BAS 282: Supply Chain and Channel Management: SmartBook

From the following list, select the three supply chain strategies.

* Pull * Push * Pull-Push

Which aspect of logistics allows companies to market goods to greater distances, helping companies build global supply chains and compete in new markets?

Transportation

Members of an integrated supply chain benefit from ______ that coordinates the activities across the supply chain in a manner that improves the entire chain's ______.

a relationship-based strategy; performance

A set of three or more companies linked by one or more of the upstream and downstream flows of products, services, finances, and information from source to consumer is referred to as ______.

a supply chain

In a distribution center, available goods are picked to fill customer orders under the product __________ function.

allocation

Which of the following statements about logistics is true?

It is the management of the physical flow of materials, parts, and products within a supply chain.

Which aspect of logistics involves the inbound movement and storage of materials in preparation for those materials to enter and flow through the manufacturing process?

Materials management

A major disadvantage of a pull strategy is that ______.

it requires a production facility that can change quickly to produce different products

Supply chain orientation is a type of ______ that requires marketers to adopt an outward focus on the activities and performance of other firms.

management philosophy

Wholesalers are similar to grocery stores, except wholesalers ______.

sell to other businesses

Accessibility, speed, capacity, cost, service, and international capabilities are all considerations for choosing a(n) __________ mode.

transportation

A firm that buys large quantities of goods from various producers or vendors, warehouses them, and resells them to retailers or other businesses is a(n) __________.

wholesaler

Select all of the true statements concerning distribution centers.

* A distribution center is owned by a company that is engaged in gathering and selling products to end customers. * Distribution centers are essential to the order fulfillment process, as they speed delivery of goods and minimize costs. * Distribution centers are specialized buildings designed to store and send finished goods to customers.

Select all of the following statements that are true concerning the functions of distributors.

* A distributor buys large quantities of goods from a producer, warehouses them, and resells them. * Distributors usually only sell products for a single manufacturer or for a set of companies that are not in competition with each other.

Select all of the traits of using trucks for transportation. Multiple select question.

* Accessible * Reliable * Cheap

Select all of the benefits of supply chain integration.

* Businesses can reduce costs and make better use of resources. * Firms are better able to overcome obstacles of time and distance. * Companies are better able to predict and stay on top of demand.

Select all of the ways that supply chains provide value to a company.

* By streamlining processes to reduce production costs * By enabling better logistics

One disadvantage of the push strategy is that, due to inaccurate sales forecasts, firms may end up with excess inventory. From the following list, select all of the reasons why this is considered a liability.

* Carrying excess inventory is expensive. * Products may become outdated if they are warehoused for extended periods.

Select all of the factors a company should take into consideration when designing a distribution center.

* Inventory levels * Customer service * Operating Expenses * Transportation costs

From the following list, select all of the advantages of a push-pull strategy.

* It allows flexibility in manufacturing. * It usually enables firms to achieve economies of scale.

From the following list, select all of the advantages of a pull strategy.

* It is ideal for product customization. * It typically reduces inventory carrying costs. * It allows firms to respond quickly to changing market conditions.

From the following list, select all of the advantages of a push strategy.

* It usually enables firms to achieve economies of scale. * It typically reduces the costs associated with manufacturing, transportation, and the like.

Drag each description to the corresponding function of a distribution center. No items may be used more than once.

* Product Accumulation - Choice, Receiving goods from various suppliers, storing the goods until they are ordered, and consolidating orders to achieve transportation economies of scale Receiving goods from various suppliers, storing the goods until they are ordered, and consolidating orders to achieve transportation economies of scale * Product Sortation - Choice, Gathering goods with similar characteristics in one area of the distribution center to facilitate proper inventory controls and effectively provide customer service Gathering goods with similar characteristics in one area of the distribution center to facilitate proper inventory controls and effectively provide customer service * Product Allocation - Choice, Picking available goods to fill customer orders Picking available goods to fill customer orders * Product Assortment - Choice, Mixing goods from multiple suppliers into outgoing orders so that each order includes a variety of goods rather than just one type of good Mixing goods from multiple suppliers into outgoing orders so that each order includes a variety of goods rather than just one type of good

Drag each set of pros and cons to the corresponding method of transportation. No items may be used more than once.

* Rail - Choice, Pros include transporting a variety of goods in large quantities at low cost. Cons include the potential for damage and inconsistent service. Pros include transporting a variety of goods in large quantities at low cost. Cons include the potential for damage and inconsistent service. * Trucks - Choice, Pros include being accessible, reliable, and fast. Cons include the high cost and limited capacity. Pros include being accessible, reliable, and fast. Cons include the high cost and limited capacity. * Air - Choice, Pros include speed and being perfect for fragile and expensive goods. Cons include the high cost and limited accessibility. Pros include speed and being perfect for fragile and expensive goods. Cons include the high cost and limited accessibility. * Water - Choice, Pros include low cost and high capacity. Cons include a slow pace and often being weather-dependent. Pros include low cost and high capacity. Cons include a slow pace and often being weather-dependent. * Pipeline - Choice, Pros include being highly efficient and having a low cost. Cons include it being able to only carry a few types of products. Pros include being highly efficient and having a low cost. Cons include it being able to only carry a few types of products. * Digital - Choice, Pros include its low cost and instant delivery. Cons include the inability to transport physical goods. Pros include its low cost and instant delivery. Cons include the inability to transport physical goods.

Drag each description to the corresponding aspect of the logistics process. No items may be used more than once.

* Transportation - The movement of goods to help firms build a supply and compete globally. * Inventories - Goods used to meet supply and demand. * Purchasing - The procurement of materials, parts, and services. * Materials Management - Inbound movement and storage of materials prior to the manufacturing process. * Warehousing - The storage of both materials and finished goods.

From following list, select all of the choices that explain the role of transportation in the logistics process.

* Transportation greatly influences the entire supply chain. * Transportation lets companies reach markets around the world. * Good transportation management makes value that is important for keeping customers happy.

Select all of the choices that accurately complete the following sentence. Logistics is the process of moving ______ from their point of origin to the final customer.

* information * goods * services

Which of the following is an accurate description of a retailer?

A retailer buys goods in relatively small quantities and then resells them to end users (customers).

In a firm using a push-pull strategy, which action would represent the pull part of the strategy?

Finalizing the product based on the order

What is the role of transportation management in logistics?

Good transportation management creates value.

Which function of the logistics process can make product design and time to market for new products better by involving the right suppliers early in the product design process?

Purchasing

Classify each characteristic as belonging to retailers, wholesalers, or distributors. No items may be used more than once.

Retailers * Purchase and resell products to consumers for their personal or family use. * Are well-known to consumers. Wholesalers * Often operate large businesses without being well-known by consumers. * Buy large quantities of goods from various producers or vendors, warehouse them, and resell them to retailers or other businesses. Distributors * Often exist without being known by consumers. * Buy noncompeting products warehouse them, and resell them to retailers or directly to end users.

Which of these is a characteristic of distribution centers?

They ship goods to customers.

Drag each description to the corresponding type of flow in the supply chain. No items may be used more than once.

Upstream Flow * The flow moves away from the final customer. * Payment moves along the chain. * The flow includes returns. Downstream Flow * Supply chain members add value to the product by changing its form and location. * A product moves along the chain. * The flow moves toward the final customer.

What is meant by the statement "supply chains return value"?

Value is gained in the form of payment, feedback, product development, and so on as part of upstream flow.

Jeet runs a specialty rice company in the United States that imports many exotic rice varieties from Asian countries. Which mode of transportation does Jeet likely rely on to ship his rice in bulk from overseas?

Water

A firm that purchases goods in bulk from various producers, warehouses them, and then resells them to retailers and other businesses is referred to as ______. Closely related are ______, although they typically only purchase noncompeting products and often work with only one producer.

a wholesaler; distributors

Distribution centers receive goods from suppliers, then store the goods until ordered by a customer. This function is known as product ______. When employees in distribution centers put goods with similar characteristics together to make inventory control and customer service easier, they are performing the product ______ function.

accumulation; sortation

Materials that are purchased for manufacturing typically account for ______ of the product costs, meaning that any savings in purchase costs can add significantly to a company's profits.

approximately half

Intermodal transportation involves putting products in a container that ______.

can be carried by different types of vehicles, such as boats and trains

One disadvantage of the digital transportation method is that it ______.

cannot transport physical goods

When choosing transportation modes, companies must consider several factors, including ______, the ability of the mode to handle the required volume, and ______, or how easy it is to get the freight from one loading dock to another.

capacity; accessibility

The products in a supply chain flow through various marketing __________, which consist of supply chain intermediaries, such as distributors and retailers.

channels

Purchasing can help improve product ______ and time to market for new products by involving appropriate ______ early in the product design process.

design; suppliers

Because a(n) __________ only buys noncompeting products, it typically partners with only one company.

distributor

As a product moves along a(n) __________ flow, value is added to that product.

downstream

The primary goal of an effective supply chain strategy is to help a company ______.

establish the right channel partners to meet its objectives

In a supply chain, information, finances, and products flow downstream toward the ______ or upstream from the ______.

final customer; customer to the manufacturer

A stockout occurs when a firm ______.

has insufficient inventory to fill an order

Intermodal transportation is transportation of freight in a container using ______.

multiple modes of transportation

If a company has fewer facilities in a distribution network, it will incur less ______. More distribution facilities can lead to ______ transportation costs from production sites to distribution centers.

operating expenses; higher

A supply chain orientation emphasizes a(n) ______ focus on the activities and performance of other companies rather than a(n) ______ focus on one's own company.

outward; inward

Value is added by controlling stages along the supply chain, moving from ______. Value is also added by having ______ available when required along the supply chain through better inventory and transportation management.

production to end customer; goods and services

Customer orders drive manufacturing and distribution operations in a(n) ___________ strategy.

pull

By using a ______ strategy that combines the key advantages of the other two strategies, companies can achieve economies of scale in purchasing while building ______ into manufacturing.

push-pull; flexibility

A company that purchases and resells products to consumers for their personal or family use is a(n) __________.

retailer

A wholesaler acts as a "middleman," buying goods in bulk and reselling them to __________, which in turn sell to consumers.

retailers

Prout's Patisserie has created soft, chewy bagels that are filled with tasty cheeses and savory flavors and sold with delicious homemade spreads. The problem is that Prout's has become too successful, too fast. Demand is so high that Prout's sells out of its bagels and spreads well before it closes for the day. Prout's is experiencing ______, which could result in ______, at least until Prout's can figure out the right combination of supply and demand.

stockouts; lost customers and sales

Ernesto digs up wild ginseng. Then Alexis pays him for it, cleans it, dries it, weighs it, and calls Jamal to pick it up and drive it to a harbor. Then Claudia loads it onto a ship and transports it to China, where Thomas sells it to hundreds of customers in a shop. This is an example of how the ______ works.

supply chain

Jake's company produces bags of whole bean and ground coffee in a variety of roasts and sells them in bulk to retail stores. The retail stores then sell the coffee to consumers in smaller amounts. Jake's company buys the coffee beans from a distributor in South America that purchased the beans from local farmers. The farmers, distributor, Jake's company, and the retail stores are all part of a ______.

supply chain

Marketing channels are considered ______.

supply chain intermediaries

One characteristic of a supply chain is ______.

the involvement of three or more companies

The part of the logistics process that includes storage, movement, and production of materials and finished goods is known as ___________.

warehousing