Supply Chain Management Distribution Management 2

Question 1

A 'milk run' delivery route in distribution management is characterized by:

Accepted Answer

A truck making multiple scheduled stops to pick up or deliver to several locations on a single route

Answer

Refrigerated transport exclusively for dairy and perishable goods

Answer

An emergency rush shipment for high-priority customers

Answer

A nonstop direct delivery from manufacturer to retailer

Question 2

Distribution Requirements Planning (DRP) is primarily used to:

Accepted Answer

Plan the replenishment of inventory across distribution networks based on demand forecasts

Answer

Calculate the cost of distribution labor and equipment

Answer

Design the physical layout of a distribution center

Answer

Negotiate freight rates with carriers

Question 3

Which order picking method involves sending pickers to a fixed zone of the warehouse where they pick all items for multiple orders within that zone?

Accepted Answer

Zone picking

Answer

Batch picking

Answer

Wave picking

Answer

Cluster picking

Question 4

Which key performance indicator (KPI) measures the percentage of customer orders that are shipped complete and on time?

Accepted Answer

Perfect order rate

Answer

Inventory turnover ratio

Answer

Gross margin return on investment (GMROI)

Answer

Days sales outstanding (DSO)

Question 5

In a multi-echelon distribution network, what does each 'echelon' represent?

Accepted Answer

A level or tier in the distribution network, such as a factory, regional DC, or local DC

Answer

A single truck in the fleet assigned to a specific territory

Answer

A category of products grouped by weight or size for shipping

Answer

A reporting period used in financial distribution analysis

Question 6

Route optimization in distribution primarily aims to:

Accepted Answer

Determine the most cost-efficient or time-efficient sequence of delivery stops

Answer

Increase the number of drivers on payroll to handle peak demand

Answer

Standardize packaging dimensions to reduce truck cube waste

Answer

Automate customer invoice generation after deliveries

Question 7

The postponement strategy in distribution involves:

Accepted Answer

Delaying product customization or final assembly until closer to customer demand is known

Answer

Holding all shipments until the end of the quarter to reduce transport costs

Answer

Rescheduling deliveries when weather events disrupt normal routes

Answer

Waiting for lower fuel prices before dispatching long-haul trucks