Question 1

In a __________ distribution center,merchandise moves from vendors' trucks to retailers' delivery trucks in a matter of hours.

Accepted Answer

Cross-docking is a logistics strategy in which goods are directly transferred from incoming trucks to outbound trucks, with minimal handling and storage time in between. This allows for faster and more efficient distribution of goods, which is ideal for fast-moving products or perishables.

Question 2

At the BMW plant in Spartanburg,South Carolina,rather than use a typical order-to-delivery process,it has suppliers deliver parts every four hours when the plant is in operation.BMW uses a ______ inventory control system.

Accepted Answer

Just-in-time (JIT) inventory control involves suppliers delivering parts to a manufacturing facility exactly when they are needed in the production process. This approach helps to reduce inventory costs and improve efficiency by minimizing the amount of excess inventory on hand. By having suppliers deliver parts every four hours during plant operation, BMW is utilizing a JIT system. Cross-docking, lead time, pick ticket, and UPC are different inventory management concepts and do not accurately describe BMW's approach.

Question 3

H&M has adopted the inventory management system that delivers less merchandise on a more frequent basis than in traditional inventory systems.The firm gets the merchandise just in time for it to be used in the manufacture of another product or for sale when the customer wants it.This is an example of a ___________ inventory system.

Accepted Answer

The description matches the characteristics of a quick response (QR) inventory system, which aims to minimize inventory holding costs by delivering merchandise just in time for it to be used in production or for sale to customers. Cross-docking, UPC, EDI, and lead time refer to other aspects of inventory management that are not directly related to the description provided.

Question 4

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 best-seller is less certain.The bookstore's primary inventory management challenge is

Accepted Answer

The primary inventory management challenge for the bookstore is to have enough copies of the book to satisfy customer demand without incurring excessive costs for inventory. Pricing, book promotion, and display decisions are important, but they rely on having sufficient stock of the book in the first place. Getting the author to sign copies of the book is a marketing strategy, not an inventory management challenge.

Question 5

All of the following are activities carried on in a distribution center except

Accepted Answer

Distributing paychecks and paystubs for retail employees is a human resources function that would typically be carried out at a corporate office or on-site at individual retail locations. It is not typically a function of a distribution center.

Question 6

Ted is glad his company finally converted to an RFID system.Now,he no longer needs to go through all the new goods to make sure what they ordered was what they received.Ted is responsible for __________ in his company.

Accepted Answer

The answer of Ted is glad his company finally converted...

Question 7

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

Accepted Answer

"Floor-ready" means that the merchandise is designed and packaged in a way that allows it to be placed directly on the store floor without additional preparation or marking. This would eliminate the need for the retailer to spend time and money on ticketing and marking the merchandise themselves.

Question 8

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

Accepted Answer

JIT systems allow manufacturers to produce goods closer to the time of sale, which reduces the need for excess inventory. With less inventory, manufacturers are better able to meet retailers' demand without carrying excess stock. This reduces costs related to storage and can improve overall efficiency.

Question 9

Getting merchandise floor-ready entails

Accepted Answer

Getting merchandise floor-ready involves preparing the products for display and sale, which includes ticketing and marking them appropriately with prices, product information, and sizing information. The other options are not directly related to this task.

Question 10

Flora is frustrated with her company's supply chain management information system.She wants to be able to receive sales data,initiate purchase orders,send and receive invoices,and receive returned merchandise documentation.Flora needs a(n)

Accepted Answer

Flora needs an electronic data interchange system (EDI) which allows for the exchange of business documents electronically between different companies. This system enables her to receive sales data, initiate purchase orders, send and receive invoices, and receive returned merchandise documentation. EDI improves the efficiency of supply chain transactions by reducing the need for paper-based processes and enhancing accuracy and speed of information exchange.

Question 11

Today,when a customer orders merchandise from an online vendor,the vendor usually sends an immediate order confirmation message by e-mail.Usually within a day or two,a second message arrives stating that the order is in the mail.This second message is a type of

Accepted Answer

The second message that arrives stating that the order is in the mail is an example of an advanced shipping notice. This notice provides customers with information about their shipment, including the carrier, tracking number, and expected delivery date. It helps to improve customer satisfaction by keeping them informed about the status of their order.

Question 12

Roland has just received notification from a vendor that his clothing merchandise order has been processed and dispatched.Roland has just received a(n)

Accepted Answer

An advanced shipping notice (ASN) is a notification that is sent by a vendor or supplier to a customer to let them know that a shipment has been processed and is on its way. It provides the customer with details about the shipment, such as what items are included and when they can expect to receive them. This enables the customer to plan ahead and make necessary arrangements for receiving the shipment.

Question 13

Which of the following is true regarding the ticketing and marking process?

Accepted Answer

Performing ticketing and marking activities at a distribution center rather than in stores is more efficient because it centralizes the process, reduces handling time, and ensures products are floor-ready upon arrival at the stores.

Question 14

__________ is when vendors ship merchandise prepackaged in the quantity required for each store to the distribution center.

Accepted Answer

Cross-docking involves vendors shipping merchandise prepackaged in the quantity required for each store to the distribution center without the need for intermediate storage. This allows for faster and more efficient delivery to stores, reducing inventory and handling costs.

Question 15

Colin has just received a delivery from the company's distribution center.He opens the containers and finds the popcorn and snacks are all bar-coded and priced and the package includes an end-of-the-aisle display rack.Colin has received a(n)__________ shipment.

Accepted Answer

The description of the shipment, which includes bar-coded and priced products and an end-of-the-aisle display rack, suggests that the shipment is floor-ready.

Question 16

Forever 21 has adopted an inventory system that reduces the amount of time between the recognition that an order needs to be placed and the arrival of the needed merchandise at the seller's store,available for sale.This increases product availability and lowers inventory investment.These benefits are attributed to the _______ system.

Accepted Answer

The description provided in the question is a characteristic of just-in-time inventory management system, which focuses on having the right quantity of inventory at the right time to meet customer demand while minimizing inventory holding costs. Cross-docking, UPC, EDI, and vendor-managed inventory can be helpful in inventory management, but they do not necessarily address the specific benefits mentioned in the question.

Question 17

In vendor-managed inventory systems,

Accepted Answer

In vendor-managed inventory systems, retailers send sales information to the manufacturer. This enables the manufacturer to monitor inventory levels and replenish stock as needed, without the retailer having to place orders. This system helps to streamline the supply chain and reduce inventory costs for both parties.

Question 18

All of the following are advantages of using a distribution center except

Accepted Answer

The advantages listed in options A, B, C, and D are all typically associated with the use of a distribution center. Option E, however, is not actually an advantage of using a distribution center, but rather a subjective perception that customers may have about the company. Therefore, option E is the correct answer as it does not relate to a tangible benefit of using a distribution center.

Question 19

Radio frequency identification tags are

Accepted Answer

Radio frequency identification tags (RFID) are tiny computer chips that transmit information using radio waves. They can be attached to containers or products to track their movement and provide data about their contents.

Question 20

Walmart's customers have come to expect to find P&G products in stores,and P&G depends on Walmart to purchase a good portion of its output to sell to its own customers.This scenario represents the first phase of a

Accepted Answer

This scenario represents a vertical marketing system, where P&G depends on Walmart to distribute and sell its products to end consumers. Walmart acts as a dominant channel member and exercises control over P&G's distribution strategy.

Quiz 16: Supply Chain and Channel Management