Deck 10: Distribution Managing Fulfillment Operations

Question 1

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

Answer 1

True

Question 2

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

Answer 2

True

Question 3

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

Answer 3

False

Question 4

Because many products are seasonal, it is challenging for a distribution manager to effectively utilize space and equipment resources and to retain high-quality labor.

Question 5

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

Question 6

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

Question 7

Of the five product handling processes, three involve the short-distance movement of product while the other two relate to storage of product.

Question 8

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

Question 9

Proper product slotting can improve labor productivity and generate other advantages for the organization and its customers.

Question 10

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

Question 11

Order accuracy and order completeness are the same.

Question 12

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

Question 13

Asset utilization is very important in a 3PL warehouse.

Question 14

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 15

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

Question 16

Contract warehousing is different than 3PL warehousing.

Question 17

Customers use distribution KPIs to objectively assess the speed of service provided by the distribution operation.

Question 18

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

Question 19

Productivity is measured as the ratio of real output to real input.

Question 20

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

Question 21

When designing a DC, what interior layout objectives and slotting principles must be considered? Why?

Question 22

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

Question 23

Discuss facility layout and what factors should be considered. Which do you think is most important, and why?

Question 24

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 these answers.

Question 25

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 26

Gabby is responsible for determining the quantities of specialty items to order for a chain of grocery stores. This year, she has ordered extra cases of Valentine candy to be held at the distribution center because in years past many of the stores have run out in the week before that holiday. This is an example of which aspect of distribution operations?

A) Supporting production requirements
B) Fulfilling omni-channel demand
C) Protecting against uncertainty
D) Balancing supply and demand

Question 27

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

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

Question 28

The primary facility operations focus is:

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

Question 29

Name the five product handling functions and discuss each.

Question 30

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

Question 31

Matt is the distribution center manager for a toy manufacturer. The last quarter of every year presents a huge challenge for him in terms of managing the tremendous volume of toys moving through the distribution center, including tracking the SKUs of all products. This example represents which aspect of DC management?

A) Labor availability issues
B) Demand variation
C) Higher customer requirements
D) Value-added activities

Question 32

What are the primary capabilities, advantages, and disadvantages of direct distribution, DCs, and cross-docks?

Question 33

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 34

The _____ dimension of materials handling is concerned with the preparation of goods for production or for order fulfillment.

A) quantity
B) space
C) time
D) movement

Question 35

Which of these is not a support function?

A) Inventory control
B) Safety, maintenance, and sanitation
C) Information technology
D) Movement and storage

Question 36

LogicForce's warehouse management system monitors each picker's daily performance so that rewards and incentives can be awarded to the most productive, efficient employees. Which of the following best describes this WMS feature?

A) Labor management
B) Automated data collection
C) Fulfillment flexibility
D) Systems convergence

Question 37

Olivia's workstation includes an industrial robot that she uses for machining parts. Which of the following best characterizes this equipment?

A) Transport
B) Positioning
C) Unit load formation
D) Storage

Question 38

LogicForce's warehouse management system is designed to inform the internal sales force, as well as customers if and when an order is delayed. Which of the following best describes this WMS feature?

A) Labor management
B) Automated data collection
C) Task interleaving
D) Systems convergence