Question 1

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

Accepted Answer

By establishing warehouses in strategic locations, organizations can store and distribute products more efficiently, reducing transportation costs and improving supply chain management.

Question 2

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

Accepted Answer

Determining the size of each operation within the network is an important consideration in deciding the facility layout and design. This helps in determining the space and resources required for each operation to function efficiently.

Question 3

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

Accepted Answer

Speed and efficiency are both critical in distribution facilities and networks as they impact the overall customer experience and the ability to meet demand. While speed may be more important in certain situations, efficiency is also necessary to ensure profitability and sustainability.

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.

Accepted Answer

Seasonal products create fluctuations in demand which can make it difficult for distribution managers to efficiently allocate resources and maintain a stable workforce.

Question 5

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

Accepted Answer

Centralized inventory systems rely on a single location for inventory storage and distribution, which can result in longer lead times and higher transportation costs when customers are located far away.

Question 6

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

Accepted Answer

This is the correct definition of slotting.

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.

Accepted Answer

The answer of Of the five product handling processes, three...

Question 8

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

Accepted Answer

KPIs can definitely be used in connection with distribution center activities as they provide tangible and relevant data to measure performance and improve operations. KPIs such as order accuracy, order cycle time, inventory turnover, and shipping cost per order can help managers identify areas for improvement and monitor progress towards goals.

Question 9

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

Accepted Answer

Proper product slotting ensures that products are placed in the most efficient location within a warehouse, reducing the time and effort required to pick and pack orders. This improves overall labor productivity and can also lead to faster order fulfillment times, reduced inventory costs, and improved customer satisfaction.

Question 10

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

Accepted Answer

The statement is true as facilities often have limited space which must be balanced with the necessary equipment for the operation.

Question 11

Order accuracy and order completeness are the same.

Accepted Answer

Order accuracy refers to the correctness of the items or products ordered, while order completeness refers to the fulfillment of all items or products that were ordered. They are related concepts, but not the same thing.

Question 12

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

Accepted Answer

The answer of After the layout of the operations is...

Question 13

Asset utilization is very important in a 3PL warehouse.

Accepted Answer

The answer of Asset utilization is very important in a...

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

Accepted Answer

The distribution center plays three main roles: 1) balancing supply and demand, 2) protecting against uncertainty, and 3) promoting transportation economies. Therefore, option D is the correct answer as it includes all three roles.

Question 15

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

Accepted Answer

Finding and training high-quality personnel for DC operations can be a challenging task due to the specialized skills and knowledge required for these positions. It can also be difficult to retain these employees due to the demands and physical nature of the work.

Question 16

Contract warehousing is different than 3PL warehousing.

Accepted Answer

The answer of 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.

Accepted Answer

The answer of Customers use distribution KPIs to objectively assess...

Question 18

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

Accepted Answer

It is important to consider the product and its characteristics when developing a distribution strategy, such as its size, weight, shelf life, and target market. Other factors such as channel availability, competition, and pricing also play a role in distribution strategy development.

Question 19

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

Accepted Answer

Productivity is indeed measured as the ratio of real output (goods and services produced) to real input (resources used to produce them).

Question 20

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

Accepted Answer

WMS (Warehouse Management System) is a software solution that provides comprehensive functionality for managing the operations of a warehouse, including inventory management, order fulfillment, receiving, shipping, and more. It is more than a simple database as it offers a range of features and tools to optimize warehouse operations and improve efficiency.

Quiz 10: Distribution Managing Fulfillment Operations