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 (C)</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 (C)</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 (D)</p> Signup and view all the answers

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

<p>Returnability (C)</p> Signup and view all the answers

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

<p>High responsiveness (D)</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 (D)</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 (C)</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 (A)</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 (A)</p> Signup and view all the answers

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