mktg-supply chain and channel management

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

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

pull

Big Board makes high-end custom surfboards and gets new clients primarily by word of mouth. The small company has a few sample surfboards in stock, but it mostly customizes its products to customer specifications. The best supply chain strategy for Big Board is the ______ strategy, which enables businesses to ______.

pull; produce after a customer order is received

Supply chain management decisions frequently involve ______, such as between providing excellent customer service and ______.

trade-offs; maintaining adequate inventory

The underlying philosophy behind the concept of supply chain management is that no company is an island, and all companies rely on related companies whose activities add _______ to the final product.

value

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.

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

design; supplier

A stockout occurs when a firm ______

has insufficient inventory to fill an order

From the following list, select all of the elements included in the "7 Rs" of logistics.

"To the right place" "At the right time" "In the right quantity"

Which of these is a characteristic of distribution centers?

They ship goods to customers.

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

Intermodal transportation involves putting products in a container that ______.

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

A firm requires a high level of ______ to manage its supply chain functionality.

coordination and information sharing

A company sells and services lawn equipment made by one manufacturer to a tri-state area. This company is an example of a ______.

distributor

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

select all of the traits of using trucks for transportation.

Fast Reliable Accessible

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

Select all of the true statements about how firms use data to learn about potential supply chain partners.

Firms can analyze data to determine a potential partner's delivery, quality, and service record. Firms are able to analyze all the costs related to elements within a supply chain. Firms can evaluate a potential supply chain partner's overall performance

Select all of the typical benefits of integrated supply chains.

Increased ability to respond to market changes Reduced costs Improved customer service Better use of resources

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.

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

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.

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

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

Over time, costs within the supply chain can increase, which can result in ______ and higher prices. Costs can increase as a result of changes in ______, as well as in logistics costs.

lower profitability; production costs

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

To make inventory decisions about what and how much to stock, companies gather sales data from a variety of sources, including prior years' sales, consumer confidence ratings, growth projections, industry trade shows, and ______.

marketplace sales trends

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.

services information goods

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

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 ______.

supply chain

One characteristic of a supply chain is ______.

the involvement of three or more companies

After testing his power washer for 30 days, Alejandro sends the manufacturer a check to complete the purchase. Alejandro's payment is an example of a(n) ____ flow in the supply chain.

upstream

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

warehousing

Select all of the statements that are true of marketing channels.

A marketing channel serves as a supply chain go-between. Each marketing channel serves a specific purpose in the supply chain.

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).

What is the primary way marketers use data to optimize supply chain functionality?

By creating feedback mechanisms throughout the supply chain

How do marketers use data to inform inventory decisions?

By forecasting future demand using past sales and consumer confidence ratings

Select all of the benefits of supply chain integration

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

Select all of the examples of downstream activities in a supply chain.

Customer service at a retail store after the product has been received Raw materials converted into a high-fashion dress Delivery of a dining table and chairs from a wholesaler to a retailer Inventory management on the part of wholesalers, distributors, and retailers

After testing his power washer for 30 days, Alejandro sends the manufacturer a check to complete the purchase. Alejandro's payment is an example of a(n) ______ flow in the supply chain.

upstream

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

Firms often choose their initial partners through a request for

proposal

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

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

transportation

Rachel decides to return a pair of boots that do not fit her quite right. This is an example of the ______ flow of the supply chain.

upstream

Which of the following scenarios represents an action that is part of the supply chain?

A concrete manufacturer realizes a construction company is ready for a new shipment of concrete at a job site and contacts a trucking company to deliver it

From the following list, select all of the events that can occur as a result of a stockout.

A customer may decide to stop doing business with the firm. A customer may order the same item from a competitor. A customer may be prepared to wait or place a back order.

Select all of the true statements concerning distribution centers

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

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

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

What is the role of transportation management in logistics?

Good transportation management creates value

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

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

Lupine Log Cabins builds modern, high-end log cabins. The Maine-based company has expanded several times, and it currently builds its cabins in the other New England states. Now it wants to expand further. To that end, executives at the company are reviewing the performance data from the firm's local supply chain partners. What can the firm expect to accomplish as a result of undertaking this review? More than one answer may be correct.

Help its supply-chain members improve their performance. Evaluate the performance of suppliers. Manage and improve its supply-chain functionality.

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

It typically reduces inventory carrying costs. It is ideal for product customization. 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.

Angel's Artichokes anticipates which artichoke dishes its customers will buy and gathers the supplies needed to fill them. But the company waits to put the dishes together until after the final order is placed by the customer. Which supply chain strategy is Angel's Artichokes using?

Push-pull

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

Transportation costs Operating expenses Customer service Inventory levels

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

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

The "7 Rs" summarize how logistics ______ by stating that delivering the right product, to the right place, to the right customer, at the right time, in the right quantity, in the right condition, and ______ will help achieve customer satisfaction.

adds value to products; at the right price

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

allocation

Vern works in a distribution center for copy paper. When orders come in, he receives a list, goes into the warehouse, and grabs a pallet, box, or package of copy paper to load into a truck that will deliver them to a retail store. What Vern is doing is an example of product ______.

allocation

Lowell's Book Shop & Cafe, which has two locations in the San Francisco Bay Area, is an example of ______, whereas Barnes and Noble, the bookseller with the most retail outlets in the United States, is an example of ______.

an independent retailer; a retail chain

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

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

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

A company's supply chain objectives should be based on the company's ______

marketing objectives

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

multiple modes of transportation

A major disadvantage of a pull strategy is that ______.

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

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

By streamlining processes to reduce production costs By enabling better logistics

Which of these statements is true regarding using data to manage costs in the supply chain?

Firms use data to identify the costs and benefits associated with each choice of supply chain partners.

Select all of the qualitative service elements that a firm should monitor after choosing its supply chain partners.

Timeliness Communication effectiveness

From the following list, select all of the ways firms rely on data to help inform their supply chain and channel management strategies.

To identify costs and benefits with each choice of supply chain partner To manage supply chain functionality To manage the costs within the supply chain To coordinate high levels of information sharing

Pogo's Spicy Peanuts prides itself on excellent customer service and its ability to meet demand. To ensure that it manufactures enough inventory, the company depends on sales forecasts to predict how well its products will sell. Using the information from sales forecasts and previous years' data, the small company schedules production and regular distribution of its products in advance. In this case, Pogo's should go with the ______ strategy, which builds goods based on a sales forecast.

push

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

Wholesalers are similar to grocery stores, except wholesalers ______.

sell to other businesses