Free Printable REVIEW FOR DISTRIBUTION MANAGEMENT

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Worksheets

REVIEW FOR DISTRIBUTION MANAGEMENT

Total questions: 19

Worksheet time: 10mins

Name

Class

Date

1.

1. The use of a third party company can provide the user company with access to _____. This may be through the opportunity to use leading edge technology such as RFID (Radio Frequency Identification), track and trace, GIS (Geographic Information Systems), or by providing a broader management experience and knowledge beyond that of their own industry.

a)

wider knowledge

b)

lack the appropriate experience

c)

cultural incompatibility

d)

contractor/client relationship

e)

over the delivery operation

2.

2. Third party distribution companies may _____ of client companies’ products and markets, although the growth in specialist distribution companies has helped to change this point of view.

a)

wider knowledge

b)

lack the appropriate experience

c)

cultural incompatibility

d)

contractor/client relationship

e)

over the delivery operation

3.

3. There may be an issue with _____between contractor and client. It is now recognized that company cultures can vary quite dramatically from one to another.

a)

wider knowledge

b)

lack the appropriate experience

c)

cultural incompatibility

d)

contractor/client relationship

e)

over the delivery operation

4.

4. It is important that there is no clash of culture in a _____ because this may lead to problems in the way the operation is run.

a)

wider knowledge

b)

lack the appropriate experience

c)

cultural incompatibility

d)

contractor/client relationship

e)

over the delivery operation

5.

5. It is claimed that the use of third party distribution can lead to a loss of control _____. This may be important if logistics is seen as a major element of competitive advantage.

a)

wider knowledge

b)

lack the appropriate experience

c)

cultural incompatibility

d)

contractor/client relationship

e)

over the delivery operation

6.

6. Any Lack of (a) can be reduced, however, by buying the right service at the outset, and by carefully monitoring the performance of the distribution company in terms of the service that it is actually providing.CAPITAL LETTER

7.

7. There may also be a _____ if a third party is used. This means that the company is no longer in a position to define the number, type or size of distribution centres, or vehicle types and sizes.

a)

lack of control

b)

loss of control over the company’s logistical variables

c)

contractor

d)

loss of distribution and logistics expertise

e)

loss of direct influence at the point of delivery

8.

8. Once again, if this is important, the company must choose the third party structure that suits it the best. Also of concern is the fact that as the contractor owns the systems and logistics resources the balance of power has shifted away from the user to the (a)

9.

11. Brand (a) cannot be guaranteed. Not an issue for many companies, but one that is quoted by some.

10.

What is the primary purpose of the Request for Proposal (RFP)?

a)

a) To increase competition among contractors

b)

b) To facilitate an objective comparison of vendor proposals

c)

c) To reduce the cost of operations

d)

d) To eliminate the need for negotiations

11.

Which of the following is NOT an objective of an RFP from the user company’s perspective?

a)

a) Establishing confidentiality rules

b)

b) Allowing contractors to design their own logistics systems

c)

c) Providing a standard format for vendor responses

d)

d) Ensuring equal distribution of information to all vendors

12.

The pricing structure where the user company pays actual operation costs plus a fixed or percentage-based fee is called:

a)

a) Hybrid unit price agreement

b)

b) Cost-plus arrangement

c)

c) Unit price agreement

d)

d) Open book contract

13.

What is one major disadvantage of the cost-plus pricing model?

a)

a) The contractor might not be incentivized to improve efficiency

b)

b) The client company has no visibility over costs

c)

c) It is inflexible and difficult to understand

d)

d) It does not allow for budget forecasting

14.

What type of contract has no fixed end date but allows either party to terminate with prior notice?

a)

a) Open book contract

b)

b) Evergreen contract

c)

c) Cost-plus contract

d)

d) Hybrid unit price agreement

15.

What document is also referred to as an ITT or RFQ in the contractor selection process?

(a)

16.

What pricing model ensures that clients pay for actual operational costs plus an additional fee for the contractor?

(a)

17.

What type of contract is typically used for completely dedicated operations and is based on a management fee?

(a)

18.

What pricing structure allows unit costs to be adjusted based on increasing throughput?

(a)

19.

What document outlines new administrative, safety, and service procedures as part of the implementation plan?

(a)

100 %

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