Distribution Network Quiz

The steps taken to move and store a product from the supplier stage to a customer stage in the supply chain are referred to as

• transportation

• warehousing

• retailing

• distribution

Where does distribution occur in the supply chain?

• Between every pair of stages

• Everywhere downstream from production

• Between production and the retailer

• Between suppliers and retailers

Which types of distribution network in this figure?

a. Manufacturer Storage with Direct Shipping

b. Distributor Storage with Carrier Delivery

c. Retail storage with customer pickup

d. Distributor Storage with Last-Mile Delivery

e. Manufacturer storage with direct shipping and in-transit merge

f. Manufacturer or Distributor Warehouse Storage with Consumer Pickup

• 1 - a; 2 - e; 3 - b;

  4 - f; 5 - c; 6 - d

• 1 - a; 2 - c; 3 - d;

  4 - e; 5 - f; 6 - b

• 1 - a; 2 - f; 3 - b;

  4 - c; 5 - e; 6 - d

• 1 - a; 2 - e; 3 - b;

  4 - c; 5 - f; 6 - d

Which distribution network is likely to have relatively low facilities and inventory costs while delivering a very high level of performance on the dimensions of product variety and product availability?

• Manufacturer storage with direct shipping and in-transit merge

• manufacturer storage with direct shipping

• manufacturer or distributor storage with customer pickup

• Retail Storage with customer pickup

Distributor storage with carrier delivery is one types of distribution network in which inventory is held not by manufacturers at the factories, but by distributors/retailers in intermediate warehouses, and package carriers are used to transport products from the intermediate location to the final customer. Which of the following is an advantage of distributor storage with carrier delivery?

• Inventory cost is higher than with manufacturer storage.

• Product variety is lower than with manufacturer storage.

• Order visibility for the customer is easier than with manufacturer storage.

• Higher cost to provide the same level of product availability as manufacturer storage.

HLS Cooperation want to design a distribution network for delivering theirs products. Their requirements is a type of network which their distributor/retailer delivers the product to the customer's home instead of using a package carrier. If you are consultant, which network design you will recommend for them?

• Manufacturer storage with direct shipping

• Manufacturer/

  distributor storage with customer pickup

• Distributor storage with package carrier delivery

• Distributor storage with last mile delivery

There are 4 types of supply chain costs affected by distribution network structure such as inventory cost, transportation cost, information cost, facilities and handling cost. Which types of cost factor performance characteristic of Retail Storage at Consumer Pickup Sites that is higher than all other options?

• Inventory; Facilities and Handling costs

• Transportation and Inventory costs

• Information; Facilities and Handling Costs

• Transportation and Information Costs

How many statements are CORRECT?

(1) Total logistics costs are the sum of facility, inventory, and transportation costs for a supply chain network.

(2) The manufacturer storage with direct shipping distribution network classification is also referred to as "drop-shipping."

(3) The probability of having a product in stock when a customer order arrives is product variety.

(4) As the number of facilities in a supply chain increases, the required inventory decreases.

• 0

• 2

• 1

• 3

Answer explanation

(1) True

(2) True

(3) False, the probability of having a product in stock when a customer order arrives is product availability

(4) False, ss the number of facilities in a supply chain increases, the required inventory increases