various (istribution options. #<) >hich of the following is a (isa(vantage of (istributor storage with last -ile (elivery? A) Transportation cost is higher than any other (istribution option. &) ,nfor-ation cost is si-ilar to (istributor storage with pac'age carrier (elivery. %) %usto-er e0perience is very goo( particularly for bul'y ite-s. D) eturnability is easier to i-ple-ent than other options. Answer: A Diff: Topic: 4. Design ptions for a Distribution etwor' AA%$&: Application of 'nowle(ge b*ective: + 4.#: Discuss the strengths an( wea'nesses of various (istribution options.
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) >hich (istribution networ' (esign is being use( when inventory is store( at the -anufacturer or (istributor warehouse but custo-ers place their or(ers online or on the phone an( then co-e to (esignate( pic'up points to collect their or(ers? A) =anufacturer storage with (irect shipping &) =anufacturer/(istributor storage with custo-er pic'up %) Distributor storage with pac'age carrier (elivery D) Distributor storage with last -ile (elivery Answer: & Diff: # Topic: 4. Design ptions for a Distribution etwor' AA%$&: Application of 'nowle(ge b*ective: + 4.#: Discuss the strengths an( wea'nesses of various (istribution options. 1) >hich of the following is an a(vantage of -anufacturer/(istributor storage with custo-er pic'up? A) Facility costs can be very high if new facilities have to be built. &) Transportation cost is lower than the use of pac'age carriers especially if using an e0isting (elivery networ'. %) r(er visibility is (ifficult but essential. D) 6ro(uct variety is si-ilar to other -anufacturer or (istributor storage options. Answer: & Diff: # Topic: 4. Design ptions for a Distribution etwor' AA%$&: Application of 'nowle(ge b*ective: + 4.#: Discuss the strengths an( wea'nesses of various (istribution options. #) >hich of the following is a (isa(vantage of -anufacturer/(istributor storage with custo-er pic'up? A) %usto-er e0perience is lower than other options bec ause of the lac' of ho-e (elivery. &) esponse ti-e is si-ilar to pac'age carrier (elivery with -anufacturer or (istributor storage. %) eturnability is so-ewhat easier given that pic'up location can han(le returns. D) 6ro(uct availability is si-ilar to other -anufacturer or (istributor storage options. Answer: A Diff: Topic: 4. Design ptions for a Distribution etwor' AA%$&: Application of 'nowle(ge b*ective: + 4.#: Discuss the strengths an( wea'nesses of various (istribution options.
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) >hich (istribution networ' (esign is being use( when inventory is store( locally at retail stores an( custo-ers wal' into the retail store or place an or(er online or on the phone an( pic' it up at the retail store? A) =anufacturer storage with (irect shipping &) Distributor storage with pac'age carrier (elivery %) Distributor storage with last -ile (elivery D) etail storage with custo-er pic'up Answer: D Diff: 1 Topic: 4. Design ptions for a Distribution etwor' AA%$&: Application of 'nowle(ge b*ective: + 4.#: Discuss the strengths an( wea'nesses of various (istribution options. 4) >hich of the following is an a(vantage of retail storage with custo-er pic'up? A) ,nventory cost is higher than all other options. &) Transportation cost is lower than all other options. %) Facilities an( han(ling costs are higher than other options. D) 6ro(uct variety is lower than all other op tions. Answer: & Diff: # Topic: 4. Design ptions for a Distribution etwor' AA%$&: Application of 'nowle(ge b*ective: + 4.#: Discuss the strengths an( wea'nesses of various (istribution options. 7) >hich of the following is a (isa(vantage of retail storage with custo-er pic'up? A) eturnability is easier than other options given that pic'up location can han(le returns. &) ,nventory cost is higher than all other options. %) Transportation cost is lower than all other options. D) Facilities an( han(ling costs are lower than other options. Answer: & Diff: # Topic: 4. Design ptions for a Distribution etwor' AA%$&: Application of 'nowle(ge b*ective: + 4.#: Discuss the strengths an( wea'nesses of various (istribution options. 5) Distributors a(( value to a supply chain between a supply stage an( a custo-er stage A) if there is a s-all nu-ber of custo-ers re;uiring a large a-ount o f pro(uct. &) if there is a large nu-ber of custo-ers re;uiring a large a-ount of pro(uct. %) if there are -any s-all players at the custo-er stage each re;uiring a s-all a-ount of the pro(uct at a ti-e. D) if there are a few large players at the custo-er stage each re;uiring a large a-ount of the pro(uct at a ti-e. Answer: % Diff: # Topic: 4. Design ptions for a Distribution etwor' AA%$&: Analytical thin'ing b*ective: + 4.#: Discuss the strengths an( wea'nesses of various (istribution options. 17 %opyright 3 #15 6earson "(ucation ,nc.
9) ,-prove-ent in supply chain perfor-ance at the result of (istributors occurs for which of the following reasons? A) e(uction in transportation cost because of +T+ ship-ents fro- -anufacturers to (istributor. &) e(uction in outboun( transportation cost because the (istributor co-bines pro(ucts fro-any custo-ers into a single outboun( ship-ent. %) e(uction in inventory costs because (istributor (isaggregates safety inventory rather than aggregating at each retailer. D) A -ore stable or(er strea- fro- (istributor to -anufacturer co-pare( to erratic or(ers froeach retailer) allows -anufacturers to lower cost by planning pro(uction -ore effectively. Answer: D Diff: Topic: 4. Design ptions for a Distribution etwor' AA%$&: Application of 'nowle(ge b*ective: + 4.#: Discuss the strengths an( wea'nesses of various (istribution options. ) CCCCCCCC is a cost factor perfor-ance characteristic of etail $torage at %onsu-er 6ic'up $ites that is higher than all other options. A) Transportation &) ,nventory %) ,nfor-ation D) Facilities an( @an(ling Answer: & Diff: Topic: 4. Design ptions for a Distribution etwor' AA%$&: Application of 'nowle(ge b*ective: + 4.#: Discuss the strengths an( wea'nesses of various (istribution options. <) CCCCCCCC is a service factor perfor-ance characteristic of etail $torage at %onsu-er 6ic'up $ites that is lower than all other options. A) esponse ti-e &) 6ro(uct variety %) 6ro(uct availability D) Ti-e to -ar'et Answer: & Diff: Topic: 4. Design ptions for a Distribution etwor' AA%$&: Application of 'nowle(ge b*ective: + 4.#: Discuss the strengths an( wea'nesses of various (istribution options.
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4) CCCCCCCC is a service factor perfor-ance characteristic of =anufacturer or Distributor $torage with %usto-er 6ic'up that is lower than other options because of the lac' of ho-e (elivery. "0perience is very sensitive to capability of pic'up location. A) esponse ti-e &) 6ro(uct variety %) %usto-er e0perience D) Ti-e to -ar'et Answer: % Diff: 1 Topic: 4. Design ptions for a Distribution etwor' AA%$&: Application of 'nowle(ge b*ective: + 4.#: Discuss the strengths an( wea'nesses of various (istribution options. 41) CCCCCCCC is a cost factor perfor-ance characteristic of =anufacturer or Distributor $torage with %usto-er 6ic'up that is lower than the use of pac'age carriers especially if using an e0isting (elivery networ'. A) Transportation &) ,nventory %) ,nfor-ation D) Facilities an( @an(ling Answer: A Diff: 1 Topic: 4. Design ptions for a Distribution etwor' AA%$&: Application of 'nowle(ge b*ective: + 4.#: Discuss the strengths an( wea'nesses of various (istribution options. 4#) ,n general tra(itional bric' an( -ortar retail sales outperfor- online sales along the (i-ension of A) pro(uct variety. &) re;uest fulfill-ent. %) ti-e to -ar'et for a new pro(uct. D) or(er status trac'ing. Answer: & Diff: # Topic: 4.4 nline $ales an( the Distribution etwor' AA%$&: Application of 'nowle(ge b*ective: + 4.: !n(erstan( how online sales have affecte( the (esign of (istribution networ's in (ifferent in(ustries.
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4) ,n general tra(itional bric' an( -ortar retail sales outperfor- online sales along the (i-ension of A) pro(uct variety. &) efficient fun(s transfer. %) pro(uct returns. D) or(er status trac'ing. Answer: % Diff: # Topic: 4.4 nline $ales an( the Distribution etwor' AA%$&: Application of 'nowle(ge b*ective: + 4.: !n(erstan( how online sales have affecte( the (esign of (istribution networ's in (ifferent in(ustries. 44) ,n general online sales outperfor- tra(itional bric' an( -ortar retail sales along the (i-ension of A) or(er fulfill-ent. &) trying before you buy. %) pro(uct returns. D) or(er status trac'ing. Answer: D Diff: # Topic: 4.4 nline $ales an( the Distribution etwor' AA%$&: Application of 'nowle(ge b*ective: + 4.: !n(erstan( how online sales have affecte( the (esign of (istribution networ's in (ifferent in(ustries. 47) nline sales increase CCCCCCCC when co-pare( to the perfor-ance of tra(itional bric' an( -ortar retail stores. A) outboun( transportation costs &) the inventory hol(ing cost %) the cost of buil(ing an( -aintaining facilities in a supply chain networ' D) overall supply chain costs Answer: A Diff: # Topic: 4.4 nline $ales an( the Distribution etwor' AA%$&: Application of 'nowle(ge b*ective: + 4.: !n(erstan( how online sales have affecte( the (esign of (istribution networ's in (ifferent in(ustries.
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45) An online grocery store has a (istinct a(vantage over a tra(itional -o(el in the area of A) 6rocessing costs &) Transportation costs %) Facility costs D) ,nfor-ation costs Answer: % Diff: # Topic: 4.4 nline $ales an( the Distribution etwor' AA%$&: Application of 'nowle(ge b*ective: + 4.: !n(erstan( how online sales have affecte( the (esign of (istribution networ's in (ifferent in(ustries. 49) An online boo' store has a (istinct (isa(vantage over a tra(itional -o(el in the area of A) 6ro(uct variety &) Transportation %) 6ro(uct availability D) Fle0ible pricing Answer: & Diff: # Topic: 4.4 nline $ales an( the Distribution etwor' AA%$&: Application of 'nowle(ge b*ective: + 4.: !n(erstan( how online sales have affecte( the (esign of (istribution networ's in (ifferent in(ustries. 4) >hich of these costs was higher for etfli0 than for their van;uishe( co-petitor &loc'buster? A) 6roperty &) ,nventory %) Facility D) Transportation Answer: D Diff: # Topic: 4.4 nline $ales an( the Distribution etwor' AA%$&: Application of 'nowle(ge b*ective: + 4.: !n(erstan( how online sales have affecte( the (esign of (istribution networ's in (ifferent in(ustries.
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4<) >hich of these state-ents about (istribution networ's is best? A) A -anufacturer that owns their own (istribution networ' cannot control the networ'Bs actions. &) %usto-ers are willing to have a relationship built aroun( high value speciali2e( pro(ucts. %) Distribution networ's that have i(entical physical flows but (ifferent ownership structures have i(entical perfor-ance. D) ,t is i-portant to have static (istribution networ's. Answer: & Diff: 1 Topic: 4.7 Distribution etwor's in 6ractice AA%$&: Application of 'nowle(ge b*ective: + 4.#: Discuss the strengths an( wea'nesses of various (istribution options. 7) ,n or(er to reap the greatest return fro- the online channel for physical goo( s fir-s shoul( A) -a0i-i2e the return for each (istinct supply chain -e-ber. &) -ini-i2e interactions between the buyer an( the other supply chain -e-bers. %) integrate it with their e0isting supply chain networ's. D) ensure that they have total ownership of the supply chain. Answer: % Diff: # Topic: 4.7 Distribution etwor's in 6ractice AA%$&: Application of 'nowle(ge b*ective: + 4.#: Discuss the strengths an( wea'nesses of various (istribution options. 4. "ssay Questions 1) "0plain the -easures of custo-er service that are influence( by the structure of the (istribution networ'. Answer: esponse ti-e is the ti-e between when a custo-er places an or(er an( receives (elivery. 6ro(uct variety is the nu-ber of (ifferent pro(ucts/configurations that a custo-er (esires frothe (istribution networ'. Availability is the probability of having a pro(u ct in stoc' when a custo-er or(er arrives. %usto-er e0perience inclu(es the ease with which the custo-er can place an( receive their or(er. ,t also inclu(es purely e0periential aspects such as the possibility of getting a cup of coffee an( the value that the sales staff provi(es. r(er visibility is the ability of the custo-er to trac' their or(er fro- place-ent to (elivery. eturnability is the ease with which a custo-er can return unsatisfactory -erchan(ise an( the ability of the networ' to han(le such returns. Diff: # Topic: 4.# Factors ,nfluencing Distribution etwor' Design AA%$&: Application of 'nowle(ge b*ective: + 4.1: ,(entify the 'ey factors to be consi(ere( when (esigning a (istribution networ'. #) "0plain how the (esign of the (istribution networ' affects the cost of the four supply chain # %opyright 3 #15 6earson "(ucation ,nc.
(rivers. Answer: As the nu-ber of facilities in a supply chain increases the inventory an( resulting inventory costs also increase. To (ecrease inventory costs fir-s try to consoli(ate an( li-it the nu-ber of facilities in their supply chain networ'. utboun( transportation costs per unit ten( to be higher than inboun( costs because inboun( lot si2es are typically larger. ,ncreasing the nu-ber of warehouse locations (ecreases the average outboun( (istance to a custo-er an( -a'es outboun( transportation (istance a s-aller fraction of total (istance travele( by the pro(uct. Thus as long as inboun( transportation econo-ies of scale are -aintaine( increasing the nu-ber of facilities (ecreases total transportation cost. Facility costs (ecrease as the nu-ber of facilities is re(uce( because a consoli(ation of facilities allows a fir- to e0ploit econo-ies of scale. As the nu-ber of facilities increases total logistics costs first (ecrease an( then increase. "ach fir- shoul( h ave at least the nu-ber of facilities that -ini-i2e total logistics costs. As a fir- wants to further re(uce the response ti-e to its custo-ers it -ay have to increase the nu-ber of facilities beyon( the point that -ini-i2es logistics costs. A fir- shoul( a(( facilities beyon( the cost8-ini-i2ing point only if -anagers are confi(ent that the increase in revenues because of better responsiveness is greater than the increase in costs because of the a((itional facilities. ,n general no (istribution networ' will outperfor- others along all (i-ensions. Thus it is i-portant to ensure that the strengths of the (istribution networ' fit with the strategic position of the fir-. Diff: Topic: 4.# Factors ,nfluencing Distribution etwor' Design AA%$&: Application of 'nowle(ge b*ective: + 4.1: ,(entify the 'ey factors to be consi(ere( when (esigning a (istribution networ'.
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) "0plain the si0 (istinct (istribution networ' (esigns that -ay be use( to -ove pro(ucts frofactory to custo-er. Answer: ,n -anufacturer storage with (irect shipping pro(uct is shippe( (irectly fro- the -anufacturer to the en( custo-er bypassing the retailer who ta'es the or(er an ( initiates the (elivery re;uest). This option is also referre( to as (rop8shipping with pro(uct (elivere( (irectly fro- the -anufacturer to the custo-er location. =anufacturer storage with (irect shipping an( in8transit -erge is si-ilar to pure (rop8shipping e0cept that pieces of the or(er co-ing fro- (ifferent locations are co-bine( so that the custo-er gets a single (elivery. Distributor storage with pac'age carrier (elivery is being use( when inventory is not hel( by -anufacturers at the factories but is hel( by (istributors/retailers in inter-e(iate warehouses an( pac'age carriers are use( to transport pro(ucts fro- the inter-e(iate location to the final custo-er. Distributor storage with last -ile (elivery is being use( when the (istributor/retailer (elivers the pro(uct to the custo-erBs ho-e instea( of using a pac'age carrier. =anufacturer/(istributor storage with custo-er pic'up is being use( when inventory is store( at the -anufacturer or (istributor warehouse but custo-ers place their or(ers online or on the phone an( then co-e to (esignate( pic'up points to collect their or(ers. etail storage with custo-er pic'up is being use( when inventory is store( locally at retail stores an( custo-ers wal' into the retail store or place a n or(er online or on the phone an( pic' it up at the retail store. Diff: # Topic: 4. Design ptions for a Distribution etwor' AA%$&: Application of 'nowle(ge b*ective: + 4.#: Discuss the strengths an( wea'nesses of various (istribution options.
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4) "0plain how (istributors a(( value to a supply chain an( i-prove its perfor-ance. Answer: Distributors a(( value to a supply chain between a supply stage an( a custo-er stage if there are -any s-all players at the custo-er stage each re;uiring a s-all a-ount of the pro(uct at a ti-e. The value a((e( increases if (istributors carry pro(ucts fro- -any -anufacturers. ,-prove-ent in supply chain perfor-ance occurs for the following reasons: e(uction in inboun( transportation cost because of T+ ship-ents fro- -anufacturers to (istributor. e(uction in outboun( transportation cost because the (istributor co-bines pro(ucts fro-any -anufacturers into a single outboun( ship-ent. e(uction in inventory costs because (istributor aggregates safety inventory rather than (isaggregating at each retailer. A -ore stable or(er strea- fro- (istributor to -anufacturer co-pare( to erratic or(ers froeach retailer) allows -anufacturers to lower cost by planning pro(uction -ore effectively. &y carrying inventory closer to the point of sale (istributors are able to provi(e a better response ti-e than -anufacturers can. Distributors are able to offer one8stop shopping with pro(ucts fro- several -anufacturers. Diff: Topic: 4. Design ptions for a Distribution etwor' AA%$&: Application of 'nowle(ge b*ective: + 4.#: Discuss the strengths an( wea'nesses of various (istribution options. 7) Total logistics costs are the su- of inventory transportation an( facility costs for a supply chain networ'. >hat occurs as the nu-ber of facilities increases? Answer: Total logistics costs first (ecrease an( then increase as the nu-ber of facilities increases. "ach fir- shoul( have at least the nu-ber of facilities that -ini-i2e total logistics costs. For e0a-ple A-a2on has -ore than one warehouse pri-arily to re(uce its logistics costs an( i-prove response ti-e). ,f a fir- wants to re(uce the response ti-e to its custo-ers further it -ay have to increase the nu-ber of facilities beyon( the point that -ini-i2es logistics costs. A fir- shoul( a(( facilities beyon( the cost8-ini-i2ing point only if -anagers are confi(ent that the increase in revenues because of better responsiveness is greater than the increase in costs because of the a((itional facilities. Diff: Topic: 4.# Factors ,nfluencing Distribution etwor' Design AA%$&: Analytical thin'ing b*ective: + 4.1: ,(entify the 'ey factors to be consi(ere( when (esigning a (istribution networ'.
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