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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: TrueDifficulty: Moderate2. Distribution only occurs between manufacturing and consumers in the supply chain.Answer: FalseDifficulty: Moderate3. Compa

2、nies 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 shoul

3、d always select similar distribution networks, because their objectives will be similar.Answer: FalseDifficulty: Moderate 5. A customer always wants the highest level of performance along all dimensions of customer service, including response time, product variety, product availability, customer exp

4、erience, 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 siz

6、es 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-ship

7、ping 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: True Difficulty: Moderate12. The main advantage of a d

8、istribution 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: FalseDiffi

9、culty: 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 compa

11、nies 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: TrueDi

12、fficulty: 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 of

13、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 stra

14、tegy.e. Distribution is not a key driver of profitability.Answer: bDifficulty: Moderate3. The choice of the distribution network can be used to achieve supply chain objectives such asa. low cost.b. high responsiveness.c. high cost.d. high responsibility.e. a and b onlyAnswer: eDifficulty: Moderate4.

15、 Companies in the same industry often select very different distribution networks because 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 abovee. none of the aboveAnswer

16、: cDifficulty: Moderate5. A poor/inappropriate distribution network can a. 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 above e. b and c onlyAnswer: dDifficulty: Mode

17、rate6. 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 distribut

18、ion 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

19、service 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 d

20、istribution network?a. Returnabilityb. Order visibilityc. Customer experienced. Product availabilitye. all of the above Answer: 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. Cust

21、omer 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. o

22、rder 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

23、having 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

24、sales 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

25、. response 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: eDif

26、ficulty: 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

27、 of a 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 inbound costs.b. higher than i

28、nbound costs.c. lower than inbound costs.d. neither higher or lower than inbound costs.e. none of the aboveAnswer: bDifficulty: Moderate20. As the number of facilities in a supply chain increasesa. the inventory and resulting inventory costs also increase.b. the inventory and resulting inventory cos

29、ts decrease.c. the inventory increases and resulting inventory costs decrease.d. the inventory decreases and resulting inventory costs increase.e. the inventory and resulting inventory costs remain the same.Answer: aDifficulty: Moderate21. As the response time desired by the customer decreases, the

30、required number of 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 costa. decreases. b. remains the

31、same.c. increases.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. de

32、crease to a point and 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 distributor costs.c. facility, transportation, and distributor costs.d. inventory, transportation, and facili

33、ty costs.e. none of the 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: bDif

34、ficulty: Moderate26. Which 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 interm

35、ediate location)?d. all 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 pic

36、kupc. Distributor storage with package carrier deliveryd. Distributor storage with last mile deliverye. Manufacturer/distributor storage with customer pickupAnswer: bDifficulty: Moderate28. Which of the following is not a distinct distribution network design that may be used to move products from fa

37、ctory to 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 pickupAnswer: dDifficulty: Moderate29. In

38、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)?a. Manufacturer storage with direct shippingb. Manufacturer storage with direct shipping and in-transit mergec. Dis

39、tributor storage with 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 th

40、e customer location?a. 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 pickupAnswer: aDifficul

41、ty: Moderate31. Advantages of manufacturer storage with direct shipping includea. 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 ch

42、ains save on the fixed 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 ad

43、vantage of manufacturer 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

44、space in the supply 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

45、. The handling of returns is likely to be simple and inexpensive, improving customer satisfaction.Answer: bDifficulty: Moderate33. Disadvantages of manufacturer storage with direct shipping include a. Transportation costs are high because the average outbound distance to the end consumer is large an

46、d 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 manufacturers centralized site.c. Order tracking becomes harder to implement beca

47、use it requires complete 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 disadvant

48、age of manufacturer 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 s

49、ave on the fixed cost 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 manufacturers centralized site.e. Provides a good customer experience when a single order contain

50、ing products from several 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. M

51、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: bDifficulty: Moderate36. The main advantage of in-

52、transit merge over 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

53、cost and improved customer 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: Mo

54、derate 37. The major disadvantage of in-transit merge compared to drop-shipping isa. 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 t

55、ransmitted from the retailer to the manufacturer and shipping distances are on average longer from the manufacturers 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 additio

56、nal effort during 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 distribu

57、tors/retailers in 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 pick

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