Texas A&M University (TAMU) IDIS 343 Distribution Logistics Exam 1 Practice

What is included in risk assessment for distribution network design?

Identifying potential disruptions, evaluating their probability and impact, and developing mitigation strategies.

Creating marketing campaigns to reduce demand risk.

Risk assessment in distribution network design focuses on identifying potential disruptions to the network, evaluating how likely those disruptions are and how severe their effects could be, and then planning actions to mitigate those risks. This means looking at things like supplier failures, transportation delays, natural disasters, or demand shocks, and deciding on protections such as redundancy, alternate routes, safety stock, or contingency plans to keep service levels and costs under control.

The other options don’t fit this focus. Marketing campaigns to reduce demand risk try to change demand itself rather than analyze and prepare for disruptions in the distribution network. Calculating depreciation of equipment is an accounting activity, not about assessing risks or designing the network. Developing product feature roadmaps deals with product planning and evolution, not the reliability and resilience of the distribution system.

Calculating depreciation of equipment.

Developing product feature roadmaps.