MKT 411 Chapter 9-13 MindTap

Calculate the score for the layout below. Do not count the departments with just corners touching. The desirability ratings are based on a (-1 to 3) scale, where -1=undesirable, 0=unimportant, 1=slightly important, 2=moderately important and 3=very important.Existing Office Layout Reception Area (A) Copy Room (B) Conference Room (C) Managers Offices (D) President Office (E) Accounting Office (F) Desirability Ratings b c d e f a 3. 0 1 -1. 2 b 2 1 0. 3 c. 3 2 1 d 2 2 e 2 a. 11 b. 15 c. 18 d. 8

a. 11

A firm offers group discount for orders exceeding 15. Two firms are taking advantage of this offer. Sales to Company A averages $15, 000 of annual sales, has a 22% profit margin and an expected lifetime of 8 years. Company B averages $11, 000 of annual sales, has a 25% profit margin and an expected lifetime of 9 years. Which is the more important customer based on the higher expected lifetime value? Assume a 7% discount rate. a. Company A because its' NPV = $19,705 b. Company A because its' NPV = $17,917 c. Company B because its' NPV = $22,349 d. Company B because its' NPV = $21,224

a. Company A because its' NPV = $19,705

Which of the following is a critical issue in sustainable development? a. Climate change b. Countertrade c. Supply base optimization d. Labor and legal problems

a. climate change

Why do so many CRM programs fail? a. Because of incompatible information and communication systems b. Firms concentrate more on the CRM software instead of taking care of customers c. They are so expensive that it is hard to recover the investment d. They take the firm away from concentrating on their key suppliers

b. Firms concentrate more on the CRM software instead of taking care of customers

A firm wanting to import items duty free and then use the component for local production of a product that is then exported would most likely utilize a(n): a. International Processing Center b. Foreign Trade Zone c. International Cross Docking Zone d. Duty-free Territory

b. Foreign trade zone

The coordination and sharing of information and resources to jointly manage a process is referred to as: a. Differentiation b. Process integration c. Simplification d. Reverse logistics

b. Process integration

Intermodal marketing companies (IMCs) are companies that act as intermediaries between intermodal a. Warehouse management companies b. Railroad companies c. Trucking companies d. Waste management companies

b. Railroad companies

Failing to see the big picture and acting only in regard to single firm in the supply chain can be referred to as: a. Cross-selling b. Silo mentality c. Shortage gaming d. Balking

b. Silo mentality

Which of the following is NOT a reason for locating in a business cluster? a. Supply chain improvements b. Sophisticated retailers c. Technology sharing d. Competition

b. Sophisticated retailers

It is argued that transportation deregulation is good because: a. it ensures adequate transportation service throughout the country b. it encourages competition c. it protects consumers in terms of monopoly pricing d. all of these choices are correct

b. it encourage competition

Security activities such as; Use of security badges and guards, conducting background check on applicants and using antivirus software and passwords, would be classified as: a. Proactive Initiatives b. Reactive Initiatives c. Basic Initiatives d. Advanced Initiatives

c. Basic initiatives

David Maister's First Rule of Service is: a. You can't please all the customers all the time b. Under-promise and over-deliver c. Satisfaction = perception − expectation d. It always takes longer than you think to perform the service

c. Satisfaction = perception -expectation

A certain organization trying to decide where to locate their future factory is considering three locations. They are taking into account three factors: labor costs, currency stability, and proximity to market. Using the weights for each factor listed below and the scores achieved by each of the three considered locations, determine which location should be chosen for the new facility based on the weighted factory location model. SCORES (Maximum 100)FACTORWEIGHTSITE ASITE BSITE CLabor Cost0.25928284Currency Stability0.35758588Proximity to Market0.30805060Taxes0.10698891 a. Site B b. Site C c. Site A d. All sites are equally attractive.

c. Site A

The World Trade Organization (WTO) is critical to the facility location decision process because of their impact on: a. Southeast Asian Nations b. Innovation c. Tariffs d. Relationship marketing

c. Tarriffs

Interconnected companies and institutions from a particular field which are located in a single geographic location, are referred to is a(n): a. Industrial point b. Regional business center c. Business cluster d. Metroplex

c. business cluster

_______________ carry the majority of the world's water-transported manufactured goods. a. Barges b. Supertankers c. Containerships d. None of these choices are correct.

c. containerships

Returns management is also known as _______. a. Inverted logistics b. Backward logistics c. Reverse logistics d. Waste reduction

c. reverse logistics

A ___________________ consolidates large numbers of small shipments to fill entire truck trailers or rail cars to achieve truckload or carload transportation rates. a. Load broker b. Transportation broker c. Consolidation forwarder d. Freight forwarder

d. Freight forwarder

The global process integration software market is expected to: a. Remain constant through 2018 b. Decrease slightly by the end of 2017 c. Double by the end of 2018 d. Grow by about $100 billion from 2017 to 2021

d. Grow by about $100 billion from 2017 to 2021

As capacity utilization approaches 1.0, which of the following tends to happen? a. Perceived quality of service improves b. Service times decrease c. Wait times decrease d. Services become more congested

d. Services become more congested

Which of the following is an example of a person that would be considered to provide a Pure Service? a. Musical Entertainer b. Attorney/Lawyer c. Management Consultant d. All of these choices are correct.

d. all of these choices are correct

Which of the following issues is (are) important to consider when trying to determine the location of a firm's facilities? a. The stability in the location considered b. Environmental issues regulated by domestic laws or international trade agreements c. Access to suppliers from the location considered d. All of these choices are correct.

d. all of these choices are correct

Which of the following is NOT a technique for managing customers' perceived waiting times: a. Hiding the wait time b. Grouping customers c. Starting the service quickly d. Keeping customers occupied

a. Hiding the wait time

Service provided by multiple servers acting in parallel is referred to as: a. Multiple-channel queuing system b. Multi-delivery servicescape c. Multiple-phase queuing system d. Multi-platform servicescape

a. Multiple-channel queuing system

When demand exceeds a supplier's finished goods available, a supplier may allocate product in proportion to what buyers ordered. This rationing often results in shortage gaming by the suppliers' customers. a. True b. False

a. True

Assuming the number of arrivals per time period is Poisson distributed with a mean arrival rate of 3 customers per hour, determine the mean interarrival time. a. 3 minutes b. 20 minutes c. 60 minutes d. 12 minutes

b. 20 minutes

Examples of regional trade agreements include all of the following EXCEPT: a. Association of Southeast Asian Nations (ASEAN) b. Association of Indian Markets (AIM) c. European Union (EU) d. Southern Common Market (MERCOSUR)

b. Association of Indian Markets (AIM)

The goal of an efficient queuing system is that customers never have to wait in a queue. a. True b. False

b. False

Which of the following is a contributor to the bullwhip effect? a. Using actual demand data b. Forward buying c. Smaller order sizes d. Vendor managed inventory

b. Forward buying

The first step in the weighted-factor rating technique is to: a. Multiply each factor score by its weight and sum the weighted scores for each location b. Identify all factors considered important to the facility location decision c. Assign a weight to each factor d. Assign a performance score to each factor for each location

b. Identify all factors considered important to the facility location decision

You are a manager at Sunnydale Appliances. A customer who recently purchased a dishwasher contacts you with a problem and requests warranty information. According to the text, this is an example of: a. Transaction customer service b. Post transaction customer service c. Pre transaction customer service d. Probable customer churn

b. Post transaction customer service

Substance disposal and recycling are part of which supply chain business process: a. Customer relationship management process b. Returns management c. Product development and commercialization process d. Customer service management process

b. Returns management

________________ is important because what we do today will affect future generations. a. An offshore factory b. Sustainable development c. Customer churn d. Progressive design

b. Sustainable development

Which of the following marked the end of the initial push by Congress to deregulate the entire U.S. transportation industry? a. The Transportation Act of 1920 b. The Shipping Act of 1984 c. The Granger Laws d. The Interstate Commerce Act of 2013

b. The Shipping Act of 1984

A practical independent measure firms can take to improve information security is: a. Do not collect information about their customers b. Continuously monitor employee desktop applications, e-mails and phone calls c. Eliminate employee internet use at work d. None of these choices are correct.

b. continuously monitor employee desktop applications, e-mails, and phone calls

A product positioned strategy: a. Places warehouses close to customers b. Places warehouses close to the sources of supply c. Places warehouses midway between the sources of supply and the customers d. None of these choices are correct.

b. places warehouses close to sources of supply

CRM systems today require less training because: a. The systems don't do as many things as they used to. b. Pre-purchase training sessions have become very sophisticated c. They are designed to be more user-friendly d. All of these choices are correct.

c. They are designed to be more user-friendly

Milan, Wall Street, and Detroit are examples of ____________. a. Regional trade agreements b. Business conglomerates c. Strategic supplier alliances d. Business clusters

d. Business clusters

A basic strategy for managing capacity is: a. Focus strategy b. Differentiation strategy c. Queue management strategy d. Level demand strategy

d. Level demand strategy

Facility location has ____________on the supply chain. a. Minimal impact b. No impact c. A short-term impact d. A long-term impact

d. a long-term impact

Reverse logistics can have a positive impact on the environment through activities such as? a. recycling b. risk pooling c. reneging d. data warehousing

a. recycling

When salespeople need to fill end-of-quarter or end-of-year sales quotas they might use ___________, which creates greater use of safety stock causing the bullwhip effect. a. Order batching b. Order fulfillment c. Stockpiling d. Bullwhip ordering

a. order batching

Your top sales executive leaves your company to work for a competitor. Fortunately, all of her notes regarding prior dealings with customers have been captured in a: a. Knowledge management system b. Lead management system c. Sales territory management system d. Sales activity management system

a. Knowledge management system

All of the following are included in the five dimensions of service quality EXCEPT: a. Reliability b. Reasonability c. Assurance d. Responsiveness

a. Reasonability

The four primary activities of concern in service response logistics are the management of: a. Service capacity, waiting times, distribution channels and service quality b. Distribution channels, service quality, reputation and waiting times c. Labor standards, distribution channels, waiting times and service quality d. Service capacity, visual workplace, waiting times and distribution channels

a. Service capacity, waiting times, distribution channels, and service quality

Influencing and increasing the capabilities of a firms own employees, as well as those of their trading partners, will help to eliminate which of the following obstacles to process integration? a. Shortage Gaming b. Lack of trust c. Lack of Knowledge d. Risk Pooling

a. Shortage gaming

According to the text, poor planning is typically the cause of most unsuccessful CRM initiatives. a. True b. False

a. True

High tariffs encourage multinational corporations to set up factories to produce locally. a. True b. False

a. True

The European Union (EU) is considered a regional trade agreement. a. True b. False

a. True

The responsibility of transportation is to create both time utility and place utility, which means that products will be delivered at the right time to the desired location. a. True b. False

a. True

Having connectivity and visibility to all partners in a firm's supply chain can be accomplished through the use of: a. Cloud-based communication systems b. Legacy MRP systems c. Score-carding systems d. Mobile Marketing

a. cloud-based communication systems

Users in a company can retrieve and study a large amount of information about consumers by housing that information in a centralized database that is commonly referred to as a: a. Data warehouse b. Social media site c. Clickstream cloud d. QR code site

a. data warehouse

When an organization attempts to offer the right products and services to customers at the right time through the offer of individual promotions tied to specific events like birthdays and anniversaries, this is referred to as: a. Event-based marketing b. Extreme segmentation marketing c. Personal holiday marketing d. Segmented selling

a. event-based marketing

The difference between customer expectations and customer perceptions of what was actually received during the service encounter is referred to as service quality ________. a. Gaps b. Breakeven point c. Blips d. Bloops

a. gaps

Mapping the network of primary trading partners is something that should be done to: a. Help the firm decide which businesses to include in its supply chain management efforts b. Obtain point-of-sale information from customers c. Assess and improve internal integration of key supply chain processes d. Review and establish supply chain strategies

a. help the firm decide which businesses to include in its supply chain management efforts

According to the text, which of the following would be an example of Coca-Cola's international bottling plants, each serving a small geographic region? a. Server factory b. Offshore factory c. Source factory d. Outpost factory

a. server factory

Which of the following is a difference between goods and services? a. Services cannot be inventoried b. Goods have high customer-service interaction c. Goods are often unique d. All of these choices are correct.

a. services cannot be inventoried

The average transaction at a single channel, single phase automatic teller can be completed in 7.5 minutes and customers arrive at the average rate of one every ten minutes. On average, what is the server utilization? (Choose the closest answer.) a. 0.167 b. 0.75 c. 1.33 d. 0.125

b. 0.75

The average transaction at an automatic teller can be completed in six minutes and customers arrive at the average rate of one every ten minutes. On average, how many customers are there in the queue? a. 0.375 Customers b. 4.000 Customers c. 0.900 Customers d. 1.160 Customers

b. 0.900 customers

When CRM applications are available 24/7 on smartphones, tablets, and desktops, this is referred to as: a. Smart CRM b. Continuous connectivity c. All-time CRM d. A high-service application

b. Continuous connectivity

The online retailer Ecatalog.com has decided to send consumers of the new John Grisham book an e-mail with suggestions for books with similar themes and has also offered them a 20% discount if those suggested books were purchased. This type of marketing/promotion is an example of: a. Target marketing b. Cross-selling c. Clickstream selling d. Segmented selling

b. Cross-selling

All of the following are recommended for designing and implementing a successful CRM program EXCEPT: a. Support from the firm's top executives b. Expect employees to 'learn on the job' and adapt their way of working c. Continuous awareness of customers' changing requirements d. Knowledge of the tools available to aid in CRM

b. Expect employees to 'learn on the job' and adapt their way of working

Building, maintaining and strengthening beneficial relationships with suppliers and customers is accomplished through the use of: a. Data warehouses b. External process integration c. Expediting d. All of these choices are correct.

b. External process integration

A firm is comparing two potential service layouts using the Closeness Desirability Rating. Option 1's closeness desirability score is 18. Option 2's closeness desirability score is 22. It can be concluded that Option 1 layout is better. a. True b. False

b. False

A primary advantage for motor carriers is the weather. a. True b. False

b. False

The development of functional silos within an organization is considered a key component to achieving successful supply chain process integration. a. True b. False

b. False

The three inputs for calculating Customer Lifetime Value are Average Annual Sales, Expected Lifetime and Forecasted Profits. a. True b. False

b. False

Which of the following has made external integration more difficult to achieve? a. Identifying key trading partners b. Problems with internal integration efforts c. Lack of software applications to coordinate the effort d. Increased number of franchise operators

b. problems with internal integration efforts

What type of firm would be most interested in using a third-party logistics service? a. A freight forwarder b. Small firm with no logistics expertise c. Large integrated global manufacturing company d. A for-hire transportation company

b. small firm with no logistics expertise

Tire manufacturer Firebridge sells tires to retail firm A. Average annual sales for firm A is $55,000. Average profit margin is 15%. The expected lifetime is 10 years. Using a discount rate of 15 percent, calculate the Customer Lifetime Value of firm A and choose the closest answer below: a. $38,590 b. $5,500 c. $41,405 d. $25,675

c. $41,405

If the average service rate is 12 minutes per customer, and assuming the negative exponential distribution is used to describe the randomness of the service time distribution, then determine the probability that the service time will be less than or equal to 10 minutes. a. 0.000 b. 0.283 c. 0.565 d. 0.624

c. 0.565

A current warehouse system has five warehouses with 4,000 units at each warehouse. The company desires to change to three warehouses to become more centralized and keep the same customer service levels. Determine the average warehouse inventory levels, using the square root rule. (Choose the closest answer.) a. 11,619 b. 6,667 c. 15,492 d. 25,820

c. 15,492

Which of the following are required elements of an effective CRM initiative? a. Sending out promotional materials via e-mails and traditional mail to a large random group of a potential customers b. Preserving a traditional sales force that communicates with the supply-chain members c. Cross-selling customers after an initial purchase d. All of these choices are correct.

c. Cross-selling customers after an initial purchase

A customer approaches a firm with a question regarding her order status and shipping date; the information the firm provides is an example of which of the eight key supply chain business processes: a. Supply management process b. Order fulfillment process c. Customer service management process d. Demand management process

c. Customer service management process

Companies work very hard to reduce the number of customers who don't return. This customer defection is often referred to as: a. Balking b. Revenue Exodus c. Customer churn d. Clickstream defection

c. customer churn

According to the text, the development of cleaner, more fuel-efficient affordable energy technologies and renewable energy technologies will: a. Increase the cost of production and distribution b. Cause companies to shut down c. Decrease the costs in the supply chain d. Not have an impact on the supply chain

c. decrease the costs in the supply chain

All of the following are considerations used in designing service layouts EXCEPT: a. Impulse purchasing b. Reduction of time to restock c. Ease of access to parking lot d. Speed up customer throughput

c. ease of access to parking lot

A customer's lifetime value is calculated by: a. Summing the projected annual profitability of the customer b. The firm's MRP system c. Finding the NPV of a customer's projected lifetime profits for the firm d. Summing the annual sales of the customer and then dividing by the projected lifetime

c. finding the NPV of a customer's projected lifetime profits for the firm

____________________ tends to reduce safety stocks among supply chain members, generating even less variability in supply chain orders? a. Internal quality standards b. Forward Integration c. Information visibility d. All of these choices are correct.

c. information visibility

In the text, Table 9.1 shows that for-hire logistics expenditures in the U.S., have _____________ in the past thirty-one years. a. Decreased for the first 10 years, then increased b. Slowly declined c. More than quadrupled d. Remained the same

c. more than quadruppled

Foreign-trade zones are: a. Markets in the U.S. where foreign countries set up and sell products b. Bodies of water where cargo ships are allowed to dock to deliver imported goods c. Secure sites within the U.S. where goods and materials can be assembled and exported without being levied domestic duties or excise taxes d. Secure sites in foreign countries where goods wait for clearance by importing country

c. secure sites within the U.S. where goods and materials can be assembled and exported without being levied domestic duties or excise taxes

Which of the following is a direct benefit from the adoption of NAFTA? a. a reduction in immigrants crossing the border from Mexico b. an increase in trade between U.S. and China c. an increase in manufacturing job opportunities in the U.S. d. an increase in trade between U.S., Canada, and Mexico

d. an increase in trade between U.S., Canada, and Mexico

For integrated supply chains, logistics is considered: a. somewhat important b. not at all important c. important d. critically important

d. critically important

______________ creates the efficient flow of goods between supply chain partners, allowing profits and competitive advantage to be maximized. a. Procurement b. Transportation planning c. Operations d. Logistics

d. Logistics

Your company allows customers to "opt-out" of receiving email advertisements. This is referred to as: a. Event-based marketing b. Customer preference marketing c. Customer churn d. Permission marketing

d. Permission marketing

Which of the following secures the right of employees to decide whether to join or financially support a union? a. Union planning forums b. Union shop laws c. Ethical union initiatives d. Right-to-work laws

d. Right to work laws

Which of the following is one of the most basic and important activities of CRM? a. Cross-selling customers b. Finding customers c. Increasing churn d. Segmenting customers

d. Segmenting customers

Use the breakeven model to determine which of the statements below is TRUE according to the information provided in the table relating to two different location considered for a new manufacturing facility. Location Annual Fixed Costs Unit var Site A. $25,000. $11 Site B. $20,000 $19 a. The breakeven point for these two locations is 600 units per year b. Site A is the desired location if the production rate is 500 units per year c. Site B is the desired location if the production rate is 800 units per year d. The breakeven point for these two locations is 625 units per year

d. The breakeven point for these two locations is 625 per year

Which of the following would NOT be considered an acceptable option in managing capacity when demand exceeds available service capacity? a. Cross-training and sharing employees b. Utilizing technological tools like computers and automated systems c. Using customers to provide services d. Utilizing fewer facilitating products

d. Utilizing fewer facilitating products

Regional trade agreements assist with which of the following? a. Monitor national trade policies b. Handle trade disputes c. Provide technical assistance for developing countries d. All of these choices are correct.

d. all of these choices are correct

Supply relationship management personnel routinely communicate with: a. Marketing personnel for customer feedback b. Production personnel to obtain feedback on supplier and purchased item performance c. Suppliers for new product development and performance feedback d. All of these choices are correct.

d. all of these choices are correct

When mistakes occur in the supply chain, which of the following things might happen? a. Customer service levels drop b. Cost may increase due to expedited deliveries c. More safety stock must be held d. All of these choices are correct.

d. all of these choices are correct

Which of the following is a vital element in developing a strong supply chain through the practice of process integration? a. Partnerships, which value information sharing and partner collaborations b. Developing and implementing a strong information technology system that allows for fast and easy information exchanges between supply chain partners c. Partner collaborations on methods to improve processes within the supply chain d. All of these choices are correct.

d. all of these choices are correct

Which of the following would be considered a Supply Chain Risk Management activity? a. Diversify the supply base b. Develop a formal risk management program c. Increasing safety stock d. All of these choices are correct.

d. all of these choices are correct

The acts of receiving shipments, breaking down shipments, repackaging shipments, and distributing components to a manufacturing location or finished products to customers by a distribution center is referred to as: a. piggy backing b. risk pooling c. customs brokering d. crossdocking

d. crossdocking

According to the text, all of the following are considered key supply chain business processes EXCEPT: a. Manufacturing flow management process b. Supplier relationship management process c. Product development and commercialization d. Knowledge management process

d. knowledge management process

________________ are the most flexible mode of transportation and account for 70 percent of all the freight tonnage moved in the U.S. a. rail carriers b. air carriers c. water carriers d. motor carriers

d. motor carriers

Which of the following strategic foreign facilities is set up in a location with an abundance of advanced suppliers, competitors, research facilities, and knowledge centers to get access to the most current information on materials, components, technologies, and products? a. Server factory b. Offshore factory c. Source factory d. Outpost factory

d. outpost factory

A customer who enters the waiting line but leaves the system prior to receiving service is said to have: a. Disposed b. Balked c. Stalled d. Reneged

d. reneged

A system which allows sales managers to obtain current information and reporting capabilities regarding each salesperson's activities on each customer's account is referred to as a: a. Sales activity management system b. Lead management system c. Knowledge management system d. Sales territory management system

d. sales territory management system