Deck 9: Information Systems and Supply Chain Management

Question 1

What is a benefit of having an efficient supply chain?

A) fewer associates are needed to replenish stock
B) planning strategy becomes more predictable
C) more time for customer services
D) less negotiating with vendors
E) fewer stockouts

Answer 1

E

Question 2

Which of the following is NOT a benefit of efficient supply chain management?

A) strategic advantage
B) higher return on investments
C) better fashions
D) improved product availability
E) fewer stockouts

Answer 2

C

Question 3

Which of the following is responsible for gauging the needs of the customer?

A) distributors
B) retailers
C) transportation companies
D) vendors
E) designers

Answer 3

B

Question 4

A(n) _ is a document which tells the retailer's distribution centre what is specifically shipped by the vendor and when it will be delivered.

A) Universal Product Code (UPC)
B) Shipping Document
C) Bill of Lading (BOL)
D) Radio Frequency Identification (RFID)
E) Advance Shipping Notice (ASN)

Question 5

Each time a customer makes a purchase at a Walmart store from the Health and Beauty area, data is transmitted to nearest distribution centre so the merchandise can be replenished and sent on the next truck delivery. Which strategy does Walmart utilize?

A) influential logistic strategy
B) cross check logistic strategy
C) pull supply chain
D) push supply chain
E) cost efficient logistic strategy

Question 6

How do retailers and vendors ensure that information that passes back and forth between retailers and vendors is secure?

A) There is an element of trust that is necessary in doing business with one another.
B) Suppliers, customers, and new clients all have a form of access to information.
C) The system ensures that the information received has not been tampered with by ensuring that the communication is both authentic and authorized.
D) With a high level of planning, implementation and control of the flow of information, the information will be secure.
E) Paper hard copies are sent to one another for comparison to be certain that the information is accurate.

Question 7

Why are retailers considered the most important part of the supply chain?

A) They receive discounts from suppliers.
B) They can engage in both horizontal and vertical integration.
C) They can set pricing strategies based on costs of goods sold.
D) They can best gather and evaluate data regarding customers' wants and needs.
E) They are more well known to the customers.

Question 8

Which of the following is NOT a function of a distribution centre?

A) getting merchandise "floor-ready"
B) cross-docking
C) storing merchandise
D) receiving
E) negotiating with vendors

Question 9

Which of the following does NOT describe a retailer's strategic advantage gained through the efficient supply chain and information system?

A) The effective use of supply chain and information systems requires only the coordinated effort of employees and functional areas throughout the company.
B) Retailers can implement efficient supply chain management by buying best-in-class software packages.
C) All retailers can increase sales, and reduce costs, by using high performance information systems.
D) The competitive advantage from information and supply chain systems is not easy to be duplicated by competitors.
E) All retailers can develop a competitive advantage from their information and supply chain systems.

Question 10

To meet specific needs of a variety of customers, retailers must:

A) operating with more markdowns to make room for new merchandise
B) manage its supply chain to avoid stockouts
C) working closer with vendors to keep prices lower
D) extending hours of operation
E) include only national brands

Question 11

Which of the following DOES NOT describe why an efficient supply chain is so important to retailers?

A) improved product availability
B) improved in-stock position
C) trendier merchandise
D) a strategic advantage
E) higher return on investment

Question 12

Which of the following does NOT describe why retailers have been increasingly taking a leadership role in managing their respective supply chains?

A) large retailers are typically more knowledgeable than vendors
B) consolidation of international retail chains
C) access to purchase information customer by customer
D) flexibility of changing retail price
E) emergence of larger retailers

Question 13

Which of the following best describes logistics?

A) the management of the flow of merchandise and information from the vendor to the customer
B) part of the supply chain that does not impact profitability for most retailers
C) the management of merchandising products such as assortment planning and pricing adjustments
D) part of the supply chain that is developed separately from the merchandising strategy
E) the handling of retail materials

Question 14

is a set of activities and techniques that companies implement to efficiently and effectively manage the flow of merchandise from the vendors to the retailer.

A) Supply chain management
B) Logistics
C) Electronic data interchange (EDI)
D) Materials handling
E) Total quality management

Question 15

Which benefits does efficient supply chain management provide retailers concerning product availability?

A) reduced stockouts and employee productivity
B) increased stock level and tailored assortments
C) increased backup stock level and reduced stockouts
D) reduced stockouts and tailored assortments
E) tailored assortments and right pricing levels

Question 16

is the aspect of supply chain management which refers to the planning, implementation, and control of the efficient flow and storage of goods, services, and related information. It follows the process from the point of origin to the point of
Consumption to meet customers' requirements.

A) Material flow management
B) Distribution
C) Logistics
D) Total quality management
E) Warehousing

Question 17

The place where the point of sale data is stored, and that the organization uses to support its decisions is called _.

A) a spreadsheet
B) a computerized processing unit
C) a database chain
D) a data warehouse
E) a data holding cell

Question 18

In the United States, Macy's sells a variety of winter coats throughout the country focusing delivery in the northern tiers first and ending the season rollouts in the south much like the way the cold weather migrates. This management of the winter products can best be described as:

A) improved sale productivity
B) following seasonal lead
C) tailoring assortments
D) reducing stockouts
E) tailoring assets

Question 19

Which of the following best describes the goal of supply chain management?

A) to maximize retailers' profits by reducing costs while satisfying service levels that their customers require
B) minimizing system wide costs, while achieving the highest service level (product availability)
C) reducing costs by allocating merchandise
D) minimizing system wide costs while satisfying the service levels (product availability) that customers desire
E) maximizing retailers' profits by reducing system wide costs, while achieving the highest service level (product availability)

Question 20

A stores purchase data collected at the point of sale that is used to access data designed to support decision making in an organization.

A) computerized processing unit
B) spreadsheet
C) data holding cell
D) database chain
E) data warehouse

Question 21

Which of the following terms describe the process of moving returned goods to the retailer from the consumer to the DC, and then to the vendor for the purpose of capturing value or proper disposal?

A) exception management logistics
B) reverse auctions
C) logistics
D) reverse logistics
E) expedited logistics

Question 22

The process where vendors ship the merchandise prepackaged to the distribution centre in the quantities required for each store and then that merchandise is shipped to stores as soon as it is received is called _.

A) reverse logistics
B) cross-docking
C) pull supply
D) lead time
E) cross conveyor

Question 23

is a system when retailers receive an order from a customer, they then have the product shipped directly to the customer from the vendor.

A) Vendor-managed inventory
B) Drop-shipping
C) Outsourcing
D) Third party logistics
E) Cross-docking

Question 24

From the retailer's view, reduces the retailer's supply chain costs and investment because the vendor assumes the costs and risks of shipping the product to the customer.

A) third party logistics
B) outsourcing
C) vendor-managed inventory
D) drop-shipping
E) cross-docking

Question 25

Retailers with less sophisticated forecasting and information systems tend to use a(n):

A) cross check logistic strategy
B) push supply chain
C) pull supply chain
D) cost efficient logistic strategy
E) influential logistic strategy

Question 26

A retailer whose orders are generated at the store level, on the basis of demand data captured by point-of-sale data, is said to employ a(n):

A) pull supply chain
B) push supply chain
C) cross check logistic strategy
D) influential logistic strategy
E) cost efficient logistic strategy

Question 27

Which of the following statements about receiving, checking, marking, and ticketing is TRUE?

A) The checking process is performed after the merchandise has been ticketed and marked.
B) Only receiving and checking involve UPC labels.
C) To perform the checking process correctly, every carton must be opened and its merchandise examined.
D) Vendors sometimes ticket and mark merchandise before shipping to the distribution centres.
E) It is more efficient and less costly to ticket merchandise at the store level.

Question 28

Alvin works in a distribution centre. According to his job description, he is responsible for _ or filling out paperwork to record the receipt of merchandise at the centre.

A) merchandise handling
B) receiving
C) acquisition
D) checking
E) recording

Question 29

Which of the following does NOT describe the benefits of utilizing distribution centres over direct store delivery?

A) More accurate sales forecasts are possible when retailers combine forecast for many stores serviced by one distribution centre, rather than doing a forecast for each store.
B) Distribution centres enable the retailer to carry less merchandise in the individual stores.
C) The use of distribution centres increases inventory investment systemwide.
D) The effects of forecast error for the individual stores are minimized and less backup inventory is needed to prevent stockouts.
E) It is easier to avoid running out of stock or having too much stock in any particular store because merchandise is ordered from the distribution centre as needed.

Question 30

Which of the following is NOT a benefit of EDI to retailers and their vendors?

A) Information flows quicker so inventory turnover is higher.
B) It is a computer readable format that can be easily analyzed.
C) EDI reduces lead time.
D) It improves overall quality of communication.
E) EDI increases the desirability of the product for the end consumer.

Question 31

Which of the following describes the benefits of a pull strategy?

A) It decreases inventory turnover.
B) It allows more efficient production and distribution scheduling to reduce costs.
C) It does not require advanced systems to implement.
D) It forecasts the competitor's demand.
E) There is less likelihood of being overstocked or out of stock at each store.

Question 32

What does a dispatcher do?

A) Dispatchers create pick tickets.
B) Dispatchers make pricing and identification labels and place them on merchandise.
C) Dispatchers go through goods upon their receipt to make sure they arrived undamaged.
D) Dispatchers allocate warehouse space to merchants.
E) Dispatchers coordinate deliveries to the distribution centres.

Question 33

Which of the following is an advantage of using distribution centres over direct store delivery?

A) The DC can always deliver faster than a vendor.
B) The DCs enable the retailer to carry less overall inventory.
C) Individual stores that forecast and draw from a DC are more cost efficient.
D) Direct store delivery is always more expensive.
E) The DCs have the advantage of keeping backup stock in the store.

Question 34

In a(n) , merchandise is allocated to stores on the basis of forecasted demand. Once a forecast is determined, specified quantities of merchandise are shipped to distribution centres and stores at predetermined time intervals.

A) pull supply chain
B) push supply chain
C) cross check logistic strategy
D) influential logistic strategy
E) cost efficient logistic strategy

Question 35

Which of the following does NOT describe an activity managed by distribution centres?

A) receiving
B) cross-docking
C) checking
D) markdowns
E) ticketing

Question 36

What are the rules that apply to activities in the computer and communication resources that belong to an organization?

A) security policy
B) corporate security
C) corporate policy
D) investigation policy
E) policing

Question 37

Ali supervises the conveyor belts in a distribution centre. Her job is to make sure the merchandise moves quickly from the receiving docks to the staging area in order for the trucks to load and deliver. No merchandise is stored as the vendors already prepared it
Specifically for the stores. Ali works in at the distribution centre.

A) cross-checking
B) reverse logistics
C) cross examination
D) cross-docking
E) cataloging

Question 38

is a method where retailers receive orders from customers and have the product shipped directly to the customer from the vendor.

A) Reverse logistics
B) Consumer direct fulfillment
C) Freight forwarding
D) Pull supply chain
E) Push supply chain

Question 39

Which of the following does NOT describe the benefits of a pull strategy?

A) It becomes more efficient than a push approach when demand is uncertain and difficult to forecast.
B) There exists less likelihood of being overstocked, or out of stock, because the store orders merchandise as needed on the basis of consumer demand.
C) It is more responsive to changes in customer demand.
D) It increases inventory turnover.
E) All of these are benefits of a pull strategy.

Question 40

What type of retailer would most likely benefit from the use of direct store delivery?

A) A supermarket
B) A big-box discount store
C) A mall specialty store
D) A large department store
E) A big-box electronics retailer

Question 41

Which of the following does NOT cause the bullwhip effect in an uncoordinated supply chain?

A) overreacting to shortages
B) information sharing
C) delays in receiving orders
D) delays in transmitting orders
E) ordering in batches

Question 42

Why have some vendors and retailers chosen not to adopt RFID tagging?

A) They believe the additional costs do not benefit the return on investment
B) They are concerned about the potential increase in theft of costly items
C) They are concerned about the data storage falling into the wrong hands
D) They are concerned about the potential health risk of radio frequency
E) They do not want to replace people with the devices

Question 43

Matthew made a purchase online of a Fender speaker system from a retailer. When the shipment of his purchase arrived at his home, he noticed that the product was shipped to him directly from Fender. The retailer and vendor are utilizing a system of _.

A) cross-docking
B) vendor-managed inventory
C) third party logistics
D) outsourcing
E) drop-shipping

Question 44

When the law office of Dewey, Cheatham and Howe received the case of legal paper it had ordered from an Internet office supply retailer, the office manager was dismayed to find the paper was pink even though it was marked white. The office manager packed the paper back up and sent it back to the retailer who in turn sent it back to the vendor. This is an example of:

A) reverse logistics
B) demarketing
C) backwards handling
D) resourcing
E) backwards distribution

Question 45

Which is NOT a benefit of using RFID over traditional bar codes?

A) reduced theft
B) reduced out-of-stock conditions
C) reduced warehouse and distribution labour costs
D) reduced point-of-sale labour costs
E) reduced inventory turnover

Question 46

Because of the nature of vendor-managed inventory:

A) there are many delays in replenishment as it's not a collaborative approach
B) the flow of consumer purchases determines replenishment
C) third party logistic companies have become necessary
D) EDI is now obsolete
E) DCs need to run as deliveries arrive after hours and on holidays

Question 47

Ian's job at the Nordstrom distribution centre is to place some of the incoming apparel on hangers in size order before rolling them down to be ticketed. Ian is preparing the merchandise to be:

A) cross-docked
B) ready for logistics
C) floor-ready
D) sorted and repacked for the conveyor
E) put in storage

Question 48

is the sharing of forecasts and related business information between retailers and vendors to improve supply chain efficiency and product replenishment.

A) Point-of-sale (POS)
B) Electronic data interchange (EDI) system
C) Automated replenishment system
D) Collaborative planning, forecasting, and replenishment (CPFR)
E) Universal Product Code (UPC) system

Question 49

Which of the following describes the limitations of vendor-managed inventory that retailers may encounter?

A) Since the vendor owns the merchandise until it is sold by the retailer, at which time the retailer pays for the merchandise, a retailer bears a financial risk.
B) It takes longer for a product to go from design to the ordering to have the product on the selling floor.
C) When the vendor coordinates the supply chain for its specific products, it does not know what other actions the retailer is taking that might affect the sales of its products in the future.
D) Retail buyers and planners need to monitor inventory levels.
E) It is an added cost with little benefit for the retailer to share selling information with their vendors.

Question 50

What is the process of moving merchandise through the channel from the customer to the store to the DC to the vendor?

A) reverse flow
B) reverse logistics
C) outbound returns
D) return logistics
E) outbound flow

Question 51

Retailers transmit their purchase orders, transportation routings, and price tag information to their vendors through a(n) _.

A) collaborative planning, forecasting, and replenishment (CPFR)
B) electronic data interchange (EDI) system
C) automated replenishment system
D) Universal Product Code (UPC) system
E) point-of-sale (POS)

Question 52

The retailer's order is transmitted to the distribution system via computers. Then the computer at the distribution centre creates a(n) , a document or display on the
Screen in a forklift truck that tells the order filler how much of each item to get from the storage area and to take to the staging area.

A) requisition order
B) order for selection
C) selection list
D) pick ticket
E) sorting order

Question 53

is an approach for improving supply chain efficiency in which the vendor is responsible for maintaining the retailer's inventory levels in each of its stores.

A) Quick response (QR) system
B) Reverse logistics
C) Efficient consumer response (ECR)
D) Collaborative planning, forecasting, and replenishment (CPFR)
E) Vendor-managed inventory (VMI)

Question 54

Which of the following does NOT describe the ways to reduce the level of inventory in the supply chain and the number of stockouts in the stores?

A) using vendor-managed inventory (VMI)
B) employing collaborative planning, forecasting, and replenishment (CPFR)
C) using reverse logistics
D) using EDI
E) sharing information

Question 55

CPFR partnerships require:

A) strong commitment
B) quick response interaction
C) full responsibility of the vendor
D) a controlled expense budget
E) two or more vendors

Question 56

An inventory planner notes that the inventory she is responsible for would be best managed by relying on consumer demand. She recommends to her management to implement a(n) ______ that would support being in a better stock position of her
Managed products by store location.

A) push supply chain strategy
B) influential logistic strategy
C) pull supply chain strategy
D) cross check logistic strategy
E) cost efficient logistic strategy

Question 57

What is an advantage of using RFID over traditional bar codes?

A) RFID holds more data stored on the device
B) RFID cannot acquire data in harsh environments without a visual line of sight
C) RFID technology is inexpensive
D) RFID eliminates the bullwhip effect
E) RFID makes tagging and pricing at DCs unnecessary

Question 58

are companies that purchase transport services. Then they consolidate small shipments from a number of shippers into large shipments which move at a lower freight rate.

A) Freight forwarders
B) Public warehouses
C) Dispatchers
D) Integrated third-party logistics companies
E) Reverse logistic companies

Question 59

What happens when retailers and vendors do not coordinate their supply chain management activities?

A) communication improves
B) inventory builds up in the supply chain
C) prices drop at the negotiation level
D) the DC shuts down
E) lower inventory leads to sell-outs

Question 60

The building up of inventory in an uncoordinated channel is called a(n):

A) buildup effect
B) adversary supply chain
C) bullwhip effect
D) mishap effect
E) CPFR

Question 61

Which of the following is not a benefit of a QR system?

A) Increased product availability
B) Better assortments
C) Reduced lead time
D) Reduced logistics expenses
E) Lower inventory investment

Question 62

is a retail business strategy that involves using supply chain management process to introduce fashionable merchandise rapidly and respond to customer demand for the merchandise quickly.

A) Just in time delivery
B) Lightening logistics
C) Consumer direct fulfillment
D) Fast fashion
E) Quick response

Question 63

Logistics is:

A) order processing but not storage
B) the management of the flow of merchandise from vendor to the customer
C) part of the supply chain that is developed separately from the merchandising strategy
D) the handling of retail merchandising materials
E) part of the supply chain that does not impact profitability for most retailers

Question 64

Which of the following is a computer-to-computer exchange of business documents from retailer to vendor and back?

A) Electronic data interchange (EDI)
B) Customer data system
C) A data warehouse
D) Vendor marketing software
E) Data exchange

Question 65

Which of the following is designed to reduce the retailer's lead time for receiving merchandise?

A) Purchase ordering system (POS)
B) Electronically delivered inventory (EDI) system
C) Updating purchase coding (UPC) system
D) Automated replenishment system
E) Quick response (QR) delivery system

Question 66

When a regular customer calls a well-known pizza delivery restaurant, the order taker types in the caller's name. The computer screen shows the customer's address, phone number, directions to his or her house, his or her usual order, and the date and frequency of orders. If the customer has not ordered during a two-month period or the average
Number of orders has been down, the pizza parlour mails them a coupon for their favourite pizza. The pizza parlour uses:

A) a retail information system
B) a direct account management system
C) a data warehouse
D) a customer data system
E) a cross-docking warehouse system

Question 67

Purchase data collected at the point of sale that goes into a huge database known as:

A) a data holding cell
B) a database chain
C) a spreadsheet
D) a computerized processing unit
E) a data warehouse

Question 68

With , a jewellery store can identify a customer who has not visited the store lately and consider sending him a reminder that his wedding anniversary is this month.

A) a customer data system
B) a direct account management
C) a retail information system
D) a direct marketing system
E) a data warehouse

Question 69

is rapidly evolving technology that enables the consumer-driven supply chain by providing improved business insight and real-time tracking.

A) CPFR
B) RFID
C) Extranet
D) Intranet
E) EDI

Question 70

Because of their position in the supply chain, retailers are in a unique position to:

A) communicate openly with a multiple of distribution centres without causing animosity
B) gauge customers' wants and needs
C) dictate price despite recommendations by vendors
D) sell more than a competing manufacturer
E) negotiate prices with vendors

Question 71

A vendor that employs sales associates for retailers to visit stores, analyze their business and inventory and create displays of their products will most likely also utilize what method of product delivery?

A) reverse logistics
B) consumer direct fulfillment
C) cross-docking
D) direct store delivery
E) drop-shipping

Question 72

A benefit of having an efficient supply chain is:

A) less negotiating with vendors
B) more time for customer services
C) fewer associates are needed to replenish stock
D) fewer stockouts
E) planning strategy becomes more predictable

Question 73

Information stored in a data warehouse can be used to:

A) learn how to group product categories to increase purchases
B) create customer loyalty programs
C) calculate the value of a customer or a prospective customer
D) coordinate all aspects of the marketing campaign
E) do all of these

Question 74

Which of the following is a function of a distribution centre?

A) Tagging
B) Shipping
C) Cross-docking
D) Receiving
E) All of these

Question 75

Which of the following is a benefit of the QR system?

A) Increases inventory investment
B) Has no effect on the economic order quantity
C) Shortens lead time
D) Increases the need for safety stock
E) Reduces fixed costs

Question 76

Which of the following is the integration of business processes from end user through original suppliers that provides products, services, and information that add value for customers?

A) Logistics
B) Materials handling
C) Electronic data interchange (EDI)
D) Supply chain management
E) Total quality management

Question 77

Joanne manages a gift shop. She wants to reduce the time between when she realizes she needs to order more stock and the arrival of the ordered inventory in the store. Joanne believes a quick response (QR) delivery system can reduce:

A) inventory lapse
B) economic order time
C) lead time
D) period of distribution
E) contractual buying period

Question 78

Why are retailers often considered the most important link in the supply chain?

A) They can engage in both horizontal and vertical integration
B) They set pricing strategies based on cost of goods sold
C) They connect customer with vendors who supply merchandise
D) They receive discounts from suppliers
E) They can best gauge customers' wants and needs

Question 79

For fashion merchandise where there is only one shipment of the products or collections, the best supply chain method to use is the

A) cost efficient logistic strategy
B) push supply chain strategy
C) pull supply chain strategy
D) influential logistic strategy
E) cross check logistic strategy

Question 80

Which of the following is a benefit of having an efficient supply chain?

A) Less negotiating with vendors
B) Fewer associates are needed to replenish stock
C) More time for customer services
D) Having assortments that the customer wants
E) Planning strategy becomes more predictable