Exam 1 (Ch. 1-4) Flashcards
5 typical stages in a supply chain
customers retailers distributors/wholesalers manufacturers suppliers (of components/raw materials)
Tailoring the supply chain requires sharing operations for some links in the supply chain while having separate operations for other links.
The links are shared to achieve ______ _____ _____ while providing the appropriate level of ____________ to each segment.
maximum possible efficiency;
responsiveness.
Processing costs for last-mile delivery are much _______________ than those for a network of retail stores because all customer participation is eliminated.
A grocery store using last-mile delivery performs all the processing until the product is delivered to the customer’s home, unlike a supermarket, where the customer does much more work.
higher
(~Customer Need…)
number of channels through which product may be acquired increases
(impact of customer needs on implied demand uncertainty)
(~causes implied demand uncertainty to…)
increase because the total customer demand is now disaggregated over more channels
Which of the following customer needs will cause implied uncertainty of demand to increase?
a. Range of quantity required increases
b. Lead time decreases
c. Variety of products required increases
d. Required service level increases
e. all of the above
e. all of the above
Which of the following is an advantage of manufacturer storage with direct shipping?
A) Transportation costs are low because the average outbound distance to the end consumer is small and package carriers are used to shipping the product.
B) Supply chains save on the fixed cost of facilities, because the need for other warehousing space in the supply chain has been eliminated.
C) Response times tend to be small because the order has to be transmitted from the retailer to the manufacturer.
D) Order tracking is easy to implement because of the complete integration of information systems at both the retailer and the manufacturer.
E) The handling of returns is likely to be simple and inexpensive, improving customer satisfaction.
B) Supply chains save on the fixed cost of facilities, because the need for other warehousing space in the supply chain has been eliminated.
_______________ is the fraction of demand that is served on time from product held in inventory.
level of product availability
Distributor storage requires much _______________ inventory than a retail network.
less
The ________ ________ in a supply chain separates push processes from pull processes.
push/pull boundary
Given the limited radius that can be served with _______________ , more warehouses are required compared to when package delivery is used.
last-mile delivery
Inventory exists in the supply chain because of
a mismatch between supply and demand
The major disadvantage for retail storage is the _______________ inventory and facility costs.
increased
For manufacturer/distributor storage with customer pickup, there is some _______________ of customer experience, because unlike the other options, customers must pick up their own orders. On the other hand, customers who don’t want to pay online can pay by cash using this option.
Experience is sensitive to capability of pickup locations
loss
retail storage with customer pickup is best suited for _______________ items or items for which customers value _______________ response.
fast-moving;
rapid
Changing the distribution network design affects which 4 supply chain costs?
- inventories
- transportation
- facilities and handling
- information.
Firms that target customers who value _______________ times need to locate facilities _______________ to them. These firms must have _______________ facilities, each with a _______________ capacity.
short response;
close;
many;
low
In the ________ ________ , the processes in a supply chain are divided into a series of cycles, each performed at the interface between two successive stages of the supply chain.
Not every supply chain will have all four cycles clearly separated.
cycle view
the internet allows a customer to place an order at any _______________ time. Online sales also allow a firm to access customers who are _______________ distant.
convenient;
geographically
Which of the following is an advantage of retail storage with customer pickup?
A) Inventory cost is higher than all other options.
B) Transportation cost is lower than all other options.
C) Facilities and handling costs are higher than other options.
D) Product variety is lower than all other options.
E) Product availability is more expensive to provide than all other options.
B) Transportation cost is lower than all other options.
Zara sources basic products such as white t-shirts from low cost countries because demand is predictable. For trendy products for which demand is unpredictable, Zara sources from company-owned higher cost factories in Europe. For the predictable demand, Zara strives for ________ and for the unpredictable demand, Zara hopes to achieve ________.
efficiency,
flexibility
The more capabilities constituting responsiveness a supply chain has,
the more responsive it is.
Manufacturer storage with direct shipping is best suited for a _______________ of _______________, _______________ items for which customers are willing to wait for delivery and accept several partial shipments
large variety;
low-demand;
high-value
Response times for last-mile delivery are _______________ than those for package carriers
faster
Supply chain Strategy/design decisions include
- whether to outsource or perform supply chain function in house
- location and capacities of production and warehousing facilities
- products to be manufactured or stored at various locations
- modes of transportation available along different shipping legs
- type of information system to use
For manufacturer/distributor storage with customer pickup, returns can be potentially handled at the pickup site, making it _______________ for customers. From a transportation perspective, return flows can be handled using the delivery trucks.
easier
Which of the following is an advantage of manufacturer/distributor storage with customer pickup?
A) Facility costs can be very high if new facilities have to be built.
B) Transportation cost is lower than the use of package carriers, especially if using an existing delivery network.
C) Order visibility is difficult but essential.
D) Product variety is similar to other manufacturer or distributor storage options.
E) Significant investment in information infrastructure required.
B) Transportation cost is lower than the use of package carriers, especially if using an existing delivery network.
Response times for in-transit merge may be _______________ if the shipments from various sources are not coordinated.
higher
Which of the following would be a disadvantage of manufacturer storage with direct shipping?
A) The ability to reduce cost of inventory by centralizing inventories at the manufacturer.
B) The manufacturer has to postpone customization until after the customer order has been placed.
C) Supply chains have to eliminate other warehousing space to save on the fixed cost of facilities.
D) Response times tend to be large because the order has to be transmitted from the retailer to the manufacturer and shipping distances are on average longer from the manufacturer’s centralized site.
E) Provides a good customer experience when a single order containing products from several manufacturers is delivered in partial shipments.
D) Response times tend to be large because the order has to be transmitted from the retailer to the manufacturer and shipping distances are on average longer from the manufacturer’s centralized site.
The goal of the supply chain planning phase is to ________ the supply chain surplus that can be generated over the planning horizon given the constraints established during the strategic or design phase.
maximize
A firm that is not on the efficient frontier can improve both its _________ and its ___________ by moving toward the efficient frontier.
responsiveness
cost performance
with the _______________ in lot size, comes an increase in _______________ .
increase;
carrying costs
Amazon uses different prices for the products that are purchased from the company — often for the speed of the shipping. What is the name of this pricing scheme?
Menu pricing
The value of the final product may vary for each customer and can be estimated by the ________ amount the customer is willing to pay for it.
maximum
_______________ is the amount of time it takes for a customer to receive an order
response time
A firm should add facilities beyond the cost-minimizing point only if managers are confident that the increase in revenues because of _______________ will be greater than the increase in costs because of the _______________ .
better responsiveness;
additional facilities
Both the product ________ ________ and the various ________ needs that the supply chain tries to fill affect ________ ________ ________ .
demand uncertainty;
customer;
implied demand uncertainty
_______________ is the time it takes to bring a new product to the market.
time to market
Companies produce or purchase in _______________ lots to exploit economies of scale in the production, transportation, or purchasing process.
large
The ______ _____ _______ is tailored to each product, channel, or customer segment.
level of responsiveness
For manufacturer/distributor storage with customer pickup, a significant _______________ is needed to provide visibility of the order until the customer picks it up. Good coordination is needed among the retailer, the storage location, and pickup location.
information infrastructure
Distributor storage with carrier delivery is well suited for _______________ moving items. It also makes sense when customer want delivery _______________ than is offered by manufacturer storage but do not need delivery immediately.
slow- to fast-;
faster
Webvan designed a supply chain with large warehouses in several major cities in the United States, from which groceries were delivered to customer homes. They failed partly because of
A) low demand for their service.
B) slow inventory turnover compared to industry averages.
C) higher labor costs for picking orders.
D) poor quality products.
C) higher labor costs for picking orders.
Companies using seasonal inventory build up inventory in periods of _______________ demand and store it for periods of _______________ demand, when they will not have the capacity to produce all that is demanded.
low;
high
Distributors add value to a supply chain between a supply stage and a customer stage
A) if there is a small number of customers requiring a large amount of product.
B) if there is a large number of customers requiring a large amount of product.
C) if there are many small players at the customer stage, each requiring a small amount of the product at a time.
D) if there are a few large players at the customer stage, each requiring a large amount of the product at a time.
E) Distributors do not add value to a supply chain.
C) if there are many small players at the customer stage, each requiring a small amount of the product at a time.
only _______________ companies end up using a single distribution network.
niche
On which dimensions should the performance of a distribution network be evaluated at the highest level?
A) Profitability of individual supply chain components
B) Efficiency of overall supply chain network
C) Customer needs that are met
D) Cost of meeting customer needs
E) C and D only
Answer: E
Answer: E) C and D only
C) Customer needs that are met
D) Cost of meeting customer needs
For a supply chain, _______________ is the rate at which sales occur.
throughput
The important points to remember about achieving strategic fit are
a. there is one best supply chain strategy for all competitive strategies.
b. there is no right supply chain strategy independent of the competitive strategy.
c. there is a right supply chain strategy for a given competitive strategy.
d. all of the above
e. b and c only
e. b and c only
b. there is no right supply chain strategy independent of the competitive strategy.
c. there is a right supply chain strategy for a given competitive strategy.
Relative to manufacturer storage, distributor storage requires a _______________ level of inventory _______________ of aggregation.
higher;
loss
Improvement in supply chain performance at the result of distributors occurs for which of the following reasons?
A) Reduction in transportation cost because of LTL shipments from manufacturers to distributor.
B) Reduction in outbound transportation cost because the distributor combines products from many customers into a single outbound shipment.
C) Reduction in inventory costs because distributor disaggregates safety inventory rather than aggregating at each retailer.
D) A more stable order stream from distributor to manufacturer (compared to erratic orders from each retailer) allows manufacturers to lower cost by planning production more effectively.
E) By carrying inventory closer to the point of sale, manufacturers are able to provide a better response time than distributors can.
D) A more stable order stream from distributor to manufacturer (compared to erratic orders from each retailer) allows manufacturers to lower cost by planning production more effectively.
Distributor storage can handle somewhat _______________ variety than manufacturer storage but can handle a much _______________ level of variety than a chain of retail stores.
lower;
higher
_______________ decrease as the number of facilities are reduced because a consolidation of facilities allows a firm to exploit _______________ .
Facility costs;
economies of scale.
All products may be made on the same line in a plant, but products requiring a ______ _____ ____ _______ may be shipped using a fast mode of transportation, such as FedEx.
Products that do not have _____ _______ needs may be sent by slower and less expensive means such as truck, rail, or even ship.
high level of responsiveness;
high responsiveness.
Which of the following is an advantage of distributor storage with last mile delivery?
A) More expensive to provide product availability than any other option except retail stores.
B) Inventory cost is higher than distributor storage with package carrier delivery.
C) Response time is very quick ranging from same day to next day delivery.
D) Transportation cost is higher than any other distribution option.
E) Returnability is harder and more expensive than a retail network.
C) Response time is very quick ranging from same day to next day delivery.
W.W. Grainger holds ________ with ____ implied uncertainty in its decentralized locations close to the customer.
fast-moving items;
low
Firms on the efficient frontier are also continuously improving their processes and changing technology to
shift the efficient frontier itself.
The value (also known as supply chain surplus) a supply chain generates is the different between what the value of the final product is to the ________ and the ________ the entire supply chain incurs in filling the customer’s request.
customer;
costs
(impact of supply source capability on supply uncertainty) [[Supply source capability]] frequent breakdowns unpredictable and low yields poor quality limited supply capacity inflexible supply capacity evolving production process
[[causes supply uncertainty to…]]
increase
for all of them listed
The relationship where increasing implied uncertainty from customers and supply sources is best served by increasing responsiveness from the supply chain is known as the
zone of strategic fit.
The party performing the in-transit merge has _______________ facility costs because of the merge capability required.
higher
Firms that target customers who can tolerate a long response time require _______________ _______________ that may be _______________ from the customer. These companies can focus on _______________ the capacity of each location.
only a few locations;
far;
increasing
_______________ are the costs incurred in bringing material into a facility.
inbound transportation costs
For manufacturer/distributor storage with customer pickup, product variety and product availability are _______________ to other manufacturer or distributor storage options.
similar/comparable
Role (Component of facilities decisions)
Firms must decide whether production facilities will be _______, ________, or ______________.
flexible, dedicated, or a combination of the two
Which distribution network design is being used when inventory is not held by manufacturers at the factories, but is held by distributors/retailers in intermediate warehouses and package carriers are used to transport products from the intermediate location to the final customer?
A) Manufacturer storage with direct shipping
B) Manufacturer storage with direct shipping and in-transit merge
C) Distributor storage with package carrier delivery
D) Distributor storage with manufacturer pickup
E) Retail storage with customer pickup
C) Distributor storage with package carrier delivery
Even though each cycle has the same basic subprocesses, there are a few important differences among the cycles.
In the customer order cycle, demand is ________ to the supply chain and thus is ________ .
In all other cycles, ________ ________ is uncertain but can be projected based on policies followed by the particular supply chain stage.
external;
uncertain
With drop-shipping, customer experience is _______________ in terms go home delivery but can suffer if order from several manufacturers is sent as _______________ .
good;
partial shipments
with drop-shipping, _______________ is expensive and difficult to implement
retainability
inventory role in the competitive strategy
Responsiveness- locate _______________ closer to customers.
Cost- _______________ inventory.
more inventory;
reduce
Distributor storage has a _______________ cost to provide the same level of product availability as manufacturer storage.
higher
If the number of facilities is increased to a point at which inbound lot sizes are also very small and result in a significant loss of economies of scale in inbound transportation, _______________ the number of facilities _______________ total transportation cost.
increasing;
increases
The order-tracking feature for _______________ does become important to handle exceptions in case of incomplete or undelivered orders.
last-mile delivery
A key issue with regard to drop-shipping is the _______________ of the inventory at the manufacturer.
If specified portions of inventory at the manufacturer are allocated to individual retailers, there is little benefit of aggregation even though the inventory is physically aggregated.
ownership structure
________ processes are initiated and performed in anticipation of customer orders
push
A firm must ensure that the supply chain configuration supports its ________ ________ and ________ the supply chain surplus during this phase.
strategic objectives;
increases
Online sales can _______________ inventory levels by aggregating inventories far from customers if most customers are willing to wait for delivery.
A key point to note is that the relative benefit of aggregation is small for _______________ items with _______________ variability but large for _______________ items with _______________ variability.
lower;
high-demand;
low;
low-demand;
high
For last-mile delivery, the cost of providing product availability is _______________ than for every option other than retail sores.
higher/more expensive
7 Measures of customer value that are influenced by the structure of the distribution network
- response time
- product variety
- product availability
- customer experience
- time to market
- order visibility
- returnability
The internet offers an opportunity to create a _______________ buying experience for each customer.
personalized
________ implied demand uncertainty leads to ________ difficulty in matching supply with demand. For a given product, this dynamic can lead to either a stockout or an oversupply situation.
increased;
increased
Social networking channels such as Facebook and twitter allows a firm to pitch products and promotions _______________ to customers.
directly
Inventory affects the _______________ held, the _______________ incurred, and _______________ provided in the supply chain.
assets;
costs;
responsiveness
Distributor storage with last mile delivery requires _______________ levels of inventory than the other options (except for retail stores) because it has a _______________ level of aggregation.
higher;
lower
supply chain success should be measured in terms of ________ ________ and not in terms of the profits at an individual stage.
supply chain surplus
Response times tend to be long with _______________ because of _______________ distance and _______________ stages for order processing.
Response time may vary by product, thus complicating receiving.
drop-shipping;
increase;
two
For manufacturer/distributor storage with customer pickup, a response time _______________ to that of using package carriers can be achieve
comparable
Although an increase in coordination is required, in-transit merge _______________ transportation costs relative to drop-shipping by _______________ the final delivery.
decreases;
aggregating
Two key decisions to make when designing a distribution network
- will the product be delivered to the customer location or picked up from a prearranged site?
- will the product flow through an intermediate location (intermediary)?
For retail storage with customer pickup, time to market is the _______________ with this option because the new product must penetrate through the entire supply chain before it is available to customers.
highest
As a result of the planning phase, companies define a set of ________ ________ that govern ________ operations.
operating polices;
short-term
A _______________ facility performs all functions (e.g., fabrication and assembly) needed for producing a single type of product.
product-focused
(~Customer Need…)
required service level increases
(impact of customer needs on implied demand uncertainty)
(~causes implied demand uncertainty to…)
increase because the firm now has to handle unusual surges in demand
markdowns are ________ for products with ________ implied demand uncertainty because oversupply often results.
high;
greater
given the ease of changing prices and assortments online, the internet allows a company selling online to manage revenues from its available product portfolio much more _______________ than do traditional channels.
effectively
Supply chain decision decisions are typically made for the ________ and are ________ to alter on short notice - firms must take into account uncertainty in anticipated market conditions over the following few years.
long-term (a matter of years);
expensive
For every strategic choice to increase responsiveness, there are additional costs that ________ ________.
lower efficiency
For decisions made during the ________ ________ ________ phase, the time frame considered is a quarter to a year. Therefore, the supply chain’s configuration determined in the strategic phase is ________ . This configuration establishes constraints within which planning must be done.
supply chain planning;
fixed.
A _______________ in the desired response time _______________ the number of facilities required in the network.
decrease;
increases
The concept of tailoring to achieve strategic fit is important in industries such as ________ and ______, in which ______ is critical and products move through a life cycle.
high-tech and pharmaceuticals;
innovation.
_______________ is the time that elapses between the point at which material enters the supply chain to the point at which it exits.
Material flow time
For drop-shipping to be effective, there should be _______________ _______________ per order.
few sourcing locations
Drop-shipping _______________ costs of inventory because of _______________
lowers;
aggregation
Order visibility becomes _______________ for distributor storage because there is a single shipment from warehouse to customer and only one stage of supply chain is directly involved in filling the customer order.
easier
The size of the cycle inventory is a result of the _______________ , _______________ , or _______________ of material in large lots.
production,
transportation,
purchase
Returnability is _______________ than it is with manufacturer storage because all returns can be processed at warehouse itself. The customer also has to return only _______________ package, even if the items are from several manufacturers.
better;
one
Push processes may also be referred to as ________ processes because they respond to speculated (or forecasted), rather than actual, demand.
speculative
A firm can introduce a new product much more _______________ online as compared with doing so via physical channels.
quickly
Among all the distribution networks, transportation costs are highest for _______________ , especially when delivering to individuals.
last-mile delivery
Economies of scale are illustrated by
A) a company declaring that they will not have sales, but will maintain very low prices all the time.
B) the price of a taxi ride service increasing after 2 a.m.
C) a supplier using a third party logistics firm.
D) a supplier waiting until enough demand has built up to send a full truckload shipment to their customer.
D) a supplier waiting until enough demand has built up to send a full truckload shipment to their customer.
For manufacturer/distributor storage with customer pickup, order visibility is extremely _______________ for customer pickups. Such a system is _______________ to implement because it requires integration of several stages in supply chain.
important;
difficult/hard
3 decision phases in a supply chain
- supply chain strategy/design
- supply chain planning
- supply chain operation
Who does a supply chain do?
A supply chain aims to match supply and demand, profitably, for products and services.
From a facility perspective, distributor storage is _______________ appropriate for _______________ _______________ items.
not;
extremely slow-moving
Product variety for last-mile delivery is somewhat ______________ than for distributor storage with carrier delivery.
less/lower
In the ________ ________ , the processing in a supply chain are divided into two categories, depending on whether they are executed in response to a customer order or in anticipation of customer orders.
push/pull view
Which component of the supply chain decision-making framework would be used to reach the performance level dictated by the supply chain strategy?
a. Customer strategy
b. Supply chain strategy
c. Supply chain structure
d. Competitive strategy
e. Replenishment strategy
c. Supply chain structure
The cycle view is used by ________ ________ ________ systems to support supply chain operations.
enterprise resource planning (ERP)
The most significant sourcing decision for a firm is
whether to perform a task in-house or outsource it to a third party.
Customer experience/convenience is _______________ with distributer storage because a single shipment reaches customer in response to an order.
better/higher
For a company to achieve strategic fit, it must accomplish three things:
- the competitive strategy and all functional strategies must fit together to form a coordinated overall strategy. Each functional strategy must support other functional strategies and help a firm reach its competitive strategy goal.
- the different functions in a company must appropriately structure their processes and resources to be able to execute these strategies successfully.
- the design of the overall supply chain and the role of each stage must be aligned to support the supply chain strategy.
_______________ refers to the steps taken to move and store a product from the supplier stage to a customer stage in the supply chain.
Distribution
Order visibility for last-mile delivery is _______________ given that deliveries are made within 24 hours.
less of an issue
The information infrastructure for last-mile delivery is similar to that for _______________ _______________ _______________, however, it requires the additional capability of scheduling deliveries.
distributor storage with package carrier delivery
Compared to manufacturer storage, facility costs (of warehousing) are somewhat _______________ with distributor storage because of a loss of _______________ .
higher;
aggregation
Supply chain planning decisions include
-which markets will be supplied from which locations
-inventory policies to be followed
-subcontracting of manufacturing, backup locations
-timing and size of marketing and price promotions
planned buildup of inventories
two basic types of facilities costs must be included-
1) costs related to the number and location of facilities in a network
2) costs associated with the operations that take place in these facilities
promotion information can be conveyed to customers _______________ and _______________ using the internet as long as the business has access to its customer network.
Group is one company that used social networking online to push promotions to customers.
quickly;
inexpensively
The main advantages of a network with consumer pickup sites are that it can _______________ the delivery cost and _______________ the set of products sold and customers served online.
lower;
expand
With drop-shipping, time to market is _______________ with the product available as soon as the first unit is produced.
fast
________ ________ is the total profit shared across all stages of the supply chain
supply chain profitability
The basic tradeoff supply chain managers face is the cost of holding _______________ lots of inventory (when cycle inventory is _________) versus the cost of _______________ more frequently (when cycle inventory is ______).
larger;
high;
ordering;
low
Online sales can lower a firm’s inventories if it can _______________ the introduction of variety until after the customer order is received.
postpone
_______________ is important in the context of manufacture storage, because two stages in the supply chain are involved in every customer order. Failure to provide this capability is likely to have a significant negative effect on customer satisfaction.
order visibility
Although faster transportation is more expensive, a firm receives which benefit as a result of the faster transportation?
lower inventories
For retail storage with customer pickup, a _______________ information infrastructure is needed if customers walk into the store and place orders.
For online orders, however, a _______________ information infrastructure is needed to provide visibility of the order until the customer picks it up.
minimal;
significant
The main advantage of in-transit merge over drop-shipping is
A) the ability to reduce cost of inventory by centralizing inventories at the manufacturer.
B) supply chains save on the fixed cost of facilities, because the need for other warehousing space in the supply chain has been eliminated.
C) somewhat lower transportation cost and improved customer experience.
D) order tracking is easy to implement because of the complete integration of information systems at both the retailer and the manufacturer.
E) the handling of returns is likely to be simple and inexpensive, improving customer satisfaction.
C) somewhat lower transportation cost and improved customer experience.
The internet and cell phones can enhance the convenience and lower the cost of _______________ _______________ , especially in small amounts.
revenue collection
With in-transit merge, the investment in information infrastructure is _______________ than that for drop-shipping
higher
For retail storage with customer pickup, order visibility is extremely _______________ , but difficult and essential for customer pickups with orders are placed online or by phone, but trivial for in-store orders.
important
The use of differential pricing over time or customer segments to maximize profits from a limited set of supply chain assets is
revenue management
Customer experience with in-transit merge is likely to be _______________ than with drop-shipping, because the customer receives only one delivery for an order instead of partial shipments.
better
Benefit of aggregation is achieved only if the manufacturer can allocate _______________ portion of the available inventory across retailers on an as-needed basis.
at least a
_______________ is the ability of customers to track their orders from placement to delivery
order visibility
Significant investment in _______________ _______________ to integrate manufacturer and retailer.
information infrastructure
The main advantage with retail storage is that is can _______________ delivery costs and provide a _______________ response than other networks.
lower;
faster
_______________ is a key driver of the overall profitability of a firm because it affects both the supply chain cost and the customer value directly.
distribution
For last-mile delivery, facilities and handling costs are _______________ than manufacturer storage or distributor storage with package carrier delivery, but _______________ than a chain of retail stores.
higher;
lower
Capacity (component of facilities decisions)
A facility with _________ excess capacity will likely be more efficient per unit of product it produces than one with a lot of ________ capacity.
little;
unused
Which of the following is a disadvantage of manufacturer/distributor storage with customer pickup?
A) Customer experience is lower than other options because of the lack of home delivery.
B) Response time is similar to package carrier delivery with manufacturer or distributor storage.
C) Returnability is somewhat easier given that pickup location can handle returns.
D) Product availability is similar to other manufacturer or distributor storage options.
E) Facilities costs are lower if existing facilities are used.
A) Customer experience is lower than other options because of the lack of home delivery.
_______ capacity can be used for many types of products but is often _____ efficient
flexible; less
Transportation costs for _______________ _______________ _______________ _______________ are lower than the use of package carriers, especially if using an existing delivery network.
manufacturer/distributor storage with customer pickup
For last-mile delivery, the customer experience can be _______________ particularly for bulky, hard to carry items.
very good.
_______________ the number of warehouse locations _______________ the average outbound distance to the customer and makes outbound transportation distance a _______________ of the total distance traveled by the product.
increasing;
decreases;
smaller fraction.
Supply chain profitability is
A) not correlated to the value generated by the various stages of the supply chain.
B) the total profit to be shared across all supply chain stages.
C) the difference between the revenue generated from the customer and the overall cost across the supply chain.
D) the total revenue generated by the distributor stage of the supply chain.
E) B and C only
Answer: E
Answer: E) B and C only
B) the total profit to be shared across all supply chain stages.
C) the difference between the revenue generated from the customer and the overall cost across the supply chain.
Forecasting is ________ accurate when demand has ________ uncertainty.
more;
less
customer demand from different segments varies along 6 attributes
quantity of product needed one each lot
response time that customers are willing to tolerate
variety of products needed
service level required
price of the product
desired rate of innovation in the product
With drop-shipping, _______________ allows a high level of product variety to be available to the customer because every product at the manufacturer can be made available to the customer without any limited imposed by _______________ .
manufacturer storage;
shelf space
In the planning phase, companies must include uncertainty in ________ , ________ ________ , and ________ over this time horizon in their decisions.
demand;
exchange rates;
competition
The _______________ facility, will have difficulty responding to demand fluctuations.
high-utilization
