Supply Chain Management Exam 3

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(T/F) 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.

false

(T/F) A primary advantage for motor carriers is the weather.

true

(T/F) According to the text, poor planning is typically the cause of most unsuccessful CRM initiatives.

true

(T/F) High tariffs encourage multinational corporations to set up factories to produce locally.

true

(T/F) The European Union (EU) is considered a regional trade agreement.

false

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

false

(T/F) The goal of an efficient queuing system is that customers never have to wait in a queue.

true

(T/F) 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.

false

(T/F) The three inputs for calculating Customer Lifetime Value are Average Annual Sales, Expected Lifetime and Forecasted Profits.

true

(T/F) 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.

Freight forwarder

A ___________________ consolidates large numbers of small shipments to fill entire truck trailers or rail cars to achieve truckload or carload transportation rates.

Level demand strategy

A basic strategy for managing capacity is:

Site A

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. SCORES (Maximum 100) FACTOR WEIGHT SITE A SITE B SITE C Labor Cost 0.25 92 82 84 Currency Stability 0.35 75 85 88 Proximity to Market 0.30 80 50 60 Taxes 0.10 69 88 91

15,492

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.

Customer service management process

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:

Reneged

A customer who enters the waiting line but leaves the system prior to receiving service is said to have:

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

A customer's lifetime value is calculated by:

Company A because its' NPV = $19,705

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.

Foreign Trade Zone

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):

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

A practical independent measure firms can take to improve information security is:

Places warehouses close to the sources of supply

A product positioned strategy:

Sales territory management system

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:

Knowledge management process

According to the text, all of the following are considered key supply chain business processes EXCEPT:

Decrease the costs in the supply chain

According to the text, the development of cleaner, more fuel-efficient affordable energy technologies and renewable energy technologies will:

Server factory

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?

Ease of access to parking lot

All of the following are considerations used in designing service layouts EXCEPT:

Reasonability

All of the following are included in the five dimensions of service quality EXCEPT:

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

All of the following are recommended for designing and implementing a successful CRM program EXCEPT:

Services become more congested

As capacity utilization approaches 1.0, which of the following tends to happen?

20 minutes

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.

External process integration

Building, maintaining and strengthening beneficial relationships with suppliers and customers is accomplished through the use of:

They are designed to be more user-friendly

CRM systems today require less training because:

11

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. Existing Office Layout Reception Area (A) Copy Room (B) Conference Room (C) Managers Offices (D) President Office (E) Accounting Office (F) Desirability Ratings B C D E F A 3 0 1 -1 2 B 2 1 0 3 C 3 2 1 D 2 2 E 2

Customer churn

Companies work very hard to reduce the number of customers who don't return. This customer defection is often referred to as:

Satisfaction = perception − expectation

David Maister's First Rule of Service is:

Association of Indian Markets (AIM)

Examples of regional trade agreements include all of the following EXCEPT:

A long-term impact

Facility location has ____________ on the supply chain.

Silo mentality

Failing to see the big picture and acting only in regard to single firm in the supply chain can be referred to as:

Critically important

For integrated supply chains, logistics is considered:

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

Foreign-trade zones are:

Cloud-based communication systems

Having connectivity and visibility to all partners in a firm's supply chain can be accomplished through the use of:

0.565

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.

More than quadrupled

In the text, Table 9.1 shows that for-hire logistics expenditures in the U.S., have _____________ in the past thirty-one years.

Shortage Gaming

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?

Business cluster

Interconnected companies and institutions from a particular field which are located in a single geographic location, are referred to is a(n):

Railroad companies

Intermodal marketing companies (IMCs) are companies that act as intermediaries between intermodal:

-It ensures adequate transportation service throughout the country -It protects consumers in terms of monopoly pricing -It encourages competition

It is argued that transportation deregulation is good because:

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

Mapping the network of primary trading partners is something that should be done to:

Business clusters

Milan, Wall Street, and Detroit are examples of ____________.

-Handle trade disputes -Provide technical assistance for developing countries -Monitor national trade policies

Regional trade agreements assist with which of the following?

Reverse logistics

Returns management is also known as _______.

Recycling

Reverse logistics can have a positive impact on the environment through activities such as?

Basic Initiatives

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:

Multiple-channel queuing system

Service provided by multiple servers acting in parallel is referred to as:

Returns management

Substance disposal and recycling are part of which supply chain business process:

-Marketing personnel for customer feedback -Production personnel to obtain feedback on supplier and purchased item performance -Suppliers for new product development and performance feedback

Supply relationship management personnel routinely communicate with:

Tariffs

The World Trade Organization (WTO) is critical to the facility location decision process because of their impact on:

Crossdocking

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:

0.75

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?

0.900 Customers

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?

Process integration

The coordination and sharing of information and resources to jointly manage a process is referred to as:

Gaps

The difference between customer expectations and customer perceptions of what was actually received during the service encounter is referred to as service quality ________.

Identify all factors considered important to the facility location decision

The first step in the weighted-factor rating technique is to:

-service capacity -waiting times -distribution channels -service quality

The four primary activities of concern in service response logistics are the management of:

Grow by about $100 billion from 2017 to 2021

The global process integration software market is expected to:

Cross-selling

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:

$41,405

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:

The breakeven point for these two locations is 625 units per year

Use the breakeven model to determine which of the statements below is TRUE according to the information provided in the table relating to two different location considered for a new manufacturing facility. LOCATION ANNUAL FIXED COSTS UNIT VARIABLE COSTS Site A $25,000 $11 Site B $20,000 $19

Data warehouse

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:

Small firm with no logistics expertise

What type of firm would be most interested in using a third-party logistics service?

Continuous connectivity

When CRM applications are available 24/7 on smartphones, tablets, and desktops, this is referred to as:

Event-based marketing

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:

-Customer service levels drop -More safety stock must be held -Cost may increase due to expedited deliveries

When mistakes occur in the supply chain, which of the following things might happen?

Order batching

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.

-Sending out promotional materials via e-mails and traditional mail to a large random group of a potential customers -Preserving a traditional sales force that communicates with the supply-chain members -Cross-selling customers after an initial purchase

Which of the following are required elements of an effective CRM initiative?

Problems with internal integration efforts

Which of the following has made external integration more difficult to achieve?

Sophisticated retailers

Which of the following is NOT a reason for locating in a business cluster?

Hiding the wait time

Which of the following is NOT a technique for managing customers' perceived waiting times:

Forward buying

Which of the following is a contributor to the bullwhip effect?

Climate change

Which of the following is a critical issue in sustainable development?

Services cannot be inventoried

Which of the following is a difference between goods and services?

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

Which of the following is a direct benefit from the adoption of NAFTA?

-Partner collaborations on methods to improve processes within the supply chain -Developing and implementing a strong information technology system that allows for fast and easy information exchanges between supply chain partners -Partnerships, which value information sharing and partner collaborations

Which of the following is a vital element in developing a strong supply chain through the practice of process integration?

-Musical Entertainer -Management Consultant -Attorney/Lawyer

Which of the following is an example of a person that would be considered to provide a Pure Service?

Segmenting customers

Which of the following is one of the most basic and important activities of CRM?

-Environmental issues regulated by domestic laws or international trade agreements -Access to suppliers from the location considered -The stability in the location considered

Which of the following issues is (are) important to consider when trying to determine the location of a firm's facilities?

The Shipping Act of 1984

Which of the following marked the end of the initial push by Congress to deregulate the entire U.S. transportation industry?

Right-to-work laws

Which of the following secures the right of employees to decide whether to join or financially support a union?

Server factory

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?

Utilizing fewer facilitating products

Which of the following would NOT be considered an acceptable option in managing capacity when demand exceeds available service capacity?

-Increasing safety stock -Develop a formal risk management program -Diversify the supply base

Which of the following would be considered a Supply Chain Risk Management activity?

Firms concentrate more on the CRM software instead of taking care of customers

Why do so many CRM programs fail?

Post transaction customer service

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:

Permission marketing

Your company allows customers to "opt-out" of receiving email advertisements. This is referred to as:

Knowledge management system

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:

Logistics

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

Containerships

_______________ carry the majority of the world's water-transported manufactured goods.

Motor carriers

________________ are the most flexible mode of transportation and account for 70 percent of all the freight tonnage moved in the U.S.

Sustainable development

________________ is important because what we do today will affect future generations.

Information visibility

____________________ tends to reduce safety stocks among supply chain members, generating even less variability in supply chain orders?


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