Question 1

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 stands for Universal Product Code, and it is a standardized barcode used to track inventory in retail stores. The code consists of 12 digits and a check digit, allowing for accurate tracking of products throughout the supply chain.

Question 2

________ power is based on getting a channel member to behave in a certain way because of a contractual agreement.
A) Coercive
B) Reward
C) Referent
D) Expertise
E) Legitimate

Accepted Answer

Legitimate power is based on a contractual agreement or a formal position held within the channel member organization. It is the power to influence others based on one's legitimate status or position within an organization.

Question 3

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) systems allow for real-time electronic communication of business transactions between companies. By implementing an EDI system in its JIT (just-in-time) system, Chocolate Tree would be able to quickly and efficiently communicate merchandise orders with its suppliers, reducing lead time and improving the overall efficiency of its supply chain.

Question 4

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, the retailer is able to restock and have more of what customers want available for purchase.

Question 5

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) is responsible for recording the purchase information and electronically sending it to the corporate office. The UPC (Universal Product Code) is a barcode used for product identification, VMI (Vendor Managed Inventory) is a supply chain model in which the supplier manages the inventory levels of their product at the retailer's location, ASN (Advanced Shipping Notice) is a document that details the contents of an incoming shipment, and a data warehouse is a database used for storing and analyzing large amounts of data.

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 deliveries, making the logistics function more complex. This is because the system relies on just-in-time delivery of goods and materials, and any delay or error in delivery can disrupt the entire production process.

Question 7

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 indicates that the manufacturer is responsible for managing the inventory of the store, which is an example of vendor-managed inventory. This helps to reduce stockouts while minimizing the inventory held by the store.

Question 8

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

To implement a just-in-time delivery system, manufacturers need to know the customer demand so that they can deliver products as and when they are required. Without this knowledge, it would be difficult to plan and execute deliveries efficiently. While routing software, shipping schedules, distribution center design, and intensive distribution are all important components of a just-in-time system, they can only be effective if there is a clear understanding of customer demand.

Question 9

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

Just-in-time inventory management systems require frequent and reliable transportation of goods to ensure that inventory levels remain low, which increases transportation costs.

Question 10

The most common type of contractual vertical marketing system is a
A) wholesale agreement.
B) joint venture.
C) licensing arrangement.
D) partnership.
E) franchise.

Accepted Answer

The most common type of contractual vertical marketing system is a franchise. A franchise is an agreement in which a company allows another party to use its name, products, and processes in exchange for a fee and ongoing royalties. The franchisee operates its business in accordance with the franchisor's guidelines and is subject to certain restrictions and obligations. This is a popular form of vertical marketing system as it allows for the distribution of goods and services with a consistent brand and quality across multiple locations.

Question 11

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 products that are ready to be placed on the store floor for customers. This includes products that have already been tagged, hanged, and packaged in a way that is visually appealing to customers. Therefore, Cynthia's Boutique receives floor-ready merchandise.

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 that retailers can receive products closer to the time they are needed, which reduces the need to have large stockpiles of inventory on hand. This can also reduce the costs associated with holding inventory and the risk of running out of stock.

Question 13

From a retailer's perspective,a(n)_______ is helpful in order to know exactly what will arrive in a particular shipment from a supplier.
A) ASN
B) EDI
C) UPC
D) VMI
E) RFID

Accepted Answer

An ASN (Advanced Shipping Notice) is a document sent from a supplier to a retailer that provides detailed information about an upcoming shipment, including the contents of the shipment, the quantity of each item, and the expected delivery date. This information is valuable to retailers because it allows them to prepare for incoming inventory and plan for restocking.

Question 14

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 is defined as the time between the decision to place an order and the receipt of the merchandise. EDI can help reduce this time by streamlining the communication and exchange of data between trading partners, allowing orders to be processed and fulfilled more quickly.

Question 15

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 refers to the amount of time it takes for an order to be fulfilled and for the merchandise to arrive. By implementing an electronic data interchange, Carmella's gift shop was able to reduce the lead time, meaning they could receive the merchandise they needed in a shorter amount of time.

Question 16

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 refers to the amount of time it takes for the merchandise to arrive after an order is placed.

Question 17

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, which is the ability to punish, penalize or threaten others to make them do things they don't want to do.

Question 18

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 a forklift driver or picker to indicate how much of each item to get from specific storage areas. It usually includes the product name, quantity, and location of the items in the warehouse. The pick ticket helps ensure that the right products are picked in the correct quantities and that they are delivered to the right location.

Question 19

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 Chicken Shack is offering a special bonus to incentivize its distributors to change their delivery schedules, indicating that it has the power of reward.

Question 20

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 success as intricately linked or interdependent, they recognize that each member's success is tied to the success of the entire supply chain. This promotes collaboration, trust, and a long-term perspective, leading to deeper and more effective relationships among supply chain members.

Quiz 16: Supply Chain and Channel Management

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

________ power is based on getting a channel member to behave in a certain way because of a contractual agreement.

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

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.

While JIT systems have many benefits,they

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

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

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.

The most common type of contractual vertical marketing system is a

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

Shorter lead times allow retailers

From a retailer's perspective,a(n) _______ is helpful in order to know exactly what will arrive in a particular shipment from a supplier.

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

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.

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

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

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