CPIM Distribution Planning 2

Question 1

Which distribution network design strategy places inventory closer to end customers to reduce lead times?

Accepted Answer

Forward deployment

Answer

Centralized warehousing

Answer

Cross-docking

Answer

Drop shipping

Question 2

A company's distribution center receives full truckloads from suppliers and immediately sorts and ships to retail stores without storing inventory. This is called:

Accepted Answer

Cross-docking

Answer

Milk run

Answer

Zone skipping

Answer

Pool distribution

Question 3

The total cost of a distribution network includes which of the following cost components?

Accepted Answer

Transportation, warehousing, and inventory carrying costs

Answer

Only transportation and warehousing costs

Answer

Labor and equipment costs only

Answer

Fixed facility costs only

Question 4

When a single DC serves all customers across a large geography, what is the primary tradeoff compared to using multiple regional DCs?

Accepted Answer

Lower inventory costs but higher transportation costs

Answer

Higher transportation costs but lower inventory costs

Answer

Lower transportation costs but higher inventory costs

Answer

Equal costs with better service

Question 5

Which metric measures the percentage of customer orders shipped complete and on time from available stock?

Accepted Answer

Perfect order rate

Answer

Fill rate

Answer

Order cycle time

Answer

Distribution service level

Question 6

A milk run route is best described as:

Accepted Answer

A single truck making pickups or deliveries at multiple stops on a fixed route

Answer

Delivering only dairy products in refrigerated trucks

Answer

A direct truckload shipment between two points

Answer

A hub-and-spoke delivery pattern

Question 7

Zone skipping in parcel distribution achieves cost savings by:

Accepted Answer

Consolidating shipments and injecting them closer to destination zones, skipping carrier sorting hubs

Answer

Bypassing customs zones for international shipments

Answer

Eliminating dimensional weight charges by repackaging

Answer

Using zone-based pricing to select the cheapest carrier