MKT-411 Exam 3 Study Guide

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

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. $41,405 b. $5,500 c. $38,590 d. $25,675

a. $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. 0.565 b. 0.624 c. 0.283 d. 0.000

a. 0.565

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. 0.75 b. 0.125 c. 0.167 d. 1.33

a. 0.75

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

a. Association of Indian Markets (AIM)

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

a. Containerships

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. Cross-selling b. Target marketing c. Clickstream selling d. Segmented selling

a. Cross-selling

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

a. Cross-selling customers after an initial purchase

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

a. Decrease the costs in the supply chain

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. Foreign Trade Zone b. International Processing Center c. Duty-free Territory d. International Cross Docking Zone

a. Foreign Trade Zone

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

a. Freight forwarder

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

a. Information visibility

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

a. It encourages competition

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. Sales activity management system c. Lead management system d. Sales territory management system

a. Knowledge management system

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

a. Satisfaction = perception − expectation

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

a. Railroad companies

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

a. Right-to-work laws

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. Service capacity, visual workplace, waiting times and distribution channels c. Distribution channels, service quality, reputation and waiting times d. Labor standards, distribution channels, waiting times and service quality

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

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

a. Sophisticated retailers

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

a. The Shipping Act of 1984

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

a. They are designed to be more user-friendly

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

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

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

b. A long-term impact

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. Basic Initiatives c. Reactive Initiatives d. Advanced Initiatives

b. Basic Initiatives

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

b. Climate change

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

For integrated supply chains, logistics is considered: a. Important b. Critically important c. Somewhat important d. Not at all important

b. Critically important

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. Risk pooling b. Crossdocking c. Customs Brokering d. Piggy backing

b. Crossdocking

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

b. Customer churn

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. Customer service management process c. Order fulfillment process d. Demand management process

b. Customer service management process

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. Clickstream cloud b. Data warehouse c. Social media site d. QR code site

b. Data warehouse

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

b. Ease of access to parking lot

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

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

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

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

b. Gaps

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

b. More than quadrupled

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. Outpost factory c. Offshore factory d. Source factory

b. Outpost factory

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

b. Permission marketing

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

b. Places warehouses close to the sources of supply

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

b. Process integration

Reverse logistics can have a positive impact on the environment through activities such as? a. Data warehousing b. Recycling c. Reneging d. Risk pooling

b. Recycling

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

b. Reverse logistics

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. Sales territory management system c. Knowledge management system d. Lead management system

b. Sales territory management system

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

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

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) FACTOR WEIGHT SITE A SITE B SITE C Labor Cost 0.25 92 82 84 Currency Stability 0.35 75 85 88 Proximity to Market 0.30 80 50 60 Taxes 0.10 69 88 91 a. Site B b. Site A c. Site C d. All sites are equally attractive.

b. Site A

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

b. Utilizing fewer facilitating products

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. 4.000 Customers b. 0.375 Customers c. 0.900 Customers d. 1.160 Customers

c. 0.900 Customers

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. 25,820 b. 6,667 c. 15,492 d. 11,619

c. 15,492

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

c. An increase in trade between U.S., Canada, and Mexico

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

c. Business cluster

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

c. Business clusters

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

c. External process integration

A customer's lifetime value is calculated by: a. The firm's MRP system b. 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 d. Summing the projected annual profitability of the customer

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

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

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

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

c. Help the firm decide which businesses to include in its supply chain management efforts

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

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

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

c. Knowledge management process

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

c. Multiple-channel queuing system

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 fulfillment b. Stockpiling c. Order batching d. Bullwhip ordering

c. Order batching

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. Probable customer churn b. Pre transaction customer service c. Post transaction customer service d. Transaction customer service

c. Post transaction customer service

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

c. Problems with internal integration efforts

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

c. Reasonability

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

c. Reneged

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

c. Returns management

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. Source factory b. Offshore factory c. Server factory d. Outpost factory

c. Server factory

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

c. Services cannot be inventoried

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

c. Sustainable development

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 VARIABLE COSTS 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. The breakeven point for these two locations is 625 units per year d. Site B is the desired location if the production rate is 800 units per year

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

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. 18 b. 8 c. 15 d. 11

d. 11

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. 60 minutes b. 12 minutes c. 3 minutes d. 20 minutes

d. 20 minutes

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