MKTG 3310 EXAM 3 (CH. 9-12) QUESTIONS AND
VERIFIED ANSWERS
supply chains - Answers - set of three or more companies directly linked by one or more
of the upstream and downstream flows of products and services, finances, and
information from a source to a customer
leveraging resources and skills of various component firms - Answers - supply chains
deliver value to the end customer by _____.
distribution channels or marketing channels - Answers - intermediaries such as
wholesalers, distributors, and retailers, through which the flow of products and services,
financial resources, and information travels
- adds value by taking customer orders, making product available to ship, storing
product, shipping product to next step in the supply chain
supply chain network - Answers - a network of companies made of many suppliers,
selling to many immediate customers
- companies can be members of multiple
downstream - Answers - the flow of products and services involved in getting the final
products to customers moves _____.
upstream - Answers - the flow of financial resources that move from the customer to the
companies that were part of the supply chain moves _____.
supply chain orientation - Answers - a critical management philosophy that guides the
actions of company members toward the goal of managing the flows across the supply
chain to create VALUE
supply chain management - Answers - actions taken to coordinate various flows within
the supply chain
- sets up technology to enable the sharing of demand information with suppliers
how does supply chain management create customer value? - Answers - - no company
is an island; all companies rely on related companies who's activities add value to the
final product
- companies that view "total system of companies" vs. individual company = greater
control over customer value (greater revenue for all)
inventory carrying costs - Answers - costs required to make or buy a product (insurance,
taxes, warehousing space to store goods, risks of obsolescence, etc.)
,supply chain integration - Answers - improves entire chain's performance
- individual firms integrate activities to a degree that the chain functions as one
extended enterprise
- relationship based strategies involving long term collaboration and benefits
push strategy - Answers - a company builds goods based on sales forecast, puts those
goods into storage, and waits for customers to order the product
- sometimes called a speculation strategy
pros of a push strategy - Answers - - firms can achieve economies of scale (purchasing,
transportation, manufacturing)
- positively affect customer service (goods are in stock)
cons of a push strategy - Answers - - if sales forecasting is wrong, may result in too
much/not enough product
- expensive and time consuming if retooling need or demand changes
- inventory carrying costs are expensive (25-30% of total product cost)
pull strategy - Answers - customer orders drive manufacturing and distribution
operations
- sometimes called a responsive supply chain
pros of pull strategy - Answers - - eliminates risk of producing unwanted products
- products can be customized
- minimal inventory carrying costs
- rapid response to changing market conditions
cons of pull strategy - Answers - - doesn't allow for economies of scale; orders are small
- difficult to achieve flexibility for production and distribution
hybrid (push-pull) strategy - Answers - the initial stages of the supply chain operate on a
push system, but the completion of the product is based on a pull system
hybrid strategy - Answers - - combines economies of scale with flexibility
- produces more accurate sales forecasts
- needs a distribution system that delivers quickly
- may not be as cost competitive as push system
- firm incurs costs to store components in inventory
marketing strategy - Answers - selecting the appropriate strategy depends on _____.
stability of demand - Answers - if firm can't predict demand (during intro/growth stages),
it can't create accurate sales forecast that would allow you to enjoy benefits of a pure
push strategy; for unstable demand use a pull strategy
, degree of cost competitiveness - Answers - if cost reduction of part of the firm's
strategy, then a push strategy can be used to achieve savings through economies of
scale in purchasing, manufacturing, transportation, etc.
degree of customization - Answers - a pull or hybrid (push-pull) strategy is best for a
company that competes on it's ability to deliver customized products or high level of
customer service built on manufacturing and distribution flexibility
speed at which customers need the product - Answers - for customers who want a short
lead time, the companies need to have product ready to deliver via push strategy
logistics - Answers - the part of supply chain management that plans, implements, and
controls the flow of goods, services, and information between the point of origin and the
final customer
- enables supply chain to run smoothly
place (impact on marketing) - Answers - delivering products and services to right
locaton
price (impact on marketing) - Answers - efficient purchasing and transportation,
inventory warehousing
product (impact on marketing) - Answers - providing feedback on product packaging
promotion (impact on marketing) - Answers - ensures sufficient materials to meet
increased demand
aligning logistics to meet challenges associated with each supply chain strategy -- push
strategy - Answers - requires logistics that can handle volumes of a product
- modes of transportation, size of warehouse?
aligning logistics to meet challenges associated with each supply chain strategy -- pull
or hybrid strategy - Answers - need logistics based on service quality, innovation, and
flexibility
third party logistics (3PLs) - Answers - these companies perform some or all of the
logistics activities for other companies
- may outsource of the function is not a company core competency
(ex. some specialize in transportation or warehousing)
managing inventories - Answers - major function of logistics to ensure customer service
won't suffer due to lack of product in a location
cyclical inventory - Answers - used to meet average demand
- if product, quantity that is most economical to produce at one time
- if buy, based on discounts, transport quantities, storage space, etc.
VERIFIED ANSWERS
supply chains - Answers - set of three or more companies directly linked by one or more
of the upstream and downstream flows of products and services, finances, and
information from a source to a customer
leveraging resources and skills of various component firms - Answers - supply chains
deliver value to the end customer by _____.
distribution channels or marketing channels - Answers - intermediaries such as
wholesalers, distributors, and retailers, through which the flow of products and services,
financial resources, and information travels
- adds value by taking customer orders, making product available to ship, storing
product, shipping product to next step in the supply chain
supply chain network - Answers - a network of companies made of many suppliers,
selling to many immediate customers
- companies can be members of multiple
downstream - Answers - the flow of products and services involved in getting the final
products to customers moves _____.
upstream - Answers - the flow of financial resources that move from the customer to the
companies that were part of the supply chain moves _____.
supply chain orientation - Answers - a critical management philosophy that guides the
actions of company members toward the goal of managing the flows across the supply
chain to create VALUE
supply chain management - Answers - actions taken to coordinate various flows within
the supply chain
- sets up technology to enable the sharing of demand information with suppliers
how does supply chain management create customer value? - Answers - - no company
is an island; all companies rely on related companies who's activities add value to the
final product
- companies that view "total system of companies" vs. individual company = greater
control over customer value (greater revenue for all)
inventory carrying costs - Answers - costs required to make or buy a product (insurance,
taxes, warehousing space to store goods, risks of obsolescence, etc.)
,supply chain integration - Answers - improves entire chain's performance
- individual firms integrate activities to a degree that the chain functions as one
extended enterprise
- relationship based strategies involving long term collaboration and benefits
push strategy - Answers - a company builds goods based on sales forecast, puts those
goods into storage, and waits for customers to order the product
- sometimes called a speculation strategy
pros of a push strategy - Answers - - firms can achieve economies of scale (purchasing,
transportation, manufacturing)
- positively affect customer service (goods are in stock)
cons of a push strategy - Answers - - if sales forecasting is wrong, may result in too
much/not enough product
- expensive and time consuming if retooling need or demand changes
- inventory carrying costs are expensive (25-30% of total product cost)
pull strategy - Answers - customer orders drive manufacturing and distribution
operations
- sometimes called a responsive supply chain
pros of pull strategy - Answers - - eliminates risk of producing unwanted products
- products can be customized
- minimal inventory carrying costs
- rapid response to changing market conditions
cons of pull strategy - Answers - - doesn't allow for economies of scale; orders are small
- difficult to achieve flexibility for production and distribution
hybrid (push-pull) strategy - Answers - the initial stages of the supply chain operate on a
push system, but the completion of the product is based on a pull system
hybrid strategy - Answers - - combines economies of scale with flexibility
- produces more accurate sales forecasts
- needs a distribution system that delivers quickly
- may not be as cost competitive as push system
- firm incurs costs to store components in inventory
marketing strategy - Answers - selecting the appropriate strategy depends on _____.
stability of demand - Answers - if firm can't predict demand (during intro/growth stages),
it can't create accurate sales forecast that would allow you to enjoy benefits of a pure
push strategy; for unstable demand use a pull strategy
, degree of cost competitiveness - Answers - if cost reduction of part of the firm's
strategy, then a push strategy can be used to achieve savings through economies of
scale in purchasing, manufacturing, transportation, etc.
degree of customization - Answers - a pull or hybrid (push-pull) strategy is best for a
company that competes on it's ability to deliver customized products or high level of
customer service built on manufacturing and distribution flexibility
speed at which customers need the product - Answers - for customers who want a short
lead time, the companies need to have product ready to deliver via push strategy
logistics - Answers - the part of supply chain management that plans, implements, and
controls the flow of goods, services, and information between the point of origin and the
final customer
- enables supply chain to run smoothly
place (impact on marketing) - Answers - delivering products and services to right
locaton
price (impact on marketing) - Answers - efficient purchasing and transportation,
inventory warehousing
product (impact on marketing) - Answers - providing feedback on product packaging
promotion (impact on marketing) - Answers - ensures sufficient materials to meet
increased demand
aligning logistics to meet challenges associated with each supply chain strategy -- push
strategy - Answers - requires logistics that can handle volumes of a product
- modes of transportation, size of warehouse?
aligning logistics to meet challenges associated with each supply chain strategy -- pull
or hybrid strategy - Answers - need logistics based on service quality, innovation, and
flexibility
third party logistics (3PLs) - Answers - these companies perform some or all of the
logistics activities for other companies
- may outsource of the function is not a company core competency
(ex. some specialize in transportation or warehousing)
managing inventories - Answers - major function of logistics to ensure customer service
won't suffer due to lack of product in a location
cyclical inventory - Answers - used to meet average demand
- if product, quantity that is most economical to produce at one time
- if buy, based on discounts, transport quantities, storage space, etc.
