 Question 1

Needs Grading
Explain how distributors add value to a supply chain and improve its
performance.
Selected Distributors are middleman in the supply chain management.
Answer: They are located close to where sale occurs and hence can
provide better response times.
Demand aggregation is done at distributor level.
Flexibilityin production schedules is possible because of
guaranteed supply from distributor.
Less lead times.
Distributors can support small customer orders.
Distributors create value in supply chain and provide better
customer experience.
Correct  
Answer:
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. The value added increases if distributors carry products from
many manufacturers. Improvement in supply chain performance
occurs for the following reasons:
Reduction in inbound transportation cost because of TL shipments
from manufacturers to distributor.
Reduction in outbound transportation cost because the distributor
combines products from many manufacturers into a single
outbound shipment.
Reduction in inventory costs because distributor aggregates
safety inventory rather than disaggregating at each retailer.
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.
By carrying inventory closer to the point of sale, distributors are
able to provide a better response time than manufacturers can.
Distributors are able to offer one-stop shopping with products from
several manufacturers.
 Question 2
5 out of 5 points
Which distribution network is also referred to as drop-shipping with
product delivered directly from the manufacturer to the customer
location?
Selected  
Answer: Manufacturer storage with direct shipping
Answers: Manufacturer storage with direct shipping and in-
transit merge
 Distributor storage with last mile delivery
Distributor storage with package carrier delivery
 
Manufacturer storage with direct shipping
 Question 3
5 out of 5 points
Which of the following is an advantage of distributor storage with carrier
delivery?
Selected  
Answer:
Order visibility for the customer is easier than with
manufacturer storage.
Answers: Product variety is lower than with manufacturer storage.
 
Order visibility for the customer is easier than with
manufacturer storage.
Inventory cost is higher than with manufacturer storage.
Higher cost to provide the same level of product availability
as manufacturer storage.
 Question 4
5 out of 5 points
________ 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.
Selected  
Answer: Transportation
Answers: Facilities and
Handling
 
Transportation
Inventory
Information
 Question 5
5 out of 5 points
The costs incurred in sending material out of a facility are
Selected  
Answer:
outbound transportation
costs.
 Answers: sourcing transportation
costs.
inbound transportation
costs.
 
outbound transportation
costs.
crossbound transportation
costs.
 Question 6
5 out of 5 points
Which of the following is an advantage of manufacturer storage with
direct shipping?
Selected  
Answer:
Supply chains save on the fixed cost of facilities, because the
need for other warehousing space in the supply chain has been
eliminated.
Answers: Order tracking is easy to implement because of the complete
integration of information systems at both the retailer and the
manufacturer.
Response times tend to be small because the order has to be
transmitted from the retailer to the manufacturer.
 
Supply chains save on the fixed cost of facilities, because the
need for other warehousing space in the supply chain has been
eliminated.
Transportation costs are low because the average outbound
distance to the end consumer is small and package carriers are
used to shipping the product.
 Question 7
5 out of 5 points
Online sales increase ________ when compared to the performance of
traditional brick and mortar retail stores.
Selected  
Answer: outbound transportation costs
Answers:  
outbound transportation costs
overall supply chain costs
 the inventory holding cost
the cost of building and maintaining facilities in a supply
chain network
 Question 8
5 out of 5 points
Improvement in supply chain performance as a result of distributors
occurs for which of the following reasons?
Selected  
Answer: 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.
Answers: Reduction in transportation cost because of LTL shipments from
manufacturers to distributor.
 
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.
Reduction in inventory costs because distributor disaggregates
safety inventory rather than aggregating at each retailer.
Reduction in outbound transportation cost because the
distributor combines products from many customers into a
single outbound shipment.
 Question 9
5 out of 5 points
________ is a service factor performance characteristic of Retail Storage at
Consumer Pickup Sites that is lower than all other options.
Selected  
Answer:
Product variety
Answers: Product
availability
Time to market
 
Product variety
Response time
 Question 10
5 out of 5 points
Figure 1: Consider the four quadrant depiction of the alternatives in omni-
 channel retail.

In Figure 1, response time to customers for receipt of tangible goods is

fastest in
Selected  
Answer:
Quadrant
A.
Answers:  
Quadrant
A.
Quadrant
B.
Quadrant
C.
Quadrant
D.
 Question 11
5 out of 5 points
________ 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.
Selected  
 Answer: Customer
experience
Answers: Time to market
Response time
Product variety
 
Customer
experience
 Question 12
5 out of 5 points
The major disadvantage of a distribution network with local storage is the
increased inventory and facility costs.
Selected  Tru
Answer: e
Answers:  Tru
e
False
 Question 13
5 out of 5 points
What type of distribution network is shown in this diagram? 

Selected  
Answer:
Manufacturer storage with direct shipping
Answers: Distributor storage with carrier delivery
Manufacturer/distributor storage with customer
pickup
Distributor storage with last-mile delivery
  
Manufacturer storage with direct shipping
 Question 14
5 out of 5 points
Which of these costs was higher for Netflix than for their vanquished
competitor, Blockbuster?
Selected  
Answer:
Transportati
on
Answers: Property
Facility
 
Transportati
on
Inventory
 Question 15
5 out of 5 points
The ability of the customer to track their order from placement to delivery
is
Selected  
Answer: order visibility.
Answers: product
availability.
response time.
customer
experience.
 
order visibility.
 Question 16
0 out of 5 points
Among all distribution networks, transportation costs are highest for
Selected  
Answer:
manufacturer storage with direct
shipping.
Answers: manufacturer storage with direct
shipping.
distribution centers.
  
last mile delivery.
direct shipping and in-transit
merge.
 Question 17
5 out of 5 points
Distribution is a key driver of the overall profitability of a firm because
Selected  
Answer:
it directly impacts both the supply chain cost and the
customer experience.
Answers: it slows down the responsiveness of the supply chain.
 
it directly impacts both the supply chain cost and the
customer experience.
it cannot be developed as a part of supply chain strategy.
the addition of distributors only adds cost to the supply
chain.
 Question 18
5 out of 5 points
Which distribution network design is being used when inventory is stored
at the manufacturer or distributor warehouse but customers place their
orders online or on the phone and then come to designated pickup points
to collect their orders?
Selected  
Answer: Manufacturer/distributor storage with customer
pickup
Answers:  
Manufacturer/distributor storage with customer
pickup
Manufacturer storage with direct shipping
Distributor storage with last mile delivery
Distributor storage with package carrier
delivery
 Question 19
5 out of 5 points
Where does distribution occur in the supply chain?
Selected  
Answer:
Between every pair of stages
 Answers: Everywhere downstream from
production
 
Between every pair of stages
Between suppliers and retailers
Between production and the
retailer
 Question 20
5 out of 5 points
It is more common for a manufacturer to not own the distribution network.
Selected  Tru
Answer: e
Answers:  Tru
e
False
Saturday, February 1, 2020 10:34:04 AM CST