Supply Chain Manager Exam Prep

Category - Sustainability

Which of the following are considered the evaluation dimensions of distribution network design?

I. Customer needs that are met
II. Cost of meeting customer needs
III. Revenue of consumer sales

  1. I and II
  2. I and III
  3. I, II, and III
  4. None of the above
Explanation

Answer: A - At the highest level, the performance of a distribution network design should be evaluated based on meeting customer needs and the cost of meeting those needs. Therefore a firm must evaluate the impact on customer service and cost as it compares different distribution network options. Meeting customer needs eventually influences a company's revenue positively.

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