Deck 9: Using Supply Chains to Create Value for Customers

Question 1

Companies may join the Fair Trade movement to convey that they are _____.

A)outsourcing
B)socially responsible
C)environmentally ethical
D)environmentally sustainable
E)efficient

Answer 1

B

Question 2

A firm may push for environmental sustainability because:

A)many consumers want farmers to be paid high wages.
B)many consumers want to pay higher prices for third-world producer wages.
C)many consumers are willing to pay more for green products.
D)many consumers associate the color green with quality.
E)many consumers associate going green with supply chain management.

Answer 2

C

Question 3

Freight forwarders typically own their own transportation equipment and warehouses.

Answer 3

False

Question 4

A retailer is typically a type of upstream firm.

Question 5

A(n)_____ is an organization whose duties include consolidating small loads of freight,negotiating rates for their shipment,and booking space for them on transportation vehicles and in warehouses.

Question 6

_____ and _____ have become a larger part of Sally's role as a supply manager since she first started.

A)Segmenting; targeting
B)Outsourcing; procurement
C)Sourcing; procurement
D)Offshoring; sourcing
E)Segmenting; procurement

Question 7

Alan must first go through the process of _____ before he procures goods and services for his organization.

Question 8

The process of designing,monitoring,and altering supply chains to make them as efficient as possible is called demand chain management.

Question 9

Smart companies integrate their supply chains into their marketing plans,by means such as:

A)finding ways the supply chain can create value for customers.
B)integrating supply chain management with day-to-day operations.
C)finding ways the supply chain can help the firm cut costs.
D)finding ways the supply chain can aid in employee morale.
E)integrating suppliers and retailer value propositions.

Question 10

Marketers are referring to the _____ when looking to companies who sell and promote their products in addition to those who provide raw materials,transportation,and all other functions involved in creating the product.

A)demand chain
B)value chain
C)upstream firms
D)downstream firms
E)marketing channel

Question 11

If a firm can find a company that can add more value to a function than it can itself,it will often _____ the task to that company.

A)offshore
B)procure
C)source
D)outsource
E)insource

Question 12

An advantage of outsourcing is that:

A)it takes less time for a company to get the finished goods into the hands of its consumers at home.
B)the safety of products is easily managed.
C)the quality of products is guaranteed.
D)it can add value to the product.
E)technologies are kept to the company.

Question 13

_____ provide logistics services for part or all supply chain management functions.

Question 14

Fred started a t-shirt business last year.He designs the shirts in the United States and then sends the designs to companies in China to be produced.Fred is utilizing a(n)_____ strategy.

A)offshoring
B)co-sourcing
C)insourcing
D)3PL
E)procurement

Question 15

_____ should ultimately be the focus of any outsourcing or insourcing decisions made by a company.

A)Firm value
B)Supply chain management
C)Organizational capabilities
D)Revenue
E)The customer

Question 16

A 3PL is a one-stop shipping solution for a company that wants to focus on other aspects of its business besides logistics.

Question 17

After dealing with multiple customer service issues,Peggy decided that she would not renew her contract with Ron's customer service company.Moving the customer service function back within Peggy's company is known as insourcing.

Question 18

FedEx Supply Chain Services and UPS Supply Chain Solutions,that takeover the entire order processing and shipping departmental functions of a company,are examples of:

A)freight forwarders.
B)consumer shipping services.
C)logistical sources.
D)supply chain value added firms.
E)3PLs.

Question 19

The value chain concept refers to the belief that your supply chain partners should do more for you than perform just _____.

Question 20

Purchasing goods and services for an organization is known as procurement.

Question 21

Designer goods producers can utilize _____ to combat knockoffs in the marketplace.

A)RFID tags
B)3PLs
C)demand-planning software
D)electronic product codes
E)just-in-time inventory controls

Question 22

Firms with just-in-time inventory systems keep very little inventory on hand.

Question 23

One way for Amy to forecast demand is to look at her company's previous sales reports.

Question 24

Lead time is closely related to:

A)supply chain forecasting.
B)demand forecasting.
C)promotional pricing communications.
D)marketing mix implementation.
E)distribution sourcing forecasting.

Question 25

Demand planning impacts:

A)the materials a firm must purchase.
B)the consumer's supply chain.
C)the processes needed to create an offering.
D)the firm's communication schedule.
E)the firm's freight forwarding promotion.

Question 26

CPFR refers to:

A)calculating planning,funding,and repositioning.
B)collaborative planning,funding,and replenishment.
C)collaborative planning,forecasting,and repositioning.
D)collaborative planning,forecasting,and replenishment.
E)calculating planning,forecasting,and replenishment.

Question 27

Employee theft of inventory is referred to as:

A)shoplifting.
B)supplier fraud.
C)shrinkage.
D)spoiling product.
E)obsolete product.

Question 28

_____ decisions are made more frequently than _____ decisions.

A)Offshoring; forecasting
B)Offshoring; sourcing
C)Forecasting; sourcing
D)Forecasting; offshoring
E)Sourcing; forecasting

Question 29

RFID refers to:

A)a system in which a firm keeps very little inventory on hand.
B)a term used to describe a reduction or loss of inventory.
C)backup inventory that serves as a buffer.
D)a unique barcode that distinguishes between two seemingly identical products.
E)a tag that emits radio signals that can record and track a shipment as it comes in and out of a facility.

Question 30

_____ synthesizes information including sales history,point-of-sale data,warehouse data,supplier data,promotion information,and economic trends.

A)Demand-planning software
B)An exponential system
C)Value-based marketing
D)Strategic marketing
E)A value chain system

Question 31

Social responsibility is the idea that a company should manage their business,not just to earn profits,but to advance _____.

Question 32

Describe the strategy Zara implemented in reference to its supply chain that ultimately provided it with a competitive advantage.

Question 33

What are some methods companies utilize to be sure their products are of sound quality when outsourcing?

Question 34

Retailers may forego utilizing a CPFR strategy,preferring to sell sales information to third parties.

Question 35

Explain the disadvantages of outsourcing.

Question 36

_____ is the process of ensuring a firm has an adequate supply of products and a wide enough assortment of them to meet customer needs.

A)CPFR
B)Inventory control
C)Demand forecasting
D)Lead time
E)Supply chain visibility

Question 37

Inventory control occurs when a firm runs out of a product a customer wants to buy.

Question 38

Explain the advantages of outsourcing.

Question 39

The management of the resources,events,and processes needed to create an offering is known as demand planning.

Question 40

The rational for utilizing supply chain visibility is that:

A)businesses need employee incentives.
B)firms need to utilize detail contracts.
C)transaction information is valuable.
D)spreadsheets perform the necessary work effectively.
E)a supplier will be more reliable.

Question 41

_____ is the amount of time it takes for a customer to receive a good or service once it has been ordered.

Question 42

_____ is the process of estimating how much of a good or service a customer will buy from you.

Question 43

EPC is a special electronic format that companies use to exchange business documents from computer to computer.

Question 44

Explain the negative arguments of RFID tagging.

Question 45

Requiring a supplier to manage inventory for a firm downstream is known as ____.

Question 46

Smaller warehouses are more effective in terms of cost.

Question 47

More products are shipped by truck than by another means.

Question 48

Metal boxes that are used to ship consumer goods on cargo ships are known as _____.

A)shipment containers
B)transportation containers
C)cargo containers
D)intermodal containers
E)consumer containers

Question 49

CPFR is a practice whereby supply chain partners _____ and coordinate their operations.

Question 50

A _____ is a warehouse where the emphasis is on processing and moving goods on to wholesalers,retailers,or consumers.

A)distribution center
B)hub-and-spoke system
C)dispatcher
D)supply chain
E)wholesaler

Question 51

Explain the advantages and disadvantages of safety stock.

Question 52

Explain the advantages of RFID tagging.
Consumers can benefit from this type of tagging because it better informs manufacturers when stockouts are of worry or out-of-date products are still on shelves,which could potentially cause harm to the health of consumers.In addition,the technology would not require cashiers to scan barcodes,so time would be saved on behalf of the consumers.

Question 53

Transportation modes a firm uses should be based on what its customers want and are willing to pay for.

Question 54

Provide examples of how companies can forecast demand.

Question 55

_____ involves moving inventory through the supply chain so that products spend little or no time in warehouses.

A)Traditional storing
B)Logistical coordination
C)Cross-docking
D)Value docking
E)Supply chain management

Question 56

Warehouses and distribution centers are becoming more automated and wired.

Question 57

Delivering what is promised,when it was promised,and the way it was promised are key drivers of _____.

A)cross-docking
B)customer satisfaction
C)supply chain value
D)distribution centers
E)electronic data interchanges

Question 58

To avoid stockouts,companies keep a certain amount of _____ on hand.

Question 59

Sourcing decisions decide which _____ to use.

Question 60

A situation in which supply chain partners share information with one another so they can see how well the chain is working is known as _____.

Question 61

_____ are costly to build but transport liquid and gas goods cheaply once constructed.

A)Pipelines
B)Railroads
C)Cargo ships
D)Airlines
E)Trucking fleets

Question 62

_____ is growing faster than any other transportation method.

A)Trucks
B)Railroad
C)Water
D)Pipelines
E)Air

Question 63

_____ are the most versatile in terms of moving goods because they can go anywhere there are roads.

Question 64

Track and trace systems help companies anticipate events:

A)moving upstream.
B)that could disrupt the supply chain.
C)for demand forecasting.
D)and logistics.
E)for just-in-time inventory.

Question 65

_____ makes for greater visibility among supply chain partners because they can all check the status of orders electronically rather than having to fax or e-mail documents back and forth.

Question 66

Consumers are very interested in knowing where their products come from.

Question 67

Tracking individual products is more difficult than tracking product loads.

Question 68

List transportation methods utilized by firms and explain the advantages and disadvantages of each.

Question 69

Track and trace systems provide value to customers.

Question 70

Shippers are highly anxious when their products are in transit.

Question 71

An _____ is utilized to distinguish a type of product based on some unique characteristic.

Question 72

_____ is a good option for a company transporting freshly cut flowers.

Question 73

The physical flow of materials in the supply chain is known as _____.

Question 74

Merchandise in transit is of concern to shippers because:

A)it is at risk.
B)it is expensive.
C)it is slow moving.
D)it is highly sensitive.
E)it is subject to bad weather.

Question 75

The technology being developed to trace all products,including animals,people,and components no matter where they are,is called the Internet of Things.

Question 76

Produce is to trace due to electronic product codes.

Question 77

_____ is the fastest transportation method in terms of shipping goods.

A)Trucks
B)Railroad
C)Water
D)Pipelines
E)Air

Question 78

Shipping via waterway is _____.

A)growing
B)fast
C)inexpensive
D)versatile
E)direct to consumer

Question 79

A study suggests that companies can recover about half their annual sales by instituting "turn trash into cash" systems.

Question 80

Explain the rational for firms utilizing smaller warehouses.