Question 1

Which of the following is an advantage of distributor storage with carrier delivery?

Accepted Answer

Distributor storage with carrier delivery allows for easier order visibility for the customer because the distributor is closer to the customer and can provide more personalized service. However, this method may have a higher cost to provide the same level of product availability as manufacturer storage, and inventory cost may also be higher. Product variety may also be lower since the distributor may only carry a limited selection of products.

Question 2

Which of the following is an advantage of retail storage with customer pickup?

Accepted Answer

Retail storage with customer pickup eliminates the need for transportation from the retailer to the consumer, reducing transportation costs significantly.

Question 3

Which of the following is an advantage of manufacturer/distributor storage with customer pickup?

Accepted Answer

Manufacturer/distributor storage with customer pickup allows for lower transportation costs when using an existing delivery network, as customers are responsible for picking up their own orders. This can be more cost-effective than using package carriers for delivery. Facility costs and product variety are not advantages specific to this storage option, and order visibility may still be difficult regardless of the storage option chosen.

Question 4

Which distribution network design is being used when inventory is stored at the manufacturer or distributor warehouse but customers place their orders online or on the phone and then come to designated pickup points to collect their orders?

Accepted Answer

This is an example of manufacturer/distributor storage with customer pickup. Inventory is stored at the manufacturer or distributor warehouse, but instead of shipping directly to the customer, they provide designated pickup points for customers to collect their orders. This type of distribution network design is also known as click-and-collect or buy-online-pickup-in-store (BOPIS).

Question 5

________ is a service factor performance characteristic of Manufacturer or Distributor Storage with Customer Pickup that is lower than other options because of the lack of home delivery. Experience is very sensitive to capability of pickup location.

Accepted Answer

The characteristic being described is related to the customer experience, specifically the service factor related to the lack of home delivery with the Manufacturer or Distributor Storage option. This option may have a lower service factor compared to others due to the sensitivity of the customer experience to the capability of the pickup location. The other options listed (response time, product variety, time to market) are not directly related to this specific characteristic.

Question 6

Which distribution network design is being used when inventory is stored locally at retail stores and customers walk into the retail store or place an order online or on the phone and pick it up at the retail store?

Accepted Answer

This is an example of retail storage with customer pickup, where the inventory is stored locally at the retail stores and customers have the option to walk in and purchase or place an order online/phone and pick it up at the retail store.

Question 7

The main advantage of in-transit merge over drop-shipping is

Accepted Answer

In-transit merge offers lower transportation costs and improved customer experience over drop-shipping. It allows for centralizing inventories at the manufacturer, but it does not necessarily reduce the cost of inventory. While it may eliminate the need for other warehousing space in the supply chain, it does not directly save on fixed costs. Order tracking may be easy to implement, but it is not the main advantage of in-transit merge over drop-shipping.

Question 8

________ is a cost factor performance characteristic of Retail Storage at Consumer Pickup Sites that is higher than all other options.

Accepted Answer

The answer of ________ is a cost factor performance characteristic...

Question 9

Which of the following is an advantage of distributor storage with last mile delivery?

Accepted Answer

Distributor storage with last mile delivery has the advantage of quick response time, with delivery ranging from same day to next day. This makes it a good option for meeting urgent delivery needs. However, it may not be the most cost-effective option due to transportation costs. Option A and B are incorrect as they are disadvantages of this distribution option. Option D is incorrect as there may be other distribution options with higher transportation costs.

Question 10

Which distribution network design is similar to pure drop-shipping, except that pieces of the order coming from different locations are combined so that the customer gets a single delivery?

Accepted Answer

The distribution network design that is similar to pure drop-shipping but with in-transit merge is manufacturer storage with direct shipping and in-transit merge. This design allows for the combination of pieces of an order coming from different locations to be combined and shipped to the customer in a single delivery. Option A, manufacturer storage with direct shipping, does not involve the combination of different location pieces. Option C, distributor storage with package carrier delivery, involves using the services of a package carrier instead of direct shipping from the manufacturer. Option D, distributor storage with manufacturer pickup, does not involve direct shipping and the use of different location pieces.

Question 11

Which of the following is a disadvantage of manufacturer/distributor storage with customer pickup?

Accepted Answer

The disadvantage of manufacturer/distributor storage with customer pickup is that the customer experience is lower than other options because of the lack of home delivery.

Question 12

Improvement in supply chain performance at the result of distributors occurs for which of the following reasons?

Accepted Answer

The answer of Improvement in supply chain performance at the...

Question 13

________ is a service factor performance characteristic of Retail Storage at Consumer Pickup Sites that is lower than all other options.

Accepted Answer

The answer of ________ is a service factor performance characteristic...

Question 14

Which distribution network design is being used when inventory is not held by manufacturers at the factories, but is held by distributors/retailers in intermediate warehouses and package carriers are used to transport products from the intermediate location to the final customer?

Accepted Answer

This distribution network design is known as distributor storage with package carrier delivery. This design allows for a higher level of flexibility in inventory management, as the distributors and retailers can adjust their inventory levels based on demand. Additionally, using package carriers for delivery allows for efficient and cost-effective transportation of products to the final customer.

Question 15

Which distribution network design is being used when the distributor/retailer delivers the product to the customer's home instead of using a package carrier?

Accepted Answer

The distribution network design being used when the distributor/retailer delivers the product to the customer's home instead of using a package carrier is Distributor storage with last mile delivery. This is because the distributor stores the products and delivers them directly to the customer's home for the last leg of the distribution process. This method eliminates the need for a package carrier and can provide faster and more reliable service to customers.

Question 16

Which of the following is a disadvantage of distributor storage with last mile delivery?

Accepted Answer

Distributor storage with last mile delivery typically involves higher transportation costs compared to other distribution options, such as direct to customer shipping or package carrier delivery. This is because the distributor is responsible for transporting the items to the final delivery location, which can be more expensive than utilizing a package carrier that already has established delivery routes and networks. Additionally, there may be higher labor costs associated with last mile delivery, as drivers may need to navigate complex routes or make multiple stops to deliver packages to individual homes or businesses.

Question 17

Distributors add value to a supply chain between a supply stage and a customer stage

Accepted Answer

Distributors add value in a supply chain when there are many small players at the customer stage, each requiring a small amount of the product at a time. In this situation, the distributor can aggregate demand and supply, purchase large quantities of the product from the supplier, store it, break it into smaller quantities, and deliver it to individual customers, making the process more efficient for all parties involved.

Question 18

Which of the following is a disadvantage of distributor storage with carrier delivery?

Accepted Answer

Distributor storage with carrier delivery typically involves stocking a limited variety of products that are in high demand. This is a disadvantage compared to manufacturer storage, where a wider range of products can be stored and shipped.

Question 19

Which of the following is a disadvantage of retail storage with customer pickup?

Accepted Answer

Retail storage with customer pickup requires a physical retail location, which incurs higher inventory costs compared to other options such as dropshipping or third-party warehousing.

Question 20

The major disadvantage of in-transit merge compared to drop-shipping is

Accepted Answer

The answer of The major disadvantage of in-transit merge compared...

Quiz 4: Designing Distribution Networks and Applications to e-Business