Question 1

Which of the following describes the benefits of a pull strategy?
A) It does not require advanced systems to implement.
B) It decreases inventory turnover.
C) There is less likelihood of being overstocked or out of stock at each store.
D) It allows more efficient production and distribution scheduling to reduce costs.
E) It forecasts the competitor's demand.

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 2

Alvin works in a distribution centre.According to his job description,he is responsible for _____ or filling out paperwork to record the receipt of merchandise at the centre.
A) receiving
B) recording
C) checking
D) merchandise handling
E) acquisition

Accepted Answer

Receiving is the process of recording the receipt of merchandise as it arrives at a distribution centre.

Question 3

________ is a system when retailers receive an order from a customer,they then have the product shipped directly to the customer from the vendor.
A) Drop-shipping
B) Cross-docking
C) Outsourcing
D) Third party logistics
E) Vendor-managed inventory

Accepted Answer

Drop-shipping, also known as consumer direct fulfillment, is a system in which retailers receive orders from customers and relay these orders to vendors and then the vendors ship the merchandise ordered directly to the customer.

Question 4

Which of the following is NOT a benefit of EDI to retailers and their vendors?
A) EDI reduces lead time.
B) Information flows quicker so inventory turnover is higher.
C) It improves overall quality of communication.
D) It is a computer readable format that can be easily analyzed.
E) EDI increases the desirability of the product for the end consumer.

Accepted Answer

EDI increases efficiency and accuracy, but does not influence the desirability of the products.

Question 5

What type of retailer would most likely benefit from the use of direct store delivery?
A) A big-box electronics retailer
B) A supermarket
C) A big-box discount store
D) A large department store
E) A mall specialty store

Accepted Answer

Retailers that require frequent replenishment of fresh goods like supermarkets are most likely to benefit from DSD.

Question 6

In a(n)__________,merchandise is allocated to stores on the basis of forecasted demand.Once a forecast is determined,specified quantities of merchandise are shipped to distribution centres and stores at predetermined time intervals.
A) push supply chain
B) cross check logistic strategy
C) influential logistic strategy
D) pull supply chain
E) cost efficient logistic strategy

Accepted Answer

The push supply chain system is most efficient for steady, predictable demand products.

Question 7

What does a dispatcher do?
A) Dispatchers go through goods upon their receipt to make sure they arrived undamaged.
B) Dispatchers allocate warehouse space to merchants.
C) Dispatchers create pick tickets.
D) Dispatchers make pricing and identification labels and place them on merchandise.
E) Dispatchers coordinate deliveries to the distribution centres.

Accepted Answer

The dispatcher helps to manage the inbound transportation by booking appointments for deliveries, and notifying the planners of the scheduled delivery dates.

Question 8

Which of the following terms describe the process of moving returned goods to the retailer from the consumer to the DC,and then to the vendor for the purpose of capturing value or proper disposal?
A) logistics
B) reverse logistics
C) expedited logistics
D) reverse auctions
E) exception management logistics

Accepted Answer

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 9

Which of the following statements about receiving,checking,marking,and ticketing is TRUE?
A) Only receiving and checking involve UPC labels.
B) It is more efficient and less costly to ticket merchandise at the store level.
C) Vendors sometimes ticket and mark merchandise before shipping to the distribution centres.
D) To perform the checking process correctly, every carton must be opened and its merchandise examined.
E) The checking process is performed after the merchandise has been ticketed and marked.

Accepted Answer

Retailers have found it inefficient to ticket and mark in store and are very likely to have this process performed at distribution centres or by vendors.

Question 10

Which of the following does NOT describe the benefits of a pull strategy?
A) There exists less likelihood of being overstocked, or out of stock, because the store orders merchandise as needed on the basis of consumer demand.
B) It increases inventory turnover.
C) It is more responsive to changes in customer demand.
D) It becomes more efficient than a push approach when demand is uncertain and difficult to forecast.
E) All of these are benefits of a pull strategy.

Accepted Answer

The push supply chain system is most efficient for steady, predictable demand products. A pull approach is based on customer demand, which is difficult to forecast, does not allow efficient production and distribution scheduling.

Question 11

Which of the following is an advantage of using distribution centres over direct store delivery?
A) Individual stores that forecast and draw from a DC are more cost efficient.
B) The DCs have the advantage of keeping backup stock in the store.
C) Direct store delivery is always more expensive.
D) The DCs enable the retailer to carry less overall inventory.
E) The DC can always deliver faster than a vendor.

Accepted Answer

Backup inventory is expensive and difficult to house at the store level.

Question 12

A retailer whose orders are generated at the store level,on the basis of demand data captured by point-of-sale data,is said to employ a(n):
A) cost efficient logistic strategy
B) pull supply chain
C) influential logistic strategy
D) cross check logistic strategy
E) push supply chain

Accepted Answer

It is called a pull supply chain because the demand of an item pulls it through the supply chain. This is more responsive to changes in customer demand, however it is more costly.

Question 13

The process where vendors ship the merchandise prepackaged to the distribution centre in the quantities required for each store and then that merchandise is shipped to stores as soon as it is received is called ________________.
A) cross conveyor
B) cross-docking
C) lead time
D) pull supply
E) reverse logistics

Accepted Answer

The size, sales rate, and vendor performance typically determine whether cartons are cross-docked or stored.

Question 14

What are the rules that apply to activities in the computer and communication resources that belong to an organization?
A) security policy
B) investigation policy
C) corporate security
D) policing
E) corporate policy

Accepted Answer

The security policy is a set of rules that apply to be certain that there is authentication, authorization, and integrity of the information.

Question 15

________ is a method where retailers receive orders from customers and have the product shipped directly to the customer from the vendor.
A) Consumer direct fulfillment
B) Reverse logistics
C) Pull supply chain
D) Push supply chain
E) Freight forwarding

Accepted Answer

Consumer direct fulfillment, also known as drop-shipping, is a system in which retailers receive orders from customers and relay these orders to vendors and then the vendors ship the merchandise ordered directly to the customer.

Question 16

Which of the following does NOT describe the benefits of utilizing distribution centres over direct store delivery?
A) More accurate sales forecasts are possible when retailers combine forecast for many stores serviced by one distribution centre, rather than doing a forecast for each store.
B) Distribution centres enable the retailer to carry less merchandise in the individual stores.
C) The use of distribution centres increases inventory investment systemwide.
D) It is easier to avoid running out of stock or having too much stock in any particular store because merchandise is ordered from the distribution centre as needed.
E) The effects of forecast error for the individual stores are minimized and less backup inventory is needed to prevent stockouts.

Accepted Answer

The use of distribution centres reduces inventory investment systemwide. Backup inventory is expensive and difficult to house at the store level.

Question 17

Retailers with less sophisticated forecasting and information systems tend to use a(n):
A) cost efficient logistic strategy
B) cross check logistic strategy
C) influential logistic strategy
D) pull supply chain
E) push supply chain

Accepted Answer

The push supply chain system is most efficient for steady, predictable demand products, and requires less sophistication compared to the pull supply chain.

Question 18

From the retailer's view,___________ reduces the retailer's supply chain costs and investment because the vendor assumes the costs and risks of shipping the product to the customer.
A) drop-shipping
B) cross-docking
C) outsourcing
D) third party logistics
E) vendor-managed inventory

Accepted Answer

Drop-shipping, also known as consumer direct fulfillment, is a system in which retailers receive orders from customers and relay these orders to vendors and then the vendors ship the merchandise ordered directly to the customer.

Question 19

Which of the following does NOT describe an activity managed by distribution centres?
A) receiving
B) checking
C) cross-docking
D) ticketing
E) markdowns

Accepted Answer

All functions are carried out at the distribution centre except for markdowns.

Question 20

Ali supervises the conveyor belts in a distribution centre.Her job is to make sure the merchandise moves quickly from the receiving docks to the staging area in order for the trucks to load and deliver.No merchandise is stored as the vendors already prepared it specifically for the stores.Ali works in ______________________ at the distribution centre.
A) cross examination
B) cross-docking
C) cataloging
D) cross-checking
E) reverse logistics

Accepted Answer

The size, sales rate, and vendor performance typically determine whether cartons are cross-docked or stored.

Quiz 9: Information Systems and Supply Chain Management

Which of the following describes the benefits of a pull strategy?

Alvin works in a distribution centre.According to his job description,he is responsible for _____ or filling out paperwork to record the receipt of merchandise at the centre.

________ is a system when retailers receive an order from a customer,they then have the product shipped directly to the customer from the vendor.

Which of the following is NOT a benefit of EDI to retailers and their vendors?

What type of retailer would most likely benefit from the use of direct store delivery?

In a(n) __________,merchandise is allocated to stores on the basis of forecasted demand.Once a forecast is determined,specified quantities of merchandise are shipped to distribution centres and stores at predetermined time intervals.

What does a dispatcher do?

Which of the following terms describe the process of moving returned goods to the retailer from the consumer to the DC,and then to the vendor for the purpose of capturing value or proper disposal?

Which of the following statements about receiving,checking,marking,and ticketing is TRUE?

Which of the following does NOT describe the benefits of a pull strategy?

Which of the following is an advantage of using distribution centres over direct store delivery?

A retailer whose orders are generated at the store level,on the basis of demand data captured by point-of-sale data,is said to employ a(n) :

The process where vendors ship the merchandise prepackaged to the distribution centre in the quantities required for each store and then that merchandise is shipped to stores as soon as it is received is called ________________.

What are the rules that apply to activities in the computer and communication resources that belong to an organization?

________ is a method where retailers receive orders from customers and have the product shipped directly to the customer from the vendor.

Which of the following does NOT describe the benefits of utilizing distribution centres over direct store delivery?

Retailers with less sophisticated forecasting and information systems tend to use a(n) :

From the retailer's view,___________ reduces the retailer's supply chain costs and investment because the vendor assumes the costs and risks of shipping the product to the customer.

Which of the following does NOT describe an activity managed by distribution centres?