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38) What type of distribution network is shown in this diagram?
A) Distributor storage with carrier delivery
B) Manufacturer/distributor storage with customer pickup
C) Distributor storage with last-mile delivery
D) Manufacturer storage with direct shipping
39) What type of distribution network is shown in this diagram?
A) Distributor storage with carrier delivery
B) Manufacturer/distributor storage with customer pickup
C) Distributor storage with last-mile delivery
D) Manufacturer storage with direct shipping
40) Among all distribution networks, transportation costs are highest for
A) direct shipping and in-transit merge.
B) manufacturer storage with direct shipping.
C) last mile delivery.
D) distribution centers.
41) Which distribution network design is being used when inventory is stored locally at retail
stores and customers walk into the retail store or place an order online or on the phone and pick
it up at the retail store?
A) Manufacturer storage with direct shipping
B) Distributor storage with package carrier delivery
C) Distributor storage with last mile delivery
D) Retail storage with customer pickup
42) 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.
43) Which of the following is a disadvantage of retail storage with customer pickup?
A) Returnability is easier than other options given that pickup location can handle returns.
B) Inventory cost is higher than all other options.
C) Transportation cost is lower than all other options.
D) Facilities and handling costs are lower than other options.
44) 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.
45) Improvement in supply chain performance as a 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.
46) ________ is a cost factor performance characteristic of Retail Storage at Consumer Pickup
Sites that is higher than all other options.
A) Transportation
B) Inventory
C) Information
D) Facilities and Handling
47) ________ is a service factor performance characteristic of Retail Storage at Consumer
Pickup Sites that is lower than all other options.
A) Response time
B) Product variety
C) Product availability
D) Time to market
48) ________ is a service factor performance characteristic of Manufacturer or Distributor
Storage with Customer Pickup that is lower than other options because of the lack of home
delivery. Experience is very sensitive to capability of pickup location.
A) Response time
B) Product variety
C) Customer experience
D) Time to market
49) ________ is a cost factor performance characteristic of Manufacturer or Distributor Storage
with Customer Pickup that is lower than the use of package carriers, especially if using an
existing delivery network.
A) Transportation
B) Inventory
C) Information
D) Facilities and Handling
50) In general, traditional brick and mortar retail sales outperform online sales along the
dimension of
A) product variety.
B) request fulfillment.
C) time to market for a new product.
D) order status tracking.
51) The interaction between a customer and a retailer is primarily in terms of three flows. Which
of these items is NOT one of the flows?
A) Information
B) Product
C) Funds
D) Contracts
52) Which of these combinations provides an omni-channel experience for customers?
A) McDonald’s hamburgers and McDonnell Douglas aviation
B) DirecTV sending hundreds of different television channels to your home TV
C) Netflix movie streaming and Redbox new movie availability
D) A K-12 public school system with separate campuses for grades K-5, 6-8 and 9-12
53) Which of these statements about channel activity is best?
A) Product is usually exchanged via the same channel as funds.
B) Funds are usually exchanged via the same channel as information.
C) Information is usually exchanged via the same channel as product.
D) The three flows usually occur in three different channels during the same transaction.
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54) Which of these statements about channel activity is best?
A) Product is usually exchanged via the same channel as funds.
B) A combination of multiple channels is often more effective than any single channel at serving
a variety of customer needs.
C) Information is usually exchanged via the same channel as product.
D) The three flows usually occur in three different channels during the same transaction.
Answer: B
Diff: 1
Topic: 4.3: Online Sales and Omni-Channel Retailing
AACSB: Application of knowledge
Objective: LO 4.3: Describe how omni-channel retail may be structured to be both cost effective
and responsive to customer needs.
55) In general, traditional brick and mortar retail sales outperform online sales along the
dimension of
A) product variety.
B) efficient funds transfer.
C) product returns.
D) order status tracking.
Answer: C
Diff: 2
Topic: 4.3: Online Sales and Omni-Channel Retailing
AACSB: Application of knowledge
Objective: LO 4.3: Describe how omni-channel retail may be structured to be both cost effective
and responsive to customer needs.
Figure 1: Consider the four quadrant depiction of the alternatives in omni-channel retail.
56) In Figure 1, what type of shopping experience is found in Quadrant A?
A) Most furniture stores
B) Amazon.com
C) Traditional retail
D) Grocery industry in the U.K. and Walmart in the U.S.
57) In Figure 1, what type of shopping experience is found in Quadrant B?
A) Most furniture stores
B) Amazon.com
C) Traditional retail
D) Grocery industry in the U.K. and Walmart in the U.S.
58) In Figure 1, what type of shopping experience is found in Quadrant C?
A) Most furniture stores
B) Amazon.com
C) Traditional retail
D) Grocery industry in the U.K. and Walmart in the U.S.
59) In Figure 1, what type of shopping experience is found in Quadrant D?
A) Most furniture stores
B) Amazon.com
C) Traditional retail
D) Grocery industry in the U.K. and Walmart in the U.S.
60) In Figure 1, response time to customers for receipt of tangible goods is fastest in
A) Quadrant A.
B) Quadrant B.
C) Quadrant C.
D) Quadrant D.
61) In Figure 1, response time to customers for information goods is fastest in
A) Quadrant A.
B) Quadrant B.
C) Quadrant C.
D) Quadrant D.
62) In Figure 1, a company can offer a much wider selection of products in
A) Quadrant A.
B) Quadrant B.
C) Quadrants B and D.
D) Quadrant D.
63) In Figure 1, a company can offer the greatest order visibility in
A) Quadrant A.
B) Quadrant B.
C) Quadrant C.
D) Quadrant D.
64) In general, online sales outperform traditional brick and mortar retail sales along the
dimension of
A) order fulfillment.
B) trying before you buy.
C) product returns.
D) order status tracking.
65) Online sales increase ________ when compared to the performance of traditional brick and
mortar retail stores.
A) outbound transportation costs
B) the inventory holding cost
C) the cost of building and maintaining facilities in a supply chain network
D) overall supply chain costs
66) An online grocery store has a distinct advantage over a traditional model in the area of
A) processing costs.
B) transportation costs.
C) facility costs.
D) information costs.
67) An online book store has a distinct disadvantage over a traditional model in the area of
A) product variety.
B) transportation.
C) product availability.
D) flexible pricing.
68) Which of these costs was higher for Netflix than for their vanquished competitor,
Blockbuster?
A) Property
B) Inventory
C) Facility
D) Transportation
69) Which of these statements about distribution networks is best?
A) A manufacturer that owns their own distribution network cannot control the network’s
actions.
B) Customers are willing to have a relationship built around high value, specialized products.
C) Distribution networks that have identical physical flows but different ownership structures
have identical performance.
D) It is important to have static distribution networks.
70) In order to reap the greatest return from the online channel for physical goods, firms should
A) maximize the return for each distinct supply chain member.
B) minimize interactions between the buyer and the other supply chain members.
C) integrate it with their existing supply chain networks.
D) ensure that they have total ownership of the supply chain.
1) Explain the measures of customer service that are influenced by the structure of the
distribution network.
2) Explain how the design of the distribution network affects the cost of the four supply chain
drivers.
3) Explain the six distinct distribution network designs that may be used to move products from
factory to customer.
4) Explain how distributors add value to a supply chain and improve its performance.
5) Total logistics costs are the sum of inventory, transportation, and facility costs for a supply
chain network. What occurs as the number of facilities increases?