Question 1

Which of the following are considered the evaluation dimensions of distribution network design?
i. Customer needs that are met
ii. Cost of meeting customer needs
iii. Revenue of consumer sales
iv. None of the above.

A)i and ii.
B)i and iii.
C)i, ii, and iii.
D)iv.

i and ii.

Accepted Answer

At the highest level, the performance of a distribution network design should be evaluated based on meeting customer needs and the cost of meeting those needs. Therefore a firm must evaluate the impact on customer service and cost as it compares different distribution network options. Meeting customer needs eventually influences a company's revenue positively.

Question 2

Firms that target customers who can endure a ____________require few locations that may be far from the customer and can focus on increasing the capacity of each location.&#10;A)Short response time&#10;B)Long response time&#10;C)Double response time&#10;D)Product response time&#10;

Accepted Answer

Firms that target customers who can tolerate a long response time require few locations that may be far from the customer and can focus on increasing the capacity of every location. Similarly, firms that target customers who value short response times need to be located close to them.

Question 3

Network design decisions have a major impact on performance because they determine the supply chain configuration and set constraints within which transportation, inventory, and information can be used to either _________________ or ______________.

A)Decrease the supply chain cost; increase responsiveness.
B)Increase the supply chain cost; decrease responsiveness.
C)Increase predictability; decrease it.
D)Increase revenue; decrease it.

Decrease the supply chain cost; increase responsiveness.

Accepted Answer

Network design decisions have a significant impact on performance because they determine the supply chain configuration and set constraints within which inventory, transportation, and information can be used to either decrease the supply chain cost or increase responsiveness. A company has to pay attention to network design decisions to ensure that its current configuration does not become too expensive or provide poor responsiveness.

Question 4

All operations of a supply chain are affected by design decisions. Decisions concerning the role of each facility are significant because they determine _________ the supply chain has in changing the way it meets demand.

A)The amount of tangibility
B)The amount of flexibility
C)The amount of rationality
D)The amount of responsiveness

Accepted Answer

All operations of a supply chain are affected by design decisions. Decisions concerning the role of each facility are significant because they determine _________ the supply chain has in changing the way it meets demand.

A)The amount of tangibility
B)The amount of flexibility
C)The amount of rationality
D)The amount of responsiveness

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Question 5

_______________ is a distinct distribution network design in which a product is directly shipped directly from the manufacturer to the end customer.&#10;A)Manufacturer storage with direct shipping and in-transit merge.&#10;B)Manufacturer storage with customer pickup.&#10;C)Manufacturer storage with direct shipping.&#10;D)Retail storage with customer pickup.&#10;

Accepted Answer

In manufacturer storage with direct shipping, a product is directly shipped directly from the manufacturer to the end customer, bypassing the retailer. This option is also referred to as drop shipping, with a product delivered directly from the manufacturer to the customer location.

Question 6

When operating under distributor storage with carrier delivery, inventory is not held by manufacturers at the factories, but is instead held by ___________.&#10;A)Distributors&#10;B)Retailers&#10;C)Wholesalers&#10;D)All of the above&#10;

Accepted Answer

When operating under distributor storage with carrier delivery, inventory is not held by manufacturers at the factories but is instead held by distributors/retailers/wholesalers in intermediate warehouses. Package carriers are used to transport products from intermediate location to the final customer.

Question 7

Why are operations in a push system sustainable?&#10;A)It reduces the cost per unit.&#10;B)It accelerates demand.&#10;C)It accelerates supply.&#10;D)It diminishes shipping cost.&#10;

Accepted Answer

The push system focuses on maximizing production capacity and is based on consumer demand. The push system allows companies to produce goods in large volumes, which, in return, minimizes the cost of production per unit.

Question 8

________ is a method where production is more sustainable and effective.&#10;A)Socio-tech production&#10;B)Lean production&#10;C)Mass production&#10;D)None of the above.&#10;

Accepted Answer

Lean production is a socio-technical production system whose main objective is to eliminate waste by concurrently reducing or minimizing supplier, customer, and internal variability. The system was designed for automobile industries, but its operations and techniques can be used in other industries as well.

Question 9

Lean production is based upon the ________ system of process flow.&#10;A)Push&#10;B)Pull&#10;C)Both push and pull.&#10;D)Lean production does not exist.&#10;

Accepted Answer

Lean production is based upon the pull system of process flow. A pull system, unlike a push system, uses consumer demand as a primary driver for production instead of pushing products in to the main marketplace to increase the use of production resources.

Deck 15: Sustainability