WPC 150: SCM Workbook

Retailers can compete with online retailers by using which of the following distribution systems to be more efficient?

Administered Contractual Corporate

The U.S. free trade agreement with Costa Rica, the Dominican Republic, El Salvador, Guatemala, Nicaragua, and Honduras is ______

CAFTA

The North American Free Trade Agreement (NAFTA) created a free-trade area among the United States, ______, and ______

Canada Mexico

In what way will globalization impact U.S. businesses?

Concerns for product safety Loss of jobs in manufacturing Increased competition

What strategy focuses on a company deciding where to locate its operations?

Facility location

_____ is a significant question because, once the decision has been made and implemented, the firm must live with it due to the high costs involved.

Facility location

True or false: ISO is a governmental body.

False

Choosing facility location has become more flexible for both companies and employees through the use of ______ ______ such as texting, teleconferencing, cell phones, and email.

Information Technology

Which of the following are part of possession utility?

Installation Delivery Providing credit

The marketing function that provides place utility or distribution from the producer to the consumer includes which of the following activities?

Inventory management Shipping Warehousing

Overall company quality is outlined by the standards set by the ______ ______ ______ Quality Award.

Malcolm Baldrige National

What agreement created a free-trade area among the United States, Canada, and Mexico?

North American Free Trade Agreement (NAFTA)

Which term describes the act of buying of all materials needed by the organization?

Purchasing

What is the definition of trade protectionism?

The use of government regulations to limit the import of goods and services

Which form of utility is added by marketing intermediaries who make products available when they are needed?

Time

Which of the following are functions of the World Trade Organization?

To mediate trade disputes among nations To oversee cross-border trade issues

Which are included in the second largest surface transportation mode because of their ability to deliver to more locations?

Trucks Vans

True or false: Corporate, contractual, and administered distribution systems allow traditional retailers to compete with online retailers successfully.

True

True or false: The Malcolm Baldrige National Quality Award is to honor companies that show quality in seven key areas and have customer satisfaction ratings higher than competitors.

True

An independent entity whose purpose it is to oversee cross-border trade issues and global business practices is called the ______ ______ ______.

World Trade Organization

A regional group of countries with a common external tariff, no internal tariffs, and coordinated laws to facilitate exchange among members is the definition of:

a common market

A distribution system where producers manage all of the marketing functions at the retail level is a(n):

administered distribution system

Small and medium-sized firms are often better prepared to leap into global markets because they:

can react quickly to opportunities

A(n) _______ _______, or trading bloc, is a regional group of countries with a common external tariff, no internal tariffs, and coordinated laws to facilitate exchange among members.

common market

U.S. business will experience increased ______ in the future due to the effects of globalization.

competition

In order to be a quality organization, a firm must:

consistently produce what the customer wants

Global trade offers opportunities because there are so many potential ______

consumers

Sometimes a company is willing to spend millions to move their facility from one location to another in order to increase buyer traffic, drawing more potential ______.

consumers

The type of distribution system that is owned by the manufacturer throughout the channel of distribution to the retail stores is a(n):

corporate distribution system

A type of problem that operations management planning helps to solve as it relates to manufacturing is:

facility layout

Arrangement of resources, including people, to most efficiently produce goods and services is referred to as ______ ______.

facility layout

A butcher who cuts a larger piece of beef into steaks is an example of ______ utility

form

A computer-based operations management system that uses sales forecasts to make sure that needed parts and materials are available at the right time and place is referred to as ______ requirement planning.

material

Using sales forecasts to make sure needed parts and materials are available at the right time and place using a computer--based operations management system is the definition of ______ ______ ______

material requirement planning

The second-largest surface transportation mode is

motor vehicle

U.S. workers will see increased competition from other countries in the future due to:

outsourcing to foreign countries

If you were choosing a means of transportation for oil, the cheapest and most dependable would be by ______

pipeline

Doing whatever is necessary to transfer ownership from one party to another is

possession

Successfully transferring ownership of a good is considered ______ utility

possession

Form utility is provided to customers when:

strings, frame, and a handle are assembled into a tennis racket

A ______ ______ is the sequence of linked activities that must be performed to move goods from the suppliers to the ultimate consumer.

supply chain

Threats to global trade include

terrorism rogue states income inequality

A large part of the cost of distribution is storage. Storage costs include:

the cost of equipment to move goods in the warehouse operating the warehouse facility the cost of the warehouse facility

When products are available when they are needed they are said to have ______ utility

time

Which of the following would be kept in a storage warehouse from one year to the next?

Holiday decorations Lawn mowers Snow blowers

Which of the following countries are members of the Central American Free Trade Agreement (CAFTA)?

Honduras Guatemala Costa Rica Nicaragua

______ refers to consistently producing what the customer wants while reducing errors before and after delivery to the customer.

Quality

Which type of utility provides fast, friendly assistance during and after a sale, as well as offering training in product usage over time?

Service utility

Which method of transportation is the cheapest when sending goods overseas?

Ship

______ and ______ sized businesses are often better prepared for the global market because they are able to react more quickly to opportunities.

Small Middle

A common market, also called a trading bloc, is a regional group of countries with:

a common external tariff no internal tariffs

A franchise system such as McDonald's is an example of a ______ distribution system.

contractual

Intermediaries who are independent, but agree to cooperate have likely formed a(n)

contractual

Intermediaries who are independent, but agree to cooperate have likely formed a(n) ______ distribution system

contractual

The goal of logistics is to manage the physical flow of materials and information from points of origin to points of consumption:

meeting customer requirements at a profit

The basic premise of just-in-time inventory is:

minimum inventory is kept on hand

Logistics involves planning, implementing, and controlling the flow of final goods to their destination to satisfy customers, and it must do all of this while still insuring a ______ for companies

profit

Trade ______ is the use of government regulations to limit the import of goods and services such as import tariffs and quotas.

protectionism

Finding the highest quality material resources, the best suppliers, and then negotiating the best prices are all responsibilities of someone in a _____ role

purchasing

When a firm reduces errors before and after delivery to the customer and thus delivers what the customer wants, the firm is said to exemplify the definition of ______

quality

The method of transportation that carries the largest percentage by volume of all goods shipped within the United States is ______

railroad

A variety of shipping methods are used within the continental United States, but the one that handles the largest volume of goods are

railroads

MRP is a computer based operations management system that uses ______ to make sure that needed parts and materials are available at the right time and place.

sales forecasts

The type of utility that provides fast, friendly service during and after the sale as well as teaching customers to use products over time is ______ utility

service

Sending goods by ship is the least expensive way to transport, but the drawback is that it is ______

slow

The use of government regulations to limit the import of goods and services is called:

trade protectionism

Pipelines are a useful means of transporting oil because they:

are fast are cheap

The type of distribution system in which intermediaries are independent but agree to cooperate are participating in a(n):

contractual distribution system

In a ______ distribution system, all of the intermediary functions are owned and controlled by the manufacturer.

corporate

Economies of scale, being closer to customers to reduce distribution costs, or being nearer to resources, are reasons why companies may spend millions of dollars to move their ______.

facility

______ ______ planning helps to solve issues related to facility layout, facility location, and inventory control.

operations management

The "P" of marketing, which includes shipping, transportation, storage, and logistics is known as:

place or distribution

The task of ______ involves the buying of all materials needed by the organization; also called procurement.

purchasing

The firms often better prepared to leap into global markets and react quickly to opportunities are:

small and medium businesses

The primary benefit of shipping goods by air is:

speed

ISO is not part of the government, but is a federation of national ______ bodies

standards

A ______ warehouse is used to hold products for a relatively long time.

storage

Holding goods in a facility or facilities for later distribution is a logistics function known as

storage

The economic term for the want-satisfying ability, or value, that organizations add to goods or services is ______

utility

The want-satisfying ability, or value, that organizations add to goods or services is:

utility

When something has the ability to satisfy a want, ability, or value to goods or services it is said to have ______

utility

A(n) ______ distribution system is one where all of the marketing functions at the retail level are managed by the producer.

administered

When producers manage all marketing functions at the retail level they are employing a(n) ______ distribution system

administered

A way that traditional retailers can compete with online retailers is to:

be so efficient they can beat them on cost

The physical arrangement of resources in the production process refers to:

facility layout

The term ______ ______ means selecting a geographic location for a firm's operations.

facility location

Opening two-way communication between marketing participants provides ______ utility

information

The two-way flow of communication between marketing participants is called ______ utility

information

Because of ______ ______ , more flexibility in choice of business location has increased while allowing firms to remain competitive.

information technology

Using an Internet-focused strategy, operations managers are outsourcing design, production, and shipping to other firms. This process is called a(n):

inter-firm process

Transporting an automobile manufactured in Japan by truck to a dock, then by boat to the United States and then by railroad and truck to an inland city in the United States would require ______ shipping

intermodal

When a firm decides to combine multiple modes of transportation to complete a single long-distance movement of freight, ______ shipping is being used.

intermodal

Combining multiple modes of transportation to complete a single long-distance movement of freight is known as:

intermodal shipping

Many rapidly growing firms are outsourcing areas like engineering, design, and manufacturing with the use of the ______, thus, developing an inter-firm approach to operations management.

internet

To minimize costs many firms employ a production process in which a minimum of inventory is kept on the premises and parts, supplies, and other needs are delivered ______ - ______ - ______ to go to the assembly line.

just - in - time

The entire sequence of linked activities that must be performed by organizations to move goods from the sources of raw materials to the ultimate consumer is a(n):

supply chain or value chain