Module4 Flashcards
(20 cards)
What is a distribution channel?
A network of interdependent entities involved in making a product or service available for consumer or business use.
What is a distribution mix?
The combination of distribution channels used by a seller to get products to end users.
What are intermediaries in distribution?
Entities in the supply chain that help distribute products, including wholesalers, retailers, agents, and brokers.
List types of intermediaries.
- Wholesalers: buy in bulk, sell to businesses
- Distributors: link manufacturers to customers
- Agents/Brokers: work on commission, no ownership of goods
- Retailers: sell directly to consumers
Describe distribution strategies.
- Intensive: via many channels
- Exclusive: limited rights to specific distributors
- Selective: few channels for focused attention
Define physical distribution.
The steps to store and move a product from supplier to customer in the supply chain.
What is supply chain disintermediation?
Direct interaction between consumer and manufacturer, removing intermediaries.
List evaluation dimensions for distribution networks.
- Customer needs
- Costs of meeting these needs
List customer service elements affected by network design.
- Response time
- Product variety
- Product availability
- Customer experience
- Order visibility
- Returnability
Describe the cost-response time efficient frontier.
Balancing low logistics cost and fast response times to achieve desired supply chain performance.
What are design options for distribution networks?
- Direct shipping
- Direct shipping with in-transit merge
- Distributor storage with carrier
- Last mile delivery
- Customer pickup
- Retail storage
List the phases of network design decision-making.
- Phase I: Supply chain strategy
- Phase II: Regional facility configuration
- Phase III: Select sites
- Phase IV: Choose locations
What is the objective of Phase I in network design?
Define the supply chain strategy aligning with competitive strategy and customer needs.
What does Phase II involve in network design?
Identifying regions for facilities, estimating capacity, and assessing demand risks.
What are the tasks of Phase III in network design?
- Analyse site infrastructure
- Evaluate workforce availability
- Confirm community receptivity
What is Phase IV in network design?
Select precise facility locations, focusing on profit maximisation considering logistics, costs, taxes, and tariffs.
List factors influencing supply chain design.
- Strategic: Customer response time
- Environmental: Infrastructure, geopolitical risks
- Cost: Logistics, facility costs
Define economies of scale.
Cost advantages achieved when production increases, leading to lower average costs.
What is inventory cost related to facility count?
Inventory cost rises with more facilities due to increased safety stock requirements.
Describe total logistics cost and facility count relationship.
Total logistics cost first decreases then increases as more facilities are added, due to balancing economies of scale and response time.
