Test 3 - MKT 411 MindTap

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The three inputs for calculating Customer Lifetime Value are Average Annual Sales, Expected Lifetime and Forecasted Profits. a. True b. False

b. False

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

b. False

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? a. 0.900 Customers b. 4.000 Customers c. 0.375 Customers d. 1.160 Customers

a. 0.900 Customers

Facility location has ____________on the supply chain a. A long-term impact b. A short-term impact c. No impact d. Minimal impact

a. A long-term impact

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

a. Association of Indian Markets (AIM)

Which of the following is a critical issue in sustainable development? a. Climate change b. Labor and legal problems c. Countertrade d. Supply base optimization

a. Climate change

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. Crossdocking b. Risk pooling c. Customs Brokering d. Piggy backing

a. Crossdocking

Companies work very hard to reduce the number of customers who don't return. This customer defection is often referred to as: a. Customer churn b. Clickstream defection c. Balking d. Revenue Exodus

a. Customer churn

All of the following are recommended for designing and implementing a successful CRM program EXCEPT: a. Expect employees to 'learn on the job' and adapt their way of working b. Support from the firm's top executives c. Continuous awareness of customers' changing requirements d. Knowledge of the tools available to aid in CRM

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

A ___________________ consolidates large numbers of small shipments to fill entire truck trailers or rail cars to achieve truckload or carload transportation rates. a. Freight forwarder b. Load broker c. Consolidation forwarder d. Transportation broker

a. Freight forwarder

It is argued that transportation deregulation is good because: a. It encourages competition b. It protects consumers in terms of monopoly pricing c. It ensures adequate transportation service throughout the country d. All of these choices are correct.

a. It encourages competition

According to the text, all of the following are considered key supply chain business processes EXCEPT: a. Knowledge management process b. Product development and commercialization c. Manufacturing flow management process d. Supplier relationship management process

a. Knowledge management process

______________ creates the efficient flow of goods between supply chain partners, allowing profits and competitive advantage to be maximized. a. Logistics b. Transportation planning c. Procurement d. Operations

a. Logistics

A product positioned strategy: a. Places warehouses close to the sources of supply b. Places warehouses close to customers c. Places warehouses midway between the sources of supply and the customers

a. Places warehouses close to the sources of supply

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: a. Post transaction customer service b. Transaction customer service c. Pre transaction customer service d. Probable customer churn

a. Post transaction customer service

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

a. Reasonability

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

a. Reneged

Which of the following secures the right of employees to decide whether to join or financially support a union? a. Right-to-work laws b. Ethical union initiatives c. Union shop laws d. Union planning forums

a. Right-to-work laws

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. a. True b. False

a. True

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? a. Shortage Gaming b. Lack of trust c. Risk Pooling d. Lack of Knowledge

a. Shortage Gaming

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 SCORE FACTOR Weight Site A Site B Site C Labor Costs 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 a. Site A b. Site C c. Site B d. All sites are equally attractive

a. Site A

What type of firm would be most interested in using a third-party logistics service? a. Small firm with no logistics expertise b. A for-hire transportation company c. Large integrated global manufacturing company d. A freight forwarder

a. Small firm with no logistics expertise

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

a. Sophisticated retailers

According to the text, poor planning is typically the cause of most unsuccessful CRM initiatives. a. True b. False

a. True

High tariffs encourage multinational corporations to set up factories to produce locally. a. True b. False

a. True

The European Union (EU) is considered a regional trade agreement. a. True b. False

a. True

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. a. True b. False

a. True

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. a. 0.624 b. 0.565 c. 0.283 d. 0.000

b. 0.565

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? (Choose the closest answer.) a. 0.167 b. 0.75 c. 1.33 d. 0.125

b. 0.75

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) Conf. Room (C) Managers Office (D) President Office (E) Accounting Office (F) Desireability 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 a. 15 b. 11 c. 8 d. 18

b. 11

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. (Choose the closest answer.) a. 11,619 b. 15,492 c. 25,820 d. 6,667

b. 15,492

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. a. Company B because its' NPV = $22,349 b. Company A because its' NPV = $19,705 c. Company B because its' NPV = $21,224 d. Company A because its' NPV = $17,917

b. Company A because its' NPV = $19,705

______________ carry the majority of the world's water-transported manufactured goods. a. Supertankers b. Containerships c. Barges d. None of these choices are correct.

b. Containerships

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

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

For integrated supply chains, logistics is considered: a. Not at all important b. Critically important c. Somewhat important d. Important

b. Critically important

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. Cross-selling c. Clickstream selling d. Segmented selling

b. Cross-selling

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: a. Demand management process b. Customer service management process c. Supply management process d. Order fulfillment process

b. Customer service management process

According to the text, the development of cleaner, more fuel-efficient affordable energy technologies and renewable energy technologies will: a. Increase the cost of production and distribution b. Decrease the costs in the supply chain c. Not have an impact on the supply chain d. Cause companies to shut down

b. Decrease the costs in the supply chain

All of the following are considerations used in designing service layouts EXCEPT: a. Speed up customer throughput b. Ease of access to parking lot c. Reduction of time to restock d. Impulse purchasing

b. Ease of access to parking lot

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: a. Segmented selling b. Event-based marketing c. Personal holiday marketing d. Extreme segmentation marketing

b. Event-based marketing

Building, maintaining and strengthening beneficial relationships with suppliers and customers is accomplished through the use of: a. Data warehouses b. External process integration c. Expediting d. All of these choices are correct.

b. External process integration

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. a. True b. False

b. False

A primary advantage for motor carriers is the weather. a. True b. False

b. False

The goal of an efficient queuing system is that customers never have to wait in a queue. a. True b. False

b. False

Why do so many CRM programs fail? a. Because of incompatible information and communication systems b. Firms concentrate more on the CRM software instead of taking care of customers c. They take the firm away from concentrating on their key suppliers d. They are so expensive that it is hard to recover the investment

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

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): a. International Cross Docking Zone b. Foreign Trade Zone c. International Processing Center d. Duty-free Territory

b. Foreign Trade Zone

Which of the following is a contributor to the bullwhip effect? a. Vendor managed inventory b. Forward buying c. Smaller order sizes d. Using actual demand data

b. Forward buying

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. Gaps c. Bloops d. Breakeven point

b. Gaps

The global process integration software market is expected to: a. Remain constant through 2018 b. Grow by about $100 billion from 2017 to 2021 c. Double by the end of 2018 d. Decrease slightly by the end of 2017

b. Grow by about $100 billion from 2017 to 2021

____________________ tends to reduce safety stocks among supply chain members, generating even less variability in supply chain orders? a. Internal quality standards b. Information visibility c. Forward Integration d. All of these choices are correct.

b. Information visibility

A basic strategy for managing capacity is: a. Differentiation strategy b. Level demand strategy c. Queue management strategy d. Focus strategy

b. Level demand strategy

In the text, Table 9.1 shows that for-hire logistics expenditures in the U.S., have _____________ in the past thirty-one years. a. Decreased for the first 10 years, then increased b. More than quadrupled c. Slowly declined d. Remained the same

b. More than quadrupled

________________ are the most flexible mode of transportation and account for 70 percent of all the freight tonnage moved in the U.S. a. Air Carriers b. Motor Carriers c. Water Carriers d. Rail Carriers

b. Motor Carriers

Intermodal marketing companies (IMCs) are companies that act as intermediaries between intermodal a. Trucking companies b. Railroad companies c. Waste management companies d. Warehouse management companies

b. Railroad companies

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

b. Segmenting customers

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

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

Which of the following is a difference between goods and services? a. Goods are often unique b. Services cannot be inventoried c. Goods have high customer-service interaction d. All of these choices are correct.

b. Services cannot be inventoried

Which of the following marked the end of the initial push by Congress to deregulate the entire U.S. transportation industry? a. The Transportation Act of 1920 b. The Shipping Act of 1984 c. The Granger Laws d. The Interstate Commerce Act of 2013

b. The Shipping Act of 1984

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 VAR. COST Site A $25,000 $11 Site B $20,000 $9 a. The breakeven point for these two locations is 600 units per year b. The breakeven point for these two locations is 625 units per year c. Site B is the desired location if the production rate is 800 units per year d. Site A is the desired location if the production rate is 500 units per year

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

CRM systems today require less training because: a. Pre-purchase training sessions have become very sophisticated b. They are designed to be more user-friendly c. The systems don't do as many things as they used to. d. All of these choices are correct.

b. They are designed to be more user-friendly

Which of the following is a direct benefit from the adoption of NAFTA? a. An increase in trade between U.S. and China b. A reduction in immigrants crossing the border from Mexico c. An increase in trade between U.S., Canada, and Mexico d. An increase in manufacturing job opportunities in the U.S.

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

Milan, Wall Street, and Detroit are examples of ____________. a. Regional trade agreements b. Strategic supplier alliances c. Business clusters d. Business conglomerates

c. Business clusters

When CRM applications are available 24/7 on smartphones, tablets, and desktops, this is referred to as: a. All-time CRM b. A high-service application c. Continuous connectivity d. Smart CRM

c. Continuous connectivity

Which of the following are required elements of an effective CRM initiative? a. Preserving a traditional sales force that communicates with the supply-chain members b. Sending out promotional materials via e-mails and traditional mail to a large random group of a potential customers c. Cross-selling customers after an initial purchase d. All of these choices are correct.

c. Cross-selling customers after an initial purchase

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: a. Clickstream cloud b. Social media site c. Data warehouse d. QR code site

c. Data warehouse

A customer's lifetime value is calculated by: a. Summing the projected annual profitability of the customer b. The firm's MRP system c. Finding the NPV of a customer's projected lifetime profits for the firm d. Summing the annual sales of the customer and then dividing by the projected lifetime

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

The first step in the weighted-factor rating technique is to: a. Assign a weight to each factor b. Assign a performance score to each factor for each location c. Identify all factors considered important to the facility location decision d. Multiply each factor score by its weight and sum the weighted scores for each location

c. Identify all factors considered important to the facility location decision

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

c. Knowledge management system

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. a. Order fulfillment b. Stockpiling c. Order batching d. Bullwhip ordering

c. Order batching

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? a. Server factory b. Source factory c. Outpost factory d. Offshore factory

c. Outpost factory

Your company allows customers to "opt-out" of receiving email advertisements. This is referred to as: a. Event-based marketing b. Customer churn c. Permission marketing d. Customer preference marketing

c. Permission marketing

Which of the following has made external integration more difficult to achieve? a. Lack of software applications to coordinate the effort b. Identifying key trading partners c. Problems with internal integration efforts d. Increased number of franchise operators

c. Problems with internal integration efforts

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

c. Sales territory management system

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? a. Source factory b. Offshore factory c. Server factory d. Outpost factory

c. Server factory

As capacity utilization approaches 1.0, which of the following tends to happen? a. Perceived quality of service improves b. Wait times decrease c. Services become more congested d. Service times decrease

c. Services become more congested

The World Trade Organization (WTO) is critical to the facility location decision process because of their impact on: a. Relationship marketing b. Southeast Asian Nations c. Tariffs d. Innovation

c. Tariffs

Which of the following would NOT be considered an acceptable option in managing capacity when demand exceeds available service capacity? a. Using customers to provide services b. Utilizing technological tools like computers and automated systems c. Utilizing fewer facilitating products d. Cross-training and sharing employees

c. Utilizing fewer facilitating products

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: a. $38,590 b. $25,675 c. $5,500 d. $41,405

d. $41,405

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. a. 12 minutes b. 60 minutes c. 3 minutes d. 20 minutes

d. 20 minutes

Which of the following issues is (are) important to consider when trying to determine the location of a firm's facilities? a. Access to suppliers from the location considered b. The stability in the location considered c. Environmental issues regulated by domestic laws or international trade agreements d. All of these choices are correct.

d. All of these choices are correct

Regional trade agreements assist with which of the following? a. Handle trade disputes b. Provide technical assistance for developing countries c. Monitor national trade policies d. All of these choices are correct.