Question 1

A disadvantage to the use of frequent ordering in small quantities is the ________.

Accepted Answer

Ordering in small quantities often means missing out on quantity discounts that suppliers offer for larger orders. This can lead to higher overall costs per unit.

Question 2

The retailer does not pay for items until they are sold and can return merchandise ________.

Accepted Answer

In a consignment purchase, the retailer does not take ownership of the merchandise until it is sold, so they can return any unsold items without having to pay for them.

Question 3

A deduction from a bill made by a retailer due to such infractions as late shipping,damaged,or expired goods is called a ________.

Accepted Answer

A chargeback is a deduction made by a retailer from a supplier's bill due to such infractions as late shipping, damaged, or expired goods. A penalty is a punishment imposed for breaking a rule or law. Liquidated damages are a fixed sum of money paid as compensation for a breach of contract. Holdback refers to retaining a percentage of payment until certain conditions are satisfied.

Question 4

A retailer can most effectively reduce its inventory risk through ________.

Accepted Answer

Consignment purchases allow the retailer to pay for goods only after they are sold, significantly reducing inventory risk as unsold goods can be returned to the supplier without financial loss.

Question 5

Which of the following is not a merchandise source?

Accepted Answer

A resident buying office is not a merchandise source, but rather a location for employees who handle purchasing and sourcing for the company. The other choices listed are all actual sources for merchandise.

Question 6

Customer requests for unstocked or out-of-stock merchandise are recorded in a(n)________.

Accepted Answer

A want book (or want slip) is a record of customer requests for unstocked or out-of-stock merchandise. It helps the store keep track of customer demand and can be used to improve inventory management. Choices A, B, and C are not relevant to this process.

Question 7

A retailer reduces the amount of inventory it keeps on hand by ordering more frequently and in lower quantity through ________.

Accepted Answer

Quick response (QR) inventory planning involves replenishing inventory more frequently and in smaller quantities in order to reduce the amount of inventory kept on hand. This approach requires close collaboration and communication between the retailer and supplier to ensure timely and accurate delivery of goods. The other options (B, C, and D) are not directly related to this specific inventory planning strategy.

Question 8

An advantage to a retailer's placing large orders for merchandise is ________.

Accepted Answer

Placing large orders for merchandise allow retailers to obtain quantity discounts through volume purchases, which leads to cost savings for the retailer.

Question 9

Opportunistic buying is most commonly utilized by ________.

Accepted Answer

Opportunistic buying refers to the practice of purchasing excess or leftover merchandise from manufacturers or other retailers at a discounted price. Off-price retailers, such as TJ Maxx, Marshalls, and Ross, are known for utilizing opportunistic buying to offer brand-name products at lower prices to customers. Department stores, supermarkets, and specialty stores typically have more structured buying processes and may not rely as heavily on opportunistic buying.

Question 10

The logistics aspect of a value delivery chain is ________.

Accepted Answer

The logistics aspect of a value delivery chain is supply chain management, which involves the coordination and integration of activities such as procurement, transportation, warehousing, and distribution to ensure timely and efficient delivery of products or services to customers. Third-party logistics management, electronic data interchange (EDI), and quick response (QR) inventory management are all important components of supply chain management, but they are not the only aspects.

Question 11

Description buying is most appropriate for ________.

Accepted Answer

Description buying is suitable for standardized, nonbreakable, and nonperishable items. This is because buyers already know what they want and are only looking for the best price and quality among different suppliers.

Question 12

A regular order is characterized by ________.

Accepted Answer

A regular order is a purchase that occurs on a recurring basis and involves a uniform contract with standardized terms. The terms are agreed upon in advance, and there is not a high degree of negotiation on an ongoing basis. Opportunistic buying, which involves taking advantage of short-term opportunities for price discounts, is not typically associated with regular orders.

Question 13

A want book (want slip)is used to record ________.

Accepted Answer

A want book (want slip) is typically used by retail personnel to record customer requests for merchandise that is either out of stock or unstocked. This allows the store to keep track of customer demands and make decisions about restocking or ordering new products. It is not typically used for budget requests or vendor preferences.

Question 14

An example of items that should be evaluated by a retailer by inspection are ________.

Accepted Answer

Antique furniture could potentially have damage or wear that would affect its value and appeal to customers. Inspecting each piece would ensure that the retailer is selling high-quality merchandise. The other options (college textbooks, color televisions, file cabinets) may not require as thorough of an inspection and can be evaluated based on other factors such as price and brand reputation.

Question 15

A purchaser of fine antiques is most likely to evaluate merchandise through ________.

Accepted Answer

A purchaser of fine antiques is likely to evaluate merchandise through inspection, as they need to closely examine the quality, condition, and authenticity of the item before making a purchase decision. Description may not provide enough information, sampling is not feasible in the case of unique antiques, and testing by an independent agency may not be applicable or desirable for such items.

Question 16

Unlike other methods of inventory management,logistics ________.

Accepted Answer

Logistics takes a holistic approach to inventory management and considers it as one of the interdependent elements of a successful supply chain. It focuses on the flow of products and goods from the point of origin to the point of consumption or use, including order processing, transportation, warehousing, and customer service. Minimizing inventory accumulations is one of the objectives of logistics, but not at the cost of compromising customer service levels. Logistics also employs technology to ensure paperless communication and information flow.

Question 17

A logistics system can best be defined as the ________.

Accepted Answer

A logistics system encompasses the entire process of moving goods from a manufacturer to a customer in the most timely, effective, and cost-efficient manner possible. This includes transportation, warehousing, inventory management, and order fulfillment. Option A refers to inventory management, option B refers to a specific technology-driven ordering process, and option D refers to merchandise assortment and cost control.

Question 18

A broad-based approach to supply chain management among a network of trading partners is ________.

Accepted Answer

Collaborative planning, forecasting, and replenishment (CPFR) is a broad-based approach to supply chain management among a network of trading partners. It involves the sharing of information and resources between partners to achieve optimized supply chain operations. Third-party logistics, supply chain management, and electronic data interchange (EDI) are all related concepts but do not encompass the full scope of collaboration among trading partners.

Question 19

A new or special order usually results in a ________.

Accepted Answer

A new or special order typically requires negotiations between the buyer and seller in order to establish the terms of the agreement, resulting in a negotiated contract. A uniform contract is a standardized agreement that is not typically used for unique or customized orders. A new task purchase refers to buying a new product for the first time, but does not necessarily involve negotiations for a specific order. A consignment sale involves the transfer of goods from the owner (consignor) to a seller (consignee) who agrees to sell the goods and pay the consignor a percentage of the proceeds, which is not typically applicable to a new or special order.

Question 20

A retailer can most effectively track consumer purchases through ________.

Accepted Answer

Consumer loyalty programs are designed to track consumer purchases and provide incentives for continued purchases. This allows retailers to analyze consumer behavior and make informed decisions about marketing and product offerings. Panel data, want slips, and want books may also provide information on consumer purchases, but they are not as effective as loyalty programs in tracking individual consumer behavior.

Quiz 15: Implementing Merchandise Plans