Chapter 10 SmartBook

Which of the following are characteristics found in a push strategy? -A company builds goods according to customer orders -A company builds goods based on a sales forecast -Goods that a company makes are stored and therefore available when a customer wants them -A company builds a good and then waits for a customer to buy it -A company receives an order for a product and then proceeds to make it

-A company builds goods according to customer orders -Goods that a company makes are stored and therefore available when a customer wants them -A company builds a good and then waits for a customer to buy it

Which of the following benefits typically result from supply chain integration? -Better customer service -Efficient use of resources -Less competition -Reduced costs -Increased tax base -Increased ability to respond to changes

-Better customer service -Efficient use of resources -Reduced costs -Increased ability to respond to changes

Which of the following are sourced or procured during the purchasing process? -Finished goods -Human resources -Services -Raw materials -Component parts

-Finished goods -Services -Raw materials -Component parts

Which of the following are the three supply chain strategies detailed in the text? -Hybrid -Stock -Form -Push -Pull

-Hybrid -Push -Pull

Diego has procured all of the raw materials and components his company needs to manufacture its line of projection screens. Getting those materials to its manufacturing plant demonstrates the idea of _______ management.

materials

The inbound movement and storage of materials in preparation for them to enter and flow through the manufacturing process is called _____ management.

materials

A supply chain _____ is a management philosophy that guides the actions of a company toward actively managing the supply chain.

orientation

Logistics activities affect all four Ps of the marketing mix, but its most obvious relationship is with the _______ element by delivering goods and services to the correct location and in a timely manner.

place

When a company is introducing a new product and realizes how unstable the demand for the product might be, it would benefit from using a _______ strategy due to its flexibility.

pull

A(n) _____ consists of three or more companies that are directly linked by the flow of products, services, finances, or information from a source to a customer.

supply chain

Jessica's company manufacturers a variety of coffee flavors that are sold to retail stores. Her company receives the coffee beans from a distributor in South America who purchased the beans from local farmers. The farmers, distributor, Jessica's company, and the retail stores all make up a _______.

supply chain

Custom Floor Works provides customers with made-to-order carpets. In order to service its customers in a timely manner, Custom Floor Works relies on cotton and wool suppliers and high-end sewing manufacturers. Custom Floor Works recognizes the importance of sharing its supply and demand information with these suppliers in order to manage its orders better. This demonstrates the idea of _____.

supply chain orientation

The challenge of inventory management is to manage inventories in a way that balances _____ and _____ in a cost-effective manner.

supply; demand

A commitment to adopting a lifestyle that meets the needs of the present without compromising the ability of future generations to meet their own needs is referred to as _______.

sustainability

The process of purchasing goods and services that takes into account the long-term impact on people, profits, and planet is called _______.

sustainable sourcing

According to Bobby Lorimer, the success his firm has experienced is due to a strong focus on _____.

the customers

A distribution channel adds _______ to the product by making it available to ship to the next step in the supply chain or by taking customer orders.

value

A distribution center is similar to which of the following?

warehouse

Materials management would typically take place in a _______.

warehouse

True or false: Cost-effective transportation helps firms to create place and time utilities that are essential to keeping customers satisfied.

True

Which of the following does the text list as the primary reason firms rely on inventory management?

Without it, customer service will suffer.

A set of three or more companies directly linked by one or more of the upstream and downstream flows of products, services, finances, and information from a source to a customer is called _______.

a supply chain

The _____ is the main focus of both Bobby Lorimer and Textbook Brokers

customer

When the manufacturer ships to stores, it is called _____ _____ delivery.

direct store

A(n) _____ center is a type of warehouse used specifically to store and ship finished goods to customers.

distribution

If a company elects to use a push strategy, the logistics operations must be able to handle _______.

large volumes of product

Many companies today rely on complex supply chains which require detailed planning and control of the flow of goods, services, and information between the point of origin and the final customer. This planning and control refers to _______.

logistics

Tonya explained to the management team that it was vital that the company deliver the right product to the right place at the right time. Tonya is explaining the concept of _______.

logistics

_____ refers to that part of supply chain management that plans, implements, and controls the flow of goods, services, and information between the point of origin and the final customer.

logistics

A company introduces technology that enables a retailer to share demand information with a supplier. Taking a specific action such as this indicates that the firm is practicing supply chain _____.

management

A supply chain's objectives should be based on the firm's _____ goals.

marketing

Another name for a distribution channel is a(n) _____ channel.

marketing

The text lists several reasons why purchasing is an important logistical function for all organizations. Which of the following are included in these reasons? -Materials purchased for manufacturing account for a large part of product costs so savings in purchasing are important. -Sourcing materials from reliable suppliers ensures superior customer service with the end product. -Purchasing from responsible sources helps eliminate the potential for legal actions. -Purchasing plays a large role in the quality of goods and services. -Purchasing can benefit product design by making early contact with appropriate suppliers.

-Materials purchased for manufacturing account for a large part of product costs so savings in purchasing are important. -Sourcing materials from reliable suppliers ensures superior customer service with the end product. -Purchasing plays a large role in the quality of goods and services. -Purchasing can benefit product design by making early contact with appropriate suppliers.

Which of the following are examples of distribution channels? -Growers -Packagers -Retailers -Wholesalers -Distributors

-Retailers -Wholesalers -Distributors

When thinking about the U.S. laws that are most important to understanding the marketing environment, which of the following are the two main reasons federal, state, and local governments enact regulations? -To ensure businesses compete fairly with each other -To ensure businesses treat employees fairly -To ensure businesses don't take advantage of consumers -To ensure businesses pay the proper amount of tax owed by them

-To ensure businesses compete fairly with each other -To ensure businesses don't take advantage of consumers

Sustainable sourcing takes into account the long-term impact on _______. -profits -planet -production -people -promotion

-profits -planet -people

The text lists four benefits to effective materials management, including _______. -reduces procurement and production costs through economies of scale -supports marketing objectives -coordinates supply and demand for materials -affirms sales forecasting techniques -supports manufacturing activities

-reduces procurement and production costs through economies of scale -supports marketing objectives -coordinates supply and demand for materials -supports manufacturing activities

By collecting complaints about organizations that violate regulations and then passing those complaints on for investigation and potential prosecution, the _______ acts as a consumer protection agency for the United States.

Federal Trade Commission

Carl's company builds classroom computer furniture. It uses sales forecasts to create inventory and then waits for customer orders to put on any finishing touches, such as casters or cord management systems. Which type of supply chain strategy does Carl's company use?

Hybrid

Which of the following would not be a factor that would affect a company's sustainability profile?

Initiatives taken by competitors regarding sustainability

Which of the following activities would take place in a warehouse?

Inventory storage

Which of the following offers consumers the ability to purchase goods at a retail store or through a website?

Omnichannels

Logistics are imperative to a company when making decisions about where to have distribution facilities and what modes of transportation to use when shipping goods. Which of the four Ps of the marketing mix is logistics impacting in these instances?

Place

Which of the following is not one of the three basic functions of a warehouse?

Procurement

Carrie uses her page on the Etsy website to sell her hand-knit boot toppers and scarfs. Rather than making an inventory of her items ahead of time, Carrie waits until she receives an order and then begins to knit. Which type of supply chain strategy is Carrie relying on?

Pull

Joshua's job involves buying the raw steel his company uses to make video components. Which of the following jobs does Joshua perform?

Purchasing

The text refers to the seven Rs of logistics. Which of the following words represents the seven Rs?

Right

Which of the following refers to the actions a firm takes to coordinate the various flows within a supply chain?

Supply chain management

Which of the following describes the ultimate objective of supply chain management?

To improve the entire chain's performance

A speculation strategy is another name for a supply-chain _____ strategy.

push

A supply chain strategy in which a company builds goods based on a sales forecast, puts those goods into storage, and waits for a customer to order the product is known as a(n) _____ strategy.

push

As the logistics manager for a furniture manufacturing company, Bryce is responsible for selecting trucking companies that can handle large product orders at a reasonable cost. He also seeks out warehouses where his company can store its large inventories. From this information, you can tell that Bryce's company is relying on a(n) _____ supply chain strategy.

push

Steve's company has been told to keep costs down and take advantage of economies of scale in all purchasing, manufacturing, and transportation decisions. When a company must focus on cost reduction like this, it is beneficial to use a(n) _____ supply chain strategy.

push

A hybrid strategy that combines elements of both the push strategy and the pull strategy is known as the _______ strategy.

push-pull

Another name for a pull strategy is a(n) _____ supply chain.

responsive

There are _____ different modes of transportation a firm can use to transport its products.

six