Deck 9: Information Systems and Supply Chain Management

Question 1

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

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

Answer 1

E
Explanation: The security policy is a set of rules that apply to be certain that there is authentication, authorization, and integrity of the information.

Question 2

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

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

Answer 2

B
Explanation: Better inventory management allows retailers to be certain of having the right amount of inventory in the right place at the right time which reduces stock outages and can help tailor assortments.

Question 3

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

Answer 3

B
Explanation: It is called a pull supply chain because the demand of an item pulls it through the supply chain. This is more responsive to changes in customer demand, however it is more costly.

Question 4

What is a benefit of having an efficient supply chain?

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

Question 5

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

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

Question 6

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

Question 7

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

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

Question 8

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

Question 9

Which of the following best describes logistics?

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

Question 10

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

Question 11

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 data holding cell
D) a database chain
E) a data warehouse

Question 12

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

Question 13

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

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

Question 14

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

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

Question 15

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

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

Question 16

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

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

Question 17

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

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

Question 18

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

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

Question 19

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

Question 20

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) Radio Frequency Identification (RFID)
C) Advance Shipping Notice (ASN)
D) Shipping Document
E) Bill of Lading (BOL)

Question 21

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

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

Question 22

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

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

Question 24

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

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

Question 25

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

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

Question 26

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

Question 27

What does a dispatcher do?

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

Question 28

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

Question 29

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

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

Question 30

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

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

Question 31

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

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

Question 32

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

Question 33

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

Question 34

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

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

Question 35

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

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

Question 36

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) 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.
E) The effects of forecast error for the individual stores are minimized and less backup inventory is needed to prevent stockouts.

Question 37

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

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

Question 38

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

Question 39

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

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

Question 40

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

Question 41

Because of the nature of vendor-managed inventory:

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

Question 42

CPFR partnerships require:

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

Question 43

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

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

Question 44

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) Retail buyers and planners need to monitor inventory levels.
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) It takes longer for a product to go from design to the ordering to have the product on the selling floor.
E) It is an added cost with little benefit for the retailer to share selling information with their vendors.

Question 45

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

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

Question 46

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

Question 47

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

Question 48

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

Question 49

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

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

Question 50

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

Question 51

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

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

Question 53

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

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

Question 54

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

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

Question 55

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

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

Question 56

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

Question 57

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

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

Question 58

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

Question 59

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

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

Question 60

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

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

Question 61

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

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

Question 62

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

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

Question 63

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

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

Question 64

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

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

Question 65

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

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

Question 66

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

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

Question 67

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

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

Question 68

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

Question 69

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

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

Question 70

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

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

Question 71

Information stored in a data warehouse can be used to:

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

Question 72

Logistics is:

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

Question 73

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

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

Question 74

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

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

Question 75

A benefit of having an efficient supply chain is:

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

Question 76

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

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

Question 78

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

Question 79

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

Question 80

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 data warehouse
C) a customer data system
D) a cross-docking warehouse system
E) a direct account management system