Deck 10: Distribution

Question 1

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

Answer 1

False

Question 2

Product handling functions include both receiving and shipping.

Answer 2

True

Question 3

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

Answer 3

True

Question 4

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

Question 5

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

Question 6

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

Question 7

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

Question 8

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

Question 9

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 10

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

Question 11

Contract warehousing is different than 3PL warehousing.

Question 12

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

Question 13

Cross-docks typically increase transportation costs.

Question 14

A common productivity is measured as the ratio of real output to real input.

Question 15

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

Question 16

Order accuracy and order completeness are the same.

Question 17

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

Question 18

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

Question 19

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

Question 20

Asset utilization is very important in a 3PL warehouse.

Question 21

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 22

The first facility consideration is to determine:

A) how close to the 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 23

Name the five product handling functions and discuss each.

Question 24

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 25

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

Question 26

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 27

Which of these is not a support function?

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

Question 28

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 customers may not like this method.
D) the product may not lend itself to this method.

Question 29

The two largest cost centers in a DC are:

A) equipment and space.
B) labor and space.
C) pallets and labor.

Question 30

Discuss facility layout and what factors should be considered.

Question 31

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

Question 32

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 33

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

Question 34

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 35

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

Question 36

If a DC that picks primarily cases switches to mostly broken cases (with the same items), which of the following would occur in the DC?

A) Labor costs would increase
B) Total transportation costs would increase
C) Total inventory holding costs would increase
D) Total packaging costs would increase
E) None of these answers

Question 37

As the number of picks per order picker decreases on a given tour, his/her total time out _____ and the time per pick _____.

A) decreases; decreases
B) increases; increases
C) decreases; increases
D) increases; decreases

Question 38

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

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