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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 414 - CSCP discussion

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A new distribution warehouse is added to an existing supply chain network. Which of the following factors primarily is responsible for the resulting overall reduction of customer delivery lead times?

A.
New material handling equipment improves the speed and efficiency of the pick/pack process.
Answers
A.
New material handling equipment improves the speed and efficiency of the pick/pack process.
B.
Increased safety stock levels in the overall network results in fewer stockouts and more on-time deliveries.
Answers
B.
Increased safety stock levels in the overall network results in fewer stockouts and more on-time deliveries.
C.
The average travel time from the distribution warehouse to the customer is reduced.
Answers
C.
The average travel time from the distribution warehouse to the customer is reduced.
D.
The territory for each distribution warehouse shrinks, resulting in fewer inbound transportation carriers.
Answers
D.
The territory for each distribution warehouse shrinks, resulting in fewer inbound transportation carriers.
Suggested answer: C

Explanation:

Purpose of Distribution Warehouses: They are meant to store products closer to customers, thus improving delivery times and service levels.

Impact of New Warehouse: Adding a new warehouse reduces the distance products need to travel to reach customers.

Primary Factor: Reduced travel time from the distribution warehouse to the customer leads to faster deliveries.

Supporting Factors: While new material handling equipment and increased safety stock (Options A and B) can contribute to efficiency, the primary reason for reduced lead times is the proximity of the new warehouse to the customer (Option C).

Reference: Distribution Network Design, Logistics Management textbooks.

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asked 16/09/2024
haythem BRIGUI
31 questions
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