Question 1

What is a benefit of having an efficient supply chain?
A)fewer associates are needed to replenish stock
B)more time for customer services
C)less negotiating with vendors
D)fewer stockouts
E)planning strategy becomes more predictable

Accepted Answer

Better inventory management allows retailers to be certain of having the right amount of inventory in the right place at the right time.

Question 2

To meet specific needs of a variety of customers,retailers must:
A)manage its supply chain to avoid stockouts
B)extending hours of operation
C)include only national brands
D)operating with more markdowns to make room for new merchandise
E)working closer with vendors to keep prices lower

Accepted Answer

Better inventory management allows retailers to be certain of having the right amount of inventory in the right place at the right time.

Question 3

Freight forwarding is a flow back of merchandise through the channel from the customer back to the vendor.

Accepted Answer

This described reverse logistics rather than freight forwarding.Merchandise may be damaged,recalled,or be returned to vendor because of lack of selling and therefore the merchandise is needed to be consolidated and sent back to the vendor from the retailer.

Question 4

Which of the following best describes the goal of supply chain management?
A)to maximize retailers' profits by reducing costs while satisfying service levels that their customers require
B)minimizing system wide costs while satisfying the service levels (product availability)that customers desire
C)reducing costs by allocating merchandise
D)maximizing retailers' profits by reducing system wide costs,while achieving the highest service level (product availability)
E)minimizing system wide costs,while achieving the highest service level (product availability)

Accepted Answer

Supply chain management is geared to minimize systemwide costs,which might result in maximizing retailers' profit.However,maximizing retailer's profits does not necessary mean the minimization of systemwide costs.Achieving the highest service level is not desirable for all retailers because it is very costly.Allocating merchandise is a function of the planning merchandise team.

Question 5

The build up of inventory in an uncoordinated channel is called the bell-curve effect.

Accepted Answer

This is the bullwhip effect not the bell-curve effect.When retailers and vendors do not coordinate their SCM,excess inventory builds up in the system causing a bullwhip effect.

Question 6

A pick ticket tells the DC what is being shipped.

Accepted Answer

An advanced shipping notice tells the DC what is being shipped and when it will be delivered.The ASN helps the DC then make appointments to be unloaded and helps the planner or allocator at the corporate office know they need to have the merchandise allocated by store in the system by that date.

Question 7

Which of the following is responsible for gauging the needs of the customer?
A)retailers
B)distributors
C)vendors
D)transportation companies
E)designers

Accepted Answer

Retailers are in the best position to collect information about customer shopping behavior and purchases then analyze it and share with their vendors.

Question 8

Which of the following does NOT describe why retailers have been increasingly taking a leadership role in managing their respective supply chains?
A)consolidation of national retail chains
B)emergence of larger retailers
C)access to purchase information customer by customer
D)flexibility of changing retail price

Accepted Answer

Large retailers with robust systems are in the best position to collect information about customer shopping behavior and purchases then analyze it and share with their vendors.

Question 9

A benefit of having an efficient supply chain is that there is better inventory management allowing retailers to be certain of having the right amount of inventory in the right place at the right time.

Accepted Answer

Better inventory management allows retailers to have less stock outages.

Question 10

______________ is a set of activities and techniques that companies implement to efficiently and effectively manage the flow of merchandise from the vendors to the retailer.
A)Logistics
B)Supply chain management
C)Total quality management
D)Electronic data interchange (EDI)
E)Materials handling

Accepted Answer

These SCM activities ensure that the product is in the right place at the right time and in the right quantities.

Question 11

Since inventory at the store is based on consumer demand,in a pull supply chain,there is a lesser likelihood of being overstocked or out of stock.

Accepted Answer

The pull supply chain system is best to use for products that have an unpredictable demand so the stores can order what they need and when.There is less likelihood of stock outages or overstocks as each store controls their inventory flow.

Question 12

The technology that allows an object or person to be identified at a distance using radio waves uses RFID.

Accepted Answer

Radio Frequency Identification devices transmit data about the object in which they are embedded.

Question 13

EDI is a set of activities and techniques that companies implement to efficiently and effectively manage the flow of merchandise from the vendors to the retailer.

Accepted Answer

This describes Supply Chain Management rather than EDI.These SCM activities ensure that the product is in the right place at the right time and in the right quantities.

Question 14

Vendor-managed inventory is an approach for improving supply chain efficiency in which the vendor is responsible for maintaining the retailer's inventory levels in each of its stores.

Accepted Answer

The vendor and the retailer partner together to create sales and inventory plan.The retailer shares sales and inventory data with the vendor who then analyzes the information to determine how much and what product needs to be ordered.

Question 15

Because of their position in the supply chain,retailers are in a unique position to:
A)collect purchase information from customers based on each transaction
B)communicate openly with a multiple of distribution centers without causing animosity
C)dictate price despite recommendations by vendors
D)negotiate prices with vendors
E)sell more than a competing manufacturer

Accepted Answer

Large retailers with robust systems are in the best position to collect information about customer shopping behavior and purchases then analyze it and share with their vendors.

Question 16

Which of the following is NOT a benefit of efficient supply chain management?
A)improved product availability
B)fewer stockouts
C)better fashions
D)higher return on investments
E)strategic advantage

Accepted Answer

All but "better fashions" are benefits of a supply chain management.Buyers choose the assortment of fashions without influence from SCM.

Question 17

Vendors are in the best position to collect information about customer shopping behavior.

Accepted Answer

Retailers are in the best position to collect information about customer shopping behavior and purchases then analyze it and share with their vendors.

Question 18

Macy's sells a variety of winter coats throughout the country focusing delivery in the northern tiers first and ending the season rollouts in the south much like the way the cold weather migrates.This management of the winter products can best be described as:
A)reducing stockouts
B)improved sale productivity
C)tailoring assortments
D)following seasonal lead
E)tailoring assets

Accepted Answer

Inventory management through tailoring assortments allows retailers to be certain of having the right amount of inventory in the right place at the right time.

Question 19

Cross-docking is when vendors ship merchandise prepackaged in the quantity required for each store and when the products arrive to the distribution center,the products move to the staging area to be shipped to the designated stores.

Accepted Answer

The cross-docked merchandise usually already contains the price tags,theft tags and if applicable,on hangers.An advantage is that retailers can save on costs by assuming that the number and type of merchandise and the store designation are correctly encoded in the vendor's UPC labels and do not need to open and check the cartons.

Question 20

Which of the following DOES NOT describe why an efficient supply chain is so important to retailers?
A)improved product availability
B)higher return on investment
C)a strategic advantage
D)trendier merchandise
E)improved in-stock position

Accepted Answer

Better inventory management allows retailers to be certain of having the right amount of inventory in the right place at the right time.

Quiz 10: Information Systems and Supply Chain Management

What is a benefit of having an efficient supply chain?

To meet specific needs of a variety of customers,retailers must:

Freight forwarding is a flow back of merchandise through the channel from the customer back to the vendor.

Which of the following best describes the goal of supply chain management?

The build up of inventory in an uncoordinated channel is called the bell-curve effect.

A pick ticket tells the DC what is being shipped.

Which of the following is responsible for gauging the needs of the customer?

Which of the following does NOT describe why retailers have been increasingly taking a leadership role in managing their respective supply chains?

A benefit of having an efficient supply chain is that there is better inventory management allowing retailers to be certain of having the right amount of inventory in the right place at the right time.

______________ is a set of activities and techniques that companies implement to efficiently and effectively manage the flow of merchandise from the vendors to the retailer.

Since inventory at the store is based on consumer demand,in a pull supply chain,there is a lesser likelihood of being overstocked or out of stock.

The technology that allows an object or person to be identified at a distance using radio waves uses RFID.

EDI is a set of activities and techniques that companies implement to efficiently and effectively manage the flow of merchandise from the vendors to the retailer.

Vendor-managed inventory is an approach for improving supply chain efficiency in which the vendor is responsible for maintaining the retailer's inventory levels in each of its stores.

Because of their position in the supply chain,retailers are in a unique position to:

Which of the following is NOT a benefit of efficient supply chain management?

Vendors are in the best position to collect information about customer shopping behavior.

Macy's sells a variety of winter coats throughout the country focusing delivery in the northern tiers first and ending the season rollouts in the south much like the way the cold weather migrates.This management of the winter products can best be described as:

Cross-docking is when vendors ship merchandise prepackaged in the quantity required for each store and when the products arrive to the distribution center,the products move to the staging area to be shipped to the designated stores.

Which of the following DOES NOT describe why an efficient supply chain is so important to retailers?