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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.d.itcannotbedevelopedasapartofsupplychainstrategy.e.Distributionisnotakeydriverofprofitability.Answer:bDifficulty:Moderate3.Thechoiceofthedistributionnetworkcanbeusedtoachievesupplychainobjectivessuchasa.lowcost.b.highresponsiveness.c.highcost.d.highresponsibility.e.aandbonlyAnswer:eDifficulty:Moderate4.Companiesinthesameindustryoftenselectverydifferentdistributionnetworksbecausea.somecompaniesarepoorlyrun.b.differentcompaniestrytoavoidusingthesameapproach.c.differentcompanieshavedifferentobjectivesfortheirsupplychain.d.alloftheabovee.noneoftheaboveAnswer:cDifficulty:Moderate5.Apoor/inappropriatedistributionnetworkcana.leadtohighprofitability.b.hurtthelevelofservicecustomersreceivewhileincreasingcost.c.haveasignificantnegativeimpactontheprofitabilityofafirm.d.alloftheabovee.bandconlyAnswer:dDifficulty:Moderate6.Whichofthefollowingwouldnotbetheresultofapoor/inappropriatedistributionnetwork?a.Highprofitabilityb.Lowlevelofcustomerservicec.Highcostd.Poorprofitabilitye.Noneoftheabovearetrue.Answer:aDifficulty:Easy7.Onwhichdimensionsshouldtheperformanceofadistributionnetworkbeevaluatedatthehighestlevel?a.Profitabilityofindividualsupplychaincomponentsb.Efficiencyofoverallsupplychainnetworkc.Customerneedsthataremetd.Costofmeetingcustomerneedse.canddonlyAnswer:eDifficulty:Hard8.Whichofthefollowingaremeasuresofcustomerservicethatareinfluencedbythestructureofthedistributionnetwork?a.Responsetimeb.Productvarietyc.Productavailabilityd.Customerexperiencee.alloftheaboveAnswer:eDifficulty:Easy9.Whichofthefollowingaremeasuresofcustomerservicethatareinfluencedbythestructureofthedistributionnetwork?a.Returnabilityb.Ordervisibilityc.Customerexperienced.Productav