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Question 75 - CSCP discussion

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Which of the following consequences is a result of shipping directly from the point of manufacture to the customer rather than through a distribution network?

A.
Delivery lead times are consistent.
Answers
A.
Delivery lead times are consistent.
B.
Risk pooling benefits are negated.
Answers
B.
Risk pooling benefits are negated.
C.
Distribution overhead is increased.
Answers
C.
Distribution overhead is increased.
D.
Order-fill rate is decreased.
Answers
D.
Order-fill rate is decreased.
Suggested answer:

Explanation:

Context: Shipping directly from the point of manufacture to the customer eliminates the intermediate distribution network.Options Breakdown:A . Delivery lead times are consistent: Not necessarily true, as direct shipping can have variable lead times.B . Risk pooling benefits are negated: Distribution centers pool inventory to reduce variability in demand and supply; direct shipping bypasses this advantage.C . Distribution overhead is increased: Actually, distribution overhead is typically reduced with direct shipping.D . Order-fill rate is decreased: Not necessarily true, as it depends on the efficiency of the direct shipping process.Answer: Justification: Risk pooling helps manage demand variability and inventory levels more effectively; direct shipping bypasses distribution centers, thus negating these benefits.Supply chain management textbooks and articlesResearch on direct shipping vs. distribution center logistics

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asked 16/09/2024
Mark Green
45 questions
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