Deck 14: Managing Channel Logistics

Question 1

Which of the following LEAST likely initiated the development of QR in fashion retailing?

A) Unpredictable consumer demands
B) Accurate forecasting of trends
C) Lack of industry standards
D) Benchmarking difficulties
E) Perishability of goods

Answer 1

B

Question 2

Which term refers to the systematic distortion of information as it passes through the channel that causes members to overreact to small changes in end-user demand?

A) Bullwhip effect
B) Feedback looping
C) Cross functionality
D) Reverse logistical error
E) Misaligned systems effect

Answer 2

A

Question 3

When implemented properly,supply chain management strategies will most likely ________.

A) increase efficiency
B) extend product life
C) improve channel power
D) develop customer equity
E) maximize shareholder returns

Answer 3

A

Question 4

What is the first step of a reverse supply chain?

A) Reverse logistics
B) Product reconditioning
C) Inspection and disposition
D) Product acquisition
E) Sales and distribution

Question 5

Which of the following would LEAST likely unify channel members in a supply chain?

A) Customer-focused market orientation
B) Effective channel management
C) Shared values and beliefs
D) Effective logistics
E) Legitimate power

Question 6

Which term refers to processing and tracking goods during their warehousing,inventory control,transport,customs documentation,and delivery stages?

A) Value chain coordination
B) Supply chain management
C) Continuous replenishment
D) Outsourcing
E) Logistics

Question 7

Which industry introduced quick response systems?

A) Grocery
B) Fashion retail
C) Automotive sales
D) Fast-food restaurants
E) Electronics refurbishment

Question 8

To achieve ECR,managers will LEAST likely focus on ________.

A) continuous replenishment programs
B) efficient pricing and promotions
C) changes in product introductions
D) internal organizational culture
E) changes in merchandising

Question 9

In a reverse supply chain,what typically complicates the reverse logistics step?

A) Lack of standard factory packaging
B) Costly recycling requirements
C) Inadequate retailer support
D) Equipment investments
E) Multiple bar codes

Question 10

A(n)________ moves information over secure communication circuits,from one firm's computers to another's,using a standard format and without human intervention.

A) QR
B) ECR
C) XML
D) CRP
E) EDI

Question 11

Which stage in a reverse supply chain is best described as slow and labor intensive?

A) Reverse logistics
B) Product reconditioning
C) Inspection and disposition
D) Product acquisition
E) Sales and distribution

Question 12

Which of the following most likely initiated the development of ECR?

A) Unpredictable consumer demands
B) Fast-changing clothing trends
C) Interest in environmentalism
D) Increase of e-commerce
E) Growth of hypermarkets

Question 13

Unlike ECR,QR emphasizes ________.

A) waste reduction
B) inventory management
C) flexible manufacturing
D) data transmission and analysis
E) interfirm cooperation and teamwork

Question 14

Tom's Sporting Goods uses scanners to gather end-users' purchasing data and then shares the collected data with its upstream supply chain members.Which of the following is most likely used by Tom's Sporting Goods?

A) Quick response marketing program
B) Continuous replenishment program
C) Third-party logistical specialists
D) Functional branding
E) Reverse logistics

Question 15

Which term refers to performing activities to retrieve a used product from a final customer and then disposing of or reusing it?

A) Upward logistics
B) Product positioning
C) Reverse logistics
D) Gray marketing
E) Product development

Question 16

According to the premise of ________,routes to market should coordinate with manufacturing processes.

A) continuous replenishment
B) supply chain management
C) intrabrand competition
D) channel captain power
E) inventory control

Question 17

What is a primary barrier to ECR?

A) Access to timely consumer data
B) Identification of global branding needs
C) Development of effective marketing strategies
D) Standardization of methods among channel members
E) Evaluation of franchisee effectiveness and compliance

Question 18

What is commonly being used to achieve QR in fashion?

A) Vertical integration
B) Global franchising
C) Joint partnerships
D) Niche marketing
E) Outsourcing

Question 19

What should be the initial focus of supply chain management?

A) Product design
B) Customer service
C) Marketing strategy
D) Reverse logistics
E) Manufacturing processes

Question 20

A(n)________ brand has stable,predictable demand,a long life cycle,low margins,and substantial competition.

A) valid
B) operational
C) niche
D) functional
E) innovative

Question 21

What is most likely a challenge associated with QR?

A) Upstream channel members lack the ability to respond immediately to changes in market and customer demands.
B) Channel members are frequently unable to agree on codes, bulk breaking, and methods of standardization.
C) Downstream channel members lose the incentive to work hard to sell a manufacturer's product
D) A lack of channel flexibility reduces the overall sales and profits for the supply chain.
E) Margin squeeze is common due to the supply chain's lengthy lead times.

Question 22

Which type of technology is most used by Zara?

A) Logistics software to run distribution centers
B) Enterprise resource process software
C) Intranets across retail stores
D) Extranets across factories
E) Personal digital assistants

Question 23

The primary disadvantage of EDI systems is that they ________.

A) require extensive investment
B) demand human intervention
C) rely on XML technology
D) use a nonstandard format
E) lack data security

Question 24

What is the most likely consequence of failure in a physically efficient supply chain?

A) Module loss
B) Margin squeeze
C) Increased consumer demand
D) Stockouts of high-margin goods
E) Heavy markdowns of unwanted goods

Question 25

What does Hau L.Lee recommend to improve the agility of a supply chain?

A) Identifying the roles and tasks of suppliers and customers
B) Forging collaborative relationships with suppliers
C) Investing in reverse logistics technology tools
D) Using intermediaries to add new suppliers
E) Demanding flexible product designs

Question 26

How long does it usually take Zara to transfer a clothing design into physical product in a store?

A) 7 days
B) 15 days
C) 30 days
D) 45 days
E) 90 days

Question 27

What is most likely the key to the success of Zara?

A) Globally outsourced manufacturing
B) Efficient consumer responsiveness
C) Sophisticated logistics software
D) Quick response supply chain
E) Large IT investments

Question 28

An adaptable supply chain most likely ________.

A) coordinates the roles of employees across divisions, channels, and firms
B) implements marketing strategies that match the product life cycle
C) responds quickly to changes in volume and specifications
D) changes to follow major shifts in the environment
E) gives all parties compatible incentives

Question 29

An agile supply chain most likely ________.

A) coordinates the roles of employees across divisions and firms
B) modifies to meet newly identified customer expectations
C) responds quickly to changes in volume and specifications
D) changes to follow major shifts in the environment
E) gives all parties compatible incentives

Question 30

Which of the following is most likely a true statement about supplying functional goods?

A) Cost and quality are the main criteria when selecting suppliers.
B) The risk of making forecasting errors is very high due to product variety.
C) Demand cannot be reliably estimated so getting products to market is key.
D) The greatest risk is missing the market with the wrong item at the wrong time.
E) The opportunity cost of a stockout is very high, so lead times must be greatly reduced.

Question 31

A(n)________ brand is characterized by high margins,a short life cycle,and unpredictable demand.

A) valid
B) operational
C) niche
D) functional
E) innovative

Question 32

What does Hau L.Lee recommend to improve the adaptability of a supply chain?

A) Practicing the equity principle
B) Forming a crisis management team
C) Focusing on the needs of current customers
D) Monitoring world economies to identify trends
E) Exchanging information within and across organizations

Question 33

What is the average amount of money that U.S.firms currently spend on the flow and storage of goods?

A) 2%
B) 8%
C) 15%
D) 32%
E) 45%

Question 34

Which of the following is most likely a true statement about Zara?

A) Zara incurs high labor and transportation costs.
B) Zara has a QR system that is both agile and lean.
C) Zara avoids outsourcing any manufacturing processes.
D) Zara is vertically integrated forward from production.
E) Zara spends significantly on magazine and TV advertising.

Question 35

A market-responsive supply chain should most likely ________.

A) cut transportation, holding inventory, and manufacturing costs
B) design products in modules to delay final production
C) manufacture goods at a high-capacity utilization rate
D) keep lead times as long as possible
E) seek low-cost suppliers

Question 36

What is a characteristic of highly functional products?

A) Low frequency of stockouts
B) High contribution margins
C) Unpredictable demand
D) Frequent markdowns
E) High product variety

Question 37

According to Hau L.Lee,what should be the objective of a supply chain?

A) Focusing on efficiency
B) Obtaining fast turnaround
C) Gaining triple-A properties
D) Achieving significant cost savings
E) Benefiting from information technology

Question 38

In order to encourage coordination among employees,the supply chain manager for Park Shoes ensures that all parties receive compatible incentives.The supply chain is best described as ________.

A) agile
B) aligned
C) amenable
D) adaptable
E) adjustable

Question 39

According to Hau L.Lee,which of the following would most likely improve the alignment of a supply chain?

A) Developing a fallback plan for emergencies
B) Investing in dependable logistics systems
C) Monitoring product life cycles
D) Maintaining buffer inventories
E) Practicing the equity principle

Question 40

Which of the following is most important when supplying innovative goods?

A) Physical efficiency
B) Reverse logistics
C) Resource management
D) Market responsiveness
E) Manufacturing performance

Question 41

With physically efficient supply chains,products should be designed for ease of manufacturing and to meet performance standards.

Question 42

Marketing channels have adopted supply chain management strategies to unify product and information flows throughout the production and distribution chain and increase efficiency.

Question 43

Describe the five key steps of reverse supply chains and any issues that are involved.

Question 44

What is efficient consumer response (ECR)? What changes must be made by a supply chain manager to implement ECR?

Question 45

Contrast the requirements for supplying functional goods and innovative goods.

Question 46

"The very best supply chains are "triple A" systems." What is meant by this statement? Describe the three components of such systems.

Question 47

ECR keeps manufacturing flexible with regard to what and how much to make,while QR focuses more on exactly how much to make and when to put it into the warehouse.

Question 48

What are the similarities and differences between ECR and QR systems?

Question 49

In comparison to traditional logistics,reverse logistics is more predictable in terms of timing and quality levels.

Question 50

An aligned supply chain copes very well with emergencies,such as natural disasters and fires.