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

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.

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.

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

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

As the number of facilities in a supply chain increases

In general, online sales outperform traditional brick and mortar retail sales along the dimension of

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?

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

To extract the maximum benefit from the online channel for physical goods, firms should keep it separate from their existing supply chain networks.

Explain how the design of the distribution network affects the cost of the four supply chain drivers.

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?

Total logistics costs are the sum of inventory, transportation, and facility costs for a supply chain network. What occurs as the number of facilities increases?

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.

A decrease in the response time customers desire increases the number of facilities required in the network.

As the number of facilities in a supply chain increases, total facility costs