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Question 1
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Distribution occurs between every pair of stages in the supply chain.

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Question 2
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Companies in the same industry often select very different distribution networks, because the choice of the distribution network can be used to achieve a variety of supply chain objectives ranging from low cost to high responsiveness.

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Question 3
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True/False

A customer does not necessarily want the highest level of performance along all dimensions of customer service, including response time, product variety, product availability, customer experience, order visibility, and returnability.

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Question 4
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Outbound transportation costs per unit tend to be lower than inbound costs, because inbound lot sizes are typically larger.

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Question 5
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Transportation costs are high with drop-shipping because the average outbound distance to the end consumer is large and package carriers are used to shipping the product.

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Question 6
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As long as inbound transportation economies of scale are maintained, increasing the number of facilities decreases total transportation cost.

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Question 7
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Customers always want the highest level of performance along all the dimensions response time, product variety and returnability.

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Question 8
True/False

A decrease in the response time customers desire increases the number of facilities required in the network.

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Question 9
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The main advantage of in-transit merge over drop-shipping is the somewhat lower transportation cost and improved customer experience.

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Question 10
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The main advantage of a distribution network with local storage is that it can lower the delivery cost and provide a faster response than other networks.

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Question 11
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The major disadvantage of a distribution network with local storage is the increased inventory and facility costs.

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Question 12
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A distribution network designer needs to consider product characteristics as well as network requirements when deciding on the appropriate delivery network.

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Question 13
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Only niche companies will end up using a single distribution network.

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Question 14
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Distributors add value to a supply chain between a supply stage and a customer stage if there are many small players at the customer stage, each requiring a small amount of the product at a time.

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Question 15
True/False

It is much easier to return a product to an online retailer than to a traditional bricks and mortar seller.

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Question 16
True/False

Compared to a business with many retail outlets, an online seller with aggregated inventories tends to have lower per unit transportation costs across the entire supply chain.

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Question 17
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It is more common for a manufacturer to not own the distribution network.

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Question 18
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Consumers prefer purchasing commoditized products at a one-stop shop.

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Question 19
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To extract the maximum benefit from the online channel for physical goods, firms should keep it separate from their existing supply chain networks.

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Question 20
Multiple Choice

The steps taken to move and store a product from the supplier stage to a customer stage in the supply chain are referred to as

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A
transportation.
B
retailing.
C
wholesaling.
D
distribution.
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