Ch 15- supply chain

Sophie made pies and sold them from her food trailer at businesses. This is an example of a(n)

A. direct marketing channel.

B. distribution center.

C. simplified transaction.

D. wholesale operation.

E. indirect marketing channel.

A. direct marketing channel.
Students of marketing often overlook or underestimate the importance of place in the marketing mix simply because

A. it happens behind the scenes.

B. it conflicts with promotion.

C. it occurs after making pricing decisions.

D. no one is directly in charge of place decisions.

E. the product itself is so much more important.

A. it happens behind the scenes.
In marketing’s four Ps, place refers to all activities required to get

A. the design of the terminal location for products accomplished.

B. the right products to the right customer when that customer wants it.

C. access to the physical space within a retail establishment.

D. consumers to the destination.

E. demand chain management functionally operable.

B. the right products to the right customer when that customer wants it.
Dawn works for a firm that buys products directly from the manufacturer and sells them to retailers, who then sell the products to consumers. Dawn works for a

A. retail distribution center.

B. retail jobber.

C. store representative.

D. wholesaler.

E. manufacturer’s representative.

D. wholesaler.
Stores like Home Depot and Costco act as wholesalers when they

A. take delivery in whole-lot quantities.

B. sell directly to consumers.

C. sell products for distributors.

D. sell to contractors or restaurant owners.

E. compete with each other.

D. sell to contractors or restaurant owners.
Naomi knows she has to order her store’s Christmas holiday merchandise in April to ensure delivery before the holiday season. Naomi is concerned with the supply chain management goal of

A. providing products at the right time.

B. providing products at the right locations.

C. providing the right quantities.

D. satisfying the service levels supply chain participants expect.

E. minimizing system-wide costs.

A. providing products at the right time.
Manufacturers use wholesalers and retailers because

A. they have no other choice.

B. they do not cost much.

C. they create value for customers through convenience and cost savings.

D. wholesalers control retailers.

E. most manufacturers are not familiar with logistics.

C. they create value for customers through convenience and cost savings.
Steven managed an auto parts store in the 1990s. At that time, stock-outs—failure to have the parts auto mechanics needed to do their work that day—increased the likelihood of the mechanics becoming customers of competing auto supply stores. To avoid this problem and keep his business customers, Steven most likely

A. canceled orders and shifted the business to competitors.

B. increased promotional outlays to overcome customer dissatisfaction.

C. used exclusive geographic territories to reduce supply chain inefficiencies.

D. stockpiled inventory, adding to the cost of providing auto parts.

E. returned to traditional distribution center logistics.

D. stockpiled inventory, adding to the cost of providing auto parts.
A _______________ is a facility for the receipt, storage, and redistribution of goods to company stores or customers.

A. circulation center

B. distribution center

C. supply chain hub

D. collaborative replenishment office

E. floor-ready franchising center

B. distribution center
A distribution center is typically operated by

A. the marketing department.

B. vertically integrated consumer networks.

C. retailers, manufacturers, or distribution specialists.

D. corporate-government joint ventures.

E. electronic data interchange services.

C. retailers, manufacturers, or distribution specialists.
When a customer purchases a DVD at a Best Buy electronics store, all of the following information flows in the supply chain are started EXCEPT

A. the sales associate scans the UPC recording the sale.

B. the sale is transmitted to Best Buy’s distribution center to adjust inventory data.

C. the purchase is added to the customer’s purchasing habit records.

D. Best Buy’s buyer aggregates sales at all stores and uses the information to send a reorder to the manufacturer.

E. the point-of-sale terminal records the sale and sends it to Best Buy’s buyer.

C. the purchase is added to the customer’s purchasing habit records.
In addition to merchandise and payments, information flows throughout a supply chain. Which of the following is NOT a good characterization of the flow of information in a supply chain?

A. A manufacturer will send and receive information from buyers, stores, and distribution centers.

B. Stores will send and receive information from manufacturers, buyers, distribution centers, and customers.

C. Distribution centers will send and receive information from stores and manufacturers.

D. Customers will send and receive information from stores and manufacturers.

E. Buyers will send and receive information from stores and manufacturers.

D. Customers will send and receive information from stores and manufacturers.
Typically, manufacturers and retailers exchange business documents through a(n) __________ system, the computer-to-computer exchange of business documents from a retailer to a vendor and back.

A. cross-docking exchange

B. electronic data interchange

C. floor-ready bundling

D. vertical conflict reduction

E. radio frequency identification

B. electronic data interchange
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)

A. cross-docking exchange.

B. electronic data interchange system.

C. floor-ready bundling system.

D. vertical conflict reduction system.

E. radio frequency identification system.

B. electronic data interchange system.
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

A. vertical contractual notice.

B. CPFR requirement.

C. advanced shipping notice.

D. universal product code report.

E. RFID tag.

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

A. horizontal contractual notice.

B. vendor-managed inventory alert.

C. advanced shipping notice.

D. universal product code report.

E. CPFR tag.

C. advanced shipping notice.
In vendor-managed inventory systems,

A. corporations send information to retail customers, bypassing wholesalers and retailers.

B. companies send information to cooperatives.

C. customers send information to retailers.

D. manufacturers send sales information to the retailer.

E. retailers send sales information to the manufacturer.

E. retailers send sales information to the manufacturer.
With a pull marketing strategy,

A. orders for merchandise are generated at the store level based on sales data captured at POS terminals.

B. there is a greater likelihood of being overstocked or out of stock than in a push supply system.

C. merchandise is allocated to stores on the basis of demand forecasts.

D. inventory management is less responsive to customer demand.

E. it is more difficult to manage conditions of high uncertainty than in a push supply chain.

A. orders for merchandise are generated at the store level based on sales data captured at POS terminals.
Which of the following is NOT an advantage of using a distribution center?

A. More accurate sales forecasts are possible.

B. Retailers need to keep less merchandise in the store as inventory if the stores get frequent deliveries.

C. It is easier to avoid running out of stock or having too much stock.

D. Use of a distribution center saves money since the storage space at a distribution center is generally less expensive than that of a store.

E. Customers know they are dealing with a more sophisticated and financially well-off operation if the firm uses a distribution center.

E. Customers know they are dealing with a more sophisticated and financially well-off operation if the firm uses a distribution center.
Which of the following is NOT one of the activities carried on in a distribution center?

A. Coordinating inbound transportation

B. Receiving, checking, storing, and cross-docking

C. Distributing paychecks and paystubs for retail employees

D. Getting merchandise floor ready

E. Coordinating outbound transportation

C. Distributing paychecks and paystubs for retail employees
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.

A. checking

B. dispatching

C. receiving

D. JIT

E. quick response

A. checking
Radio frequency identification tags are

A. selective distribution designs used to maximize geographic efficiency.

B. electronic discount information tags used to provide reduced prices to select customers.

C. CPFR demand scheduling data tags.

D. tiny computer chips that transmit information about a container’s contents.

E. information tags used for floor-ready merchandising.

D. tiny computer chips that transmit information about a container’s contents.
__________ is when vendors ship merchandise prepackaged in the quantity required for each store to the distribution center.

A. Traditional shipping

B. Vertical merchandising

C. Combination warehousing

D. Cross-docking

E. Horizontal merchandising

D. Cross-docking
In a __________ distribution center, merchandise moves from vendors’ trucks to retailers’ delivery trucks in a matter of hours.

A. traditional

B. combination

C. cross-docking

D. vertical

E. horizontal

C. cross-docking
Merchandise that arrives in the delivery truck ready to be sold is considered

A. quick-response packaged.

B. ahead of the curve.

C. lead time synchronized.

D. floor-ready.

E. synthesized.

D. floor-ready.
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 __________ shipment.

A. quick-response packaged

B. ahead of the curve

C. lead time synchronized

D. floor-ready

E. synthesized

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

A. floor-ready

B. flattened

C. lead time synchronized

D. aggregated

E. synthesized

A. floor-ready
Getting merchandise floor-ready entails

A. distributing and dispatching.

B. ticketing and marking.

C. vertical supply chain wholesaling.

D. intensive cross-docking.

E. selective checking.

B. ticketing and marking.
Retailers often perform ticketing and marking functions in their distribution centers rather than in their retail stores because ticketing and marking is often

A. the responsibility of the dispatcher.

B. too complex for sales personnel to manage.

C. done in conjunction with supply chain promotional allowances.

D. the responsibility of the logistics department and not the marketing department.

E. inefficient and expensive.

E. inefficient and expensive.
Each time a politician or celebrity writes a book, bookstores can expect at least some customers to want the book, but whether it will become a bestseller is less certain. The bookstore’s primary inventory management challenge is

A. how to get the author to sign copies of the book.

B. whether to price the books in the distribution center or at the retail store.

C. which other books to promote along with this book.

D. whether to display the book at the checkout counter.

E. having enough books to satisfy customer demands versus the cost of having the inventory.

E. having enough books to satisfy customer demands versus the cost of having the inventory.
In retailing, a just-in-time delivery system is called a _____________ system.

A. cross-docking

B. quick response

C. UPC

D. CPFR

E. lead time

B. quick response
______________ systems are designed to deliver smaller shipments of merchandise on a more frequent basis to retailers.

A. Cross-docking

B. UPC

C. JIT

D. CPFR

E. Lead time

C. JIT
At the BMW plant in Spartanburg, South Carolina, suppliers deliver parts every four hours when the plant is in operation and are responsible for removing any packaging or pallets used to deliver their products. BMW uses a ______________ inventory control system.

A. cross-docking

B. lead time

C. JIT

D. CPFR

E. UPC

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

A. organize cooperative agreements among competing manufacturers to reduce oversupply.

B. reduce inventories needed to satisfy retailers’ demand.

C. use exclusive geographic territories to centralize production.

D. effectively eliminate the need for a dispatcher.

E. replace independent supply chains with corporate supply chains.

B. reduce inventories needed to satisfy retailers’ demand.
Especially in the fashion industry where styles and trends change rapidly, a quick response system can

A. allow retailers to better forecast long-term demand.

B. reduce logistical overlay.

C. increase cross-docking promotional effectiveness.

D. align deliveries more closely with actual sales.

E. allow manufacturers to introduce unpopular styles and still be successful.

D. align deliveries more closely with actual sales.
The basic motivating factor in designing supply chains is that

A. collaboration creates transactional relationships.

B. the most powerful member of the supply chain always wins.

C. each party wants something from the others.

D. the participants must create the best possible EDI system.

E. retail floor salespeople need emotional support from management.

C. each party wants something from the others.
Although conflict is likely to occur in any supply chain, it is generally more pronounced when

A. the supply chain members are geographically too close to each other.

B. manufacturers pressure retailers.

C. retailers pressure manufacturers.

D. the supply chain members are independent entities.

E. the economy is booming.

D. the supply chain members are independent entities.
Yesterday, Lorinda overheard a surprisingly unpleasant encounter between the manager of the hardware store where she works and a sales rep who sells a well-known line of tools. The rep insisted that his tools should be more prominently displayed and that a better assortment would mean more sales. The manager had other plans and told him so, and the conversation turned into a loud argument. What Lorinda observed was an example of

A. sales tactics.

B. channel conflict.

C. retail strategy tension.

D. passive aggressive behavior.

E. a failure of CPFR processes.

B. channel conflict.
In a(n) __________ marketing channel, none of the participants has any control over the others.

A. cooperative

B. corporate

C. contractual

D. administered

E. conventional

E. conventional
In an administered vertical marketing system,

A. no individual participant has control over the others, since a third party administrator oversees the entire supply chain.

B. transaction selling is the norm, with the invisible hand guiding the overall functioning.

C. there is no common ownership, and the dominant member has significant power to impose its ideas and objectives.

D. independent firms join together formally to decide as a group how the marketing channel will operate.

E. participants—such as warehouses, transportation companies, and retail outlets—are typically owned by a parent company to ensure harmonious relations throughout the supply chain.

C. there is no common ownership, and the dominant member has significant power to impose its ideas and objectives.
Franchising involves a(n) __________ vertical marketing system.

A. cooperative

B. corporate

C. contractual

D. administered

E. conventional

C. contractual
In a corporate vertical marketing system,

A. conflict tends to be a major problem.

B. transaction selling is the norm, with the invisible hand guiding the overall functioning.

C. there is no common ownership, and the dominant member has significant power to impose its ideas and objectives.

D. independent firms join together formally to decide how the marketing channel will operate.

E. participants—such as warehouses, transportation companies, and retail outlets—are typically owned by a parent company to ensure harmonious relations throughout the supply chain.

E. participants—such as warehouses, transportation companies, and retail outlets—are typically owned by a parent company to ensure harmonious relations throughout the supply chain.
Felicia had just taken over her family’s business after spending ten years in the marketing department of a large corporation. She met with a representative from one of her firm’s biggest customers, who told her, “We should think about how we can make the pie bigger rather than fighting over the size of the slices.” She had expected a more cutthroat approach rather than this call for a

A. partnering relationship.

B. shared mission statement.

C. common marketing system.

D. corporate vertical marketing system.

E. linked supply chain.

A. partnering relationship.
Which of the following is NOT required to build a successful strategic relationship?

A. mutual trust

B. open communications

C. creation of a joint venture

D. common goals

E. credible commitments

C. creation of a joint venture
If a firm declared that it wanted to develop a strategic relationship, but was unwilling to commit funds or any effort to make it succeed, there would be an obvious lack of

A. mutual trust.

B. common goals.

C. a contractual arrangement.

D. credible commitments.

E. open communication.

D. credible commitments.
TT Toys manufactures toys. The company recently started buying paint for its toys from a Chinese firm. This Chinese company is part of TT Toys’

A. supply chain.

B. corporate vertical marketing system.

C. distribution center.

D. CFPR.

E. voluntary chain.

A. supply chain.
A(n) __________ is the set of institutions that transfer the ownership of and move goods from the point of production to the point of consumption.

A. marketing channel

B. distribution center

C. logistics chain

D. strategic relationship

E. electronic data interchange

A. marketing channel
Which of the following is a TRUE statement about distribution centers?

A. They enable retailers to carry less merchandise in individual stores.

B. Distribution center space is typically more expensive than retail space.

C. They are appropriate for all retailers, from the largest to the smallest.

D. They are the quickest way to get all products to retailers.

E. They always involve a pull marketing strategy.

A. They enable retailers to carry less merchandise in individual stores.
A(n) __________ is a supply chain whose members act like a unified system.

A. vertical marketing system

B. independent marketing system

C. concentrated marketing system

D. conventional marketing system

E. strategic marketing system

A. vertical marketing system
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

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

A. UPC

B. CFPR

C. pick ticket

D. ASN

E. EDI

A. UPC
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

A. floor-ready
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

B. reward
________ 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

E. Legitimate
When the 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

A. coercive
The most common type of contractual vertical marketing system is a

A. wholesaler.

B. joint venture.

C. licensing arrangement.

D. partnership.

E. franchise.

E. franchise.
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

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

A. UPC

B. POS terminal

C. aggregate

D. ASN

E. data warehouse

B. POS terminal
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.

C. vendor-managed inventory.
With a _______ marketing strategy, there is less likelihood of being overstocked or out of stock because the store orders merchandise as needed on the basis of consumer demand.

A. consignment

B. push

C. vendor-managed

D. manufacturer-managed

E. pull

E. pull