MKT 411 - Test 3

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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

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

c. Climate change

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

a. 15,492

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

a. Continuously monitor employee desktop applications, e-mails and phone calls

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

a. More than quadrupled

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

a. Reasonability

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

a. Segmenting customers

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

a. Tariffs

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 Transportation Act of 1920 c. The Granger Laws d. The Interstate Commerce Act of 2013

a. The Shipping Act of 1984

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

a. Utilizing fewer facilitating products

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

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

b. Knowledge management process

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. A for-hire transportation company d. Large integrated global manufacturing company

b. Small firm with no logistics expertise

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

c. 20 minutes

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

c. Business clusters

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

c. Customer service management process

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

c. External process integration

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

c. Level demand strategy

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. Source factory c. Outpost factory d. Offshore factory

c. Outpost factory

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

c. Problems with internal integration efforts

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

c. Recycling

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

c. Reverse logistics

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. Developing and implementing a strong information technology system that allows for fast and easy information exchanges between supply chain partners b. Partnerships, which value information sharing and partner collaborations 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

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 B because its' NPV = $22,349 b. Company B because its' NPV = $21,224 c. Company A because its' NPV = $17,917 d. Company A because its' NPV = $19,705

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

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

d. Forward buying

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

d. Gaps

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

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

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. a. 11 b. 18 c. 15 d. 8

a. 11

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

a. Association of Indian Markets (AIM)

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. Basic Initiatives b. Reactive Initiatives c. Advanced Initiatives d. Proactive Initiatives

a. Basic Initiatives

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

a. Business cluster

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. Score-carding systems c. Mobile Marketing d. Legacy MRP systems

a. Cloud-based communication systems

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

a. Cross-selling customers after an initial purchase

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. Clickstream cloud c. Social media site d. QR code site

a. Data warehouse

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. Review and establish supply chain strategies d. Assess and improve internal integration of key supply chain processes

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

____________________ tends to reduce safety stocks among supply chain members, generating even less variability in supply chain orders? a. Information visibility b. Internal quality standards c. Forward Integration 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 ensures adequate transportation service throughout the country c. It protects consumers in terms of monopoly pricing 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. Lead management system c. Sales territory management system d. Sales activity management system

a. Knowledge management 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 batching b. Order fulfillment c. Stockpiling d. Bullwhip ordering

a. Order batching

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

a. Permission marketing

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

a. Post transaction customer service

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

a. Railroad companies

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

a. Reneged

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

a. Returns management

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. Ethical union initiatives c. Union shop laws d. Union planning forums

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

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

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

a. Services become more congested

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

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

a. Sophisticated retailers

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

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

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

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

b. 0.565

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

b. False

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

b. Containerships

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

b. Continuous connectivity

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. Decrease the costs in the supply chain c. Not have an impact on the supply chain d. Cause companies to shut down

b. Decrease the costs in the supply chain

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

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

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

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. Freight forwarder c. Consolidation forwarder d. Transportation broker

b. Freight forwarder

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

b. Hiding the wait time

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

b. Logistics

________________ are the most flexible mode of transportation and account for 70 percent of all the freight tonnage moved in the U.S. a. Water Carriers b. Motor Carriers c. Air Carriers d. Rail Carriers

b. Motor Carriers

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

b. Multiple-channel queuing system

Foreign-trade zones are: a. 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 c. Secure sites in foreign countries where goods wait for clearance by importing country d. 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

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. 1.160 Customers c. 0.900 Customers d. 0.375 Customers

c. 0.900 Customers

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

c. A long-term impact

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

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

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

c. Critically important

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

c. Cross-selling

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. Crossdocking d. Customs Brokering

c. Crossdocking

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. Segmented selling b. Extreme segmentation marketing c. Event-based marketing d. Personal holiday marketing

c. Event-based marketing

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

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

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

c. Foreign Trade Zone

The first step in the weighted-factor rating technique is to: a. Assign a performance score to each factor for each location b. 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 d. Assign a weight to each factor

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

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

c. Places warehouses close to the sources of supply

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

c. Satisfaction = perception − expectation

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

c. Server factory

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. Lack of trust b. Lack of Knowledge c. Shortage Gaming d. Risk Pooling

c. Shortage Gaming

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. a. Site C b. Site B c. Site A d. All sites are equally attractive.

c. Site A

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. 1.33 c. 0.125 d. 0.75

d. 0.75

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.