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A company finds that one of its warehouses is out of capacity to store products. Expanding the physical size of the warehouse is not an option. The most appropriate solution would be to increase the:
The purpose of price differentiation is to:
In a make-or-buy decision, if the product is modular and the company is dependent on knowledge and capacity, outsourcing most likely will be:
A company's annual cost of goods sold is $350 million, and inventory carrying cost is 18%. The company averages four inventory turns. The cost savings resulting from increasing inventory turns from four to six would be:
Supply chains delivering products or services are most able to respond quickly to changing market requirements when:
Throughout most of the supply chain, safety stock will be de-emphasized as a result of improved:
The primary risk associated with outsourcing innovative components to suppliers is:
The practice of supply chain members acting in close collaboration while retaining independent ownership is known as:
A company considers moving a portion of its production to a distant country to support a major customer. Which of the following actions is most effective in mitigating the risk of financial loss in the event of a global economic downturn?
Which of the following elements of total quality management (TQM) results in a lower overall cost of the product?

Question 158 - CSCP discussion

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Which of the following distribution approaches for a low-volume, high-variety product line typically will result in the highest level of customer service and the lowest total distribution costs?

A.
Direct shipment from plant to customers
Answers
A.
Direct shipment from plant to customers
B.
Shipment from a central distribution warehouse
Answers
B.
Shipment from a central distribution warehouse
C.
Shipment through a multi-echelon distribution network
Answers
C.
Shipment through a multi-echelon distribution network
D.
Outsourcing the distribution function
Answers
D.
Outsourcing the distribution function
Suggested answer: B

Explanation:

For a low-volume, high-variety product line, shipping from a central distribution warehouse typically results in the highest level of customer service and the lowest total distribution costs. This approach allows the company to consolidate inventory in a single location, facilitating better inventory management and control. A central warehouse can stock a wide variety of products, ensuring availability and quick response to customer orders. It also allows for more efficient use of transportation resources by consolidating shipments, which reduces transportation costs.

Reference:

'Distribution Planning and Control: Managing in the Era of Supply Chain Management' by David F. Ross

'Designing and Managing the Supply Chain' by David Simchi-Levi, Philip Kaminsky, and Edith Simchi-Levi

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asked 16/09/2024
Konstantinos Lagoudakis
28 questions
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