MKT360 Supply Chain Management Final Study Guide

First-come-first-served is an example of a(n): a. queue discipline b. unfair waiting policy c. channel queuing arrangement d. single-phase queue design

a. queue discipline

The order fulfillment process relies on forecasting and techniques used to smooth demand variabilities when disparities exist between demand and supply.

False

The three inputs for calculating Customer Lifetime Value are Average Annual Sales, Expected Lifetime and Forecasted Sales.

False

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

c. Sophisticated retailers

The European Union (EU) created the world's largest free trade area.

False

A type of card called a kanban is used to signal when a process is out of control in the production process.

False

Queuing analysis includes arrival characteristics such as balking and reneging.

False

37. Which of the following is NOT consistent with a decentralized warehousing system? a. Higher safety stocks required b. Shorter lead times c. Lower transportation fees d. Lower total operating costs

d. Lower total operating costs

The following is a term that refers to error- or mistake proofing: a. Kaizen b. Muda c. Lean layouts d. Poka-yoke

d. Poka-yoke

27. Which of the following secures the right of employees to decide whether or not to join or financially support a union? a. Union shop laws b. Union planning forums c. Ethical union initiatives d. Right-to-work laws

d. Right-to-work laws

. 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. Sales activity management system b. Sales territory management system c. Lead management system d. Knowledge management system

D) Knowledge management system

The following are all examples of lean warehousing capabilities EXCEPT: a. Decreased assembly operations b. Greater emphasis on crossdocking c. Reduced lot sizes and shipping quantities d. Increased automation

Decreased assembly operations

A "lead factory" is set up in a location with an abundance of advanced suppliers, competitors, research facilities and knowledge centers in order to have access to the most current information on materials, components, technologies and products.

False

A small LTL shipment that originates on a truck in Los Angeles and is moved from Los Angeles to Phoenix where it is unloaded and put onto another truck for final shipment to Denver would be considered an intermodal shipment since it utilizes more than one vehicle during shipment.

False

Organizations practicing lean production often increase their inventory levels in the long-run in order to create a cushion against variability so that they can investigate and eliminate the weaknesses of their system.

False

Segmenting customers on the basis of things like products purchased, sales history, demographic information, and desired product features can dilute the results of a CRM program; segmenting customers should be avoided.

False

A service bundle includes the explicit service, the supporting facility, the facilitating goods, as well as the implicit services.

True

Facility location is a business decision that will ultimately impact issues like project cost, shareholder and customer reaction, as well as lead times and customer service levels.

True

In most services, customers are either directly or indirectly involved in the production of the service itself.

True

International intermediaries can provide shipping, consolidation, and other import and export services. Some examples of these international intermediaries include: NVOCCs and trading companies.

True

Logistics is what creates the efficient flow of goods between supply chain partners, allowing profits and competitive advantage to be maximized.

True

A system which allows sales managers to obtain current information and reporting capabilities regarding each salesperson's activities on each customer's account is referred to as a: a. Sales activity management system b. Sales territory management system c. Lead management system d. Knowledge management system

b. Sales territory management system

22. The common term across the seven wastes is: a. Overspending b. Keiretsu c. Excess d. Robust

c. Excess

Service facilities are normally decentralized.

True

The textbook describes a perfect order as one in which all of seven of the rules in the "Seven Rs Rule" are satisfied. List of five of the seven R's.

1. Right Product 2. Right Quantity 3. Right Condition 4. Right Place 5. Right Time 6. Right Customer 7. Right Cost

According to the text, with increasing globalization the access to global markets and corporate networks makes the role of location less important as a source of competitive advantage

False

According to the textbook, two models that utilize quantitative data, which can help determine the attractiveness of one location versus another, are the Break-Even Model and the Extrapolated Average Cost Model.

False

Control charts makes it very difficult for operators or other workers to plot data and compare performance over time.

False

Deming's 14 points actually conflict with many Six Sigma concepts.

False

The Americas have two primary regional trade agreements, NAFTA, an agreement between the United States, Canada, and Mexico, and COMESA, an agreement between all of the South American countries.

False

When designing a manufacturing or service process, or even during the reengineering of such a process, a Pareto chart would be an essential tool for evaluating the process in terms of its action elements, waiting periods, and process flow.

False

While business clusters seem logical in well-established areas with developed economies like Silicon Valley and Hollywood, California, because companies can easily collaborate, compete, and share knowledge, some high-tech clusters have developed in areas with emerging economies such as Costa Rica, the Philippines, and Uganda.

False

While transportation regulation and deregulation both have their supporters, proponents of regulation consider it to be good since it is said to encourage competition and allows the negotiation of prices to dictate market costs.

False

According to the text, good queue management consists of managing only what the customer perceives to be as the waiting time.

True

An important initial step in the supply chain integration model is for a firm to identify the primary trading partners so the firm can concentrate its time and resources on managing the important process links with these companies.

True

Cross-training workers is a typical capacity management technique for times when demand exceeds capacity.

True

Deming, Crosby, and Juran are all prominent quality professionals whose ideas were vital to Six Sigma.

True

It is important for all supply chain members to first understand the important characteristics upon which the supply chain end product is competing. Once this is understood, the supply chain members should all be using strategies consistent with those competitive characteristics when delivering their product and/or service.

True

Lean thinking and Six Sigma quality are concerned with achieving low cost along with high levels of quality and responsiveness throughout the supply chain.

True

Many multinational corporations are moving their facilities and headquarters out of Taiwan and some Southeast Asian countries in order to take advantage of the proximity to customers. The more attractive customer markets are developing in China.

True

Private clouds allow corporate users to internally manage their data centers.

True

Startup and other smaller firms do not typically benefit from locating in cluster areas.

True

Statistical process control (SPC) allows firms to compare process performance to desired levels or standards.

True

Statistical process control uses control charts to monitor the outputs of a process to identify variations due to assignable causes from variations due to common causes.

True

The ultimate goal in supply chain management is to create value for the services and products provided to end customers, which, in turn, will benefit the firms in the supply chain network.

True

36. Which of the following types of warehouses takes a large number of LTL shipments and repackages them in TL or CL quantities to a manufacturer or user-facility located in another area or region? a. Consolidation warehouse b. Private warehouse c. Breakbulk warehouse d. Public warehouse

a. Consolidation warehouse

Companies work very hard to reduce the number of their present customers which never return. This customer defection is often referred to as: a. Customer churn b. Clickstream defection c. Balking d. Revenue Exodus

a. Customer churn

Which of the following strategic foreign facilities is set-up primarily produce products at a low cost with minimal technical and managerial resources? The items produced at these factories are often exported to countries where costs to produce similar items would be higher. a. Offshore factory b. Server factory c. Source factory d. Outpost factory

a. Offshore factory

41. Which tool is useful for presenting data in an organized fashion, indicating process problems from most to least severe: a. Pareto Charts b. Check Sheets c. Cause-and-Effect Diagrams d. Fishbone Diagrams

a. Pareto Charts

Which of the following trade agreements was set up after WWII and originally consisted of six countries? a. Association of Southeast Asian Nations (ASEAN) b. European Union (EU) c. Association of African Markets (AAM) d. Southern Common Market (MERCOSUR)

b. European Union (EU)

28. Some companies import components, use them in the production of their end items, and ultimately export them to other countries. If a company wanted to import the components duty-free, use those components in the production of their end items, and then export them to other countries, they would most likely utilize a(n): a. Duty-free Territory b. Foreign Trade Zone c. International Cross Docking Zone d. International Processing Center

b. Foreign Trade Zone

29. Efficient Consumer Response was initially developed in the 1990's for the following industry: a. Fashion b. Grocery c. Small Electronics d. Automobile

b. Grocery

26. According to the text, FOB destination pricing is typically preferred for all of the following EXCEPT: a. High-value shipments b. Buyer has little transportation expertise c. Buyer is purchasing a reoccurring order d. Small shipments

c. Buyer is purchasing a reoccurring order

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

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

32. Which company probably played the largest role in the development of the Toyota Production System? a. General Motors b. Chrysler c. Ford d. Boeing

c. Ford

Which of the following are among the MOST important elements of the lean production philosophy? a. Quality inspections and a standardized product line b. Fully automated assembly lines and a large supplier base c. Large inventories and quality inspections d. Waste reduction and continuous improvement

c. Large inventories and quality inspections

25. Which of the following is NOT a characteristic of cost-of-service pricing? a. Prices are established based on fixed and variable costs of transportation b. Prices vary based on volume and distance c. Prices tend to rise as shipping distance increases d. Carriers price their services at the highest levels the markets will bear

d. Carriers price their services at the highest levels the markets will bear

34. Which of the following quality gurus believed that companies should strive for zero defects and that quality was, in a sense, free since quality improvement programs invariably paid for themselves? a. Juran b. Deming c. Baldrige d. Crosby

d. Crosby

41. A transportation intermediary used to consolidate large numbers of small shipments to fill entire truck trailers or rail cars to achieve truckload or carload transportation rates is referred to as: a. Consolidation forwarder b. Load broker c. Transportation broker d. Freight forwarder

d. Freight forwarder

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

d. Gaps

When web sites suggest other items for purchase based on already purchased items, this is an example of Clickstream Selling.

False

The development of functional silos within an organization is considered a key component to achieving successful supply chain process integration.

False

The five dimensions of service quality include: Reliability, durability, performance, aesthetics, and availability.

False

The objectives of any CRM initiative should be focused on what the company can reasonable achieve.

False

Up until now CRM has been very effective for most companies because it has focused on building customers' trust and loyalty, ultimately building a strong relationship with the customer through programs that make it easy for the customer to return products and get information from people inside the organization.

False

Global location decisions are made to optimize the performance of the supply chain and be consistent with the firm's competitive strategy.

True

Private warehouses refer to warehouses that are owned by the firm storing the goods.

True

Risk pooling is a strategy that attempts to use fewer warehouses to decrease the required safety stock levels since the negatively correlated market demands reduce the overall demand variance across the markets which the centralized warehouse services.

True

Sales force automation products help salespeople better manage their accounts, their business opportunities, and communications while away from the office.

True

When a chase demand strategy is used for managing capacity, effective plans must be in place to utilize, transfer or reduce service capacity when there is excess available and to develop or borrow capacity quickly when demand exceeds capacity.

True

When a level demand strategy is used for managing capacity, the firm is required to use a demand management or queue management tactic to deal with excess customers.

True

While a company's Internet presence may be desirable for finding information or conducting product transfers, touching products and talking face-to-face with company representatives remains an integral part of the supplier-customer interface.

True

With FOB pricing, a supplier is the legal owner of a product until the product reaches its destination.

True

32. Foreign-trade zones are: a. Secure sites within the U.S. where goods and materials can be assembled and exported without being levied domestic duties or excise taxes b. Secure sites in foreign countries where goods wait for clearance by importing country c. Markets in the U.S. where foreign countries set up and sell products d. Bodies of water where cargo ships are allowed to dock to deliver imported goods

a. Secure sites within the U.S. where goods and materials can be assembled and exported without being levied domestic duties or excise taxes

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

a. Segmenting customers

You work for a company that segments customers by demographic information markets specifically to those customers who are located in the Los Angeles area. This is an example of: a. Target marketing b. Cross-selling c. Geographic marketing d. Personalized customer communication

a. Target marketing

35. 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. Crossdocking c. Transshipping d. Customs Brokering

b. Crossdocking

35. Which of the following is NOT one of the Seven Wastes? a. Excess inventories b. Environmental waste c. Waiting time d. Scrap and rework

b. Environmental waste

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

Organizations that primarily compete on speed of delivery, such as FedEx and UPS, utilize which of the following approaches for location determination: a. Sourcing center b. Hub and spoke c. Air and ground d. LTL consolidation

b. Hub and spoke

The Wal-Mart effect is best described by which of the following? a. As large retailers locate in communities, the put smaller companies out of business b. Information technologies have allowed large retailers to maintain good productivity growth rates c. Wal-Mart's use of supplier capacity has made it difficult for other companies to find Suppliers d. The growth of large retailers has had a negative impact on the environment

b. Information technologies have allowed large retailers to maintain good productivity growth rates

. The element of a CRM program involved with the use of data-mining software and customer behavior analytics is: a. Segmenting customers b. Predicting customer behaviors c. Customer value determination d. Customer preference determination

b. Predicting customer behaviors

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

b. Reneged

Which of the following are required elements of an effective CRM initiative? a. Sending out promotional materials via e-mails and traditional mail to a large random group of a potential customers b. Segmenting customers c. Preserving a traditional sales force that communicates with the supply-chain via a traditional paper document/contract system d. All of these

b. Segmenting customers

Which of the following strategic foreign facilities is set-up primarily to avoid tariff barriers, minimize exchange risk, and/or take advantage of government incentives? Ultimately the factory operates as most normal factories making only minor improvements in either the products or processes. a. Offshore factory b. Server factory c. Source factory d. Outpost factory

b. Server factory

The four primary activities of concern in service response logistics are the management of: a. Distribution channels,service quality, reputation and waiting times b. Service capacity, waiting times, distribution channels and service quality c. Labor standards, distribution channels, waiting times and service quality d. Service capacity, visual workplace, waiting times and distribution channels

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

Cloud based CRM services are particularly useful for: a. Large companies with many resources b. Small companies with limited resources c. Customers wanting to shop online d. Firms wanting customers seeing their current inventory balance

b. Small companies with limited resources

26. According to the text, when the location of a factory is dictated by low production costs, fairly developed infrastructure and availability of skilled workers the factory is referred to as a(n): a. Offshore factory b. Source factory c. Server factory d. Lead factory

b. Source factory

The three generic competitive strategies are: a. profit-based, nonprofits, and free services b. cost leadership, differentiation, and focus c. manufacturing, service, and retail d. mass-production, make-to-order, and services

b. cost leadership, differentiation, and focus

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

c. Association of African Markets (AAM)

CRM can allow organizations to identify which customers have stopped purchasing products or services from the organization so that the organization can target those former customers for future promotions and/or perhaps to investigate why they stopped purchasing in the first place. The CRM attribute is called: a. Customer profitability determination b. Customer-base retention initiative c. Customer defection analysis d. Customer clickstream analysis

c. Customer defection analysis

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

c. Multiple-channel queuing system

According to the text, the primary elements of all queuing systems include all of the following EXCEPT: a. Input process b. Queue characteristics c. Output process d. Service characteristics

c. Output process

39. According to the text, a warehouse location strategy that proposes locating a warehouse closest to the sources of supply is referred to as: a. Market positioned strategy b. Supply positioned strategy c. Product positioned strategy d. Intermediately positioned strategy

c. Product positioned strategy

23. Your company needs to determine the appropriate location of a factory in order to take advantage of government incentives and avoid tariff barriers, the type of factory needed can be referred to as a(n): a. Offshore factory b. Source factory c. Server Factory d. Lead Factory

c. Server Factory

24. Which of the following modes of cargo transport can be characterized as being the most inexpensive and very slow, yet good for transporting very heavy goods a long-distance? a. Air Carriers b. Rail Carriers c. Water Carriers d. Motor Carriers

c. Water Carriers

Logistics affects the supply chain function by: a. Determining how deliveries can be made in a timely manner b. Creating the flow of goods between supply chain partners c. Providing time and place utility d. All of these

d. All of these

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

d. Assurance

Countries that shift from a manufacturing-oriented economy to a service-oriented economy sometimes see their productivity growth decline over time. This phenomenon is called: a. Service Shrink b. Deming's Decline c. State Utility d. Baumol's Disease

d. Baumol's Disease

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

d. Cross-selling