Exam (WK5 - WK8)

Question 1

Role of Distribution in SCM

Answer 1

1) ACCUMULATION
Receive goods from various sources

2) SORTATION
Assemble Similar Products for Storage

3) ALLOCATION
Match inventory to orders

4) ASSORTMENT
Collecting multiple assorted orders for shipping

Question 2

Economic Benefits of DCs

Answer 2

• Consolidation and Distribution Assortment
• Break-Bulk or Cross Dock
• Processing/Postponement
• Stockpiling (unusual now)

Question 3

2 Product Flow Methods

Answer 3

DIRECT
Dropship straight to customer

INDIRECT
Via distribution Channels

Question 4

Stages of Cross Docking

Answer 4

1) RECIEVE
2) SORT
3) LOAD
4) DELIVER

Question 5

Characteristics of Cross Docking

Answer 5

• No Storage
• Uses conveyors/sorting equipment
• Requires Large DC
• Used for General Merchandise and Food

Question 6

What are the 3 Distribution Centre choices? (Network Design Issues)

Answer 6

Private DC - Owned by Company

Public DC - 3PL

Contract DC - 3PL Customized Storage & Delivery

Question 7

Characteristics of Public and Contract DCs

Answer 7

• Knowledge of Exact Storage Costs
• Customised for client needs
• They handle storage space, Software and Labour

Question 8

Importance of Purchasing

Answer 8

Need to purchase materials, services and suppliers to support operations

Question 9

Total Cost Ownership - What are its aspects?

Answer 9

• Purchase Price
• Inventory Holding Costs
• Transportation
• Rejected Stock (Poor Quality)

Question 10

Contrasting Approaches to Supply (What are the purposes of the items you supply?)

Answer 10

CONSUMER ITEMS
For household purposes

INDUSTRIAL PRODUCTS
Used for Manufacturing

RESALE PRODUCTS
Purchased to be resold at profit

Question 11

What is information?

Answer 11

The communication or reception of knowledge or intelligence

Question 12

Importance of Information

Answer 12

• Makes supply chain integration possible
• Facilitates business globalisation
• Can be differentiating factor

Question 13

Strategies for Information Use

Answer 13

CONNECTIVITY
Allows people to work together

WILLINGNESS
Information is power, and technology splits that power

Question 14

Types of Items and Their Barcodes

Answer 14

RETAIL ITEM

• Sold in Small Quantities
• Direct to Consumer
• Scanned at POS

NON RETAIL ITEM
- Not scanned at POS, only at Distribution Centre

Question 15

What does RFID stand for? What is it used for?

Answer 15

Radio Frequency Identification Devices

Method of uniquely identifying items using radio waves

Question 16

Elements of an RFID System

Answer 16

TAG
Active - Long Battery Life, Long Range
Passive - Short Range for Low cost Items

READER
Radiofrequency to read tags

MIDDLEWARE
Hardware and Software that collect and process RFID info

Question 17

Types of Supply Chain Relationships

Answer 17

VERTICAL

• One organisation owns all links
• Improves efficiency
• Manufacturer, agent, distributor, retailer

HORIZONTAL

• Parallel/cooperative supply chain
• Two companies from the same industry in the same stage of production work together

Question 18

Types of Logistic Relationships

Answer 18

TRANSACTIONAL
Both parties at arms length

COLLABORATIVE
A partnership, work together to benefit both parties

STRATEGIC
Even greater involvement between two parties

Question 19

What is a strategic alliance?

Answer 19

When two or more organisations work together to achieve a common strategic goal

Question 20

6 steps of forming strategic relationships

Answer 20

1. Perform strategic assessment
2. Decision to form relationship
3. Evaluate alternatives
4. Select partners
5. Structure operating model
6. Implementation and continuous improvement

Question 21

Why collaborate and form relationships?

Answer 21

Collaboration helps all parties involved

Question 22

5 Types of 3PL providers

Answer 22

1. Transportation based
2. Warehouse/distribution
3. Forwarder based
4. Financial based
5. Information based