978-1337407588 Chapter 13 Solution Manual Part 2

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Chapter 13: Supply Chain Management and Marketing Channels

TRUE/FALSE

1. The pork shortage was a supply chain management issue for Chipotle.

PTS: 1 OBJ: LO: 13-1 TOP: AACSB: Reflective Thinking

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

2. Chipotle has an agile supply chain because they use only fresh produce in their stores.

PTS: 1 OBJ: LO: 13-1 TOP: AACSB: Reflective Thinking

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

3. It is important for Chipotle to maintain a good supplier relationship management process

because they use so many local suppliers.

PTS: 1 OBJ: LO: 13-3 TOP: AACSB: Reflective Thinking

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

4. Chipotle had to enact their returns management processes after customers stopped coming

because of the food safety issues.

PTS: 1 OBJ: LO: 13-3 TOP: AACSB: Reflective Thinking

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

5. Chipotle practices sustainable supply chain management.

PTS: 1 OBJ: LO: 13-4 TOP: AACSB: Reflective Thinking

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

MULTIPLE CHOICE

Chapter 13: Supply Chain Management and Marketing Channels

1. Keeping Chipotle customers happy after the recent food safety issues will be covered by the

__________ management process.

a. business

b. customer relationship

c. customer service

d. demand

PTS: 1 OBJ: LO: 13-3 TOP: AACSB: Reflective Thinking

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

2. Which of the following sustainable supply chain management practices does Chipotle follow?

a. environmentally friendly materials sourcing

b. the design of products with consideration given to their social and environmental impact

c. end-of-life product management that includes easy recycling and/or clean disposal

d. All of these.

PTS: 1 OBJ: LO: 13-4 TOP: AACSB: Reflective Thinking

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

3. Which of the following supply chain management logistical options could NOT be used due to

Chipotle’s business philosophy?

a. outsourcing

b. offshoring

c. nearshoring

d. All of these fit with the business philosophy.

e. None of these fit with the business philosophy.

PTS: 1 OBJ: LO: 13-5 TOP: AACSB: Reflective Thinking

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

4. Chipotle could use __________ to trace a food illness outbreak back to its source.

a. marketing channels

b. supply chain analytics

c. cloud computing

Chapter 13: Supply Chain Management and Marketing Channels

d. electronic distribution

PTS: 1 OBJ: LO: 13-5 TOP: AACSB: Reflective Thinking

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

5. Which of the following factors affects channel choice?

a. market factors

b. product factors

c. producer factors

d. All of these

PTS: 1 OBJ: LO: 13-7 TOP: AACSB: Reflective Thinking

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

Great Ideas for Teaching Chapter 13

Debra Decelles, Anthony Rossi, Susan Sunderline, and John Gardner, State Univ. of New York

College—Brockport

Egg-Spress Distribution: A Simulated Distribution Exercise

Introduction

Active learning by students allows for better understanding and memory. The activity in this

exercise helps students to internalize the difficulty of developing a distribution system for a new

product.

Goal

In the discussion of physical distribution management, the object is to achieve a high level of

customer service while minimizing costs. In order to accomplish this, the anticipation of

Chapter 13: Supply Chain Management and Marketing Channels

Activity

To teach this concept to a class, the idea of “egg-spress” distribution is introduced. This exercise

involves sending groups formed within a class through an obstacle course (distribution channel),

carrying Eggman (the product). The task set forth is to deliver Eggman to the finish line fully

assembled, undamaged, and as efficiently as possible. After explaining the task, an example of

Rules

1. The Eggman can never touch the ground.

If either of the first two rules were broken, the students had to return to the bottom of the launch

and begin the course again. Example forms of transportation include a softball mitt, a ladle, a

Operations

Once the instructions were understood, the students were given a few minutes to design their

Learning Objectives

The student should better understand the following.

Chapter 13: Supply Chain Management and Marketing Channels

The importance and implications of forming proper distribution channels

Variations to the original are possible.

Alternative channel choices (e.g., offering the choice of two courses where the student

Product packaging decision making (e.g., requiring that the product be packaged either

Evaluation

The exercise was tested by a Marketing Management class. Teams were formed and briefed, and

ran the course with varied strategies. The strategies lead to a relevant debriefing using

Monica Perry, University of North Carolina at Charlotte

Thomas Stevenson, University of North Carolina at Charlotte

Marketing Channel Functions: A Low–Tech Kinesthetic Simulation

Why?

Undergraduate students often have only a slight appreciation for the functions provided by

What?

Chapter 13: Supply Chain Management and Marketing Channels

To enhance their appreciation of intermediary functions, students participate in a low-tech

simulated channel. The simulation consists of two steps.

1. Manufacturers and consumers conduct transactions directly.

How?

1. Prior to conducting the simulation, make signs on different-color cardstock for various

positions, lists, and products.

Four different manufacturers (e.g., Proctor & Gamble, Kraft, etc.)

Five different consumers

One retailer

Use products that students are reasonably familiar with, such as grocery products.

2. Conduct the simulation in class.

Obtain 3 student volunteers and assign them manufacturer (two students per) and

Have the consumers stand on one side of the classroom while the manufacturers

Part I:

oBegin the simulation by having each consumer fill their shopping list by going

oTrack the time that it takes to complete all the transactions (4 manufacturers ×

Chapter 13: Supply Chain Management and Marketing Channels

If you have a large class, run multiple channels so that more students are involved.

Part II:

oObtain four more volunteers to be the retailers and give them the purchase

oStart the simulation by first allowing the retailers to obtain the products from

It is virtually impossible for the 20 transactions to take less time than the 9 transactions!

Some students may suggest that the nine transactions take less time because there was a

practice round without the retailer. You can rerun another round with no retailer to show

that it is not the effect of practice.

Katryna Johnson, Concordia University

Logistics and Relay Races

Most students at some point in their lives have completed a relay race. The purpose of this relay

race is to help students understand how different forms of transportation are used for different

materials and how strategic planning is important to working out the logistics.

Materials

1. Items to be transported (CARGO): big wad of chewed gum, cotton balls, sugar, cheerios,

Activity

1. Before class, set up a room for the race. At one end of the room you will have all of the

2. Divide the students into teams (the number of teams will depend on the size of your class).

Chapter 13: Supply Chain Management and Marketing Channels

3. Tell students that they can reuse any of the transportation devices. Inform students that

4. Notify students that someone from each team needs to write down how all of the items are

5. Have the students complete the relay race. The observers should be watching the teams to

6. Use information from the observers to determine your winner. If the teams finish close in

Object Lesson

Students learn about the importance of planning in logistics to increase efficiency and

effectiveness. As an example, if you put sugar in a bowl that had water in it previously, some of

the sugar will stick to the bowl. It does work to use the bowl for transportation, but the end

Douglas K. Ross, Franklin University

The Chocolate Candy Branding Exercise

Chapter 13: Supply Chain Management and Marketing Channels

This exercise has been used in classes ranging from Principles of Marketing to MBA-level

Marketing Management. This is a fun small-group exercise that fits well when discussing brands

Break the class into small groups (three or four students per group works best). On an overhead

or PowerPoint, have a small paragraph explaining that each group is a marketing team who

works for a company that has developed a new chocolate. The chocolate is different in that it

contains a large (really extreme) amount of caffeine. The team must do the following.

Determine the most appropriate target market(s).

The groups have 20–30 minutes to accomplish this. Divide the whiteboard (or have them use

computers if available; PowerPoint works fine for this) and have them draw their product

including the brand name on the board. They should also indicate the colors used on the package.

This part of the activity takes approximately 5–10 minutes. A member from each group then talks

about their brand. They should discuss the following items.

Why they chose the target market(s) that they did.

After the students’ discussion, talk about the similarities and differences in the brands, such as

Variations of this exercise can include chocolate that contains all of the daily requirements of

vitamins plus fiber. You can also assign half of the groups the chocolate with caffeine and the

other half the chocolate with vitamins and fiber.