True or False #4

Question 1

Distribution occurs between every pair of stages in the supply chain.

Answer 1

True

Question 2

Companies in the same industry often select very different distribution networks, because the choice of the distribution network can be used to achieve a variety of supply chain objectives ranging from low cost to high responsiveness.

Answer 2

True

Question 3

Companies in the same industry should always select similar distribution networks, because their objectives will be similar.

Answer 3

False

Question 4

A customer does not necessarily want the highest level of performance along all dimensions of customer service, including response time, product variety, product availability, customer experience, order visibility, and returnability.

Answer 4

True

Question 5

Outbound transportation costs per unit tend to be lower than inbound costs, because inbound lot sizes are typically larger.

Answer 5

False

Question 6

Transportation costs are high with drop-shipping because the average outbound distance to the end consumer is large and package carriers are used to shipping the product.

Answer 6

True

Question 7

The main advantage of in-transit merge over drop-shipping is the somewhat lower transportation cost and improved customer experience.

Answer 7

True

Question 8

The main advantage of a distribution network with local storage is that it can lower the delivery cost and provide a faster response than other networks.

Answer 8

True

Question 9

The main advantage of a distribution network with local storage is that it can lower the inventory and facility costs.

Answer 9

False

Question 10

The major disadvantage of a distribution network with local storage is the increased inventory and facility costs.

Answer 10

True

Question 11

A distribution network designer needs to consider product characteristics as well as network requirements when deciding on the appropriate delivery network.

Answer 11

True

Question 12

Only niche companies will end up using a single distribution network.

Answer 12

True

Question 13

Distributors add value to a supply chain between a supply stage and a customer stage if there are many small players at the customer stage, each requiring a small amount of the product at a time.

Answer 13

True

Question 14

As long as inbound transportation economies of scale are maintained, increasing the number of facilities decreases total transportation cost.

Answer 14

True

Question 15

Customers always want the highest level of performance along all the dimensions response time, product variety and returnability.

Answer 15

False