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Chapter 13: Supply Chain Management and Marketing Channels
1
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
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Chapter 13: Supply Chain Management and Marketing Channels
2
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
© 2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 13: Supply Chain Management and Marketing Channels
3
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
© 2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 13: Supply Chain Management and Marketing Channels
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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.
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Chapter 13: Supply Chain Management and Marketing Channels
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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?
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Chapter 13: Supply Chain Management and Marketing Channels
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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 ×
© 2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 13: Supply Chain Management and Marketing Channels
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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).
© 2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 13: Supply Chain Management and Marketing Channels
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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
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Chapter 13: Supply Chain Management and Marketing Channels
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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.
© 2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
