SCM 300 EXAM 2 MODULES 5-8
QUESTIONS AND ANSWERS
Brick and Mortar: All products and services are sold to customers from physical stores
•Online or E tailing: All products and services are sold to customers through an online
website
•Bricks and clicks: products can be bought from a physical store or from an online
system
•Clicks and calls: in addition to taking orders via the company website, some companies
will also offer sales via the phone - ANS-4 Retailing Options
retailers who fully seek to provide the customer with seamless shopping experience
whether the customer is shopping online from a desktop or mobile device, by telephone
or in a bricks and mortar store. - ANS-Omnichannel Retailing
manufacturers actually create the finished goods. Retailer responsible for distribution
wholesalers: organizations that purchase goods from manufacturers. Purchase
assortments of goods from many manufacturers, thus a retailer can purchase all goods
from a single wholesaler
drop shippers: manufacturers and/ or wholesalers directly to consumers. Not really a
source of supply - ANS-3 Retail sources of supply
penalties charged by retail organizations to their suppliers/ vendors for any number of
minor and major supply chain offenses. GOAL to motivate vendor compliance in the
areas of on time shipments, shipment accuracy, product quality, incorrect packaging,
label errors - ANS-Chargebacks
a formalized effort by supply chain partners to share data and collectively develop
forecasts in an effort to reduce supply chain costs through better planning - ANS-CPFR
(Collaborative, Planning, Forecasting, Rescheduling)
Inventory planning and replenishment system where supplier(vendor) accepts
negotiated
responsibilities that typically include monitoring and restocking. - ANS-VMI (Vendor
Managed Inventory)
the portion of the supply chain between the final inventory holding facility and the end
consumer - ANS-Last Mile
independents ;one store, one owner. Satisfy specialized market. EX: family owned
corner stores
,chains: multiple stores, one owner/company. EX: home depot, walmart, amazon
franchises: Franchisor owns the right to a company and name. Franchisee allowed to
open a store under that name and must abide to the rules and processes. EX:
McDonald's, 7eleven
cooperatives: retailer that is owned by its customer members. Fit special needs of the
consumers. EX: REI (recreational equipment inc) - ANS-4 Types of Retail ownership
a series of stores that have common design, construction and layout. EX: Camry 2014
to Camry 2015, Target 2014 prototype store also a 2010 prototype store - ANS-
Prototype Stores
retail chains develop rigid control structures to develop and manage processes such
that all the retail outlets are managed in the same way. EX: a store manager or
employee would easily be able to work at almost any store since everything is done the
same way - ANS-Rationalized Retailing
a map of where every product goes on a retail store shelf - ANS-Planogram
employees, managers, store employees, and potentially vendors
store assets: inventory, cash, store property
Customers and their assets: store visitors, their cars, and personal property
data: data - ANS-4 Store security issues
balance the cost paid by customers (time) with the cost paid by the company (money
paid to maintain the system) - ANS-Goal of waiting line management
3 parts
input source: population of people that might want service
waiting line: area where customers wait for service
service facility: areas where customer actually receive service - ANS-Parts of a waiting
line system
customers: how many are there? How quickly they're arriving?
the waiting lines; what type of lines? How many lines?
employees: who's working the system? How many? Skill level and speed?
service facilities: how effective and efficient is the process? Tools? - ANS-4 Managerial
Considerations in Queues
queue: line
channel: Refers to number lines available at each step
phase: a single step in a process
infinite population of customers: number of possible customers that may come into the
store is very high ( or unlimited). When a customer enters the system, the odds of
another entering the system are not impacted in any significant manner
finite population of customers: number of customers is limited. EX: a bus company has
10, 1 in repair shop, the odds of another in repair shop decline
,balking: when a potential customer sees the line, but never joins the line because they
think it looks too long/ slow
reneging: when a customer joins the line, gets frustrated and leaves the line - ANS-
Basic waiting line terminology
Needs and wants now and in the future. The customers: Product selection, availability,
convenience, value, the 5 senses. The organization: Controlling costs, shrinkage,
profits. - ANS-Ingredients/goals of a good sales environment - Relationship to SCM:
How do customers navigate through a store and why?
Considering the entrance and exits points
Product Location: Customer convenience, planograms, perimeter vs. central, where do
you want things located? (high profit items, high theft items, high turnover items) - ANS-
Retail layout considerations Flow
Produce(Fruits & Vegetables) Section: Usually first thing you see upon entering
Meat, Fish, and Poultry at the Rear of the Store
Long Aisles hold smaller per unit profit items
Dairy and Bakery at farthest point from main entrance - ANS-Grocery store layouts
Bar right in the front of a restaurant. Safeway. - ANS-Lecture examples of different retail
and restaurant layout strategies
Items that need to be kept in inventory to maintain operations. Important to customer
experience
Dry Cleaners: detergent, hangers, etc
Restaurant: ingredients, tables, plates - ANS-Facilitating goods
When you allow suppliers to control inventory in your store
Impact of VMI on different stakeholders - ANS-What is VMI? (Vendor Managed
Inventory?
Goal attainment vendor, retailer, customer
Everything must be defined and discussed prior to arrangement
Process related: different ways of getting things done
Schedule related: When should things get done?
Performance and Quality related: Metrics, Motivation, Discipline, Reliability, Consistency
People related: Everyone MUST BUY IN Culture clashes, equity issues, attire,
professionalism.
IT Compatibility, Sharing concerns - ANS-Challenges of VMI agreements
Common goal, End customer is the focus (retail consumer)
Learning opportunities: Vendor and retailer learn about each other and their needs.
Vendor has more interactions with end customer in the retail environment.
Retailer: Fewer responsibilities, decreases costs.
, Vendor: Better understanding of demand rates, fewer retailer errors, responsive - ANS-
Impact of VMI on different stakeholders
People demand equality in America (First come first serve). Waiting times are indicative
of overall service - ANS-Importance of waiting lines in running a business
Goal: To serve people efficiently.
Tradeoffs: Having too many staff and underutilizing them OR having too long a line, and
angry customers. Both lose money - ANS-Goals and Tradeoffs for Queuing system
Time in system
time in queue
Service utilization/service facility
number of servers
what people do while in the line, etc - ANS-What do managers have control over in a
queuing system?
Some customers are unprepared, others are ready when they get to the counter. - ANS-
Why do customers have some degree of control over service rates?
Steady stream of customers? Busy and slow time periods? Busy and slow days of
week? Seasonal trends?
Service Rates: Are all servers equal? Are they motivated? Do they get tired/bored?
Stressed?
What happens if we add more employees?
Full time, part time, seasonal? Experienced?
Type of customers: Prepared/unprepared customer, Big/small orders, high/low
maintenance customers, Paying cash vs. check - ANS-Arrival and Service Rates:
Arrival Rates
FCFS, sense of fairness
Multiple: jockeying - ANS-Single and Multiple Line Systems;Single
1st Served (Burger King)
Earliest Due Date or Shortest Processing Time (Homework?)
Reservations or Appointments Possible? (Restaurants, Homework)
Emergency Situations? (Emergency Rooms)
Preemptive Discipline: Special Rules (VIP lines, Frequent Fliers) -
ANS-Discipline/Priority Rules 1st Come
The number of possible customers that may come into the store is very high (or
unlimited). When a customer enters the system, the odds of another, the odds of
another entering the system are not impacted in any significant manner. Many potential
customers. Odds barely affected by new arrivals. Example: McDonald's - ANS-Infinite
population of customers
QUESTIONS AND ANSWERS
Brick and Mortar: All products and services are sold to customers from physical stores
•Online or E tailing: All products and services are sold to customers through an online
website
•Bricks and clicks: products can be bought from a physical store or from an online
system
•Clicks and calls: in addition to taking orders via the company website, some companies
will also offer sales via the phone - ANS-4 Retailing Options
retailers who fully seek to provide the customer with seamless shopping experience
whether the customer is shopping online from a desktop or mobile device, by telephone
or in a bricks and mortar store. - ANS-Omnichannel Retailing
manufacturers actually create the finished goods. Retailer responsible for distribution
wholesalers: organizations that purchase goods from manufacturers. Purchase
assortments of goods from many manufacturers, thus a retailer can purchase all goods
from a single wholesaler
drop shippers: manufacturers and/ or wholesalers directly to consumers. Not really a
source of supply - ANS-3 Retail sources of supply
penalties charged by retail organizations to their suppliers/ vendors for any number of
minor and major supply chain offenses. GOAL to motivate vendor compliance in the
areas of on time shipments, shipment accuracy, product quality, incorrect packaging,
label errors - ANS-Chargebacks
a formalized effort by supply chain partners to share data and collectively develop
forecasts in an effort to reduce supply chain costs through better planning - ANS-CPFR
(Collaborative, Planning, Forecasting, Rescheduling)
Inventory planning and replenishment system where supplier(vendor) accepts
negotiated
responsibilities that typically include monitoring and restocking. - ANS-VMI (Vendor
Managed Inventory)
the portion of the supply chain between the final inventory holding facility and the end
consumer - ANS-Last Mile
independents ;one store, one owner. Satisfy specialized market. EX: family owned
corner stores
,chains: multiple stores, one owner/company. EX: home depot, walmart, amazon
franchises: Franchisor owns the right to a company and name. Franchisee allowed to
open a store under that name and must abide to the rules and processes. EX:
McDonald's, 7eleven
cooperatives: retailer that is owned by its customer members. Fit special needs of the
consumers. EX: REI (recreational equipment inc) - ANS-4 Types of Retail ownership
a series of stores that have common design, construction and layout. EX: Camry 2014
to Camry 2015, Target 2014 prototype store also a 2010 prototype store - ANS-
Prototype Stores
retail chains develop rigid control structures to develop and manage processes such
that all the retail outlets are managed in the same way. EX: a store manager or
employee would easily be able to work at almost any store since everything is done the
same way - ANS-Rationalized Retailing
a map of where every product goes on a retail store shelf - ANS-Planogram
employees, managers, store employees, and potentially vendors
store assets: inventory, cash, store property
Customers and their assets: store visitors, their cars, and personal property
data: data - ANS-4 Store security issues
balance the cost paid by customers (time) with the cost paid by the company (money
paid to maintain the system) - ANS-Goal of waiting line management
3 parts
input source: population of people that might want service
waiting line: area where customers wait for service
service facility: areas where customer actually receive service - ANS-Parts of a waiting
line system
customers: how many are there? How quickly they're arriving?
the waiting lines; what type of lines? How many lines?
employees: who's working the system? How many? Skill level and speed?
service facilities: how effective and efficient is the process? Tools? - ANS-4 Managerial
Considerations in Queues
queue: line
channel: Refers to number lines available at each step
phase: a single step in a process
infinite population of customers: number of possible customers that may come into the
store is very high ( or unlimited). When a customer enters the system, the odds of
another entering the system are not impacted in any significant manner
finite population of customers: number of customers is limited. EX: a bus company has
10, 1 in repair shop, the odds of another in repair shop decline
,balking: when a potential customer sees the line, but never joins the line because they
think it looks too long/ slow
reneging: when a customer joins the line, gets frustrated and leaves the line - ANS-
Basic waiting line terminology
Needs and wants now and in the future. The customers: Product selection, availability,
convenience, value, the 5 senses. The organization: Controlling costs, shrinkage,
profits. - ANS-Ingredients/goals of a good sales environment - Relationship to SCM:
How do customers navigate through a store and why?
Considering the entrance and exits points
Product Location: Customer convenience, planograms, perimeter vs. central, where do
you want things located? (high profit items, high theft items, high turnover items) - ANS-
Retail layout considerations Flow
Produce(Fruits & Vegetables) Section: Usually first thing you see upon entering
Meat, Fish, and Poultry at the Rear of the Store
Long Aisles hold smaller per unit profit items
Dairy and Bakery at farthest point from main entrance - ANS-Grocery store layouts
Bar right in the front of a restaurant. Safeway. - ANS-Lecture examples of different retail
and restaurant layout strategies
Items that need to be kept in inventory to maintain operations. Important to customer
experience
Dry Cleaners: detergent, hangers, etc
Restaurant: ingredients, tables, plates - ANS-Facilitating goods
When you allow suppliers to control inventory in your store
Impact of VMI on different stakeholders - ANS-What is VMI? (Vendor Managed
Inventory?
Goal attainment vendor, retailer, customer
Everything must be defined and discussed prior to arrangement
Process related: different ways of getting things done
Schedule related: When should things get done?
Performance and Quality related: Metrics, Motivation, Discipline, Reliability, Consistency
People related: Everyone MUST BUY IN Culture clashes, equity issues, attire,
professionalism.
IT Compatibility, Sharing concerns - ANS-Challenges of VMI agreements
Common goal, End customer is the focus (retail consumer)
Learning opportunities: Vendor and retailer learn about each other and their needs.
Vendor has more interactions with end customer in the retail environment.
Retailer: Fewer responsibilities, decreases costs.
, Vendor: Better understanding of demand rates, fewer retailer errors, responsive - ANS-
Impact of VMI on different stakeholders
People demand equality in America (First come first serve). Waiting times are indicative
of overall service - ANS-Importance of waiting lines in running a business
Goal: To serve people efficiently.
Tradeoffs: Having too many staff and underutilizing them OR having too long a line, and
angry customers. Both lose money - ANS-Goals and Tradeoffs for Queuing system
Time in system
time in queue
Service utilization/service facility
number of servers
what people do while in the line, etc - ANS-What do managers have control over in a
queuing system?
Some customers are unprepared, others are ready when they get to the counter. - ANS-
Why do customers have some degree of control over service rates?
Steady stream of customers? Busy and slow time periods? Busy and slow days of
week? Seasonal trends?
Service Rates: Are all servers equal? Are they motivated? Do they get tired/bored?
Stressed?
What happens if we add more employees?
Full time, part time, seasonal? Experienced?
Type of customers: Prepared/unprepared customer, Big/small orders, high/low
maintenance customers, Paying cash vs. check - ANS-Arrival and Service Rates:
Arrival Rates
FCFS, sense of fairness
Multiple: jockeying - ANS-Single and Multiple Line Systems;Single
1st Served (Burger King)
Earliest Due Date or Shortest Processing Time (Homework?)
Reservations or Appointments Possible? (Restaurants, Homework)
Emergency Situations? (Emergency Rooms)
Preemptive Discipline: Special Rules (VIP lines, Frequent Fliers) -
ANS-Discipline/Priority Rules 1st Come
The number of possible customers that may come into the store is very high (or
unlimited). When a customer enters the system, the odds of another, the odds of
another entering the system are not impacted in any significant manner. Many potential
customers. Odds barely affected by new arrivals. Example: McDonald's - ANS-Infinite
population of customers
