Business Scenario 1

A consumer product company is considering changing its distribution strategy. Instead of direct delivery from its central factory/warehouse in New York to its customers, the company will deploy 2 more distribution centres (DC), one in San Francisco, and one in Chicago. Inventory will be transported to the DCs in bulk. Retail customers in the west coast and mid-West will be serviced from these 2 DCs by direct delivery respectively.

Business Scenario 2

A consumer product company is considering changing its distribution strategy. Instead of direct delivery from its central factory/warehouse in New York to its customers, the company will outsource its entire distribution operation to a 3PL which has warehouses nation-wide, instead of investing in setting up DCs in other parts of the country. Inventory will be deployed at the various 3PL warehouses. Retail customers will be serviced by the 3PL from their local warehouses by direct delivery.

QUESTION 1

Answer the following multiple choice question by comparing Business Scenario 1 (Option A) and Business Scenario 2 (Option B) Assuming Management mandates there should be no increase in total inventory level

a-Overall customer service will get worse

b-Overall customer service will remain roughly the same

c-Overall customer service will improve

d-The change in overall customer service cannot be determin

QUESTION 2

Answer the following multiple choice question with reference to Business Scenario 2:

a-Total distribution operating costs will likely increase

b-Total distribution operating costs will likely decrease

c-Total distribution operating costs will remain roughly the same

d-The change in total distribution operating costs cannot be determined

QUESTION 3

Answer the following multiple choice question by comparing Business Scenario 1 (Option A) and Business Scenario 2 (Option B):

a-Marketing will likely prefer B to A

b-Marketing will need more information to decide which one to pick

c--Marketing will have no preference between A than B

d-Marketing will likely prefer A to B

QUESTION 4

Answer the following multiple choice question with reference to Business Scenario 1:

a-Overall customer service will improve

b-The change in overall customer service cannot be determined

c-Overall customer service will get worse

d-Overall customer service will remain roughly the same

QUESTION 5

Answer the following multiple choice question with reference to Business Scenario 2:

a-The change in overall customer service cannot be determined

b-Overall customer service will improve

c-Overall customer service will remain roughly the same

d-Overall customer service will get worse

QUESTION 6

Answer the following multiple choice question by comparing Business Scenario 1 (Option A) and Business Scenario 2 (Option B):

a-Finance will need more information to decide which one to pick

b-Finance will likely prefer A to B

c-Finance will likely prefer B to A

d-Finance will have no preference between A and B

QUESTION 7

Answer the following multiple choice question with reference to Business Scenario 2:

a-Total warehousing costs will remain roughly the same

b-Total warehousing costs will decrease

c-Total warehousing costs will increase

d-The change in total warehousing costs cannot be determined

QUESTION 8

Answer the following multiple choice question with reference to Business Scenario 1:

a-The change in total inventory level for the same service level cannot be determined

b-Total inventory level for the same service level will decrease

c-Total inventory level for the same service level will remain roughly the same

d-Total inventory level for the same service level will increase

QUESTION 9

Answer the following multiple choice question by comparing Business Scenario 1 (Option A) and Business Scenario 2 (Option B):

a-Logistics will likely prefer A to B

b-Logistics will have no preference between A and B

c-Logistics will likely prefer B to A

d-Logistics will need more information to decide which one to pick

QUESTION 10

Answer the following multiple choice question with reference to Business Scenario 1:

a-Total warehousing costs will increase

b-Total warehousing costs will decrease

c-Total warehousing costs will remain roughly the same

d-The change in total warehousing costs cannot be determined

QUESTION 11

Answer the following multiple choice question with reference to Business Scenario 2:

a-Total fixed costs will remain roughly the same

b-Total fixed costs will decrease

c-The change in total fixed costs cannot be determined

d-Total fixed costs will increase

QUESTION 12

Answer the following multiple choice question by comparing Business Scenario 1 (Option A) and Business Scenario 2 (Option B) Assuming Management mandates there should be no increase in total inventory level

a-Total transportation costs will remain roughly the same

b-Total transportation costs will decrease

c-The change in total transportation costs cannot be determined

d-Total transportation costs will increase

QUESTION 13

Answer the following multiple choice question with reference to Business Scenario 2:

a-Total inventory level for the same service level will remain roughly the same

b-The change in total inventory level for the same service level cannot be determined

c-Total inventory level for the same service level will increase

d-Total inventory level for the same service level will decrease

QUESTION 14

Answer the following multiple choice question with reference to Business Scenario 1:

a-Total transportation costs will increase

b-The change in total transportation costs cannot be determined

c-Total transportation costs will decrease

d-Total transportation costs will remain roughly the same