Designing the Supply Chain Network: The Role of Distribution
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Questions and Answers

What is distribution in the supply chain?

  • The number of different products/configurations offered by a distribution network
  • The probability of having a product in stock when a customer order arrives
  • The steps taken to move and store a product from supplier to customer (correct)
  • The time it takes for a customer to receive an order

    • Which dimension should be considered when evaluating the performance of a distribution network?

  • Product availability
  • Customer needs that are met (correct)
  • Product variety
  • Time to market

    • What role does distribution play in the overall profitability of a firm?

  • It influences the revenues of the company (correct)
  • It determines the time it takes to bring a new product to the market
  • It directly affects the customer experience
  • It affects the probability of having a product in stock

    • What does customer experience include in the context of distribution networks?

    <p>The ease with which customers can place and receive orders</p> Signup and view all the answers

    Which factor is used to determine product variety in a distribution network?

    <p>number of different products/configurations that are offered by the distribution network</p> Signup and view all the answers

    Why is evaluating the impact on customer service and cost essential when comparing different distribution network options?

    <p>To decide how customer needs are met and how it affects profitability</p> Signup and view all the answers

    Which factor refers to the ease with which a customer can return unsatisfactory merchandise?

    <p>Returnability</p> Signup and view all the answers

    What supply chain objective can be achieved by using an appropriate distribution network?

    <p>High responsiveness</p> Signup and view all the answers

    How do firms aim to decrease inventory costs in their supply chain network?

    <p>Limit the number of facilities</p> Signup and view all the answers

    Which measure is influenced by the structure of the distribution network and relates to the time taken for a customer to receive their order?

    <p>Response time</p> Signup and view all the answers

    What can a poor distribution network potentially do to the level of service customers receive?

    <p>Reduce customer experience</p> Signup and view all the answers

    Which factor refers to the ability of customers to track their orders from placement to delivery?

    <p>Order visibility</p> Signup and view all the answers

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