SCM 300 Exam 2 with Accurate
Solutions
vendor-managed inventory (VMI) - ANS-Inventory planning and replenishment system
where the vendor accepts certain responsibilities
Chargebacks - ANS-Penalties from retailers to vendors for minor or major supply chain
offenses
Vendor - ANS-The company from which a buyer purchases goods or services
Wholesaler - ANS-purchases goods from manufacturers, typically in large amounts at
discounted prices
Scan-based trading - ANS-Inventory on the shelves is owned by the supplier rather than
the retailer
3 parts of a waiting line - ANS-Input source: Population of people who might want
service
Waiting line: area where customers wait for service
Service Facility: area where customers actually receive service
Goal of waiting line - ANS-Balance cost to customers (time) with the cost paid by the
company to maintain the system
4 managerial consideration of the queue - ANS-Customers: How many?
Waiting lines: How many and what type?
Employees: How many? Skill level?
Service facilities: How efficient is the process?
Phase - ANS-Single step in the system process
ex: Car wash, phase 1: Vacuum inside car
Infinite population - ANS-Odds of another customer walking into the store isn't impacted
by the previous customer
Finite population - ANS-If one customer comes into the store the odds of another
decreases
Balking - ANS-When a potential customer sees the line, but never joins the line because
they think it looks too long and/or too slow.
, Reneging - ANS-Customers leave after waiting for a period of time
Jockeying - ANS-Customer enters one line and then switches to a different line in an
effort to reduce waiting time
Supply Chain integration - ANS-when multiple firms or business functions in a supply
chain coordinate their activities and processes so that they are seamlessly linked to one
another in an effort to satisfy the customer
Push System - ANS-produces goods in advance of customer demand using a forecast
of sales and moves them through supply chain to points of sale where they are stored
as finished goods inventory.
Pull System - ANS-a production system in which actual downstream demand sets off a
chain of events that pulls material through the various process steps
Postponment - ANS-a hybrid production method whereby basic units of a finished
goods are manufactured in advance of actual demand and help in strategic form or
location until demand occurs, when final customization takes place
bullwhip effect - ANS-occurs when distorted product-demand information ripples from
one partner to the next throughout the supply chain, end up with too much inventory
4 Causes of bull whip - ANS-Order batching: company places large and infrequent
orders from supplier, suppliers higher order volumes then needed
Forward Buying: Customers buy more product than is needed often due to sales
Rationing: Suppliers don't have enough inventory to satisfy the demand of all their
customers
Shortgaming: customers place bigger orders than needed as a result of prior rationing
Freight forwarder - ANS-negotiates and arranges for 1+ logistics companies to prepare,
secure, store, track, and move cargo
acts like a travel agent, doesn't actually move the goods
Customs House Brokers - ANS-A contractor (company or person) that helps a client's
goods clear customs in a foreign country.
Free Trade Zone (FTZ) - ANS-a duty-free and tax-exempt industrial park created to
attract foreign corporations and create industrial jobs
Solutions
vendor-managed inventory (VMI) - ANS-Inventory planning and replenishment system
where the vendor accepts certain responsibilities
Chargebacks - ANS-Penalties from retailers to vendors for minor or major supply chain
offenses
Vendor - ANS-The company from which a buyer purchases goods or services
Wholesaler - ANS-purchases goods from manufacturers, typically in large amounts at
discounted prices
Scan-based trading - ANS-Inventory on the shelves is owned by the supplier rather than
the retailer
3 parts of a waiting line - ANS-Input source: Population of people who might want
service
Waiting line: area where customers wait for service
Service Facility: area where customers actually receive service
Goal of waiting line - ANS-Balance cost to customers (time) with the cost paid by the
company to maintain the system
4 managerial consideration of the queue - ANS-Customers: How many?
Waiting lines: How many and what type?
Employees: How many? Skill level?
Service facilities: How efficient is the process?
Phase - ANS-Single step in the system process
ex: Car wash, phase 1: Vacuum inside car
Infinite population - ANS-Odds of another customer walking into the store isn't impacted
by the previous customer
Finite population - ANS-If one customer comes into the store the odds of another
decreases
Balking - ANS-When a potential customer sees the line, but never joins the line because
they think it looks too long and/or too slow.
, Reneging - ANS-Customers leave after waiting for a period of time
Jockeying - ANS-Customer enters one line and then switches to a different line in an
effort to reduce waiting time
Supply Chain integration - ANS-when multiple firms or business functions in a supply
chain coordinate their activities and processes so that they are seamlessly linked to one
another in an effort to satisfy the customer
Push System - ANS-produces goods in advance of customer demand using a forecast
of sales and moves them through supply chain to points of sale where they are stored
as finished goods inventory.
Pull System - ANS-a production system in which actual downstream demand sets off a
chain of events that pulls material through the various process steps
Postponment - ANS-a hybrid production method whereby basic units of a finished
goods are manufactured in advance of actual demand and help in strategic form or
location until demand occurs, when final customization takes place
bullwhip effect - ANS-occurs when distorted product-demand information ripples from
one partner to the next throughout the supply chain, end up with too much inventory
4 Causes of bull whip - ANS-Order batching: company places large and infrequent
orders from supplier, suppliers higher order volumes then needed
Forward Buying: Customers buy more product than is needed often due to sales
Rationing: Suppliers don't have enough inventory to satisfy the demand of all their
customers
Shortgaming: customers place bigger orders than needed as a result of prior rationing
Freight forwarder - ANS-negotiates and arranges for 1+ logistics companies to prepare,
secure, store, track, and move cargo
acts like a travel agent, doesn't actually move the goods
Customs House Brokers - ANS-A contractor (company or person) that helps a client's
goods clear customs in a foreign country.
Free Trade Zone (FTZ) - ANS-a duty-free and tax-exempt industrial park created to
attract foreign corporations and create industrial jobs
