44) 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.
45) 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 product 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
46) For fashion merchandise where there is only one shipment of the product or collection, 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.
47) 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
48) Which of the following statements describes the benefits of a pull strategy?
A) It does not require advanced systems for implementation.
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 increase costs.
E) It forecasts the competitor’s demand.
49) Which of the following types of retailers is most likely to 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
50) Which of the following statements is an advantage of using distribution centers 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 extra merchandise as 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.
51) Which of the following statements does not describe the benefits of utilizing distribution
centers over direct store delivery?
A) More accurate sales forecasts are possible when retailers combine forecasts for many stores
serviced by one distribution center rather than doing a forecast for each store.
B) Distribution centers enable the retailer to carry less merchandise in the individual stores.
C) The use of distribution centers increases inventory investment.
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 center as needed.
E) The effects of forecast error for the individual stores are minimized and less backup inventory is
needed to prevent stockouts.
52) Which of the following terms describes the process of moving returned goods from a customer
to a retail store or FC, from a retail store to a DC, or from a DC to a vendor for the purpose of
capturing value or proper disposal?
A) Ticketing
B) Reverse supply chain
C) Marking
D) Cross-docking
E) Exception management logistics
53) What is the process of moving merchandise through the channel from the customer to the store
to the DC to the vendor?
A) Return flow
B) Reverse supply chain
C) Outbound returns
D) Outbound flow
E) Reverse flow
54) 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 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) a reverse supply chain.
D) backwards handling.
E) demarketing.
55) ________ 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) Direct store delivery
56) 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) push supply chain
C) pull supply chain
D) reverse logistics
E) direct store delivery
57) 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.
58) 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) Excess inventory builds up in the system.
E) Lower inventory leads to sell-outs.
59) Many companies who deliver their own product to their stores through their own trucks are
using ________ as a way to offset expenses by picking up loads to transport on their way back,
rather than traveling with empty trailers.
A) bullwhips
B) dual directionals
C) boomerangs
D) deferred transportation
E) backhauls
60) ________ is a term used for when a retail associate scans the merchandise the customer intends
to purchase.
A) Point of sale
B) Consumer direct fulfillment
C) Quick response
D) Just-in-time delivery
E) Lightening logistics
61) All of the following are reasons why more attention is being directed toward reverse supply
chain systems except
A) the increased rate of returns overall due to the increase of retail sales on the Internet.
B) the government restrictions on how many times a customer can return products to a retailer.
C) the environmental sustainability of excess packaging and shipping materials when returned.
D) consolidating shipments to stores, DCs, and FC to reduce harmful emissions.
E) the environmental impact of shipping direct to customers.
62) Which of the following is not a way 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 (CPRF)
63) ________ 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 (CPRF)
64) Because of the nature of vendor-managed inventory,
A) retail buyers and planners no longer need to monitor inventory levels and place orders.
B) DCs need to run around the clock 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.
65) 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 ordering the product to having the product on
the selling floor.
E) It is an added cost with little benefit for the retailer.
66) ________ 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)
67) CPFR partnerships require
A) quick response interaction.
B) trust and commitment.
C) two or more vendors.
D) full responsibility of the vendor.
E) a controlled expense budget.
68) ________ are tags that transmit identifying information and are attached to individual items,
shipping cartons, and containers.
A) Vendor-managed inventories
B) Data warehouses
C) Radio frequency identification devices
D) Electronic data interchanges
E) Data stores
69) Which of the following statements is true of radio frequency identification devices?
A) They facilitate interpersonal communication between vendors and retailers.
B) They transmit data about the objects in which they are embedded.
C) They help in gathering data about the spending habits of customers.
D) They facilitate interpersonal communication between retailers and consumers.
E) They help in gathering data about the preferences of customers.
70) Which of the following is the primary benefit to retailers of utilizing RFID tagging for
individual items?
A) Increased inventory turnover
B) Reduced product prices
C) Reduced inventory turnover
D) Real-time measure of employee productivity
E) Real-time measure of inventory levels
71) What is an advantage of using RFID over traditional bar codes?
A) RFID eliminates the bullwhip effect.
B) RFID technology is expensive.
C) RFID holds more data stored on the device.
D) RFID makes tagging and pricing at DCs unnecessary.
E) RFID is environmentally friendly.
72) Which of the following is not a benefit of using RFID over traditional bar codes?
A) Reduced inventory turnover.
B) RFID updates the data stored.
C) RFID holds more data stored on the device.
D) One benefit of item-level RFID is to reduce theft.
E) The data on the devices can be acquired without a visual line of sight.
73) Which of the following statements is a reason why some vendors and retailers chose 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 environmental impact.
74) Explain how managing an efficient supply chain and information system can improve the
company’s return on assets.
75) What is the purpose of the data warehouse and how do retailers use it?
76) What are the activities that take place at a distribution center?
77) What is “floor-ready” merchandise, and what tasks are completed at the distribution center to
prepare merchandise to be “floor ready”?
78) Compare and contrast the push and pull supply chain methods.
79) Identify and describe the vendor-managed inventory approach.
80) What are the benefits of RFID technology over traditional bar codes?
81) Describe how retailers are utilizing their stores as fulfillment centers along with advantages
and disadvantages of this process.
82) Describe what a reverse supply chain is and why more attention as of late is being directed
toward this area.
83) Describe what a “backhaul” is and why companies would utilize backhauls.