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MGO 636 - Quiz 2 with Correct Answers

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MGO 636 - Quiz 2 with Correct Answers What is distribution? - Answer-the steps taken to move and store a product from the supplier stage to the customer stage in a supply chain · What is the role of distribution in a supply chain? - Answer-Distribution directly affects cost and the customer ex...

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  • October 15, 2024
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MGO 636 - Quiz 2 with Correct Answers

What is distribution? - Answer✔✔-the steps taken to move and store a


product from the supplier stage to the customer stage in a supply chain


· What is the role of distribution in a supply chain? - Answer✔✔-Distribution directly affects cost

and the customer experience and therefore drives supply chain profitability.


· What is the key trade-off in distribution? - Answer✔✔-- Customer needs that are met

(responsiveness)


- Cost of meeting customer needs (efficiency)




· What are the relationships between the costs of inventory and the number of facilities? -

Answer✔✔-gradually increases, square root law


· What are the relationships between the costs of transportation and the number of facilities? -

Answer✔✔-gradually decreases, then exponentially increases


· What are the relationships between the costs of facilities and the number of facilities? -

Answer✔✔-gradually increases, then exponentially increases


If the number of facilities decreases by n, the expected safety inventory will be reduced by the

square root of n. - Answer✔✔-Square root law


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,EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED. FIRST PUBLISH OCTOBER 2024.



· What are the six main network design options in distribution - Answer✔✔-1. Manufacturer

Storage with Direct Shipping


2. Manufacturer Storage with In-Transit Merge


3. Distributor Storage with Carrier Delivery


4. Distributor Storage with Last Mile Delivery


5. Manufacturer/Distributor Storage with Consumer Pickup


6. Retailer Storage with Consumer Pickup


What are the main supply chain network design decisions? - Answer✔✔-Facility role


Facility location


Capacity allocation


Supply and market allocation


What facility performs what function? Packaging at the manufacturer or warehouse? -

Answer✔✔-Facility role


Where should facilities located?


- Tim Hortons opened up a coffee shop at Alfiero in 2008.


- UB's Pharmacy school was relocated to Downtown Campus. - Answer✔✔-Facility location


How much capacity should be allocated?



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, EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED. FIRST PUBLISH OCTOBER 2024.



- Best Buy in Galleria Mall stocks more products than other two stores. - Answer✔✔-Capacity

allocation


Who serves whom?


- Market: Wal-Mart, Target, Tops, etc.


- Supply: Local and global supplier, etc. - Answer✔✔-Supply and market allocation


· What are the main factors influencing network design decisions? - Answer✔✔-strategic


technological


macroeconomic


infrastructure


political


competitive


cost vs. responsiveness - Answer✔✔-Strategic factor


economies of scale


- Why Intel has manufacturing plants only in 5-6 countries, whereas Coca-Cola has bottling

plants all over the world? - Answer✔✔-Technological factor


tariffs, tax, exchange rate


- BMW plant in SC, GM plant in TN - Answer✔✔-Macroeconomic factor



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