Question 1

After the economic recession, the boating industry suffered from a decline in sales. However, recent sales forecasts indicate that the upcoming season will produce a strong demand for boats and boating equipment. Based on this, Lynn has decided to ramp up production this winter of both his bass fishing boats and speed boats, keep them in storage until the boating sales season officially resumes, and hope that customers will buy them. This is an example of a ________ strategy.

Accepted Answer

The answer of After the economic recession, the boating industry...

Question 2

A firm must track three types of costs to determine the correct level of inventory to keep in stock: purchasing costs, inventory carrying costs, and the costs incurred by

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The answer of A firm must track three types of...

Question 3

A company that forecasts sales, builds an inventory based on the forecast, holds the components in inventory until a customer order is received and then finalizes the product based on the order is using a ________ strategy.

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The answer of A company that forecasts sales, builds an...

Question 4

Which element(s)of the four Ps of the marketing mix is/are affected by logistics?

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The answer of Which element(s)of the four Ps of the...

Question 5

Which type of supply chain strategy is demonstrated by the following sequence: (Step 1)forecast sales, (Step 2)plan production, (Step 3)order materials, (Step 4)customer orders, (Step 5)make product, and (Step 6)ship product?

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Question 6

If demand is unstable, as it often is in the introductory and growth stages of the product life cycle, it might be best for a firm to use a ________ strategy.

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The answer of If demand is unstable, as it often...

Question 7

Patio Creations is a manufacturer of outdoor furniture. Typically, customers purchase the company's products as the summer season begins and as such, do not want to wait for the product to be manufactured. Which supply chain strategy would work best for Patio Creations?

Accepted Answer

A pull strategy would work best as it allows Patio Creations to produce furniture based on actual customer demand, reducing wait times and aligning production with the summer season's purchasing patterns.

Question 8

If cost reduction is part of a firm's strategy, it would be wise for the firm to use a ________ strategy, since it will allow the firm to achieve cost savings through economies of scale in purchasing, manufacturing, and transportation.

Accepted Answer

The answer of If cost reduction is part of a...

Question 9

The part of supply chain management that plans, implements, and controls the flow of goods, services, and information between the point of origin and the final customer is called

Accepted Answer

Logistics is the aspect of supply chain management that focuses on the planning, implementation, and control of the flow of goods, services, and information from the point of origin to the end customer.

Question 10

Data management systems that integrate information across all the departments of an organization are called

Accepted Answer

The answer of Data management systems that integrate information across...

Question 11

Those activities that focus on delivering the right product, to the right place, to the right customer, at the right time, in the right quantity, in the right condition, and at the right price is referred to as

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The answer of Those activities that focus on delivering the...

Question 12

The almost instantaneous transfer of information from one company's computer to another that allows ERP systems to communicate with the information technology systems of other companies is done through

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Question 13

Craig's Custom Cabinets is a business that provides custom cabinetry and furniture for both businesses and individual consumers. Craig does not make any products until he receives an order from the customer. What type of marketing strategy does this represent?

Accepted Answer

The answer of Craig's Custom Cabinets is a business that...

Question 14

Which activity demonstrates how logistics has an effect on the product element of the marketing mix?

Accepted Answer

The answer of Which activity demonstrates how logistics has an...

Question 15

Companies that want to take advantage of the economies of scale that result as part of a push strategy will most benefit from

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The answer of Companies that want to take advantage of...

Question 16

A push-pull supply chain strategy

Accepted Answer

The answer of A push-pull supply chain strategy
...

Question 17

Which term is not associated with a pull strategy?

Accepted Answer

A pull strategy is characterized by producing goods in response to customer demand, focusing on customization, flexibility, and responsiveness to specific needs. Speculation, on the other hand, involves producing goods in anticipation of future demand, which is more aligned with a push strategy rather than a pull strategy.

Question 18

According to your text, companies that employ a pull or push-pull strategy typically establish logistics operations based on

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The answer of According to your text, companies that employ...

Question 19

What type of inventory costs include the costs to place and process orders, materials, and finished goods?

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The answer of What type of inventory costs include the...

Question 20

According to your text, the primary reason firms rely on inventory management is

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The answer of According to your text, the primary reason...

Quiz 10: Supply Chain and Logistics Management