Question 1

For a JIT system to be successful,the firm and its vendors must

Accepted Answer

Cooperation between the firm and its vendors is essential for a successful JIT system as JIT relies heavily on timely deliveries of goods and materials from vendors. Suppliers need to be reliable in terms of quality, delivery time, and inventory management. Hence, the training, motivation, and involvement of suppliers in the JIT system are critical. Without cooperation, the system will fail. The other options provided are not necessary for the success of a JIT system.

Question 2

______________ systems are designed to deliver smaller shipments of merchandise on a more frequent basis to retailers.

Accepted Answer

The answer of ______________ systems are designed to deliver smaller...

Question 3

With more frequent shipments associated with quick response (QR)systems,a retailer is

Accepted Answer

With more frequent shipments associated with quick response systems, retailers are more likely to have what customers want in stock, as they can quickly replenish inventory based on demand.

Question 4

Amazon.com was an early leader in online retailing.Part of the firm's success was due to a well-designed and efficient EDI system with book publishing companies,allowing just-in-time delivery.Even with a well-designed EDI system,Amazon.com would not have been successful without

Accepted Answer

The success of Amazon.com was not solely due to its EDI system, but also to its commitment to partnering with publishing companies. This allowed for just-in-time delivery and a wider selection of books than could be found in brick and mortar bookstores. A customer rebate program, cooperative advertising with brick and mortar retailers, support from government regulators, and acceptance from local education unions were not significant factors in Amazon.com's success.

Question 5

In retailing,a just-in-time delivery system is called a _____________ system.

Accepted Answer

The answer of In retailing,a just-in-time delivery system is called...

Question 6

When Brian took over the position of purchasing manager for Gray Lumber Company,a regional building materials supply company,he found a JIT system in place,but in spite of that,the company had frequent problems related to inventory.Shipments were often late or incomplete,there was little communication from the company's vendors,and only superficial attempts were being made to address the problems.For companies like Gray Lumber,the critical factor in having a successful JIT system is

Accepted Answer

Cooperation is crucial in ensuring a successful JIT system for companies like Gray Lumber. This includes cooperation between the company and its vendors to ensure timely and complete shipments, as well as communication regarding inventory levels and needs. Without cooperation, the JIT system may not function effectively and problems related to inventory can persist. Shared data, EDI systems, and CPFR systems can all support cooperation but are not the critical factor in themselves.

Question 7

Getting merchandise floor-ready entails

Accepted Answer

Merchandise floor-ready involves the process of preparing products for sale on the retail floor, which often includes ticketing and marking items with prices and other important information. The other choices are not directly related to this process.

Question 8

One of the benefits of shortened lead times associated with a JIT system is

Accepted Answer

The answer of One of the benefits of shortened lead...

Question 9

Retailers often perform ticketing and marking functions in their distribution centers rather than in their retail stores because ticketing and marking is often

Accepted Answer

The answer of Retailers often perform ticketing and marking functions...

Question 10

Manufacturers trying to implement a just-in-time delivery system need to start with

Accepted Answer

The key to implementing a just-in-time delivery system is having information about customer demand in order to synchronize production and delivery schedules. Without this information, the system cannot function effectively. Once demand information is available, routing software, shipping schedules, and distribution center design can be optimized to support the system. Intensive distribution is not directly related to just-in-time delivery.

Question 11

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

Accepted Answer

Shipping merchandise "floor-ready" means that the products are already marked, tagged, and ready to be placed on the retail floor without any additional preparation. This eliminates the need for retailers to spend time and resources on ticketing and marking the merchandise themselves.

Question 12

While JIT systems have many benefits,they

Accepted Answer

JIT systems require precise coordination and communication with suppliers, production facilities, and transportation providers, which can make the logistics function more complicated.

Question 13

Leona is the logistics manager for the Barnes & Noble bookstore chain.She is weighing the many benefits of the company's JIT system,but will need to consider that just-in-time inventory management systems increase

Accepted Answer

Just-in-time inventory management systems require more frequent and smaller shipments, which can increase transportation costs.

Question 14

Because manufacturers with JIT systems produce merchandise closer to the time of sale,they can

Accepted Answer

JIT systems allow manufacturers to produce merchandise in smaller batches and closer to the time of sale, reducing the need for large inventories. This can help reduce costs associated with storing excess inventory and allow for more efficient use of space and resources in the manufacturing process.

Question 15

Each time a politician or celebrity writes a book,bookstores can expect at least some customers to want the book,but whether or not it will become a bestseller is less certain.The bookstore's primary inventory management challenge is

Accepted Answer

The question presents the challenge of inventory management for bookstores, and the primary challenge is to balance the cost of having enough books to satisfy customer demand with the cost of holding that inventory. Therefore, the best choice is E. The other choices presented in the question (getting the author to sign copies of the book, pricing the books, promoting other books, and displaying the book at the checkout) are not necessarily inventory management challenges, but rather marketing or sales tactics that a bookstore may choose to employ.

Question 16

Shorter lead times allow retailers

Accepted Answer

Shorter lead times reduce the amount of time inventory is held in a retailer's possession, which in turn allows them to carry less inventory overall. This can lead to cost savings and a reduction in the needed level of inventories.

Question 17

After installing a(n)__________ in its JIT system,Chocolate Tree (a retail chocolate store)was able to reduce lead time for merchandise orders.

Accepted Answer

Installing an electronic data interchange system (EDI) can help automate the process of ordering merchandise and managing inventory, resulting in a reduction of lead time for merchandise orders. EDI allows for faster and more accurate communication between retailers and suppliers, reducing the need for manual data entry and paper-based processes.

Question 18

After installing an electronic data interchange,Kay Jewelers was able to reduce ___________,the amount of time between the recognition that an order needs to be placed and the arrival of the needed merchandise.

Accepted Answer

Lead time refers to the amount of time it takes from recognizing the need for an order to receiving the merchandise. By reducing lead time, Kay Jewelers was able to receive the needed merchandise faster, improving their supply chain efficiency. Quick time, latency, currency float time, and supply chain conflict time are not relevant in this context.

Question 19

Especially in the fashion industry where styles and trends change rapidly,a quick response system can

Accepted Answer

A quick response system allows for a closer alignment of deliveries with actual sales, allowing retailers to better manage inventory and reduce the risk of overstocking or understocking. This can lead to more accurate forecasting and reduce logistical overlay. It may also increase cross-docking promotional effectiveness. However, it may not necessarily allow manufacturers to introduce unpopular styles and still be successful as the success of a style depends on various factors beyond just quick response time.

Question 20

At the BMW plant in Spartanburg,South Carolina,suppliers deliver parts every four hours when the plant is in operation and are responsible for removing any packaging or pallets used to deliver their products.BMW uses a ______________ inventory control system.

Accepted Answer

The processes described in the scenario - suppliers delivering parts every four hours and removing packaging or pallets - are consistent with the principles of Just-In-Time (JIT) inventory control.

Quiz 16: Supply Chain and Channel Management