SCMN 3710 Exam 3 Study Guide, Practice Questions and Complete Review 2026
Explain the various roles of distribution operations in Supply Chain Management. - correct
answer ✔✔1. Enhance customer service
2. Balance S&D
3. Protect against uncertainty
4. Allow quantity purchase discounts
5. Support production requirements
6. Fulfill omni-channel demand
7. Promote transport economies
Accumulation - correct answer ✔✔The DC serves as a collection point for product coming from
multiple origins and provides required transfer, storage, or processing services, allowing firms to
consolidate orders and shipments for production and fulfillment processes.
Sortation - correct answer ✔✔- focuses on assembling like products together for storage in the
distribution facility, processing or transfer to customers
- proper sortation is essential for effective inventory and order fulfillment
Allocation - correct answer ✔✔- focuses on matching available inventory to customer orders for
an SKU
- this break-bulk capacity promotes product availability for multiple customers and in desired
quantities
Assortment - correct answer ✔✔- involves the assembly of customer orders for multiple SKUs
held in the distribution facility
- this mixing capability avoids the expenses related to placing numerous orders and having them
shipped from a variety of locations
, As the number of warehouses increases, what happens to warehousing costs, inventory costs,
transportation costs, and cost of lost sales, and explain why - correct answer ✔✔Warehousing
Costs= increase
- Bc more warehouses
Inventory Costs= increase
- Bc more inventory
Transportation Costs= decrease
- Bc putting it closer to the customer
Cost of Lost Sales= decrease
- Bc with more inventory, less likely to have stockout
What are some common challenges in running DCs? - correct answer ✔✔- labor availability
issues
- demand variation
- increasing customer requirements
How does Cross Docking work? - correct answer ✔✔Not a lot of inventory when compared to
DC
- receive goods then sort and reload and deliver elsewhere
Explain the conditions when it is best to run your own (private) DC vs. using public warehousing
or contract warehousing (3PL), and which of these has fixed costs? - correct answer ✔✔slide 25
on ch 10 ppt
Receiving - correct answer ✔✔- schedule carriers
- unload vehicles
- inspect freight
- verify order
Explain the various roles of distribution operations in Supply Chain Management. - correct
answer ✔✔1. Enhance customer service
2. Balance S&D
3. Protect against uncertainty
4. Allow quantity purchase discounts
5. Support production requirements
6. Fulfill omni-channel demand
7. Promote transport economies
Accumulation - correct answer ✔✔The DC serves as a collection point for product coming from
multiple origins and provides required transfer, storage, or processing services, allowing firms to
consolidate orders and shipments for production and fulfillment processes.
Sortation - correct answer ✔✔- focuses on assembling like products together for storage in the
distribution facility, processing or transfer to customers
- proper sortation is essential for effective inventory and order fulfillment
Allocation - correct answer ✔✔- focuses on matching available inventory to customer orders for
an SKU
- this break-bulk capacity promotes product availability for multiple customers and in desired
quantities
Assortment - correct answer ✔✔- involves the assembly of customer orders for multiple SKUs
held in the distribution facility
- this mixing capability avoids the expenses related to placing numerous orders and having them
shipped from a variety of locations
, As the number of warehouses increases, what happens to warehousing costs, inventory costs,
transportation costs, and cost of lost sales, and explain why - correct answer ✔✔Warehousing
Costs= increase
- Bc more warehouses
Inventory Costs= increase
- Bc more inventory
Transportation Costs= decrease
- Bc putting it closer to the customer
Cost of Lost Sales= decrease
- Bc with more inventory, less likely to have stockout
What are some common challenges in running DCs? - correct answer ✔✔- labor availability
issues
- demand variation
- increasing customer requirements
How does Cross Docking work? - correct answer ✔✔Not a lot of inventory when compared to
DC
- receive goods then sort and reload and deliver elsewhere
Explain the conditions when it is best to run your own (private) DC vs. using public warehousing
or contract warehousing (3PL), and which of these has fixed costs? - correct answer ✔✔slide 25
on ch 10 ppt
Receiving - correct answer ✔✔- schedule carriers
- unload vehicles
- inspect freight
- verify order
