Coyle Supply Chain Management: A Logistics Perspective, 9th Edition

Chapter 10 Test Bank

CHAPTER 10 TEST QUESTIONS

True-False

1. Efficiency of distribution facilities and networks is not nearly as critical as their speed.

2. Customers use distribution KPIs to objectively assess the speed of service provided by the distribution
operation.

3. Proper (THÍCH HỢP) product slotting can improve labor productivity and generate other advantages
for the organization and its customers.TRUE

4. Organizations may benefit substantially from the establishment of one or several warehouses to reduce
transportation costs. TRUE

5. A common Productivity is measured as the ratio of real output to real input. True

6. One of the primary tradeoffs at the facility level is space versus equipment. True

7. It is not difficult to find and train high-quality personnel for DC operations. False

8. When establishing a distribution strategy, the first and most obvious consideration is the product. True

9. Cross-docks typically increase transportation costs. false

10. The drawback of centralized inventory is the long distance to customers, which typically extends lead
times and results in higher transportation costs. True

11. Contract warehousing is different than 3PL warehousing. . false

12. The first facility consideration is to determine the size of each operation within the network. true

13. After the layout of the operations is determined, attention shifts to the facility size of the
operations within the distribution operation.false

14. Slotting is defined as the placement of product in a facility for the purpose of optimizing
materials handling and space efficiency. True

15. Product handling functions include both receiving and shipping. True
16. KPIs cannot be used in connection with distribution center activities as they do not provide tangible,
relevant data. false

17. Order accuracy and order completeness are the same. FALSE

18. Asset utilization is very important in a 3PL warehouse. False

19. WMS is more than a simple database that provides stock location information. True

Multiple Choice
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Coyle Supply Chain Management: A Logistics Perspective, 9th Edition
Chapter 10 Test Bank

20. The roles of the distribution center include __________

a. balancing supply and demand.
b. protecting against uncertainty and promoting transportation economies.
c. promoting transportation economies.
d. balancing supply and demand, protecting against uncertainty, and promoting
transportation economies.

21. The two largest cost centers in a DC are:

a. equipment, space
b. labor, space
c. pallets, labor

22. One important interaction that must be considered is the tradeoff between distribution and ________
a. transportation.
b. finance.
c. marketing.
d. services.

23. The primary tradeoffs and relationships between resources include the following
a. space vs. equipment
b. equipment vs. people
c. people vs. space
d. all of the above
24. As the number of picks per order picker decreases on a given tour, his/her total time out ___ and the
time per pick ___.
a. Decreases, decreases
b. Increases, increases
c. Decreases, increases
d. Increases, decreases

25. If a DC that picks primarily cases switches to mostly broken cases (with the same items), which of
the following would occur in the DC?
a. Labor costs would increase
b. Total transportation costs would increase
c. Total inventory holding costs would increase
d. Total packaging costs would increase
e. None of the above

26. A downside of direct shipping is

a. that it takes product flow away from the distribution center.
b. can create higher transportation charges.
c. that customer may not like this method.
d. the product may not lend itself to this method.

27. The drawback of centralized inventory is:

a. that it undercuts the dispersed distribution concept.
b. that it increases the amount of inventory required.
c. strains the ability of the carrier network.
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Coyle Supply Chain Management: A Logistics Perspective, 9th Edition
Chapter 10 Test Bank

d. that it extends lead times and results in higher transportation costs.

28. The key financial consideration in choosing between private and 3PL distribution options is
a. warehouse location(s).
b. competency of in-house staff.
c. volume of product being moved.
d. type of product being handled.

29. The first facility consideration is to determine

a. how close to source it should be.
b. the size of each operation within the network.
c. how close to the customer it should be.
d. where competitors are located.

30. The primary facility operations focus is

a. on the movement and storage of product.
b. inventory control and personnel issues.
c. making sure KPIs are fulfilled.
d. the WMS system.

31. Which of these is not a support function?

a. inventory control
b. safety, maintenance, and sanitation
c. information technology
d. movement and storage

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