Supply Chain Final Exam

churn reduction

All of the efforts companies develop to stop losing customers

Fourth Party Logistics (4PL)

Interface between the client company and multiple logistics service providers They manage the 3PLs

The number of customers per day an organization's service delivery system is designed to serve within a certain time frame, is referred to as?

Service Capacity

cross-selling

The company sells an additional related or complementary product or service to an existing customer after the initial purchase "Would you like fries with that?"

relationship or permission marketing

The customer explicitly agrees in advance to receive marketing information Permission marketing abt building an ongoing relationship of increasing depth w customers

Seven R's rule

The right: Product, quantity, quality, place, time, customer, costs

product positioned warehouse

Warehouses close to suppliers Use when have way more suppliers than customers

which of the following is NOT one of the twelve pillars of competitiveness?

regional trade agreements

Five Dimensions of Service Quality

reliability, responsiveness, assurance, empathy, tangibles

types of warehouse networks

single, multiple, hybrid

Types of Queuing Systems

structured, unstructured, mobile

when an international shipment reaches the US, the importer of record must file entry documents at the port of entry. The goods are not legally entered into US commerce until all of the following criteria are met, EXCEPT?

the shippers export declaration (SED) has been submitted to CBP

modes of transportation

truck, rail, air, pipeline, water

Which of the following would NOT be considered an acceptable option in managing capacity when demand exceeds available service capacity?

utilizing fewer facilitating products

logistics management software systems

warehouse, transportation, and global trade management systems

balking

when customer refuses to join the queue

Reneging

when customers decide to leave the queue

up-selling

Involves persuading a customer to buy a more expensive item or upgrade a product or service to make the scale more profitable "Would you like to supersize your order?"

intermodal transportation

Multiple modes of transportation to execute a single transport shipment "Piggy-back" service

end product services

Offer tangible components along with the service component (restaurants)

pure services

Offer very few or no tangible products to customers (consulting, training, education)

Third Party Logistics (3PL)

Outsourced provider that manages all, or a significant part, of an organization's logistics requirements for a fee

Which of the following is NOT one of the key tools and components of CRM?

Predicting supplier behavior

customer lifetime value

Prediction of the net profit attributed to the entire future relationship with a particular customer

contribution factory

Product development and engineering for products that they manufacture

market positioned network

Putting warehouses next to customers

cross-docking warehouse

Unloading materials from an incoming truck or railcar and loading directly onto an outbound truck or railcar with little or no storage inbetween

intermediately positioned warehouse

Warehouses set up somewhere midway between suppliers and customers Used when distribution requirements are high and product comes from multiple supply locations

The greater the desired customer service level is, the more warehouses the company may need to have, but the tradeoff is maintaining a lower inventory level

false

The process of analyzing customers who have stopped buying to determine why is known as customer behavior modification

false

material that is imported through the use of a foreign trade zone (FTZ) must be removed from the FTZ within 1 year to avoid fines or sanctions being imposed by US customs and border protection on the importer of record

false

the major benefits of transportation regulation are that regulation encourages competition in the industry and allows shippers to negotiate prices directly with carriers

false

transportation regulation and deregulation both have their supporters. Proponents of regulation consider it to be good since it encourages competition and allows price negotiations

false

Which of the following is NOT one of the key tools and components of CRM?

generalizing customer communications

Which one of the following is NOT a transportation pricing consideration?

implicit service

which of the following is NOT a quality of life issue used to help make global location decisions?

infrastructure

Foreign Trade Zone (FTZ)

international "free trade zones", like an embassy

which global facility type is described as the source of product and process innovation and competitive advantage across the entire organization?

lead factory

Which type of queueing system can be described as being formed virtually using technology?

mobile queue

Which queueing system design involves multiple sets of multiple servers acting in a series such as in a fast food restaurant

multiple channels, multiple phase

Which global facility type describes a factory set-up primarily to produce products at a low cost with minimal technical and managerial resources?

offshore factory

Which global facility type is set up in an area with an abundance of advance suppliers, competitors, and research facilities

outpost factory

what type of warehouse network strategy would you be using if you positioned your warehouses close to supply sources to collect goods and consolidate before shipping products out to customers

product positioned

Types of warehouse ownership

public, contract, private

Sales Force Automation tools are used for documenting field sales activities, communications with the home office, and retrieving sales history. Which one of the following is NOT one of those tools?

queuing system management

primary functions of a warehouse

receiving, storage, picking, packing, shipping

Reverse Logistics 5 R's

returns, recalls, repairs, repackaging, recycling costs 4-5x as much as forward logistics

A right-to-work law allows employees to decide for themselves whether or not they want to join or financially support a union.

true

A service bundle includes explicit services, facilities and equipment, facilitating goods, and implicit services

true

Because air transport is so expensive the best cargo candidates for air shipment are products with a high cost to weight ratio.

true

FOB origin requires that ownership of the goods passes to the buyer when the public carrier accepts the goods from the seller

true

Finding a new customer costs 5-10 times as much as keeping an existing customer

true

Pre-transaction elements of customer service include things such as establishing customer service policies, agreeing on a mission statement, and developing an organizational structure

true

Service capacity is typically measured as the number of customers the service operation can serve in a given time period

true

Through the use permission marketing programs, customers are allowed to select the type of communications companies can make with them, and even choose to be completely eliminated from both e-mail and traditional mailing lists

true

When a customer takes their automobile to a car wash, the car wash provides state utility to the vehicle

true

the US department of homeland security is responsible for preventing the entry of terrorists and the instruments of terrorism and ensuring the efficient flow of lawful traffic and commerce

true

event-based marketing

Identifies key events in the customer and business lifecycle Cyber Monday, Christmas, Halloween

off shore factory

In a country where labor and/or raw materials are less expensive

service delivery system

Can be expressed a continuum with mass-produced, low-customer contact systems at one end and highly customized, high-customer contact systems at the other end

state utility services

Directly involve things owned by the customer (car repair, dry cleaning, haircut)

break-bulk warehouse

Divides full truckloads of items from a single source or manufactuer into smaller, more appropriate

warehouse

A facility used to store purchases, WIP, and finished goods inventory

customer defection analysis

Analyzing why customers who stopped buying to determine why

segmenting customers

Dividing a customer base into groups of individuals that are similar in specific ways relative to marketing

Which of the following statements is true?

FTL is used when you have enough volume to fill a truck or you don't want any other company's goods on the truck with your products

outpost factory

Factory set up in an area w an abundance of advanced suppliers, competitors, research facilities, etc

The average arrival rate of the customer in a service supply chain does not influence the management of the actual waiting time or the perceived waiting time by the service company.

False

What is the term for the type of service distribution channel the helps to build market share and facilitate business when the owners have limited financial resources?

Franchising

logistics

From the point of origin to point of consumption

warehousing

Function that allows a company to receive, store, breakdown, repackage and distribute items to a manufacturing location, or finished goods to a customer

consolidation warehouse

Receives products from different plants or suppliers, stores them, and them combines them with similar sihpments from other plants or suppliers for further distribution

lead factory

Source of product and process innovation and competitive advantage across the entire organization

server factory

Take advantage of gov't incentives and/or reduced tax/tariff barriers

Which one of the following is NOT a Sales Force Automation tool?

call center management

Source factory

develops and produces a part or a product for a company's global markets.

Which of the following is NOT one of the four primary activities of Service Response Logistics?

facilitating goods

A small LTL shipment that originates on a truck in Los Angeles and is moved to Phoenix where it is unloaded and put onto another truck for final shipment to Denver would be considered an intermodal shipment since it utilizes more than one vehicle during shipment.

false

An import can only occur inside the borders of your home country and an export can only occur outside the borders of your home country.

false

Companies should adopt a Customer Relationship Management (CRM) strategy for every customer

false

Keeping an existing customer costs 5-10 times as much as finding a new customer

false