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Questions and Answers
What is the primary purpose of warehousing in the supply chain?
What is the primary purpose of warehousing in the supply chain?
Which of the following is NOT a primary function of distribution facility functionality?
Which of the following is NOT a primary function of distribution facility functionality?
In the context of distribution channels, what is a key benefit companies can achieve?
In the context of distribution channels, what is a key benefit companies can achieve?
What role does a distribution facility play in balancing supply and demand?
What role does a distribution facility play in balancing supply and demand?
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Which of the following activities is considered a value-adding role in distribution facilities?
Which of the following activities is considered a value-adding role in distribution facilities?
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What is the role of the accumulation function in a distribution facility?
What is the role of the accumulation function in a distribution facility?
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What does the sortation function of a distribution facility involve?
What does the sortation function of a distribution facility involve?
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Which statement best describes the impact of distribution facilities on customer service?
Which statement best describes the impact of distribution facilities on customer service?
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Which of the following describes the allocation function of a distribution facility?
Which of the following describes the allocation function of a distribution facility?
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In terms of production support, what is the primary role of distribution facilities?
In terms of production support, what is the primary role of distribution facilities?
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What is the primary function of sortation in a distribution center?
What is the primary function of sortation in a distribution center?
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Which of the following best describes the primary benefit of allocation in a distribution center?
Which of the following best describes the primary benefit of allocation in a distribution center?
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What role does assortment play in the distribution process?
What role does assortment play in the distribution process?
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How does a distribution center provide value through inventory management?
How does a distribution center provide value through inventory management?
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Which of the following is NOT considered a value-added role of distribution facilities?
Which of the following is NOT considered a value-added role of distribution facilities?
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What is the consequence of not having effective sortation in a distribution center?
What is the consequence of not having effective sortation in a distribution center?
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Which primary function in a distribution center directly matches inventory with customer demands?
Which primary function in a distribution center directly matches inventory with customer demands?
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What does the role of 'production sequencing' contribute in a distribution context?
What does the role of 'production sequencing' contribute in a distribution context?
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The mixing capability associated with assortment primarily helps in which aspect?
The mixing capability associated with assortment primarily helps in which aspect?
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What is a direct benefit of using a distribution center instead of direct delivery?
What is a direct benefit of using a distribution center instead of direct delivery?
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Study Notes
Distribution Facilities in the Supply Chain
- Distribution facilities in the supply chain can consolidate products or materials
- Consolidation can reduce transportation costs, achieve economies of scale in manufacturing or purchasing
- This can also provide value-added processes and shorten response time
The Role of Warehousing
- Warehousing is the process of storing goods or raw materials in a warehouse for distribution, sale, or manufacturing
- Distribution is the process of moving products from the manufacturer or supplier to the end consumer
- Distribution channels are a key operational element where companies can provide tailored services for their customers
- Providing tailored services can generate competitive advantage
The Role of Distribution Facilities in SCM
- The role of distribution facilities in SCM is to enhance customer service, promote transport economies, balance supply and demand, fulfill omni-channel demands, support production requirements, and protect against uncertainty
Distribution Facility Functionality
- Distribution facilities have primary functions and value-adding roles
- The primary functions are accumulation, sortation, allocation, and assortment
- The value-adding roles are assembly services, inventory management, product kitting, product postponement, production sequencing, quality control, and recycling and returns management
Accumulation
- Accumulation is a primary function that involves collecting products from multiple origins
- Products go through required transfers, storage, or processing
- Consolidation of orders and shipments for production and fulfillment are enabled
Sortation
- Sortation is a primary function focusing on assembling like products together for storage or processing
- Sorting ensures effective inventory and order fulfillment
Allocation
- Allocation is a primary function that matches available inventory to customer orders for a specific SKU
- This provides product availability for multiple customers in desired quantities
Assortment
- Assortment is a primary function involving assemblage of customer orders for multiple SKUs held in the distribution facility
- This avoids expenses related to placing numerous orders and having them shipped from different locations
Cost Importance of Distribution Center
- Using a distribution center can be more cost-effective compared to direct delivery from vendors to stores
- Direct delivery necessitates A x B shipments, each relatively small and subject to higher less-than-truckload rates
- Using a distribution center allows larger shipments, making it more likely they qualify for lower, full-truckload rates
Value-Adding Roles of Distribution Facilities
- Assembly services
- Inventory management and visibility
- Product kitting, bundling, and unbundling
- Product postponement
- Production sequencing
- Quality control
- Recycling, repair, and returns management
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Description
Explore the crucial roles of distribution facilities and warehousing in supply chain management. Understand how these elements consolidate products, reduce costs, and enhance customer service. This quiz will cover consolidation benefits, distribution processes, and the strategic importance of tailored services in SCM.
