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85) Because Walmart has vast information about the consumer goods market, it might exert
________ power over P&G by providing or withholding important market information.
A) coercive
B) reward
C) referent
D) legitimate
E) information
86) When her company's dry goods deliveries were late for the third time, Melissa withheld
payment from her supplier until it was back on schedule. This is an example of ________ power.
A) coercive
B) reward
C) referent
D) expertise
E) legitimate
87) Walmart may have ________ power if a supplier desperately wants to be associated with
Walmart, because being known as an important Walmart supplier enables that supplier to attract
other retailers' business.
A) referent
B) legitimate
C) licensing arrangement.
D) information
E) coercive
88) When supply chain members view their goals and ultimate success as intricately linked, or
________, they develop deeper long-term relationships.
A) conventional
B) vertical
C) horizontal
D) administered
E) interdependent
89) In a retail supply chain, the ________ records the purchase information and electronically
sends it to the corporate office.
A) UPC
B) POS terminal
C) VMI
D) ASN
E) data warehouse
90) The local auto supply store gets merchandise delivered to it by its manufacturers as soon as it
has a need, reducing stockouts with minimal inventory. This demonstrates the concept of
A) data warehousing.
B) a push marketing strategy.
C) vendor-managed inventory.
D) manufacturer-managed distribution.
E) cross-docking.
91) Manufacturers trying to implement a just-in-time delivery system need to start with
A) routing software.
B) shipping schedules.
C) distribution center design.
D) knowledge of customer demand.
E) intensive distribution.
92) After installing an electronic data interchange, Carmella's gift shop was able to reduce
________, the amount of time between the recognition that an order needs to be placed and the
arrival of the needed merchandise.
A) quick time
B) the advance notice
C) lead time
D) float time
E) supply chain conflict time
93) The amount of time between the recognition that an order needs to be placed and the arrival
of the needed merchandise at the seller's store to be available for sale is referred to as
A) quick time.
B) an advanced shipping notice.
C) lead time.
D) float time.
E) supply chain conflict time.
94) One of the benefits of EDI is that it can reduce lead time, which is
A) the time between the decision to place an order and the receipt of the merchandise.
B) the time from when an RFP is announced to the time a consumer purchases the finished
product.
C) the time from when funds are committed for purchase of raw materials to the time when the
payment for the finished goods is actually received.
D) the time between when finished goods leave the manufacturer until the time they arrive, floor-
ready, at the retailer.
E) the time between when an item is sold to a customer and when a replacement is made
available for purchase by another customer.
95) After installing a(n) ________ in its JIT system, Chocolate Tree (a retail chocolate store) was
able to reduce lead time for merchandise orders.
A) supply chain
B) distribution center
C) quick change directory
D) electronic data interchange system
E) checking system
96) Shorter lead times allow retailers
A) access to a more diverse supply chain.
B) to reduce the need for pick tickets.
C) to skip advanced shipping notices.
D) to replace JIT systems with VMI systems.
E) to reduce the needed level of inventories.
97) With more frequent shipments associated with quick response (QR) systems, a retailer is
A) likely to have lower shipping costs.
B) more likely to add extra floor-ready merchandise.
C) less likely to use radio frequency identification tags.
D) more likely to engage in predatory pricing behavior.
E) more likely to have what customers want.
98) While JIT systems have many benefits, they
A) make the logistics function more complicated.
B) interfere with new product development functions.
C) confuse customers.
D) work only in vertical marketing systems.
E) decrease the accuracy of demand forecasts.
99) Leona is the logistics manager for the Barnes & Noble bookstore chain. She is weighing the
many benefits of the company's JIT system, but will need to consider that just-in-time inventory
management systems increase ________ costs.
A) sales force labor
B) transportation
C) promotional
D) advertising
E) new product development
100) When Walmart promises to purchase larger quantities if a manufacturer will lower its
wholesale price, it is exhibiting ________ power.
A) reward
B) coercive
C) knowledge
D) legitimate
E) referent
101) Supply chain management expert Bernard LaLonde once said, "American management's
philosophy has been: If you're smart enough to make it, and aggressive enough to sell it—then
any dummy can get it there. Now we're paying for [that philosophy]." What supply chain
problems will managers with this philosophy likely encounter?
102) As the text states, "Students of marketing often overlook or underestimate the importance of
place in the marketing mix." Why? Create an example to describe how place is important to
consumers.
103) Where does the value for the consumer lie in the supply chain?
104) What is the difference between a distribution center and a fulfillment center?
105) Give examples of the kinds of information flows that take place between a store and its
consumers, a distribution center, and a manufacturer.
106) What kinds of information affecting the supply chain would be found in a data warehouse?
107) As a very small manufacturer of nutritional products for race horses, Horse Health Products
Company maintained information using bookkeeping and inventory management software and
communicated with customers through e-mail and fax. As its business expanded, Horse Health
Products's owner began to consider creating an electronic data interchange. What could an EDI
system do for his company?
108) You see an advertisement for an internship with Best Buy to work with its regional
dispatcher. The advertisement describes the types of activities associated with working in
dispatching. What sorts of activities would you expect the ad to list?
109) Years ago, a hardware store had a sign that said, "If we don't have it, you don't need it."
How is the implementation of a quick response system the complete opposite of this marketing
philosophy?
110) Firms such as Forever 21 and H&M have adopted a just-in-time (JIT) or quick response
(QR) inventory system. Why is this type of inventory especially valuable in a market like fashion
clothing?
111) What are the main challenges in managing a supply chain?
112) A small manufacturer was once quoted as saying, "The best day and the worst day of my
business life was the day we got a contract from Walmart." What type of vertical supply chain is
the manufacturer entering? Why would the manufacturer say this?
113) Why is mutual trust important in managing a supply chain?
114) Coastal Glass Company provides bottles to the major beverage companies in the United
States. Coastal knows it needs to build partnering relationships with each of the beverage
companies, and the beverage companies know that Coastal is important to them. What will both
sides need to do to build and maintain a partnering relationship?
115) What types of firms typically operate distribution centers?
116) If your company is asked to ship its products to a cross-docking distribution center, what
will you need to do to the merchandise in each package?
117) How have radio frequency identification tags made work easier for distribution centers?
118) Jae is adapting the new routing software his company bought for its distribution center.
What factors will he likely include in the software program in order to maximize distribution
efficiency?
119) Explain how a firm like Walmart would exert referent power over another firm.
120) Compare an independent supply chain with a vertical marketing system.
121) Why does conflict arise in the supply chain? How do partnering relationships help reduce
conflict?
122) Explain the difference between an indirect and a direct marketing channel.
123) Describe a scenario that represents the first phase of a vertical marketing system.
124) Define the six types of power that occur in a marketing channel.
125) Name three benefits of a strategic relationship between channel members.
126) How can an electronic data interchange be used by a manufacturer to support the product,
price, and promotion elements of the marketing mix?
127) What are the two major problems related to QR systems?
128) Describe the three types of vertical marketing systems.
129) What elements, outlined in your text, contribute to the success of strategic relationships?
130) What are RFID tags, where have they typically been used, and why are they becoming more
prevalent in retail supply chain applications?
