Question 1

Walmart may have _________ power if a supplier desperately wants to be associated with Walmart,because being known as an important Walmart supplier enables that supplier to attract other retailers' business.
A) referent
B) legitimate
C) licensing arrangement.
D) information
E) coercive

Accepted Answer

Referent power is based on the desire to be associated with or identified with a person or organization. In this case, a supplier wanting to be associated with Walmart to attract other business demonstrates referent power.

Question 2

Because Walmart has vast information about the consumer goods market,it might exert ___________ power over P&G by providing or withholding important market information.
A) coercive
B) reward
C) referent
D) legitimate
E) information

Accepted Answer

Walmart's power in this situation would be information power, as they possess knowledge and data about the market that could be valuable to P&G. Coercive power would involve the ability to punish or harm, reward power involves providing benefits, referent power involves being admired or respected, and legitimate power involves authority or formal positions.

Question 3

When supply chain members view their goals and ultimate success as intricately linked,or ________,they develop deeper long-term relationships.
A) conventional
B) vertical
C) horizontal
D) administered
E) interdependent

Accepted Answer

When supply chain members view their goals and ultimate success as intricately linked or interdependent, they develop deeper long-term relationships. This means that each member of the supply chain recognizes that their success is tied to the success of the other members, and they work together to achieve common goals. This creates a sense of trust and collaboration, which results in stronger relationships and better outcomes for everyone involved.

Question 4

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 _______ costs.
A) sales force labor
B) transportation
C) promotional
D) advertising
E) new product development

Accepted Answer

JIT inventory management systems require frequent and timely deliveries from suppliers which can increase transportation costs.

Question 5

When Cynthia's Boutique receives dresses,they already have price tags and are on hangers.Cynthia's Boutique receives __________ merchandise.
A) floor-ready
B) repurposed
C) just-in-time
D) quick response
E) horizontal channel

Accepted Answer

Floor-ready merchandise refers to goods that are ready to be sold immediately upon arrival because they have already been processed, tagged, and hanged. This is the type of merchandise that Cynthia's Boutique receives. Repurposed merchandise refers to used or recycled goods that have been transformed into something new. Just-in-time, quick response, and horizontal channel are all supply chain management strategies that do not apply to Cynthia's Boutique's merchandise receiving process.

Question 6

While JIT systems have many benefits,they
A) make the logistics function more complicated.
B) interfere with new product development functions.
C) confuse customers.
D) work only in vertical marketing systems.
E) decrease the accuracy of demand forecasts.

Accepted Answer

JIT systems require precise coordination and timing of logistics and supply chain activities, which can increase complexity.

Question 7

When Joe's Chicken Shack wants chicken delivered in smaller batches more frequently,it offers its distributors an incentive in the form of special bonuses to change their schedules.Joe's demonstrates which kind of power?
A) coercive
B) reward
C) referent
D) expertise
E) information

Accepted Answer

Joe's is demonstrating reward power by offering special bonuses to incentivize its distributors to change their delivery schedules.

Question 8

When her company's dry goods deliveries were late for the third time,Melissa withheld payment from her supplier until it was back on schedule.This is an example of ________ power.
A) coercive
B) reward
C) referent
D) expertise
E) legitimate

Accepted Answer

Withholding payment is an example of coercive power, where Melissa is using her power to punish or harm the supplier for not meeting her expectations.

Question 9

With more frequent shipments associated with quick response (QR)systems,a retailer is
A) likely to have lower shipping costs.
B) more likely to add extra floor-ready merchandise.
C) less likely to use radio frequency identification tags.
D) more likely to engage in predatory pricing behavior.
E) more likely to have what customers want.

Accepted Answer

With more frequent shipments associated with quick response (QR) systems, a retailer is more likely to have what customers want. QR systems allow retailers to quickly respond to changes in demand and restock popular items, leading to increased customer satisfaction and likelihood of repeat business.

Question 10

In a retail supply chain,the ________ records the purchase information and electronically sends it to the corporate office.
A) UPC
B) POS terminal
C) VMI
D) ASN
E) data warehouse

Accepted Answer

The POS terminal (Point of Sale terminal) is the device used at the checkout counter in a retail store to record the purchase information and electronically send it to the corporate office. It captures data such as the items purchased, their prices, and the quantities sold. The data transmitted from the POS terminal is used for inventory management, order fulfillment, and sales analysis.

Question 11

After installing an electronic data interchange,Carmella's gift shop 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.
A) quick time
B) the advance notice
C) lead time
D) float time
E) supply chain conflict time

Accepted Answer

Lead time is the amount of time it takes from recognizing the need to place an order to the arrival of the merchandise. The installation of an electronic data interchange helps in reducing the lead time.

Question 12

Shorter lead times allow retailers
A) access to a more diverse supply chain.
B) to reduce the need for pick tickets.
C) to skip advanced shipping notices.
D) to replace JIT systems with VMI systems.
E) to reduce the needed level of inventories.

Accepted Answer

Shorter lead times mean products can be delivered closer to when they are needed, reducing the need for retailers to keep high levels of inventory in their warehouses. This can lead to significant cost savings for the retailer.

Question 13

The local auto supply store gets merchandise delivered to it by its manufacturers as soon as it has a need,reducing stockouts with minimal inventory.This demonstrates the concept of
A) data warehousing.
B) a push marketing strategy.
C) vendor-managed inventory.
D) manufacturer-managed distribution.
E) cross-docking.

Accepted Answer

The scenario described is a clear example of vendor-managed inventory, where the supplier takes responsibility for monitoring and maintaining the inventory levels of the retailer. This helps to reduce inventory holding costs for the retailer, as well as minimize stockouts.

Question 14

A(n)__________ is a 13-digit code retailers can use to track inventory.
A) UPC
B) CFPR
C) pick ticket
D) ASN
E) EDI

Accepted Answer

UPC (Universal Product Code) is a 13-digit code that is used to identify products and track inventory in retail operations.

Question 15

After installing a(n)_______ in its JIT system,Chocolate Tree (a retail chocolate store)was able to reduce lead time for merchandise orders.
A) supply chain
B) distribution center
C) quick change directory
D) electronic data interchange system
E) checking system

Accepted Answer

Electronic data interchange (EDI) system is a computer-based system used by businesses to exchange documents and data electronically between different companies. By installing an EDI system in its JIT (Just-in-Time) system, Chocolate Tree can quickly exchange order information with its suppliers, reducing lead time for merchandise orders. This helps the company keep inventory levels low and respond quickly to changes in customer demand, improving its overall efficiency and competitiveness.

Question 16

When Walmart promises to purchase larger quantities if a manufacturer will lower its wholesale price,it is exhibiting ________ power.
A) reward
B) coercive
C) knowledge
D) legitimate
E) referent

Accepted Answer

Walmart is offering a reward or incentive to the manufacturer by promising to purchase larger quantities if they lower the wholesale price. This is an example of reward power. Coercive power involves the use of threats or punishment to influence behavior, knowledge power involves having access to specialized knowledge or information, legitimate power involves authority or position of power, and referent power involves personal charisma or admiration.

Question 17

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 to be available for sale is referred to as
A) quick time.
B) an advanced shipping notice.
C) lead time.
D) float time.
E) supply chain conflict time.

Accepted Answer

Lead time encompasses the entire process from recognizing the need to place an order to the arrival of the merchandise at the seller's store, including production, transportation, and other factors that impact the time it takes to get the product to the store. A is not a common term in supply chain management, B refers specifically to the notification of a shipment, and D and E are not industry terms.

Question 18

Manufacturers trying to implement a just-in-time delivery system need to start with
A) routing software.
B) shipping schedules.
C) distribution center design.
D) knowledge of customer demand.
E) intensive distribution.

Accepted Answer

The success of a just-in-time delivery system is heavily dependent on knowing and predicting customer demand accurately. Without this knowledge, it is not possible to plan schedules or determine the appropriate inventory levels needed to fulfill orders. Therefore, manufacturers need to start with gathering and analyzing data on customer demand before any other factors such as routing software or distribution center design can be considered.

Question 19

A(n)__________ is a document used by a forklift driver indicating how much of each item to get from specific storage areas.
A) pick ticket
B) warehouse receipt
C) bill of lading
D) certificate of origin
E) RFID tag

Accepted Answer

A pick ticket is a document used by forklift drivers and warehouse personnel to locate items and determine the quantity of each item to be moved or picked from specific storage locations within the warehouse.

Question 20

One of the benefits of EDI is that it can reduce lead time,which is
A) the time between the decision to place an order and the receipt of the merchandise.
B) the time from when an RFP is announced to the time a consumer purchases the finished product.
C) the time from when funds are committed for purchase of raw materials to the time when the payment for the finished goods is actually received.
D) the time between when finished goods leave the manufacturer until the time they arrive, floor-ready, at the retailer.
E) the time between when an item is sold to a customer and when a replacement is made available for purchase by another customer.

Accepted Answer

Lead time refers to the time between the decision to place an order and the receipt of the merchandise. EDI can reduce this time by enabling automated and streamlined communication between trading partners, which can speed up the order process and reduce manual errors and delays.

Quiz 16: Supply Chain and Channel Management

Walmart may have _________ power if a supplier desperately wants to be associated with Walmart,because being known as an important Walmart supplier enables that supplier to attract other retailers' business.

Because Walmart has vast information about the consumer goods market,it might exert ___________ power over P&G by providing or withholding important market information.

When supply chain members view their goals and ultimate success as intricately linked,or ________,they develop deeper long-term relationships.

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 _______ costs.

When Cynthia's Boutique receives dresses,they already have price tags and are on hangers.Cynthia's Boutique receives __________ merchandise.

While JIT systems have many benefits,they

When Joe's Chicken Shack wants chicken delivered in smaller batches more frequently,it offers its distributors an incentive in the form of special bonuses to change their schedules.Joe's demonstrates which kind of power?

When her company's dry goods deliveries were late for the third time,Melissa withheld payment from her supplier until it was back on schedule.This is an example of ________ power.

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

In a retail supply chain,the ________ records the purchase information and electronically sends it to the corporate office.

After installing an electronic data interchange,Carmella's gift shop 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.

Shorter lead times allow retailers

The local auto supply store gets merchandise delivered to it by its manufacturers as soon as it has a need,reducing stockouts with minimal inventory.This demonstrates the concept of

A(n) __________ is a 13-digit code retailers can use to track inventory.

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

When Walmart promises to purchase larger quantities if a manufacturer will lower its wholesale price,it is exhibiting ________ power.

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 to be available for sale is referred to as

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

A(n) __________ is a document used by a forklift driver indicating how much of each item to get from specific storage areas.

One of the benefits of EDI is that it can reduce lead time,which is