Deck 11: Distribution-Managing Fulfillment Operations

Question 1

Slotting is defined as the placement of product in a facility for the purpose of optimizing materials handling and space efficiency.

Answer 1

True

Question 2

Organizations may benefit substantially from the establishment of one or several warehouses to reduce transportation costs.

Answer 2

True

Question 3

It is not difficult to find and train high-quality personnel for DC operations.

Answer 3

False

Question 4

The drawback of centralized inventory is the long distance to customers, which typically extends lead times and results in higher transportation costs.

Question 5

Cross-docks typically increase transportation costs.

Question 6

Asset utilization is very important in a 3PL warehouse.

Question 7

When establishing a distribution strategy, the first and most obvious consideration is the product.

Question 8

The roles of the distribution center include __________

A) balancing supply and demand.
B) protecting against uncertainty and promoting transportation economies.
C) promoting transportation economies.
D) balancing supply and demand, protecting against uncertainty, and promoting transportation economies.

Question 9

Contract warehousing is different than 3PL warehousing.

Question 10

WMS is more than a simple database that provides stock location information.

Question 11

The first facility consideration is to determine the size of each operation within the network.

Question 12

Sortation refers a type of conveyer equipment.

Question 13

Order accuracy and order completeness are the same.

Question 14

Product handling functions include both receiving and shipping.

Question 15

Inventory handling, storage, and processing facilities help supply chains create time and place utility.

Question 16

One of the primary tradeoffs at the facility level is space versus equipment.

Question 17

KPIs cannot be used in connection with distribution center activities as they do not provide tangible, relevant data.

Question 18

After the layout of the operations is determined, attention shifts to the facility size of the operations within the distribution operation.

Question 19

Efficiency of distribution facilities and networks is not nearly as critical as their speed.

Question 20

A common fulfillment strategy of many firms is to use the normal distribution network for most items including their low-velocity items.

Question 21

Name the five product handling functions and discuss each.

Question 22

Certain raw materials can be stored
A) outside.

A) upside down.
B) only in a 3PL facility.
B) anywhere.

Question 23

Distribution facilities can provide numerous services, depending on the requirements of the supply chain. Which of these is not a typical service?

A) assortment
B) accumulation
C) allocation
D) activity

Question 24

Potential labor problems for distribution centers may be the result of

A) low pay and long hours.
B) competition from nearby firms.
C) the graying of America.
D) awareness of these job opportunities.

Question 25

The primary facility operations focus is

A) on the movement and storage of product.
B) inventory control and personnel issues.
C) making sure KPIs are fulfilled.
D) the WMS system.

Question 26

There are two options for product flow through the supply chain: direct shipments versus movement of goods through distribution facilities. Discuss advantages and disadvantages of both options.

Question 27

The primary tradeoffs and relationships between resources include the following

A) space vs. equipment
B) equipment vs. people
C) people vs. space
D) all of the above

Question 28

Discuss the choices for facility ownership, including public and contract warehousing.

Question 29

A downside of direct shipping is

A) that it takes product flow away from the distribution center.
B) can create higher transportation charges.
C) that customer may not like this method.
D) the product may not lend itself to this method.

Question 30

Asset utilization is a very important aspect of

A) KPIs.
B) 3PL distribution facilities.
C) commercial distribution facilities.
D) private distribution facilities.

Question 31

Discuss in detail the various tradeoffs that affect distribution operations.

Question 32

Discuss inventory positioning, and the differences between centralized and decentralized inventory.

Question 33

One important interaction that must be considered is the tradeoff between distribution and ________

A) transportation.
B) finance.
C) marketing.
D) services.

Question 34

Discuss facility layout, and what factors should be considered.

Question 35

The first facility consideration is to determine

A) how close to source it should be.
B) the size of each operation within the network.
C) how close to the customer it should be.
D) where competitors are located.

Question 36

Distribution operations help organizations overcome challenges, support other processes, and take advantage of economies of scale. Name and briefly discuss five roles that these operations play.

Question 37

Which of these is not a support function?

A) inventory control
B) safety, maintenance, and sanitation
C) information technology
D) movement and storage

Question 38

Define and discuss distribution KPIs, focusing on customer-facing measures.

Question 39

The key financial consideration in choosing between private and 3PL distribution options is

A) warehouse location(s).
B) competency of in-house staff.
C) volume of product being moved.
D) type of product being handled.

Question 40

The drawback of centralized inventory is:

A) that it undercuts the dispersed distribution concept.
B) that it increases the amount of inventory required.
C) strains the ability of the carrier network.
D) that it extends lead times and results in higher transportation costs.

Question 41

Define and discuss Warehouse Management Systems (WMS).

Question 42

Name the four internal performance measures, and select two to discuss.