SCMN 3710 EXAM 2 Questions and All
Correct Answers 2026-2027 Updated.
Explain the 6 various roles of distribution operations in supply chain management - Answer 1.
Balancing supply and demand:
- Distribution facilities make decisions whether or not to stockpile inventory to buffer supply
and demand (Seasonal and year-round demand)
2. Protection against uncertainty:
- Distribution facilities can hold inventory for protection against forecast error, supply
disruptions, and demand spikes.
3. Allowing quantity purchase discounts:
- Incentives provided by suppliers to purchase product in larger quantities (Reduces the
purchase cost per unit)
4. Supporting production requirements:
- If a manufacturing operation can reduce costs via long production runs or if outputs need to
properly age (Ex. Wine) the output can be warehoused prior to distribution.
5. Fulfilling omni-channel demand:
- Strategically located distribution facilities near key demand areas improve customers proximity
at a more reasonable cost same/ next/ second day home delivery service.
6. Promoting transportation economies:
- Fully utilizing container capacities (Paying for a full truck load not full price for a half full load).
Distribution facilities can be used to receive and hold larger deliveries for the future.
Explain the primary distribution function for ACCUMULATION - Answer - Involves the receipt
of goods from a variety of sources
- Allows organizations to consolidate orders and shipments for production and fulfillment
processes
- There are few deliveries to schedule and manage
- Allows transportation cost savings through larger, more cost efficient deliveries to a central
distribution point
Explain the primary distribution function for SORTATION - Answer - Focuses on assembling like
products together for storage
Correct Answers 2026-2027 Updated.
Explain the 6 various roles of distribution operations in supply chain management - Answer 1.
Balancing supply and demand:
- Distribution facilities make decisions whether or not to stockpile inventory to buffer supply
and demand (Seasonal and year-round demand)
2. Protection against uncertainty:
- Distribution facilities can hold inventory for protection against forecast error, supply
disruptions, and demand spikes.
3. Allowing quantity purchase discounts:
- Incentives provided by suppliers to purchase product in larger quantities (Reduces the
purchase cost per unit)
4. Supporting production requirements:
- If a manufacturing operation can reduce costs via long production runs or if outputs need to
properly age (Ex. Wine) the output can be warehoused prior to distribution.
5. Fulfilling omni-channel demand:
- Strategically located distribution facilities near key demand areas improve customers proximity
at a more reasonable cost same/ next/ second day home delivery service.
6. Promoting transportation economies:
- Fully utilizing container capacities (Paying for a full truck load not full price for a half full load).
Distribution facilities can be used to receive and hold larger deliveries for the future.
Explain the primary distribution function for ACCUMULATION - Answer - Involves the receipt
of goods from a variety of sources
- Allows organizations to consolidate orders and shipments for production and fulfillment
processes
- There are few deliveries to schedule and manage
- Allows transportation cost savings through larger, more cost efficient deliveries to a central
distribution point
Explain the primary distribution function for SORTATION - Answer - Focuses on assembling like
products together for storage
