Chapter4DesigningtheDistributionNetworkinaSupplyChainTrue/False1.Distributionoccursbetweeneverypairofstagesinthesupplychain.Answer:TrueDifficulty:Moderate2.Distributiononlyoccursbetweenmanufacturingandconsumersinthesupplychain.Answer:FalseDifficulty:Moderate3.Companiesinthesameindustryoftenselectverydifferentdistributionnetworks,becausethechoiceofthedistributionnetworkcanbeusedtoachieveavarietyofsupplychainobjectivesrangingfromlowcosttohighresponsiveness.Answer:TrueDifficulty:Moderate4.Companiesinthesameindustryshouldalwaysselectsimilardistributionnetworks,becausetheirobjectiveswillbesimilar.Answer:FalseDifficulty:Moderate5.Acustomeralwayswantsthehighestlevelofperformancealongalldimensionsofcustomerservice,includingresponsetime,productvariety,productavailability,customerexperience,ordervisibility,andreturnability.Answer:FalseDifficulty:Moderate6.Acustomerdoesnotnecessarilywantthehighestlevelofperformancealongalldimensionsofcustomerservice,includingresponsetime,productvariety,productavailability,customerexperience,ordervisibility,andreturnability.Answer:TrueDifficulty:Easy7.Outboundtransportationcostsperunittendtobelowerthaninboundcosts,becauseinboundlotsizesaretypicallylarger.Answer:FalseDifficulty:Easy8.Outboundtransportationcostsperunittendtobehigherthaninboundcosts,becauseinboundlotsizesaretypicallylarger.Answer:TrueDifficulty:Easy9.Transportationcostsarehighwithdrop-shippingbecausetheaverageoutbounddistancetotheendconsumerislargeandpackagecarriersareusedtoshippingtheproduct.Answer:TrueDifficulty:Easy10.Transportationcostsarelowwithdrop-shippingbecausetheaverageoutbounddistancetotheendconsumerissmall.Answer:FalseDifficulty:Easy11.Themainadvantageofin-transitmergeoverdrop-shippingisthesomewhatlowertransportationcostandimprovedcustomerexperience.Answer:TrueDifficulty:Moderate12.Themainadvantageofadistributionnetworkwithlocalstorageisthatitcanlowerthedeliverycostandprovideafasterresponsethanothernetworks.Answer:TrueDifficulty:Moderate13.Themainadvantageofadistributionnetworkwithlocalstorageisthatitcanlowertheinventoryandfacilitycosts.Answer:FalseDifficulty:Moderate14.Themajordisadvantageofadistributionnetworkwithlocalstorageistheincreaseddeliverycost.Answer:FalseDifficulty:Moderate15.Themajordisadvantageofadistributionnetworkwithlocalstorageistheincreasedinventoryandfacilitycosts.Answer:TrueDifficulty:Easy16.Adistributionnetworkdesignerneedstoconsiderproductcharacteristicsaswellasnetworkrequirementswhendecidingontheappropriatedeliverynetwork.Answer:TrueDifficulty:Hard17.Onlynichecompanieswillendupusingasingledistributionnetwork.Answer:TrueDifficulty:Easy18.Mostcompaniesarebestservedbyasingledistributionnetwork.Answer:FalseDifficulty:Moderate19.Distributorsaddvaluetoasupplychainbetweenasupplystageandacustomerstageiftherearemanysmallplayersatthecustomerstage,eachrequiringasmallamountoftheproductatatime.Answer:TrueDifficulty:ModerateMultipleChoice1.Thestepstakentomoveandstoreaproductfromthesupplierstagetoacustomerstageinthesupplychainisreferredtoasa.transportation.b.retailing.c.wholesaling.d.distribution.e.manufacturing.Answer:dDifficulty:Easy2.Distributionisakeydriveroftheoverallprofitabilityofafirmbecausea.theadditionofdistributorsonlyaddscosttothesupplychain.b.itdirectlyimpactsboththesupplychaincostandthecustomerexperience.c.itslowsdowntheresponsivenessofthesupplychain....
