Chapter 10 Quiz - Supply Chain and Channels

While on vacation in Europe, Maria purchased an antique porcelain vase valued at $25,000. She needs to have it delivered to her home in Kentucky. What would be the best mode of transportation for this item?

air transportation

The ability of a distribution center to pick available goods down to a single piece allows customers to buy in quantities that make sense for their business. This exemplifies the function of product

allocation

If cost reduction is part of a firm's strategy, which of the following systems will allow it to achieve cost savings through economies of scale in purchasing, manufacturing, and transportation?

push strategy

Katie owns her own store that specializes in selling sea shells. She stocks the store with seashells based on the number her sales forecast gives for that time of the year. Sometimes, she has too many shells in storage. She hates to have too many shells in storage, but also likes that they are cheaper because she buys them in large quantities. Which supply chain strategy is Katie currently implementing?

push strategy

Damages, inconsistent service and lack of accessibility are all disadvantages of

rail transportation.

The distribution center function of product accumulation involves

receiving goods from various suppliers, storing the goods until they're ordered by a customer and consolidating orders to achieve transportation economies of scale.

What is the term for the situation in which a company does not have enough inventory available to fill an order?

stockout

A firm must track three types of costs to determine the correct level of inventory to keep in stock: purchasing costs, inventory carrying costs, and the costs incurred by

stockouts.

Warehouse activities can be organized into which three basic functions?

storage, movement, and production

According to your text, the ultimate objective of supply chain management is

to integrate the activities of related companies so they function as one extended enterprise.