SCM 300 Exam 2
Retailing Options - CORRECT ANSWER-1) brick and mortar- all physical stores
2) online/etailing- all online
3) bricks and clicks- physcial and online- example = Barnes and Noble
4) Clicks and calls- online and sales phone calls- Lands and and LL Bean
Omni-channel Retailing - CORRECT ANSWER-retailers that are fully committed
to engaging customers via catalogs, phone calles, websites, social media, etc.
Retail sources of supply - CORRECT ANSWER-1) Manufacturers- create the
finished goods
2) Wholesalers- purchas goods from manufacturers
3) Drop shippers - not really source of supply but rather an organization that ties
manufacturers and or wholesalers right to customers
Chargebacks - CORRECT ANSWER-penalties charged by retail organizations to
their suppliers/vendors for any number of minor and major supply chain offenses
-motivate vendor compliance in areas of on-time shipments, shipment accuracy,
product quality, etc.
CPFR - CORRECT ANSWER-Collaborative, Planning, Forecasting, and
Rescheduling.
-formalized effort to share data and collectively develop forecasts in an effort to
reduce supply chain costs
Vendor Managed Inventory - CORRECT ANSWER-an arrangement where
retailers allow vendors to monitor in store inventories, initiate orders/shipments to
the store when inventories are low, and bring the items into the store and onto
the shelf
-ensure products are appropriately displayed
-vendors gain better understanding of store environment and customers
,Last Mile - CORRECT ANSWER-refers to the portion of the supply chain
between the final inventory holding facility and the end consumer
-challenging because of variation (order size, location, consumer expectations)
Retail Ownership types - CORRECT ANSWER-1) Independents- one store, one
owner
2) Chains- multiple stores, one owner. Wal-Mart, amazon
3) Franchises- franchisor owns rights to company and name, franchisees can
open stores under name (must abide by rules and processes). McDonalds, Jiffy
Lube
4) Cooperatives- owned by customer members, typically try and fit very special
needs of consumers. REI
Prototype stores - CORRECT ANSWER-a series of stores that have common
design, construction, and layout
Rationalized Retailing - CORRECT ANSWER-this retail strategy has retail chains
develop rigid control structures to develop and manage processes such that all
the regular outlets are managed in the same way
Planogram - CORRECT ANSWER-a map of where every product goes on a
retail store shelf
Goal of waiting line management - CORRECT ANSWER-balance the cost paid
by customers (time) with the cost paid by the company (money paid to maintain
the system)
3 Parts of Waiting Line System - CORRECT ANSWER-1) Input source-
population of people that might want service
2) Waiting line area- area in which customers wait for service
3) service facility- area in which customers actually receive service
Queue - CORRECT ANSWER-line
Channel - CORRECT ANSWER-line, but often refers to number of lines available
at each step
, Phase - CORRECT ANSWER-a single step in a process.
Infinite population of customers - CORRECT ANSWER-number of possible
customers that may come into a store is very high
-when a customer enters the system, the odds of another entering the system
are barely impacted
Finite population of customers - CORRECT ANSWER-the number of customers
is limited.
ex: bus company has 10 busses, finite population of 10 busses. If a bus is in the
shop, there are 9 left, and the odds of a 2nd bus entering the system decline
Balking - CORRECT ANSWER-when a potential customer sees the line, but
never joins the line because it looks too long and slow
Reneging - CORRECT ANSWER-when a customer joins a line but leaves
because of frustration
Arrival Rate (λ) - CORRECT ANSWER-number of customers arriving / unit of
time
Service Rate (μ) - CORRECT ANSWER-number of customers helped / unit of
time
Percentage of time worker is busy (p) - CORRECT ANSWER-p = λ/μ
p= arrival rate / service rate
Average number of customers in line (nl) - CORRECT ANSWER-nl = p[λ/(μ-λ)]
nl = percentage of time worker is busy [arrival /(service-arrival)]
Average amount of time a customer waits in the line (tl) - CORRECT ANSWER-tl
= p[1/(μ -λ)]
tl = p(ts)
tl = percentage busy [1 / (service rate - arrival rate)]
Retailing Options - CORRECT ANSWER-1) brick and mortar- all physical stores
2) online/etailing- all online
3) bricks and clicks- physcial and online- example = Barnes and Noble
4) Clicks and calls- online and sales phone calls- Lands and and LL Bean
Omni-channel Retailing - CORRECT ANSWER-retailers that are fully committed
to engaging customers via catalogs, phone calles, websites, social media, etc.
Retail sources of supply - CORRECT ANSWER-1) Manufacturers- create the
finished goods
2) Wholesalers- purchas goods from manufacturers
3) Drop shippers - not really source of supply but rather an organization that ties
manufacturers and or wholesalers right to customers
Chargebacks - CORRECT ANSWER-penalties charged by retail organizations to
their suppliers/vendors for any number of minor and major supply chain offenses
-motivate vendor compliance in areas of on-time shipments, shipment accuracy,
product quality, etc.
CPFR - CORRECT ANSWER-Collaborative, Planning, Forecasting, and
Rescheduling.
-formalized effort to share data and collectively develop forecasts in an effort to
reduce supply chain costs
Vendor Managed Inventory - CORRECT ANSWER-an arrangement where
retailers allow vendors to monitor in store inventories, initiate orders/shipments to
the store when inventories are low, and bring the items into the store and onto
the shelf
-ensure products are appropriately displayed
-vendors gain better understanding of store environment and customers
,Last Mile - CORRECT ANSWER-refers to the portion of the supply chain
between the final inventory holding facility and the end consumer
-challenging because of variation (order size, location, consumer expectations)
Retail Ownership types - CORRECT ANSWER-1) Independents- one store, one
owner
2) Chains- multiple stores, one owner. Wal-Mart, amazon
3) Franchises- franchisor owns rights to company and name, franchisees can
open stores under name (must abide by rules and processes). McDonalds, Jiffy
Lube
4) Cooperatives- owned by customer members, typically try and fit very special
needs of consumers. REI
Prototype stores - CORRECT ANSWER-a series of stores that have common
design, construction, and layout
Rationalized Retailing - CORRECT ANSWER-this retail strategy has retail chains
develop rigid control structures to develop and manage processes such that all
the regular outlets are managed in the same way
Planogram - CORRECT ANSWER-a map of where every product goes on a
retail store shelf
Goal of waiting line management - CORRECT ANSWER-balance the cost paid
by customers (time) with the cost paid by the company (money paid to maintain
the system)
3 Parts of Waiting Line System - CORRECT ANSWER-1) Input source-
population of people that might want service
2) Waiting line area- area in which customers wait for service
3) service facility- area in which customers actually receive service
Queue - CORRECT ANSWER-line
Channel - CORRECT ANSWER-line, but often refers to number of lines available
at each step
, Phase - CORRECT ANSWER-a single step in a process.
Infinite population of customers - CORRECT ANSWER-number of possible
customers that may come into a store is very high
-when a customer enters the system, the odds of another entering the system
are barely impacted
Finite population of customers - CORRECT ANSWER-the number of customers
is limited.
ex: bus company has 10 busses, finite population of 10 busses. If a bus is in the
shop, there are 9 left, and the odds of a 2nd bus entering the system decline
Balking - CORRECT ANSWER-when a potential customer sees the line, but
never joins the line because it looks too long and slow
Reneging - CORRECT ANSWER-when a customer joins a line but leaves
because of frustration
Arrival Rate (λ) - CORRECT ANSWER-number of customers arriving / unit of
time
Service Rate (μ) - CORRECT ANSWER-number of customers helped / unit of
time
Percentage of time worker is busy (p) - CORRECT ANSWER-p = λ/μ
p= arrival rate / service rate
Average number of customers in line (nl) - CORRECT ANSWER-nl = p[λ/(μ-λ)]
nl = percentage of time worker is busy [arrival /(service-arrival)]
Average amount of time a customer waits in the line (tl) - CORRECT ANSWER-tl
= p[1/(μ -λ)]
tl = p(ts)
tl = percentage busy [1 / (service rate - arrival rate)]
