Supply Chain Management Distribution Management

Question 1

What is the primary purpose of a distribution center (DC) in a supply chain?

Accepted Answer

To receive, store, and ship products to customers or retail locations

Answer

To manufacture finished goods for retail

Answer

To design packaging for consumer products

Answer

To manage supplier contracts and negotiations

Question 2

Which distribution strategy involves products being received at a facility and immediately transferred to outbound trucks with minimal or no storage time?

Accepted Answer

Cross-docking

Answer

Drop shipping

Answer

Postponement

Answer

Milk run delivery

Question 3

The 'bullwhip effect' in distribution refers to:

Accepted Answer

Increasing demand variability as orders move upstream through the supply chain

Answer

The cracking sound made by forklift equipment in warehouses

Answer

A rapid increase in transportation costs during peak seasons

Answer

The oscillation of fuel prices affecting distribution costs

Question 4

In a hub-and-spoke distribution model, what is the role of the 'hub'?

Accepted Answer

A central facility that consolidates and redistributes freight to spoke locations

Answer

A small local delivery point serving individual customers

Answer

A satellite office managing regional supplier relationships

Answer

A point-of-sale terminal tracking retail inventory

Question 5

Direct Store Delivery (DSD) is best described as:

Accepted Answer

A method where manufacturers deliver products directly to retail stores, bypassing distribution centers

Answer

An online ordering system for retail store managers

Answer

A software platform for tracking in-store inventory levels

Answer

A cost-reduction strategy that eliminates the need for suppliers

Question 6

Which distribution network design typically results in the lowest transportation cost but highest inventory holding cost?

Accepted Answer

Decentralized distribution with many regional DCs

Answer

Centralized distribution with one DC serving all markets

Answer

Direct shipping from factory to customer

Answer

Drop shipping through third-party retailers

Question 7

What does 'last-mile delivery' refer to in distribution management?

Accepted Answer

The final leg of the journey from a distribution point to the end customer

Answer

The last shipment sent before a product is discontinued

Answer

A regulatory requirement for documenting final delivery paperwork

Answer

The most expensive mile of highway tolls on a long-haul route