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1、Chapter 4Designing the Distribution Network in a Supply ChainTrue/False1. Distribution occurs between every pair of stages in the supply chain. Answer: True Difficulty: Moderate2. Distribution only occurs between manufacturing and consumers in the supply chain.Answer: FalseDifficulty: Moderate3. Com
2、panies in the same industry often select very different distribution networks, because the choice of the distribution network can be used to achieve a variety of supply chain objectives ranging from low cost to high responsiveness.Answer: TrueDifficulty: Moderate4. Companies in the same industry sho
3、uld always select similar distribution networks, because their objectives will be similar.Answer: FalseDifficulty: Moderate5. A customer always wants the highest level of performance along all dimensions of customer service, including response time, product variety, product availability, customer ex
4、perience, order visibility, and returnability.Answer: FalseDifficulty: Moderate6. 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
5、 returnability.Answer: TrueDifficulty: Easy7. Outbound transportation costs per unit tend to be lower than inbound costs, because inbound lot sizes are typically larger.Answer: FalseDifficulty: Easy8. Outbound transportation costs per unit tend to be higher than inbound costs, because inbound lot si
6、zes are typically larger.Answer: TrueDifficulty: Easy9. 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.Answer: TrueDifficulty: Easy10. Transportation costs are low with drop-shi
7、pping because the average outbound distance to the end consumer is small.Answer: FalseDifficulty: Easy11. The main advantage of in-transit merge over drop-shipping is the somewhat lower transportation cost and improved customer experience. Answer: TrueDifficulty: Moderate12. The main advantage of a
8、distribution network with local storage is that it can lower the delivery cost and provide a faster response than other networks.Answer: TrueDifficulty: Moderate13. The main advantage of a distribution network with local storage is that it can lower the inventory and facility costs.Answer: FalseDiff
9、iculty: Moderate14. The major disadvantage of a distribution network with local storage is the increased delivery cost.Answer: FalseDifficulty: Moderate15. The major disadvantage of a distribution network with local storage is the increased inventory and facility costs.Answer: TrueDifficulty: Easy16
10、. A distribution network designer needs to consider product characteristics as well as network requirements when deciding on the appropriate delivery network. Answer: TrueDifficulty: Hard17. Only niche companies will end up using a single distribution network. Answer: TrueDifficulty: Easy18. Most co
11、mpanies are best served by a single distribution network. Answer: FalseDifficulty: Moderate19. 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.Answer: Tr
12、ueDifficulty: ModerateMultiple Choice1. The steps taken to move and store a product from the supplier stage to a customer stage in the supply chain is referred to asa. transportation.b. retailing.c. wholesaling.d. distribution.e. manufacturing.Answer: dDifficulty: Easy2. Distribution is a key driver
13、 of the overall profitability of a firm becausea. 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
14、strategy.e. Distribution is not a key driver of profitability.Answer: bDifficulty: Moderate3. The choice of the distribution network can be used to achievesupplychain objectives such asa. low cost.b. high responsiveness.c. high cost.d. high responsibility.e. a and b onlyAnswer: eDifficulty: Moderate
15、4. Companies in the same industry often select very different distribution networks becausea. 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 abovee. none of the aboveAnswe
16、r: cDifficulty: Moderate5. A poor/inappropriate distribution network cana. lead to high profitability.b. hurt the level of service customers receive while increasing cost.c. have a significant negative impact on the profitability of a firm.d. all of the abovee. b and c onlyAnswer: dDifficulty: Moder
17、ate6. Which of the following would not be the result of a poor/inappropriate distribution network?a. High profitabilityb. Low level of customer servicec. High costd. Poor profitabilitye. None of the above are true.Answer: aDifficulty: Easy7. On which dimensions should the performance of a distributi
18、on network be evaluated at the highest level?a. Profitability of individual supply chain componentsb. Efficiency of overall supply chain networkc. Customer needs that are metd.Cost of meeting customer needse. c and d onlyAnswer: eDifficulty: Hard8. Which of the following are measures of customer ser
19、vice that are influenced by the structure of the distribution network?a. Response timeb. Product varietyc. Product availabilityd. Customer experiencee. all of the aboveAnswer: eDifficulty: Easy9. Which of the following are measures of customer service that are influenced by the structure of the dist
20、ribution network?a. Returnabilityb. Order visibilityc. Customer experienced. Product availabilitye. all of the aboveAnswer: eDifficulty: Moderate10. Which of the following is not a measure of customer service that is influenced by the structure of the distribution network?a. Returnabilityb. Customer
21、 experiencec. Customer maturityd. Product availabilitye. All of the above are measures of customer service.Answer: cDifficulty: Easy11. The time between when a customer places an order and receives delivery isa. response time.b. product variety.c. product availability.d. customer experience.e. order
22、 visibility.Answer: aDifficulty: Easy12. The number of different products/configurations that a customer desires from the distribution network isa. response time.b. product variety.c. product availability.d. customer experience.e. order visibility.Answer: bDifficulty: Easy13. The probability of havi
23、ng a product in stock when a customer order arrives isa. response time.b. product variety.c. product availability.d. customer experience.e. order visibility.Answer: cDifficulty: Easy14. The ease with which the customer can place and receive their order as well as other aspects of value that the sale
24、s staff provides isa. customer experience.b. order visibility.c. product availability.d. response time.e. returnability.Answer: aDifficulty: Easy15. The ability of the customer to track their order from placement to delivery isa. customer experience.b. order visibility.c. product availability.d. res
25、ponse time.e. returnability.Answer: bDifficulty: Easy16. The ease with which a customer can return unsatisfactory merchandise and the ability of the network to handle such returns isa. customer experience.b. order visibility.c. product availability.d. response time.e. returnability.Answer: eDifficul
26、ty: Easy17. The costs incurred in bringing material into a facility area. sourcing transportation costs.b. outbound transportation costs.c. crossbound transportation costs.d. inbound transportation costs.e. none of the aboveAnswer: dDifficulty: Easy18. The costs incurred in sending material out of a
27、 facility area. sourcing transportation costs.b. outbound transportation costs.c. crossbound transportation costs.d. inbound transportation costs.e. none of the aboveAnswer: bDifficulty: Easy19. Outbound transportation costs per unit tend to bea. about the same as inboundcosts.b. higher than inbound
28、 costs.c. lower than inbound costs.d. neither higher or lower thaninbound costs.e. none of the aboveAnswer: bDifficulty: Moderate20. As the number of facilities in a supply chain increasesa. theinventoryand resulting inventory costs also increase.b. theinventoryand resulting inventory costs decrease
29、.c. theinventoryincreases and resulting inventory costs decrease.d. theinventorydecreases and resulting inventory costs increase.e. theinventoryand resulting inventory costs remain the same.Answer: aDifficulty: Moderate21. As the response time desired by the customer decreases, the required number o
30、f facilities in the distribution networka. decreases.b. remains the same.c. increases.d. increases and then decreases.e. none of the aboveAnswer: cDifficulty: Moderate22. As the number of facilities in a supply chain increases, total transportation cost a. decreases.b. remains the same.c. increases.
31、d. increases to a point and then decreases.e. decreases to a point and then increases.Answer: eDifficulty: Hard23. As the number of facilities in a supply chain increases, total facility costsa. decrease.b. remain the same.c. increase.d. increase to a point and then decrease.e. decrease to a point a
32、nd then increase.Answer: cDifficulty: Moderate24. Total logistics costs for a supply chain network are a sum of a.inventory and facility costs.b. inventory, facility, and distributorcosts.c. facility, transportation, and distributor costs.d. inventory, transportation, and facility costs.e. none of t
33、he aboveAnswer: dDifficulty: Moderate25. As the number of facilities in a supply chain network increases, total logistics costs will a.decrease.b. decrease at first and then increase.c. increase.d. increase at first and then decrease.e. neither increase or decrease.Answer: bDifficulty: Moderate26. W
34、hich of the following are key decisions in the design of a distribution network?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 intermediatelocation)?d. all
35、 of the abovee. a and c onlyAnswer: eDifficulty: Moderate27. Which of the following is not a distinct distribution network design that may be used to move products from factory to customer?a. Manufacturer storage with direct shippingb. Manufacturer storage with distributor pickupc. Distributor stora
36、ge with package carrier deliveryd. Distributor storage with last mile deliverye. Manufacturer/distributor storage with customer pickup Answer: bDifficulty: Moderate28. Which of the following is not a distinct distribution network design that may be used to move products from factory to customer?a. M
37、anufacturer storage with direct shippingb. Manufacturer storage with direct shipping and in-transit mergec. Distributor storage with package carrier deliveryd. Distributor storage with manufacturer pickupe. Retail storage with customer pickupAnswer: dDifficulty: Moderate29. In which distribution net
38、work design is product shipped directly from the manufacturer to the end customer, bypassing the retailer (who takes the order and initiates the delivery request)?a. Manufacturer storage with direct shippingb. Manufacturer storage with direct shipping and in-transit mergec. Distributor storage with
39、package carrier deliveryd. Distributor storage with last mile deliverye. Manufacturer/distributor storage with customer pickupAnswer: aDifficulty: Easy30. Which distribution network is also referred to as drop-shipping with product delivered directly from the manufacturer to the customer location?a.
40、 Manufacturer storage with direct shippingb. Manufacturer storage with direct shipping and in-transit mergec. Distributor storage with package carrier deliveryd. Distributor storage with last mile deliverye. Manufacturer/distributor storage with customer pickup Answer: aDifficulty: Moderate31. Advan
41、tages of manufacturer storage with direct shipping include a. the ability to reduce cost of inventory by centralizing inventories at the manufacturer.b. offering the manufacturer the opportunity to postpone customization until after the customer order has been placed.c. supply chains save on the fix
42、ed cost of facilities, because the need for other warehousing space in the supply chain has been eliminated.d. providing a good customer experience in the form of delivery to the customer location.e. all of the aboveAnswer: eDifficulty: Moderate32. Which of the following is an advantage of manufactu
43、rer storage with direct shipping?a. Transportation costs are low because the average outbound distance to the end consumer is small and package carriers are used to shipping the product.b. Supply chains save on the fixed cost of facilities, because the need for other warehousing space in the supply
44、chain has been eliminated.c. Response times tend to be small because the order has to be transmitted from the retailer to the manufacturer.d. Order tracking is easy to implement because of the complete integration of information systems at both the retailer and the manufacturer.e. The handling of re
45、turns is likely to be simple and inexpensive, improving customer satisfaction.Answer: bDifficulty: Moderate33. Disadvantages of manufacturer storage with direct shipping includea. Transportation costs are high because the average outbound distance to the end consumer is large and package carriers ar
46、e 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 comp
47、lete integration of information systems at both the retailer and the manufacturer.d. The handling of returns is likely to be difficult and more expensive, hurting customer satisfaction.e. all of the aboveAnswer: eDifficulty: Moderate34. Which of the following would be a disadvantage of manufacturer
48、storage with direct shipping?a. The ability to reduce cost of inventory by centralizing inventories at the manufacturer.b. The manufacturer has to postpone customization until after the customer order has been placed.c. Supply chains have to eliminate other warehousing space to save on the fixed cos
49、t of facilities.d. 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.e. Provides a good customer experience when a single order containing products from s
50、everal manufacturers is delivered in partial shipments.Answer: dDifficulty: Moderate35. 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. Manufacturer storage
51、 with direct shippingb. Manufacturer storage with direct shipping and in-transit mergec. Distributor storage with package carrier deliveryd. Distributor storage with manufacturer pickupe. Retail storage with customer pickupAnswer: bDifficulty: Moderate36. The main advantage of in-transit merge over
52、drop-shipping is a. the ability to reduce cost of inventory by centralizing inventories at the manufacturer.b. supply chains save on the fixed cost of facilities, because the need for other warehousing space in the supply chain has been eliminated.c. somewhat lower transportation cost and improved c
53、ustomer experience.d. order tracking is easy to implement because of the complete integration of information systems at both the retailer and the manufacturer.e. the handling of returns is likely to be simple and inexpensive, improving customer satisfaction.Answer: cDifficulty: Moderate37. The major
54、 disadvantage of in-transit merge compared to drop-shipping is 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
55、 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
56、the merge itself.e. the handling of returns is likely to be difficult and more expensive, hurting customer satisfaction.Answer: dDifficulty: Easy38. Which distribution network design is being used when inventory is not held by manufacturers at the factories, but is held by distributors/retailers in
57、intermediate warehouses and package carriers are used to transport products from the intermediate location to the final customer?a. Manufacturer storage with direct shippingb. Manufacturer storage with direct shipping and in-transit mergec. Distributor storage with package carrier deliveryd. Distributor storage with manufacturer pickupe. Retail storage with customer pickup Answer: cDifficulty: Easy39. Which of the following is an advantage of distributor storage with carrier de
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