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When establishing a distribution strategy, the first and most obvious consideration is the product.

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WMS is more than a simple database that provides stock location information.

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After the layout of the operations is determined, attention shifts to the facility size of the operations within the distribution operation.

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Order accuracy and order completeness are the same.

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Proper product slotting can improve labor productivity and generate other advantages for the organization and its customers.

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The drawback of centralized inventory is the long distance to customers, which typically extends lead times and results in higher transportation costs.

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When designing a DC, what interior layout objectives and slotting principles must be considered? Why?

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The main objective of slotting is to min...

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Olivia's workstation includes an industrial robot that she uses for machining parts. Which of the following best characterizes this equipment?


A) Transport
B) Positioning
C) Unit load formation
D) Storage

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Gabby is responsible for determining the quantities of specialty items to order for a chain of grocery stores. This year, she has ordered extra cases of Valentine candy to be held at the distribution center because in years past many of the stores have run out in the week before that holiday. This is an example of which aspect of distribution operations?


A) Supporting production requirements
B) Fulfilling omni-channel demand
C) Protecting against uncertainty
D) Balancing supply and demand

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Discuss inventory positioning and the differences between centralized and decentralized inventory.

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Inventory positioning focuses on the issue of where inventory is located within the supply chain. One strategy is to hold a centralized stock of inventory at a single location such as the origin point or some other advantageous location in the supply chain. Product is distributed to customers across the network from this central stocking point. The benefit of this consolidation strategy is greater control over the inventory and reduced demand variability due to risk pooling. The central or national inventory pool supports higher in-stock availability, though there is a need for less safety stock.The drawback of centralized inventory is the long distance to customers, which typically extends lead times and results in higher transportation costs. Despite these drawbacks, manufacturers of high-value, low-weight products such as prescription pharmaceuticals often rely on one strategically placed inventory pool. The transportation costs associated with next-day and second-day order delivery are offset by the reductions in inventory carrying costs, the enhanced visibility of product flows, and the improved control over order-filling processes, product pedigree issues, and recall events.The alternate inventory positioning strategy is to hold product in multiple customer-facing positions. Stocking inventory regionally or locally helps to reduce customer delivery costs and order cycle time. Product is positioned closer to demand points and can be readily dispatched to meet customer requirements. This decentralized inventory strategy works well for high-volume, low-cost products with low demand uncertainty such as laundry detergent, pet food, and cereal.The decentralized inventory strategy is not without challenges. First, more facilities are required to stock the product, leading to higher handling costs, the risk of product damage, and the potential for product pilferage, not to mention the additional expenses of running the facilities. Also, average inventory levels will rise as each facility will have to hold safety stock to cover demand variation within the region. To combat these issues, some organizations have shifted toward more centralized distribution systems with fewer stocking points. Which inventory positioning strategy is best? There is no single answer, and many organizations use both strategies.

LogicForce's warehouse management system is designed to inform the internal sales force, as well as customers if and when an order is delayed. Which of the following best describes this WMS feature?


A) Labor management
B) Automated data collection
C) Task interleaving
D) Systems convergence

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KPIs cannot be used in connection with distribution center activities as they do not provide tangible, relevant data.

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False

One important interaction that must be considered is the tradeoff between distribution and _____.


A) transportation
B) finance
C) marketing
D) services

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Slotting is defined as the placement of product in a facility for the purpose of optimizing materials-handling and space efficiency.

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Productivity is measured as the ratio of real output to real input.

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True

What are the primary capabilities, advantages, and disadvantages of direct distribution, DCs, and cross-docks?

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An issue that has a major impact on the ...

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Discuss facility layout and what factors should be considered. Which do you think is most important, and why?

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Students' answers will vary, but should ...

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It is not difficult to find and train high-quality personnel for DC operations.

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The key financial consideration in choosing between private and 3PL distribution options is:


A) warehouse location(s) .
B) competency of in-house staff.
C) volume of product being moved.
D) type of product being handled.

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Customers use distribution KPIs to objectively assess the speed of service provided by the distribution operation.

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