Marketing Chapter 9 Chain Strategies The Terms Pull Strategy And Responsive Supply Chain Are Synonymous

100. Effective ________ management creates place and time utilities that are essential to keeping customers satisfied and

allows companies to market goods to greater distances, helping companies build global supply chains and compete in new

markets.

101. As it pertains to transportation, _____ refers to a carrier’s ability to provide service from the source of the shipment to its

destination.

102. The main reason companies use airfreight so infrequently is because it is _____.

103. The transportation mode for items that can be digitized and sent through the Internet is termed _______.

104. Using several types of transportation for the same shipment is known as _______ transportation.

105. A company ships a product overseas in a container carried by a ship. After the ship docks, the container is placed on a

railroad and travels long distances. Upon the train’s arrival, the container is then placed on a truck to be delivered to its final

destination. This is an example of ______ transportation.

106. _____ is a commitment to a lifestyle that meets the needs of the present without compromising the ability of future

generations to meet their own needs.

107. The process of purchasing goods and services that takes into account the long-term impact on people, profits and the

planet is ______ ______.

108. When materials and finished products are sourced from supplies in a firm’s own country, it is referred to as ______.

109. In a closed-loop supply chain, products that end up back at the manufacturer or distribution center are called ______

goods.

110. A set of three or more companies directly linked by one or more of the upstream and downstream flows of products,

services, finances, and information from a source to a customer is referred to as a marketing chain.

111. When a company recognizes the importance of sharing supply and demand information with suppliers and customers, it is

practicing supply chain management.

112. Costs required to make or buy a product including taxes, insurance and warehousing space to store the goods are referred

to as production costs.

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Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: 1 Easy

Learning Objective: 09-02 Summarize the importance of supply chain orientation and supply chain management to organizations.

Topic: Supply Chain Management

113. The ultimate objective of supply chain management is to integrate related companies in order to facilitate coordinating

activities across the supply chain in a manner that improves the entire chain’s performance

.

114. The main advantage of a supply chain pull strategy is that it allows firms to achieve economies of scale.

115. The terms pull strategy and responsive supply chain are synonymous.

116. During the maturity and decline stages, a firm may want to stick with the maximum flexibility a pull strategy allows or follow

a hybrid strategy that commits to inventory of raw and packaging materials without committing to a large amount of finished

goods inventory.

117. Logistics is that part of supply chain management that plans, implements, and controls the flow of goods, services, and

information between the point of origin and the final customer.

118. Enterprise resource planning (ERP) systems are data management systems that are used exclusively to determine efficient

transportation routes.

119. Cyclical inventory is inventory a firm needs to meet average demand.

120. Walmart ordered a large number of backpacks for the start of the school year expecting that demand for the product would

be high. However, the backpacks failed to sell and Walmart realizes that it over-ordered the product. Now it has decided to sell

off its inventory to a discount retailer rather than keep the stock in its warehouses. For Walmart, the backpacks best represent a

type of inventory called anticipative inventory.

121. Days of supply is calculated by dividing the cost of goods sold by the average daily use or sales.

122. A purchase order is a legal obligation to buy from a supplier a certain amount of goods for an agreed upon price.

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Topic: Logistics

123. Effective materials management reduces procurement, transportation, and production costs through economies of scale.

124. Put-away refers to moving goods to their temporary or semi-permanent storage location and updating inventory records.

125. Product allocation enables companies to keep expired products off store shelves.

126. Of all the logistics functions, transportation management is the least important.

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Topic: Transportation Methods

127. Intermodal transportation refers to transportation that occurs across state lines.

128. Due to the universal accessibility of motor transport, most shipments will include some leg of the journey that will be

completed by truck.

129. The main reason why airfreight is used sparingly is the lack of accessibility to all parts of the world.

130. Pipelines make up a very specialized mode that services only a few industries.

131. Consumers wanting to buy products from companies that care about protecting the environment and the world’s natural

resources are interested in companies that practice sustainability.

132. Elimination of intermediaries, such as distribution centers, in the delivery of products from a producer to a consumer is

referred to as disintermediation.

133. Why is supply chain management a critical marketing function to the firm?

134. What are the differences between a push and a pull strategy?

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Difficulty: 2 Medium

Learning Objective: 09-03 Describe the push, pull, and hybrid supply-chain strategies and their relationship to a company’s competitive strategies.

Topic: Supply Chain Management

Topic: Supply Chain Strategies

135. Your grandmother and her friends are thinking of starting a business making quilts. Since you are taking a marketing

course, she has asked you for some advice on what type of supply chain strategy they should use. She tells you that they want

to keep their inventory low and want to ensure that if they make a quilt it will sell. What type of strategy would you recommend?

136. What are the primary logistics functions?

137. You own and operate a small gift shop that specializes in the Christmas season. It is January and you are taking inventory.

What are some of the types of inventory that you might have in stock?

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138. You work for an energy exploration company in the Bakken Shale in North Dakota. You have been asked to analyze the

lowest cost options to move the oil that your company produces to refineries along the Atlantic coast in less than a week. What

are your options?

Chapter 09 Test Bank Summary