Chapter 14 marketing

Food producers love big boxes because they serve as billboards on store shelves. Walmart wants to change this practice and promises suppliers that their shelf spaces won't shrink even if their boxes do. As a result, some of its vendors have reengineered their packaging. This is an example of _____ integration.

materials and service supplier

Which of the following moves inventory into, within, and out of a warehouse?

A materials-handling system

Refer to Fishy Business. If all the firms involved with getting the fish from the ocean onto consumers' plates work together to perform tasks as a single unified system, which of the following are they using?

A systems approach

Which of the following transportation modes can most easily determine the location of a package en route between shipper and receiver?

Air

Which of the following is a member of a supply chain team that moves just-picked cotton to finished clothing and then to the consumer of that clothing?

All of the choices

_____ is a method of developing and maintaining an adequate assortment of materials or products to meet a manufacturer's or a customer's demand.

An inventory control system

_____ is (are) composed of bundles of interconnected activities that stretch across firms in the supply chain.

Business processes

_____ integration is a competency that enables firms to offer long-lasting, distinctive, value- added offerings to those customers who represent the greatest value to the firm or supply chain.

Customer

Of the eight critical business processes on which supply chain managers must focus, which process allows companies to prioritize their marketing focus on different customer groups according to each group's long-term value to the company or the supply chain?

Customer relationship management

By working closely with its suppliers and listening to its customers, Target has improved the service encounter to a level that was not thought possible in mass retailing.

Customer service management

Refer to Whirlpool and Lowe's. Which business process is Whirlpool and Lowe's using when they work together to align supply and demand throughout the supply chain?

Demand management

Which business process is based on the activities involved in customer data collection, forecasting of future demand, synchronization of supply and demand by comparing production capacity to forecasts, and the development of activities to "smooth out" demand?

Demand management

_____ is the direct electronic transmission, from computer to computer, of standard business forms between two organizations. When this technique is used, orders can become virtually paperless, and information about the order is available to both firms.

Electronic data interchange

_____ integration requires firms within a supply chain to link seamlessly so that they can streamline work processes and thereby provide smooth, high-quality customer experiences.

Internal operations

Which of the following is an example of one of the six types of integration that are sought by firms interested in providing top-level service to their customers?

Internal operations integration

In which logistical component of the supply chain will you find distribution resource planning (DRP) a common feature?

Inventory control

Which of the following describes a disadvantage associated with water transportation?

Lack of speed

Which of the following provides the technological link connecting all of the logistics components of the supply chain?

Logistics information system

Which business process ensures that firms in the supply chain have the resources they need?

Manufacturing flow management

Which of the following is the inventory control system that manages the replenishment of raw materials, supplies, and components from the supplier to the manufacturer?

Materials requirement planning (MRP)

Which type of integration implies the performance assessment of the supply chain should be taken as a whole while also holding each member of the supply chain accountable for meeting its own goals?

Measurement

Refer to Fishy Business. In the future, a device will allow each member of the supply chain for fresh fish to verify accountability for providing the species of fish the customer ordered. Which element of supply chain integration is this when each individual firm or business unit is accountable for meeting its own goals regarding providing the fish it says it is providing?

Measurement integration

In which logistical component of the supply chain will you find electronic data interchange a common feature?

Order processing

Specialty Blades designs precision cutting devices for varied applications. On one recent project, they worked closely with a medical device company, developing a combination scalpel and stapler that slices tissue very neatly close to the staples, which results in less traumatic procedures and quicker patient recoveries. This is an example of which of the eight critical processes performed by supply chain managers?

Product development and commercialization

_____ integration is the ability of two or more companies to develop social connections that serve to guide their interactions when working together.

Relationship

There are eight critical business processes on which supply chain managers must focus. Which of the following is one of those processes?

Returns management

_____ provides time utility to buyers and sellers and aids manufacturers in managing supply and demand.

Storage

Which business process supports manufacturing flow by identifying and maintaining relationships with highly valued suppliers?

Supplier relationship management

_____ occurs when all the firms and business units participating in the supply chain appear as though they are reading from the same script.

Supply chain integration

_____ coordinates and integrates all of the activities performed by channel members into a seamless process, from the source to the point of consumption, resulting in enhanced customer and economic value.

Supply chain management

Which of the following is a key principle of supply chain management that means multiple firms work together to perform tasks as a single unified system rather than as several individual companies acting in isolation?

Systems approach

Refer to Whirlpool and Lowe's. Given that accessibility and reliability are keys to Lowe's marketing strategy, what mode of transportation is most likely used in this relationship?

Truck

A large automotive after-market business wanted to improve its current situation, which is characterized by excessive inventory, incomplete information, high logistics costs, slow reactions to environmental change, and lost profits at the retail level. Would supply chain management be of any help to the business?

Yes, supply chain management is designed to coordinate and integrate all the activities from raw materials to product consumption.

The Canadian lobster harvest requires special handling coupled with rapid transportation to ensure the cargo reaches destinations alive. The favored transportation mode would be:

air

Refer to Whirlpool and Lowe's. A tremendous amount of _____ exists between Lowe's and Whirlpool, which is evident by the long-lasting, value-added offerings Whirlpool provides to Lowe's.

customer integration

Of the eight critical business processes on which supply chain managers must focus, the _____ process presents a multi-company, unified response system to the customer whenever complaints, concerns, questions, or comments are voiced.

customer service management

All of the following are benefits of supply chain management EXCEPT

decreased cash flow

All of the following are criteria used to choose a mode of transportation EXCEPT

diversity

Refer to Fishy Business. In the future, suppliers of fresh fish will be able to use electronic bar codes to verify the fish species for members of the supply chain. This information can be incorporated into the information technology used in the inventory management and control business process. This information technology is called:

electronic data interchange (EDI)

63. When Rick purchased tickets to a concert on the Internet, it was an example of:

electronic distribution

Nabisco has reduced product inventory requirements from 49 days to 22 days. This frees up cash and warehouse space, adding flexibility to the plant. This seamless linking of Nabisco's strategic business units is accomplished through _____ integration.

internal operations

Sobha Developers is the only company in India and possibly the world that manufactures almost everything that goes into its buildings. It is this backward integration that gives Sobha absolute control over quality at every level. Sobha has the highest possible _____ integration.

internal operations

One-quarter of Ace's 60,000 SKUs are vendor managed through software called the "Collaboration" program. This software allows certain vendors to go online to get information to build their forecasts. The result of this application is fewer shipments, fuller pallets, increased pallets per truck, and a reduction in freight. Collaboration is part of Ace's:

logistics information system

ZuTech makes sensitive monitors for measuring exposure to hazardous materials. ZuTech has suffered substantial losses when moving products from the assembly line to the warehouse and shipping docks. ZuTech should consider reducing the number of times an item is moved in the warehouse by installing a(n):

materials-handling system

The goal of inventory control is to:

minimize inventory levels while maintaining an adequate supply of goods to meet customer demands

The growers of Vidalia onions have determined that their chief priority for choosing a transportation mode within the United States is transit time. However, this must be tempered by practical cost considerations. In light of these considerations, Vidalia onion growers should use _____ to ship their onions.

motor carriers (trucks)

The goal of any effective materials-handling system is to:

move items quickly with minimal handling

The amount of time between order placement, receipt of the customer's payment, and order shipment is known as the:

order-to-cash cycle

A manufacturer of automobile component parts that has turned over all transportation functions to an independent third party in its supply chain has engaged in:

outsourcing

A manufacturer's or supplier's use of an independent third party to manage an entire function of the logistics system, such as transportation, warehousing, or order processing, is called

outsourcing

Papa John's pizza chain uses UPS trucks to carry supplies to its franchises. Papa John's does not own the trucks but has contracted with UPS to have all of the trucks it uses in its deliveries to Papa John's establishments painted with the Papa John's logo and company colors. Papa John's is using:

outsourcing

Volvo, working with FedEx, set up a warehouse in Memphis with a complete stock of truck parts. A dealer needing a part for an emergency phones a toll-free number, and the part is delivered by FedEx within 24 hours. This is an example of how manufacturers are using

outsourcing

All of the following are types of integration sought by firms interested in providing top-level service to customers EXCEPT

production integration

The supply chain team does all of the following EXCEPT:

providing financing for distributors

One major advantage of pipelines over other modes of transportation is:

reliability

All of the following accurately describe supply chain management EXCEPT:

relies on a "push" strategy

All of the following are business trends currently having a strong influence on the job of the supply chain manager EXCEPT

replenishment benchmarking

Mattel, the world's biggest toymaker, ordered 18 million toys made in China to be recalled because of hazards such as the use of lead paint. Mattel's _____ process allowed it to handle the product recall efficiently.

returns management

When each firm in a supply chain has clarity in terms of knowing which firm is the leader, which are the followers, and which responsibilities are assigned to each firm, _____ is (are) evident.

specificity

The connected chain of all of the business entities, both internal and external to the company, that perform or support the logistics function is known as the

supply chain

When the Boeing Co. announced it would delay the introduction of its new 787, the CEO blamed the problem on the company's supply chain. Airplanes use thousands of individual parts, and in an attempt to relieve the smaller, individual supply chain quandary, Boeing used major suppliers to construct large pieces of the plane. Boeing would have benefited from more _____ integration.

supply chain

Peachtree Windows does not make a window until an order is received. It can promise delivery in five working days because of the excellent relationships it has established with its suppliers. The partnering relationship that Peachtree Windows has established with its suppliers indicates the use of:

supply chain management

Refer to Fishy Business. The way a restaurant coordinates and integrates the activities performed by its supply chain members into a collection of seamless end-to-end processes is an example of:

supply chain management

By achieving _____ integration across their supply chains, firms can gain the information needed to execute short-term and long-term planning, and thereby make better operational decisions.

technology and planning

Through the use of automatic shipping notices, Ace Hardware is effective at removing unnecessary costs from its supply chain. According to a VP of inventory for the retailer, "Information gathering that used to take three or four phone calls now is available immediately." This is an example of the use of _____ integration.

technology and planning

All of the following are types of inputs used in both materials requirement planning and distribution resource planning EXCEPT:

the source of funding

A firm that specializes in the order fulfillment process is called a(n):

third-party logistics firm (3PL)

ProLog is a firm that specializes in warehousing and fulfilling orders for firms as diverse as those supplying parts for manufacturers of complicated missile defense systems to those manufacturing pet-care products. Firms contract ProLog to manage part or all of their order fulfillment process. ProLog is an example of a:

third-party logistics firm (3PL)

Refer to Whirlpool and Lowe's. Whirlpool contracts with another firm to manage its order fulfillment process with Lowe's. This contracted firm is referred to as a(n):

third-party logistics firm (3PL)

All of the following are logistics components of the supply chain EXCEPT

trade promotions

The mode of transportation that provides the most accessibility is

truck freight