Retail Final Exam Study Questions with
Verified Answers
Distribution Center
a facility for the receipt, storage, and redistribution of goods to company stores
Fulfillment centers
used to ship directly to customers
System Design issues and trends(7): pull and push supply chains *
Pull: requests for merchandise generated at store level based on POS sales data
-less likelihood of overstock of out of stock
-increases inventory turnover
- requires more costly information system
Push supply chain- merchandise allocated to stores on a basis of demand forecast
•most retailers use this system
Radio frequency identification devices (RFID) *
- provides accurate, affordable, real-time measure of inventory for retailers
- hold more data than bar codes
- data can be acquired without a visual line of sight
- biggest limitation is cost (tags add about 10 cents per item)
Supply Chains for Fulfilling Catalog and Internet Orders
Focused on the customer. Warehouse design must accommodate. Outsource fulfillment of nonstore
sale. Separate area for shipments to individual customers. Different FCs for new channels.
Drop shipping
Consumer direct fulfillment
- Popular among companies shipping products that are bulky or heavy
- Robot services
- Reduces retailer's supply chain costs
, - Can lengthen delivery times and increase costs
- Retailers lose control over delivery
Customer store pickup
-Customer orders online and picks up in store
-Customer might purchase other items while in store
-Retailers must invest in proper technology
-Mobile task management
reverse supply chain *
Managing reverse supply chain involves capturing value and/or properly disposing of returned
merchandise. Stores return items to DC or centralized return center. Differs from forward flow. Forms of
consolidation. Product quantities. Distribution patterns. Cost transparency.
(Essay question)- provide example
Merchandise group
managed by a general merchandise manager (GMM)
Department
managed by a divisional merchandise manager (DMM)
Classification
The process of grouping things based on their similarities
Categories
groups or classes of things
Stock Keeping Unit (SKU)
a unique identifier for each distinct product
ways to manage categories
- category management
- category captain
Category Management
has one buyer or category manager (grocery stores)
Category captain
helps manage category for retailer
- merchandise management tasks easier for retailer
- can increase profits
- antitrust considerations
Verified Answers
Distribution Center
a facility for the receipt, storage, and redistribution of goods to company stores
Fulfillment centers
used to ship directly to customers
System Design issues and trends(7): pull and push supply chains *
Pull: requests for merchandise generated at store level based on POS sales data
-less likelihood of overstock of out of stock
-increases inventory turnover
- requires more costly information system
Push supply chain- merchandise allocated to stores on a basis of demand forecast
•most retailers use this system
Radio frequency identification devices (RFID) *
- provides accurate, affordable, real-time measure of inventory for retailers
- hold more data than bar codes
- data can be acquired without a visual line of sight
- biggest limitation is cost (tags add about 10 cents per item)
Supply Chains for Fulfilling Catalog and Internet Orders
Focused on the customer. Warehouse design must accommodate. Outsource fulfillment of nonstore
sale. Separate area for shipments to individual customers. Different FCs for new channels.
Drop shipping
Consumer direct fulfillment
- Popular among companies shipping products that are bulky or heavy
- Robot services
- Reduces retailer's supply chain costs
, - Can lengthen delivery times and increase costs
- Retailers lose control over delivery
Customer store pickup
-Customer orders online and picks up in store
-Customer might purchase other items while in store
-Retailers must invest in proper technology
-Mobile task management
reverse supply chain *
Managing reverse supply chain involves capturing value and/or properly disposing of returned
merchandise. Stores return items to DC or centralized return center. Differs from forward flow. Forms of
consolidation. Product quantities. Distribution patterns. Cost transparency.
(Essay question)- provide example
Merchandise group
managed by a general merchandise manager (GMM)
Department
managed by a divisional merchandise manager (DMM)
Classification
The process of grouping things based on their similarities
Categories
groups or classes of things
Stock Keeping Unit (SKU)
a unique identifier for each distinct product
ways to manage categories
- category management
- category captain
Category Management
has one buyer or category manager (grocery stores)
Category captain
helps manage category for retailer
- merchandise management tasks easier for retailer
- can increase profits
- antitrust considerations
