Distribution Planning

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  1. What are the 4 benefits of a bill of distribution (BOD)?
    • 1. Provides planners with visibility to supply/demand relationships in the dist channel.
    • 2. Clearly establishes the r'ship btw stockrooms at different levels eg. 2A, 2Y, 3A etc
    • 3. Redefines the resupply path per sku per stockroom
    • 4. Allows DRP to replenish stock in all stockrooms
  2. How do channels of distribution differ?
    • Differs in terms of market exposure (distribution density) a manufacturer needs in order to meet sales objectives.
    • Complex - max distribution points to attain exposure to customers
    • Selective - exclusive product distribution
    • Exclusive - even more selective
    • Internal/Direct - ETO
  3. Name 3 types of channel dependency and examples.
    • 1. Single transaction - short lived. Eg. tractor, motorbike.
    • 2. Conventional - No lasting commitment. Eg. Clothes, CDs.
    • 3. Networked Supply - commitment to SC efficiency. Eg. Newpaper, bread, milk
  4. Influences on Network Configuration.
    • 1. Customer service objectives - LT/availability
    • 2. Distribution Intensity - product exposure
    • 3. Channel dependency
    • 4. Transaction complexity
    • 5. Logistics strategy - FTL, LTL
  5. Safety Stock increases as the number of DCs increases. Why?
    • Demand is more volatile at extremities of a network so forecasts are less accurate.
    • To maintain a high service level, safety stock needs to be higher.
Card Set
Distribution Planning
Distribution Network Planning
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