• Instruction: TRUE or FALSE. In the space provided, WRITE TRUE If the statement is correct. WRITE FALSE if the statement is wrong. If your answer is FALSE, write beside the FALSE the correct word/s or phrase to replace the underlined word/s or phrase and to make the statement right.?

• Distribution occurs between every pair of stages in the supply chain. Therefore, distribution includes moving of raw materials from suppliers to retailers.

  The process of designing a distribution network that is visualized includes a decision like selling products directly to the end consumers.

  When you want your received ordered product online to be changed by the eRetailer. This is an example of product availability.

  When you receive an extra item as a gift from the package carrier. This is an example of product variety.

  It is said in the relationship between response time and number of facilities that to be more responsive to customers, there is a need to limit the number of facilities.

  In the relationship between response time and number of facilities, if customer is willing to wait longer than normal delivery days to get a book, then less number of facilities is an ideal distribution network design.

  In the relationship between number of facilities and inventory costs, if inventory costs are increasing, this means that the number of facilities are decreasing.

  In the relationship between number of facilities and transportation costs, there is decrease in the total transportation cost if number of facilities are increased and inbound lot sizes are very small to a point of losing economies of scale in inbound transportation.

  In the relationship between number of facitlities and facility costs, to achieve supply chain effeciency in facility in terms of cost, there should be more number of facilities to get closer to the end customers.

  In the variation of logistics cost and response time with number of facilities, the total logistics cost can be decreased and/or increased. The total logistics cost is increased when the response time is faster and the number of facilities are increased beyond the point of a minimized total logistics costs.