SCM 300 Exam 2 Questions with
Verified Solutions
4 Retailing Options - ANS-Brick and Mortar
Online
Bricks and Clicks
Clicks and Calls
Brick and Mortar - ANS-All products and services are sold to customers from physical
stores. Example: McDonald's
Online - ANS-All products and services are sold to customers through an online
website. Example: Amazon.com
Bricks and Clicks - ANS-Products can be bought from a physical store or from an online
system. Example: Barnes and Noble and BN.com
Clicks and Calls - ANS-In addition to taking orders via the company website, some
companies will also offer sales via the phone. Examples: Lands' End and L.L. Bean
Omni-Channel Retailing - ANS-Retailers that are fully committed to engaging customers
via catalogs, phone calls, websites, email, internet chat rooms, social media sites or
mobile apps, and of course also in stores
3 Retail Sources of Supply - ANS-Manufactures
Wholesalers
Drop Shipper
Manufacturers - ANS-These are the companies that actually create the finished goods.
Retailers then buy the goods and that retailer is responsible for distribution and storage.
Wholesalers - ANS-These organizations purchase goods from manufacturers. Typically
they purchase an assortment of goods from many manufacturers, thus a retail company
could purchase all of their electronics from a single wholesaler versus having to
purchase from each individual manufacturer
Drop Shippers - ANS-Organization that ties manufacturers and/or wholesalers directly
to customers.
Chargebacks - ANS-These are effectively penalties charged by retail organizations to
their suppliers/vendors for any number of minor and major supply chain offenses.
,CPFR (Collaborative, Planning, Forecasting, and Rescheduling) - ANS-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.
VMI - ANS-An arrangement where retailers allow vendors to monitor in-store
inventories, initiate orders/shipments to the store when inventories are low, and also
bring the items into the store and onto the shelf
Last Mile - ANS-In supply chain the last mile typically refers to the portion of the supply
chain between the final inventory holding facility and the end consumer
4 Types of Retail Ownership - ANS-Independents
Chains
Franchise
Cooperatives
Independents - ANS-One store, one owner. Usually they are trying to satisfy a very
specialized market or locale. Example: Family owned corner stores, Boutique store that
is run by the owner
Chains - ANS-Multiple stores/facilities, one owner/company. Example: Home Depot,
Wal-Mart, Costco, Gap, Macy's, Safeway (Amazon.com probably best fits this category
Franchise - ANS-A franchisor owns the rights to a company and the name. A franchisee
is allowed to open an outlet under that name. The franchisee must abide by the rules
and processes of the franchise. Examples: Jiffy Lube, McDonald's, 7-eleven, Buffalo
Wild Wings, Massage Envy
Cooperatives - ANS-Retailer that is owned by its customer members. These
organizations typically try and fit the very special needs of the consumers that organized
the cooperative. Examples: REI (Recreational Equipment Inc.)
Prototype Stores - ANS-series of stores that have common design, construction and
layout
Rationalized Retailing - ANS-● This retail strategy has retail chains develop rigid control
structures to develop and manage processes such that all the retail outlets are
managed in the same way.
Planogram - ANS-● A map of where every product goes on a retail store shelf.
4 Store Security Issues - ANS-○ Employees
○ Store Assets
○ Customers and their Assets
○ Data
, Goal of Waiting Line Management - ANS-Balance the cost paid by the customers (time)
with the cost paid by the company (money paid to maintain the system)
Parts of a Waiting Line System - ANS-Input Source
Waiting Line
Service Facility
Input Source - ANS-This is the population of people that might want service
Waiting Line - ANS-● The area in which customers wait for service
Service Facility - ANS-● The area in which customers actually receive service
4 Managerial Considerations in Queues - ANS-Customers
The Waiting Line
Employees
Service Facilities
Managerial Considerations in Queues-Customers - ANS-● How many are there? How
quickly are they arriving?
Managerial Considerations in Queues- the Waiting Line - ANS-What types of lines?
How many lines?
● Employees - Who is working in the system? How many? Skill level and speed?
Service Facilities - How effective and efficient is the process? Tools?
Basic Waiting Line Terminology - ANS-● Queue - Line
● Channel - Line (refers to the number of lines at each step)
● Phase - A single step in a process
● Infinite Population of Customers - The number of possible customers that may come
into the store is very high (or unlimited).
● Finite Population of Customers - The number of customers is limited
● Balking - When a potential customer sees the line, but never joins the line because
they think it looks too long and/or too slow.
● Reneging - When a customer joins the line, gets frustrated and leaves the line.
Goals of a Sales Oriented Process/Environment - ANS-● Ingredients/goals of a good
sales environment - Relationship to SCM
○ Consider the Customer (Comfort Level and Value Perception)
■ Product selection, Product availability, Product location
■ Customer service, Customer service availability, Product information
■ Convenience and Easy Factor (finding/returning product, paying)
■ Value - Price, Quality, Speed, and Flexibility
■ Five senses: Look, feel, smell, taste, sound
○ Organizational Concerns (Long Term Goals, Consistent Branding)
Verified Solutions
4 Retailing Options - ANS-Brick and Mortar
Online
Bricks and Clicks
Clicks and Calls
Brick and Mortar - ANS-All products and services are sold to customers from physical
stores. Example: McDonald's
Online - ANS-All products and services are sold to customers through an online
website. Example: Amazon.com
Bricks and Clicks - ANS-Products can be bought from a physical store or from an online
system. Example: Barnes and Noble and BN.com
Clicks and Calls - ANS-In addition to taking orders via the company website, some
companies will also offer sales via the phone. Examples: Lands' End and L.L. Bean
Omni-Channel Retailing - ANS-Retailers that are fully committed to engaging customers
via catalogs, phone calls, websites, email, internet chat rooms, social media sites or
mobile apps, and of course also in stores
3 Retail Sources of Supply - ANS-Manufactures
Wholesalers
Drop Shipper
Manufacturers - ANS-These are the companies that actually create the finished goods.
Retailers then buy the goods and that retailer is responsible for distribution and storage.
Wholesalers - ANS-These organizations purchase goods from manufacturers. Typically
they purchase an assortment of goods from many manufacturers, thus a retail company
could purchase all of their electronics from a single wholesaler versus having to
purchase from each individual manufacturer
Drop Shippers - ANS-Organization that ties manufacturers and/or wholesalers directly
to customers.
Chargebacks - ANS-These are effectively penalties charged by retail organizations to
their suppliers/vendors for any number of minor and major supply chain offenses.
,CPFR (Collaborative, Planning, Forecasting, and Rescheduling) - ANS-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.
VMI - ANS-An arrangement where retailers allow vendors to monitor in-store
inventories, initiate orders/shipments to the store when inventories are low, and also
bring the items into the store and onto the shelf
Last Mile - ANS-In supply chain the last mile typically refers to the portion of the supply
chain between the final inventory holding facility and the end consumer
4 Types of Retail Ownership - ANS-Independents
Chains
Franchise
Cooperatives
Independents - ANS-One store, one owner. Usually they are trying to satisfy a very
specialized market or locale. Example: Family owned corner stores, Boutique store that
is run by the owner
Chains - ANS-Multiple stores/facilities, one owner/company. Example: Home Depot,
Wal-Mart, Costco, Gap, Macy's, Safeway (Amazon.com probably best fits this category
Franchise - ANS-A franchisor owns the rights to a company and the name. A franchisee
is allowed to open an outlet under that name. The franchisee must abide by the rules
and processes of the franchise. Examples: Jiffy Lube, McDonald's, 7-eleven, Buffalo
Wild Wings, Massage Envy
Cooperatives - ANS-Retailer that is owned by its customer members. These
organizations typically try and fit the very special needs of the consumers that organized
the cooperative. Examples: REI (Recreational Equipment Inc.)
Prototype Stores - ANS-series of stores that have common design, construction and
layout
Rationalized Retailing - ANS-● This retail strategy has retail chains develop rigid control
structures to develop and manage processes such that all the retail outlets are
managed in the same way.
Planogram - ANS-● A map of where every product goes on a retail store shelf.
4 Store Security Issues - ANS-○ Employees
○ Store Assets
○ Customers and their Assets
○ Data
, Goal of Waiting Line Management - ANS-Balance the cost paid by the customers (time)
with the cost paid by the company (money paid to maintain the system)
Parts of a Waiting Line System - ANS-Input Source
Waiting Line
Service Facility
Input Source - ANS-This is the population of people that might want service
Waiting Line - ANS-● The area in which customers wait for service
Service Facility - ANS-● The area in which customers actually receive service
4 Managerial Considerations in Queues - ANS-Customers
The Waiting Line
Employees
Service Facilities
Managerial Considerations in Queues-Customers - ANS-● How many are there? How
quickly are they arriving?
Managerial Considerations in Queues- the Waiting Line - ANS-What types of lines?
How many lines?
● Employees - Who is working in the system? How many? Skill level and speed?
Service Facilities - How effective and efficient is the process? Tools?
Basic Waiting Line Terminology - ANS-● Queue - Line
● Channel - Line (refers to the number of lines at each step)
● Phase - A single step in a process
● Infinite Population of Customers - The number of possible customers that may come
into the store is very high (or unlimited).
● Finite Population of Customers - The number of customers is limited
● Balking - When a potential customer sees the line, but never joins the line because
they think it looks too long and/or too slow.
● Reneging - When a customer joins the line, gets frustrated and leaves the line.
Goals of a Sales Oriented Process/Environment - ANS-● Ingredients/goals of a good
sales environment - Relationship to SCM
○ Consider the Customer (Comfort Level and Value Perception)
■ Product selection, Product availability, Product location
■ Customer service, Customer service availability, Product information
■ Convenience and Easy Factor (finding/returning product, paying)
■ Value - Price, Quality, Speed, and Flexibility
■ Five senses: Look, feel, smell, taste, sound
○ Organizational Concerns (Long Term Goals, Consistent Branding)
