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

A milk run is a scheduled route where a single truck visits multiple suppliers or customers in sequence, consolidating shipments to improve efficiency.

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

DRP extends MRP logic to the distribution network, helping plan when and how much inventory to replenish at each distribution location to meet forecasted demand.

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

Zone picking assigns each picker to a specific area of the warehouse, where they pick all items for any order passing through their zone, reducing travel time.

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

The perfect order rate measures the percentage of orders delivered complete, on time, undamaged, and with accurate documentation, reflecting overall distribution effectiveness.

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

Each echelon is a distinct tier or level in the supply chain distribution network, and multi-echelon optimization coordinates inventory decisions across all tiers simultaneously.

Supply Chain Management Practice Test

Supply Chain Management Practice Test

Supply Chain Management Distribution Management 2