Marketing CH 14
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: a. outsourcing b. mediation c. intermediary distribution d. benchmarking e. disintermediaton
A
All of the following are criteria used to choose a mode of transportation EXCEPT: a. diversity b. cost c. transit time d. reliability e. traceability
A
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. This is an example of which of the eight critical processes performed by supply managers? a. Manufacturing flow management b. Customer service management c. Product development and commercialization d. Order fulfillment e. Demand management
B
_____ is a method of developing and maintaining an adequate assortment of materials or products to meet a manufacturer's or a customer's demand. a. The materials-handling system b. An inventory control system c. Direct sourcing d. Contract logistics e. Warehousing
B
In which logistical component of the supply chain will you find electronic data interchange a common feature? a. Production scheduling b. Transportation c. Order processing d. Materials handling e. All of these
C
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? a. Air b. Water c. Truck d. Pipeline e. Rail
C
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? a. Supplier relationship management b. Customer service management c. Product development and commercialization d. Order fulfillment e. Demand management
C
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. a. relationship b. social c. functional d. technology and planning e. internal operations
D
Which of the following describes a disadvantage associated with water transportation? a. Cannot be used for international trade b. High cost c. Capability d. Lack of speed e. Product weight restrictions
D
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: a. channel of distribution b. intermediary link c. physical distribution integration d. reseller network e. supply chain
E
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? a. Accountability b. Benchmarking c. Social d. Planning e. Measurement
E
T/F: Air transportation is faster, cheaper, and more dependable than rail transportation.
false
T/F: Supply chain management is completely producer driven.
false
T/F: Another name for outsourcing is contract logistics.
true
T/F: Both water transportation costs and reliability are low when compared with any other transportation mode.
true
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: a. a horizontal distribution channel b. a selective distribution channel c. outsourcing d. multisourcing e. a portable inventory control system
C
The mode of transportation that provides the most accessibility is: a. pipelines b. air freight c. truck freight d. water transport e. railroad
C
When Rick purchased tickets to a concert on the Internet, it was an example of: a. single-sourcing distribution b. one-way channelization c. electronic distribution d. mass customization e. aggregated marketing
C
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? a. Pareto principle b. 80/20 principle c. Systems approach d. Win-win approach e. Integrative approach
C
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? a. Strategic integration b. Hierarchical integration c. Internal operations integration d. Global integration e. All of the above
C
_____ provides time utility to buyers and sellers and aids manufacturers in managing supply and demand. a. Containerization b. Distribution c. Storage d. Direct sourcing e. Channelization
C
All of the following are benefits of supply chain management EXCEPT: a. increased flexibility of supply chain activities b. improved customer service c. reduced supply chain costs d. decreased cash flow e. decreased inventory
D
All of the following are business trends currently having a strong influence on the job of the supply chain manager EXCEPT: a. bar coding and radio frequency technology b. the advancement of computer technology c. the outsourcing of logistical functions d. replenishment benchmarking e. electronic distribution
D
All of the following are types of integration sought by firms interested in providing top-level service to customers EXCEPT: a. relationship integration b. measurement integration c. customer integration d. production integration e. technology and planning integration
D
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. a. relationship b. social c. functional d. technology and planning e. internal operations
D
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: a. merchant wholesaler b. retailer c. distributor d. third-party logistics firm (3PL) e. manufacturing flow process manager
D
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: a. yield management b. channel power c. materials handling d. supply chain management e. physical distribution
D
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? a. Dependent materials handling b. Outsourcing c. Warehousing d. Demand management e. Channel rotation
D
The amount of time between order placement, receipt of the customer's payment, and order shipment is known as the: a. 3PL cycle b. product life cycle c. purchase cycle d. order-to-cash cycle e. float
D
_____ is (are) composed of bundles of interconnected activities that stretch across firms in the supply chain. a. ABC segmentation strategies b. Activity-based costing c. Customer relationship management d. Business processes e. Customer service activities
D
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. a. relationship b. social c. functional d. operational e. materials and service supplier
E
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. a. relationship b. social c. functional d. hierarchical e. internal operations
E
One major advantage of pipelines over other modes of transportation is: a. availability b. points served c. flexibility d. speed e. reliability
E
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. a. relationship b. social c. functional d. operational e. internal operations
E
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? a. Manufacturing flow management b. Customer service management c. Product development and commercialization d. Order fulfillment e. Demand management
E
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? a. The warehouse in which the cotton was temporarily stored b. The ad agency that develops the promotion for the clothing c. The farmer who picks the cotton d. The trucking company that hauls the cotton to the clothing manufacturer e. All of the choices
E
Which of the following moves inventory into, within, and out of a warehouse? a. An inventory control system b. A multichannel system c. An ERP control system d. A freight forwarder e. A materials-handling system
E
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: a. supply chain management b. yield management c. channel networks d. horizontal marketing channels e. intensive distribution strategy
A
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. a. specificity b. complexity c. ambiguity d. internal relationships e. hierarchy
A
Which business process ensures that firms in the supply chain have the resources they need? a. Manufacturing flow management b. Customer service management c. Product development and commercialization d. Order fulfillment e. Demand management
A
Which business process supports manufacturing flow by identifying and maintaining relationships with highly valued suppliers? a. Supplier relationship management b. Customer service management c. Product development and commercialization d. Order fulfillment e. Demand management
A
Which of the following provides the technological link connecting all of the logistics components of the supply chain? a. Logistics information system b. Materials requirement plan c. EDI d. RFID chips e. Distribution resources strategy
A
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: a. creating a dependent materials-handling system b. outsourcing c. removing entry barriers d. task deployment e. channel rotation
B
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. a. channel manipulation b. customer integration c. resources integration d. yield management e. corporate socialization
B
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. a. railroads b. motor carriers (trucks) c. airplanes d. water transportation e. pipelines
B
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. a. channel b. supply chain c. MRP d. functional e. tactical distribution
B
_____ occurs when all the firms and business units participating in the supply chain appear as though they are reading from the same script. a. Strategic channel operation b. Supply chain integration c. Strategic MRP d. Demand management e. Extensive distribution integration
B
The goal of any effective materials-handling system is to: a. reduce the time of the order-processing system b. optimize the inventory control system c. increase safety procedures d. move items quickly with minimal handling e. reduce the length of time a product is in the transportation subsystem
D
The supply chain team does all of the following EXCEPT: a. communicating, coordinating, and cooperating extensively b. embracing all parties who participate in moving the product to market c. typically cutting across organizational boundaries d. providing financing for distributors e. orchestrating the movement of goods, services, and information from the source to the consumer
D
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? a. Electronic data interchange (EDI) b. Distribution resource planning (DRP) c. Third-party logistics firm (3PL) d. Materials requirement planning (MRP) e. Activity-based costing (ABC)
D
_____ 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. a. Yield management b. Channel power c. Materials handling d. Supply chain management e. Physical distribution
D
_____ 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. a. Relationship b. Social c. Functional d. Internal operations e. Material and service supplier
D
All of the following accurately describe supply chain management EXCEPT: a. physical flow process b. customer driven c. provides enhanced customer and economic value d. plays the role of communicator of customer demand e. relies on a "push" strategy
E
In which logistical component of the supply chain will you find distribution resource planning (DRP) a common feature? a. Production scheduling b. Transportation c. Order processing d. Materials handling e. Inventory control
E
T/F: Companies that use supply chain management techniques typically also use a push promotional strategy.
false
T/F: Digital distribution is a distribution technique that includes any kind of product or service that can be distributed electronically.
false
T/F: Managing inventory from the supplier to the manufacturer is called distribution resource planning (DRP).
false
T/F: RFID tags are not one of the components of a logistics information system.
false
T/F: The activities associated with the returns management process are rarely as important as other supply chain activities.
false
T/F: As firms become increasingly supply chain oriented, they develop management practices that are consistent with a systems approach.
true
T/F: EDI is often used to replace paper documents with electronic documents containing the same information.
true
A firm that specializes in the order fulfillment process is called a(n): a. third-party logistics firm (3PL) b. intermediate distributor c. industrial distributor d. merchant wholesaler e. ABC firm
A
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? a. Yes, supply chain management is designed to coordinate and integrate all the activities from raw materials to product consumption. b. No, supply chain management is only applicable to distribution strategies for products being sold to the consumer market. c. Yes, supply chain management would be very useful because it relies so heavily on benchmarking. d. Yes, supply chain management would alleviate all channel conflict. e. No, supply chain management requires an expensive investment of time and resources to make it worthwhile.
A
All of the following are logistics components of the supply chain EXCEPT: a. trade promotions b. production scheduling c. inventory control d. warehousing and materials handling e. order processing
A
All of the following are types of inputs used in both materials requirement planning and distribution resource planning EXCEPT: a. the source of funding b. lead times c. the mode of transportation to be used d. outstanding orders e. sales forecasts
A
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? a. Customer relationship management b. Returns management c. Product development and commercialization d. Order fulfillment e. Demand management
A
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: a. logistics information system b. materials requirement plan c. EDI d. RFID chips e. distribution resources strategy
A
The Canadian lobster harvest requires special handling coupled with rapid transportation to ensure the cargo reaches destinations alive. The favored transportation mode would be: a. air b. water c. truck d. pipeline e. rail
A
The goal of inventory control is to: a. minimize inventory levels while maintaining an adequate supply of goods to meet customer demands b. maximize inventory levels to prevent any possibility of stockouts c. determine order timing and order quantity d. estimate proper usage rates e. integrate JIT to reduce risks of obsolescence, theft, and damage
A
There are eight critical business processes on which supply chain managers must focus. Which of the following is one of those processes? a. Returns management b. Sales promotion activities c. Distribution intensity d. Public relations activities e. Environmental assessments
A
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: a. outsourcing b. cross-docking c. disintermediation d. piggybacking e. an integrated demand channel
A
Which of the following transportation modes can most easily determine the location of a package en route between shipper and receiver? a. Air b. Truck c. Rail d. Pipe e. Water
A
_____ 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. a. Customer b. Social c. Measurement d. Departmental e. Internal operations
A
_____ integration is the ability of two or more companies to develop social connections that serve to guide their interactions when working together. a. Relationship b. Social c. Customer d. Materials and service supplier e. Technology and planning integration
A
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. a. order fulfillment b. returns management c. product commercialization d. demand management e. product fulfillment
B
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. a. manufacturing flow management b. customer service management c. product development and commercialization d. order fulfillment e. demand management
B
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. A synergistic approach b. A systems approach c. A primary approach d. A networked approach e. An interdependent approach
B
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? a. Benchmark integration b. Measurement integration c. Planning integration d. Management integration e. Leagile integration
B
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: a. activity-based costing (ABC) b. electronic data interchange (EDI) c. benchmarking d. a materials-handling system e. procurement
B
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): a. inventory control system b. materials-handling system c. safety procedure to manage SKUs d. order-processing system e. outsourcing system
B
_____ 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. a. Business prioritizing b. Electronic data interchange c. Just-in-time inventory d. Real-time inventory e. Direct sourcing
B
T/F: Manufacturers who require suppliers to meet certain environmental standards are implementing green supply chain management.
true
T/F: One of the most critical global supply issues for importers of any size is coping with the legalities of trade in other countries.
true
T/F: Supplier integration occurs when multiple firms in a supply chain coordinate their activities and processes so that they are seamlessly linked to one another in an effort to satisfy the customer
true
T/F: Supply chain management is a key means of differentiation for a firm and a critical component in marketing and corporate strategy.
true
T/F: The demand management process seeks to align supply and demand throughout the supply chain by anticipating customer requirements at each level of creating demand-related plans of action prior to actual customer purchasing behavior.
true
T/F: The goal of a materials-handling system is to handle products as infrequently as possible.
true
T/F: The six criteria important in selecting a transportation mode are relative cost, transit time, reliability, capability, accessibility, and traceability.
true
T/F: Traceability with respect to transporting modes refers to the relative ease with which a shipment can be located and transferred.
true
