smartbook chapter 10
Which of the following is not one of the three basic functions of a warehouse?
procurement
The challenge of inventory management is to manage inventories in a way that balances ________ and _________ in a cost-effective manner
supply; demand
A distribution center is similar to which of the following?
warehouse
Materials management would typically take place in a
warehouse
Which of the following are considered inventory carrying costs?
warehouse space taxes insurance
Because of its low cost and high capacity, _____________ transportation is a preferred mode for international shipments, but is less important for domestic shipments.
water
The increased use of offshoring has led to an increase in ____________ transportation.
water
A company that buys products in large quantities, typically from the producer (but without exclusive rights), and sells them to other companies is called a(n) _____.
wholesaler
is a company that sells to other businesses, such as industrial companies or retailers, but has no exclusive rights to sell a product.
wholesaler
Which of the following does the text list as the primary reason firms rely on inventory management?
without it, customer service will suffer
Which of the following are characteristics found in a push strategy?
A company builds a good and then waits for a customer to buy it Goods that a company makes are stored and therefore available when a customer wants them A company builds goods based on a sales forecast
A company that practices disintermediation is doing which of the following?
Eliminating intermediaries in the delivery of its products to consumers
The text lists several reasons why purchasing is an important logistical function for all organizations. Which of the following are included in these reasons?
Purchasing can benefit product design by making early contact with appropriate suppliers. Materials purchased for manufacturing account for a large part of product costs so savings in purchasing are important. Purchasing plays a large role in the quality of goods and services. Sourcing materials from reliable suppliers ensures superior customer service with the end product.
A company wanting to establish a more sustainable supply chain through a closed loop system would do which of the following?
Use raw materials recovered from returned goods to generate power Repair returned goods and resell them to another customer Find new buyers for products that are unwanted
A disadvantage of rail transportation is its lack of ______, which is the ability to provide service from the source of the shipment to its destination.
accessibility
Genevieve owns a flower store that sells products across the United States. In order for the flowers to arrive fresh when they are being shipped out of state, Genevieve should rely on Blank______ transportation
air
A supply chain that maximizes value creation by recovering value from product or material returns is a(n)
closed-loop supply chain
The main idea behind the use of a(n) __________ is that fewer products or components will end up in a land fill.
closed-loop supply chain
______ is a supply chain that maximizes value creation by recovering value from product returns.
closed-loop supply chain
In simplistic terms, a supply chain is a network of companies made up of many suppliers, selling to many intermediate
customers
Software, documents, music and pictures are all examples of products that can be delivered via the Internet and fall under the mode of transportation known as
cyberspace
When Amazon transports books via the Internet to be downloaded on a Kindle, the company is using ___________ as a transportation mode.
cyberspace
Fill in the blank question. When the manufacturer ships to stores, it is called ___________ ___________ delivery.
direct store
The practice of eliminating intermediaries, thereby shipping directly from a producer to a consumer, is referred to as
disintermediation
center is a type of warehouse used specifically to store and ship finished goods to customers
distribution
A company that sells to other companies, but has an exclusive right to sell a product in a specific geographic territory is known as a(n)
distributor
also sells to other companies, but has exclusive rights to selling products from a producer to customers within a specific territory.
distributor
Which of the following are examples of distribution channels? (Check all that apply.)
distributors, retailers, wholesalers
Air transportation accounts for less than 1 percent of the intercity ton-miles in the U.S. The main reason why airfreight is used sparingly is that it is
expensive
True or false: The choice of transportation does not impact a company's sustainability profile.
false
Which of the following are sourced or procured during the purchasing process?
finished goods raw materials component parts services
Which of the following is of prominent concern for firms wishing to transport products in a sustainable manner?
fuel efficiency
Carl's company builds classroom computer furniture. It uses sales forecasts to create inventory and then waits for customer orders to put on any finishing touches, such as casters or cord management systems. Which type of supply chain strategy does Carl's company use?
hybrid
Which factor would not affect a company's sustainability profile?
initiatives taken by competitors regarding sustainability
When Jason orders product from China for use in his store, he knows it will take awhile for it to arrive since it must first travel by cargo ship and then be carried by truck to his store once it reaches the United States. Jason's product is being delivered via Blank______ transportation
intermodal
transportation occurs when a company uses several types of transportation for the same shipment
intermodal
costs are those associated with making or buying a product, including the risk of obsolescence, taxes, insurance, and warehousing the product.
inventory carrying
Which of the following activities would take place in a warehouse?
inventory storage
Many companies are interested in sourcing goods and services from other countries. What is typically an inexpensive cost associated with global sourcing and, therefore, beneficial to the company's bottom line?
labor
Effective implementation of any supply chain strategy is heavily dependent on __________operations
logistics
refers to that part of supply chain management that plans, implements, and controls the flow of goods, services, and information between the point of origin and the final customer.
logistics
A company introduces technology that enables a retailer to share demand information with a supplier. Taking a specific action such as this indicates that the firm is practicing supply chain
management
A supply chain's objectives should be based on the firm's ___________ goals
marketing
Diego has procured all of the raw materials and components his company needs to manufacture its line of projection screens. Getting those materials to its manufacturing plant demonstrates the idea of Blank______ management
materials
The inbound movement and storage of materials in preparation for them to enter and flow through the manufacturing process is called _________ management
materials
Due to the universal accessibility of _________ transport, most shipments will include some leg of the journey to be completed by a truck
motor
A company that sources materials from countries that are close to, but not in, the company's own country is practicing ______________; a company that sources materials from supplier in an organization's own country is practicing ___________
near shoring; on shoring
Which of the following offers consumers the ability to purchase goods at a retail store or through a website?
omnichannels
Which terms refers to the sourcing of materials and finished products from suppliers in an organization's own country?
onshoring
A supply chain ___________ is a management philosophy that guides the actions of a company toward actively managing the supply chain.
orientation
Logistics activities affect all four Ps of the marketing mix, but its most obvious relationship is with the Blank______ element by delivering goods and services to the correct location and in a timely manner.
place
Logistics are imperative to a company when making decisions about where to have distribution facilities and what modes of transportation to use when shipping goods. Which of the four Ps of the marketing mix is logistics impacting in these instances?
place
Sustainable sourcing takes into account the long-term impact on which factors?
planet people profits
The logistics manager informed Kent that the new toy package design was too flimsy and might result in damage to the toy and, therefore, needed to be redone. Which aspect of the four Ps does this decision affect?
product
When determining which supply chain strategy to use, a company should always take into consideration the ___________
product or service
At the meeting, Jill informed the logistics manager that a new advertising campaign was being rolled out in June and an increase in sales for the active-wear line was expected. Which of the four Ps is affecting logistics in this situation?
promotion
Carrie uses her page on the Etsy website to sell her hand-knit boot toppers and scarfs. Rather than making an inventory of her items ahead of time, Carrie waits until she receives an order and then begins to knit. Which type of supply chain strategy is Carrie relying on?
pull
In a push-pull supply chain strategy, completion of the product is based on a(n) _________ system
pull
Jeremy makes custom jewelry which is sold in high-end boutiques. These boutiques have samples of his work for customers to view and then he makes a custom piece based on their specific requests. Jeremy is demonstrating the supply chain strategy known as a _________ strategy
pull
Jeremy makes custom jewelry which is sold in high-end boutiques. These boutiques have samples of his work for customers to view and then he makes a custom piece based on their specific requests. Jeremy is demonstrating the supply chain strategy known as a ___________ strategy
pull
When a company is introducing a new product and realizes how unstable the demand for the product might be, it would benefit from using a Blank______ strategy due to its flexibility.
pull
When customer orders drive manufacturing and distribution operations, it is an example of a(n) _________ strategy
pull
When customer orders drive manufacturing and distribution operations, it is an example of a(n) _________ strategy.
pull
The cost to place and process orders is which type of inventory cost?
purchasing cost
It is Natasha's job to select which wool suppliers her company will use to produce its blankets. She selects suppliers based on their available grade of wool and associated prices. Which job is Natasha performing?
purchasing manager
A speculation strategy is another name for a supply-chain _________ strategy
push
As the owner of Spring Spruce Up Landscapers, Janice knows that her customers don't want to wait for flowers and shrubs; she needs to have them from her suppliers in stock and ready for customer orders. When customers demand a short lead time, it is beneficial to rely on a _______ supply chain strategy
push
Fill in the blank question. A supply chain strategy in which a company builds goods based on a sales forecast, puts those goods into storage, and waits for a customer to order the product is known as a(n) ____________ strategy
push
Kevin works for Nissan Motor Company. His job is to forecast sales for the next twelve months, so the company can produce enough cars and have them shipped to retail locations so they are in place when a customer is ready to buy. This is an example of which supply chain strategy?
push
Which supply chain strategy benefits from economies of scale that can reduce manufacturing, transportation, and other costs?
push
Which of the following are the three supply chain strategies detailed in the text?
push, pull, hybrid
A hybrid strategy that combines elements of both the push strategy and the pull strategy is known as the Blank______ strategy
push-pull
Most computer manufacturers build the basic components of a system, have these components in storage, and then put final custom touches on the system when they receive a customer order. In this manner, they are able to take advantage of economies of scale while also customizing their product. This demonstrates the idea of a _________ strategy
push-pull
Damages, inconsistent service, and lack of accessibility are all disadvantages of
rail transportation
In order for an integrated supply chain to work, it must be willing to develop _____ strategies.
relationship-based
Another name for a pull strategy is a _________ supply chain
responsive
The text refers to the seven Rs of logistics. Which word represents the seven Rs?
right
Which of the following responsibilities does the text list as those performed by a purchasing manager?
select and qualify appropriate suppliers monitor supplier performance negotiate contracts place purchase orders
There are __________ different modes of transportation a firm can use to transport its products
six
After the busy holiday season, Nadia's company has many items on back order and has to advise customers the products are not available at this time. This situation exemplifies a
stockout
occurs when a company does not have enough inventory available to fill an order.
stockout
Which of the following is an example of an inventory carrying cost?
storage and handling expenses
A set of three or more companies directly linked by one or more of the upstream and downstream flows of products, services, finances, and information from a source to a customer is called _______
supply chain
Jessica's company manufacturers a variety of coffee flavors that are sold to retail stores. Her company receives the coffee beans from a distributor in South America who purchased the beans from local farmers. The farmers, distributor, Jessica's company, and the retail stores all make up as
supply chain
Which term refers to the actions a firm takes to coordinate the various flows within a supply chain?
supply chain management
Custom Floor Works provides customers with made-to-order carpets. In order to service its customers in a timely manner, Custom Floor Works relies on cotton and wool suppliers and high-end sewing manufacturers. Custom Floor Works recognizes the importance of sharing its supply and demand information with these suppliers in order to manage its orders better. This demonstrates the idea of
supply chain orientation
The text lists four benefits to effective materials management, including ______
supports manufacturing activities supports marketing objectives reduces procurement and production costs through economies of scale coordinates supply and demand for materials
A commitment to adopting a lifestyle that meets the needs of the present without compromising the ability of future generations to meet their own needs is referred to as
sustainability
The process of purchasing goods and services that takes into account the long-term impact on people, profits, and planet is called
sustainable sourcing
What is the ultimate objective of supply chain management?
to improve the entire chain's performance
Jason was determined to get his company's shoes into the new footwear chain opening in ten states, so he offered the retailer a 22% discount on the first 500 pairs of shoes. He knew this might cost his company some extra money now, but felt sure it would pay off in the years to come. Jason's decision to offer the discount is an example of a
trade off
When a decision made in one area of a supply chain has either a positive or negative effect on other areas, it is referred to as a(n)
trade off
The primary type of motor transportation is the use of
trucks
True or false: A company can be a member of a number of competing supply chains.
true
True or false: Cost-effective transportation helps firms to create place and time utilities that are essential to keeping customers satisfied.
true
True or false: Recently, the cost of labor in and transportation from international sources has begun to rise and, as a result, some companies now source goods and services domestically again.
true
A distribution channel adds Blank______ to the product by making it available to ship to the next step in the supply chain or by taking customer orders.
value
