Deck 15: Value Delivery: Designing the Channel and Supply Chain

Question 1

Universal product codes (UPC)are used to describe products for inventory taxation purposes.

Answer 1

False

Question 2

(p.441-442,Opening vignette)Much of Zara's success is due to their supply chain management.

Answer 2

True

Question 3

Supply chain management creates value by getting products to customers efficiently.

Answer 3

True

Question 4

In marketing's four Ps,Place refers to all activities required to get:

A)the design of the terminal location for products accomplished.
B)the right products to the right customer when that customer wants it.
C)access to the physical space within a retail establishment.
D)consumers to the destination.
E)demand chain management functionally operable.

Question 5

CPFR helps channel members to share information and collaborate more efficiently.

Question 6

CPFR refers to cost,profit,frequency,and return in an inventory management system.

Question 7

Supply chain management adds value for customers by:

A)maximizing total distribution costs.
B)use of exclusive geographic territories.
C)getting products to customers efficiently.
D)incorporating universal product codes.
E)maximizing distributional access.

Question 8

Supply chain relationships evolve when the parties want something from one another.

Question 9

Radio frequency identification tags (RFIDs)automatically transmit information about a container's contents or individual products.

Question 10

For a supply chain to operate efficiently,the participating members must cooperate.

Question 11

A marketing channel and a supply channel are virtually the same.

Question 12

In the four Ps of marketing,Place refers to all the activities required to get the right products to the right customer when that customer wants it.

Question 13

Students of marketing often overlook or underestimate the importance of Place in the marketing mix simply because:

A)it happens behind the scenes.
B)it conflicts with promotion.
C)it occurs after making pricing decisions.
D)no one is directly in charge of place decisions.
E)the product itself is so much more important.

Question 14

Successful supply chain relationships develop because all parties make credible commitments to the relationship.

Question 15

Supply chain management systems include:

A)suppliers.
B)manufacturers.
C)warehouses.
D)stores.
E)all of these.

Question 16

Retailers generally have no prior knowledge of the merchandise they will be receiving from suppliers in any particular shipment.

Question 17

Logistics managers tend to focus on making sales while marketing managers tend to focus on keeping costs low.

Question 18

Conflicts within a supply chain tend to be more pronounced when the members are part of a corporate vertical marketing system.

Question 19

Logistics management concentrates on control of retail sales in the supply chain.

Question 20

Quick response systems allow retailers to maximize their inventory holdings.

Question 21

Brenda is working on an automated re-ordering system which will electronically re-order inventory for her shoe store as purchases are made.Brenda is working on a supply chain management system that will:

A)provide products at the right time.
B)provide products at the right locations.
C)provide the right quantities.
D)minimize system-wide costs.
E)all of these.

Question 22

One of the hot publishing markets is e-books,electronically downloaded books from the Internet.For e-book publishers,supply chain management is:

A)expensive,especially warehousing costs.
B)difficult to define since it is hard to find transportation intermediaries.
C)defined by the relationship between printing facility and the author's agent.
D)a complex web of wholesalers and distributors.
E)relatively simple,quick,and inexpensive compared to regular publishers.

Question 23

In a typical supply chain:

A)each participant adds value.
B)each participant plays a role in getting the product to the ultimate consumer.
C)the manufacturer plays an important role.
D)the retailer may store the product,educate the customer,and,perhaps,deliver or install the product.
E)All of these.

Question 24

Supply chain management takes a ________________________ approach to coordinating the flow of merchandise.

A)quick response
B)system-wide
C)vertically decentralized
D)cross-docking
E)exclusive geographic territory

Question 25

Naomi knows she has to order her store's Christmas holiday merchandise in April to ensure delivery before the holiday season.Naomi is concerned with the supply chain management goal of:

A)providing products at the right time.
B)providing products at the right locations.
C)providing the right quantities.
D)satisfying the service levels supply chain participants expect.
E)minimizing system-wide costs.

Question 26

Merl works for Cemex,a global cement manufacturing company.His job focuses on coordinating the movement of materials to Cemex's factories.Merl works in:

A)logistics management.
B)CPFR.
C)dispatcher decision-making.
D)corporate vertical marketing.
E)strategic relationship management.

Question 27

Which of the following is NOT a common activity associated with logistics management?

A)Demand forecasting.
B)Inventory control.
C)Product design.
D)Order processing.
E)Handling of returned goods.

Question 28

Dawn works for a firm that buys products directly from the manufacturer and sells them to retailers,who then sell the products to consumers.Dawn works for a:

A)retail distribution center.
B)retail jobber.
C)store representative.
D)wholesaler.
E)manufacturer's representative.

Question 29

A marketing channel:

A)is the set of institutions that transfer ownership of goods.
B)is a supply chain management channel.
C)is the set of institutions that move goods from the point of production to the point of consumption.
D)consists of all the marketing activities in the marketing process.
E)all of these.

Question 30

In the 1990s,the typical order-to-delivery process included __________________,which often took 15-30 days.

A)order creation using a telephone,facsimile or mail
B)order processing
C)credit authorization
D)warehousing and physical delivery
E)all of these

Question 31

Logistics managers often focus on ___________,while marketing managers focus on ____________,causing conflict when trying to provide value to customers.

A)maximizing sales; minimizing costs
B)presentation; packaging
C)cross-tracking; double accounting
D)minimizing costs; maximizing sales
E)decentralization; centralization

Question 32

(p.469-471; Chapter case study)Each day Walmart's integrated supply chain management system is used to ship products from distribution centers to the company's stores.Their system is used to achieve the supply chain management goal of:

A)providing products at the right time.
B)providing products at the right locations.
C)providing the right quantities.
D)minimizing system-wide costs.
E)all of these.

Question 33

As the logistics manager,Priscilla focuses on the movement and control of the company's physical products while her boss,the supply chain manager,focuses on:

A)maximizing production efficiency.
B)oversight and coordination of supply chain promotional considerations.
C)the interplay between pricing and product allocation decisions.
D)awareness of and coordination of the relationships among supply chain members.
E)customer awareness and retention.

Question 34

For consumers,logistical management activities including inventory control,warehousing,and transportation,are:

A)not too important.
B)associated with the delivery of services more than with the delivery of goods.
C)part of product bundling.
D)the basis for situational buying opportunities.
E)rarely visible because they take place outside retail locations.

Question 35

Traditionally,marketing channel management has been the responsibility of:

A)marketing departments.
B)chief executive officers.
C)operations.
D)finance.
E)product and promotion departments.

Question 36

Manufacturers use wholesalers and retailers because:

A)they have no other choice.
B)they do not cost much.
C)they create value through convenience.
D)wholesalers control retailers.
E)most manufacturers are not familiar with logistics.

Question 37

Traditionally,logistics has been the responsibility of:

A)marketing departments.
B)chief executive officers.
C)operations.
D)finance.
E)product and promotion departments.

Question 38

Stores like Home Depot and Costco act as wholesalers when they:

A)take delivery in whole-lot quantities.
B)select limited product lines and only market them to consumers who purchase the whole line.
C)sell products for distributors.
D)sell to contractors or restaurant owners.
E)compete with each other.

Question 39

By reducing the number of transactions needed to move a product from the manufacturer to the consumer,wholesalers and retailers make a supply chain:

A)longer.
B)floor-ready.
C)vertically integrated.
D)selectively collaborative.
E)more efficient.

Question 40

______________________ is an element of supply chain management that concentrates on the movement and control of physical products.

A)Dispatcher decision-making
B)CPFR
C)Logistics management
D)Corporate vertical marketing
E)Strategic relationship management

Question 41

Steven managed an auto parts store in the 1990s.At that time,stock-outs--failure to have the parts auto mechanics needed to do their work that day--increased the likelihood of the mechanics becoming customers of competing auto supply stores.To avoid this problem and keep his business customers,Steven most likely:

A)canceled orders and shifted the business to competitors.
B)increased promotional outlays to overcome customer dissatisfaction.
C)used exclusive geographic territories to reduce supply chain inefficiencies.
D)stockpiled inventory,adding to the cost of providing auto parts.
E)returned to traditional distribution center logistics.

Question 42

A _______________ is a facility for the receipt,storage,and redistribution of goods to company stores or customers.

A)circulation center
B)distribution center
C)supply chain hub
D)collaborative replenishment office
E)floor-ready franchising center

Question 43

Roland has just received notification from a vendor that his clothing merchandise order has been processed and dispatched.Roland has just received a(n):

A)horizontal contractual notice.
B)vendor-managed inventory alert.
C)advanced shipping notice.
D)universal product code report.
E)CPFR tag.

Question 44

As a very small golf equipment manufacturer,Dr.Putt maintained information using bookkeeping and inventory management software and communicated with customers through e-mail.As business expanded,Dr.Putt needed an electronic data interchange system that would allow him to:

A)receive sales data.
B)initiate purchase orders.
C)send and receive invoices.
D)receive returned merchandise documentation.
E)all of these.

Question 45

Flora is frustrated with her company's supply chain management information system.She wants to be able to receive sales data,initiate purchase orders,send and receive invoices,and receive returned merchandise documentation.Flora needs a(n):

A)cross-docking exchange.
B)electronic data interchange system.
C)floor-ready bundling system.
D)vertical conflict reduction system.
E)radio frequency identification system.

Question 46

Sometimes,what consumers perceive as bait-and-switch marketing--advertising a low-priced product and then only having higher-priced models--is in fact:

A)a distribution intensity problem.
B)an exclusive geographic territory conflict.
C)an administered vertical marketing system strategy.
D)a corporate pricing problem.
E)a miscommunication in the supply chain.

Question 47

One of the benefits of EDI is that it can reduce cycle time,which is __________.

A)the time from when an RFP is announced to the time a consumer purchases the finished product
B)the time from when funds are committed for purchase of raw materials to the time when the payment for the finished goods is actually received
C)the time between when finished good leave the manufacturer until the time they arrive,floor-ready,at the retailer
D)the time between the decision to place an order and the receipt of the merchandise
E)the time between when an item is sold to a customer and when a replacement is made available for purchase by another customer

Question 48

Compared to the 1990s,supply chain management streamlines distribution by reducing problems associated with all of the following EXCEPT:

A)misplaced orders.
B)orders for goods that were not available.
C)verification of promotional allowances.
D)lost orders.
E)misdirected shipments.

Question 49

A distribution center is typically operated by:

A)the marketing department.
B)vertically integrated consumer networks.
C)retailers,manufacturers,or distribution specialists.
D)corporate-government joint ventures.
E)electronic data interchange services.

Question 50

CPFR refers to __________________________ inventory management systems.

A)collective preferential forecasting and returns
B)collection,partnering,franchising,and receiving
C)collaborative planning,forecasting,and replenishment
D)corporate partnering,facilitation,and replenishment
E)centralized planning,factoring,and receiving

Question 51

(p.441-442; Opening vignette)Zara's success as a clothing retailer derives from its innovations in the retail area and its mastery of supply chain management.Zara _________________________.

A)makes all the fabric it uses
B)cuts and sews all its clothing
C)franchises the majority of its stores
D)operates its own flexible worldwide distribution network
E)All of these

Question 52

When electronic data interchanges (EDIs)are used to describe the benefits of new products and provide pictures and information they support the _____________ element in the four Ps of marketing.

A)product
B)price
C)promotion
D)place
E)portfolio

Question 53

In addition to merchandise and payments,information flows throughout a supply chain.Which of the following is NOT a good characterization of the flow of information in a supply chain?

A)A manufacturer will send and receive information from buyers,stores and distribution centers.
B)Stores will send and receive information from manufacturers,buyers,distribution centers and customers.
C)Distribution centers will send and receive information from stores and manufacturers.
D)Customers will send and receive information from stores and manufacturers.
E)Buyers will send and receive information from stores and manufacturers.

Question 54

International supply chains add layers of complexity to the flow of information,merchandise and payments.Neiman Marcus has been able to develop expedited shipments through customs,which gives it an advantage in having the most up-to-date merchandise,by:

A)payment of "grease money" to US Customs officials in accordance with the Foreign Corrupt Practices Act.
B)working through Congress and the federal agencies to create special laws and customs to expedite getting shipments through Customs,even though this adds to the costs the consumers must pay.
C)using an Internet-based information system to ensure all paperwork and documentation are properly prepared on time.
D)buying from American suppliers as much as possible so that the firm does not have to go through the costly and time-consuming Customs processes.
E)using the Internet to create a "parallel" manufacturing system that copies designs and materials exactly,but inside the US so importing is no longer an issue.

Question 55

Jośe has been a manufacturer's representative for over 20 years.He was ecstatic when he got electronic access to his manufacturer's inventory.This allows him to avoid the supply chain problem of:

A)promising delivery of products that are not available.
B)increasing prices without increasing transportation charges.
C)not being able to coordinate his selling efforts with manufacturers' promotional campaigns.
D)insufficient raw materials to produce the needed merchandise.
E)intensive distribution fragmentation.

Question 56

When a customer purchases a DVD at a Best Buy Electronics store,all of the following information flows in the supply chain are started EXCEPT:

A)the sales associate scans the UPC recording the sale.
B)the sale is transmitted to Best Buy's distribution center to adjust inventory data.
C)the purchase is added to the customer's purchasing habit records.
D)Best Buy's buyer aggregates sales at all stores and uses the information to send a reorder to the manufacturer.
E)the point-of-sale terminal records the sale and sends it to Best Buy's buyer.

Question 57

In a CPFR system,information is used to:

A)generate a sales forecast and a delivery schedule.
B)predict collaborative profitability.
C)signal the rate of return of defective merchandise.
D)create radio frequency identification tags.
E)simulate supply chain management functions.

Question 58

In CPFR inventory management systems,_____________________.

A)corporations send information to retail customers,bypassing wholesalers and retailers
B)companies send information to cooperatives
C)customers send information to retailers
D)manufacturers send sales information to the retailer
E)retailers send sales information to the manufacturer

Question 59

Today,when a customer orders merchandise from an online vendor,the vendor usually sends an immediate order confirmation message by e-mail.Usually within a day or two,a second message arrives stating that the order is in the mail.This second message is a type of:

A)vertical contractual notice.
B)CPFR requirement.
C)advanced shipping notice.
D)universal product code report.
E)RFID tag.

Question 60

Typically,manufacturers and retailers exchange business documents through a(n)_______________________ system.

A)cross-docking exchange
B)electronic data interchange
C)floor-ready bundling
D)vertical conflict reduction
E)radio frequency identification

Question 61

Which of the following is NOT an advantage of using a distribution center?

A)More accurate sales forecasts are possible.
B)Retailers need to keep less merchandise in the store as inventory if the stores get frequent deliveries.
C)It is easier to avoid stock-outs.
D)Use of a distribution center saves money since the storage space at a distribution center is generally less expensive than that of a store.
E)Customers know they are dealing with a more sophisticated and financially well-off operation if the firm uses a distribution center.

Question 62

Some retailers require their suppliers to ship merchandise ________________,thus eliminating the time and expense associated with ticketing and marking.

A)floor-ready
B)flattened
C)lead time synchronized
D)aggregated
E)synthesized

Question 63

In a pull supply chain,__________________________.

A)orders for merchandise are generated at the store level based on sales data captured at POS terminals
B)there is a greater likelihood of being overstocked or out of stock than in a push supply system
C)merchandise is allocated to stores on the basis of demand forecasts
D)inventory management is less responsive to customer demand
E)it is more difficult to manage conditions of high uncertainty than in a push supply chain

Question 64

In a _________________________ distribution center,the merchandise already contains price and theft detection tags,making it ready to go straight to the staging area in the center.

A)traditional
B)vertical
C)cross-docking
D)combination
E)horizontal

Question 65

_______________ has dramatically reduced the time and labor associated with checking and receiving merchandise.

A)VMI
B)JIT
C)RFID
D)CPFR
E)UPC

Question 66

The apparent chaos of a company's distribution center is managed by a(n):

A)marketer.
B)dispatcher.
C)supply chain vendor.
D)electronic systems software system.
E)lead delivery specialist.

Question 67

RFID offers participants in the supply chain a powerful tool for tracking inventories and reducing handling.The main reason why it has NOT been more widely adopted is that:

A)the FCC has only recently allocated a frequency for RFID transmission.
B)there are concerns that the transmissions might cause health problems if use were widespread.
C)manufacturing capacity is limited at this time.
D)RFID is expensive to use.
E)all of these.

Question 68

Merchandise that arrives in the delivery truck ready to be sold is considered:

A)quick-response packaged.
B)ahead of the curve.
C)lead time synchronized.
D)floor-ready.
E)synthesized.

Question 69

Ticketing and marking refers to:

A)quantifying JIT reliability and assessing its impact.
B)booking shipping routes and marking the distribution destination.
C)creating and placing price and identification labels.
D)determining discounts and marking them in the EDI system.
E)receiving and inventorying lead time merchandise.

Question 70

A _____________________ distribution center is one to which vendors ship merchandise prepackaged in the quantity required for each store.

A)traditional
B)vertical
C)combination
D)cross-docking
E)horizontal

Question 71

Getting merchandise floor-ready entails:

A)distributing and dispatching.
B)ticketing and marking.
C)vertical supply chain wholesaling.
D)intensive cross-docking.
E)selective checking.

Question 72

With which of the following firms would General Mills (manufacturer of a variety of food products)likely engage in a CPFR system?

A)Target
B)Costco
C)Walmart
D)Kroger
E)all of these

Question 73

In a ________________ distribution center,merchandise moves from vendors' trucks to retailers' delivery trucks in a matter of hours.

A)traditional
B)combination
C)cross-docking
D)vertical
E)horizontal

Question 74

Vendor-managed inventory can improve supply chain efficiency by:

A)using EDI to notify the manufacturer that supplies are low and should be replenished.
B)reducing inventory costs to both the vendor and retailer by reducing stock-outs and excess inventories.
C)allowing manufacturers to sell on consignment,which shifts the cost of maintaining inventory from the retailer to the manufacturer.
D)shifting the time of sales personnel from writing orders to selling new items and developing relationships.
E)All of these.

Question 75

An effective CPFR system manages:

A)consumer relationships.
B)inventory levels.
C)shipping costs.
D)geographic boundary conflicts.
E)dispatcher-distributor disputes.

Question 76

Ted is glad his company finally converted to a RFID system.Now,he no longer needs to go through all the new goods to make sure what they ordered was what they received.Ted is responsible for ________________ in his company.

A)checking
B)dispatching
C)receiving
D)JIT
E)quick response

Question 77

Radio frequency identification tags are:

A)selective distribution designs used to maximize geographic efficiency.
B)electronic discount information tags used to provide reduced prices to select customers.
C)CPFR demand scheduling data tags.
D)tiny computer chips that transmit information about a container's contents.
E)information tags used for floor-ready merchandising.

Question 78

Colin has just received a delivery from the company's distribution center.He opens the containers and finds the popcorn and snacks are all bar-coded,priced,and the package includes an end-of-the-aisle display rack.Colin has received a ___________________ shipment.

A)quick-response packaged
B)ahead of the curve
C)lead time synchronized
D)floor-ready
E)synthesized

Question 79

Which of the following is NOT one of the activities carried on in a distribution center?

A)Coordinating inbound transportation
B)Receiving,checking,storing,and cross-docking
C)Distributing paychecks and paystubs for retail employees
D)Getting merchandise floor ready
E)Coordinating outbound transportation

Question 80

Yvonne works in the distribution center for Publix supermarket,creating and placing price and identification labels on merchandise before it is sent to the individual grocery stores.Yvonne's job involves:

A)distributing and dispatching.
B)intensive cross-docking.
C)supply chain coordination.
D)ticketing and marking.
E)selective checking.