SCM 300 Exam 2 UPDATED ACTUAL
Exam Question and Answer (2026/2027)
| Detailed Rationales
• Brick and Mortar -✓✓ All products and services are sold to customers from
physical stores. Example: McDonald's
• Online or E-tailing -✓✓ All products and services are sold to customers through
an online website. Example: Amazon.com
• Bricks and clicks -✓✓ Products can be bought from a physical store or from an
online system. Example: Barnes and Noble and BN.com
• Clicks and calls -✓✓ In addition to taking orders via the company website, some
companies will also offer sales via the phone. Example: LL Bean and Lands End
• Omni Channel Retailing
True omni-channel retail readiness would require companies to have a very strong
presence in the many channels they choose to meet customers. -✓✓ Retailers that
are fully committed to engaging customers via catalogs, phone calls, websites,
email, internet chatrooms, social media sites or mobile apps, and of course also in
stores.
• Brick and Mortar, Online or E-tailing, Bricks and Clicks, and Clicks and Calls -
✓✓ Retailing Options
• humanitarian organization -✓✓ being prepared to deal with one and sometimes
more disasters at the same time; natural disasters, man made disaster, etc; they
must mobilize materials machines, etc to the disaster location
• Scan-based trading
-example: Cheese its. It gives it inventory to Wal-Mart. Wal-Mart doesn't pay for
it, if they sell the cheese its, then wal-mart will get a % of the profit. high risks of
theft -✓✓ You don't get any money until the product sells. It is the vendor
company that is in charge and keeps track of the inventory in the store (Walmart).
,So, these products are the stores so they are not responsible.
It has the potential of the vendor losing a lot of products.
But, if they vend for a company like Walmart, not doing scan based will cause
them to loose a ton of money by not vending through them so vendors do this to
create good relationships with the stores
As a vendor Downsides:
- Theft
- Employees not making damaged goods correctly
- Having the product expire and no one buys it
- Management/employees not caring as much about these items
• 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 -✓✓ Retail sources of supply
• Manufacturers -✓✓ 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 -✓✓ 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 ____________
versus having to purchase from each individual manufacturer.
• input souce -> balking -> waiting line (reneging) -> service facility -> served
customers -✓✓ Waiting line system
• Drop shippers
Example: Drop shipper has a website with pictures of items for sale. The consumer
places an order from the website. The drop shipper takes the order information and
sends it along to a manufacturer or wholesaler that actually holds and owns the
,inventory. That manufacturer or wholesaler will then pick, pack, and deliver the
order to the customer on behalf of the drop shipper. -✓✓ This one is not really a
source of supply, but rather an organization that ties manufacturers and/or
wholesalers directly to consumers. These organizations never actually possess the
product they simply take orders which are fulfilled by another party.
• Collaborative, Planning, Forecasting, and Rescheduling (CPFR)
CPFR helps not only in analysis and planning, it forces organizations to discuss
opinions and strategies. This in turn helps supply chain partners understand how
their supply chain partners think, what they believe, and also what they value -✓✓
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.
• Vendor Managed Inventory
The idea here is that rather than having a retail store try to monitor every item in
their stock and understand the supply chain preferences (order sizes, lead times) of
all of their vendors, instead just allow vendors to monitor the inventories on your
shelf. -✓✓ 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 -✓✓ in supply chain, typically refers to the portion of the supply chain
between the final inventory holding facility and the end consumer
• omni channel retailing -✓✓ 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.
• Jockeying -✓✓ When the customer enters one line and then switches to a
different one in an effort to reduce the waiting time
• Chargebacks -✓✓ These are effectively penalties charged by retail organizations
to their suppliers/vendors for any number of minor and major supply chain
offenses. The goal here is to motivate vendor compliance in the areas of on-time
shipments, shipment accuracy, product quality, incorrect packaging, label errors,
etc.
, • independents, chains, franchises, cooperatives -✓✓ 4 Types of retail ownerships
• prototype store -✓✓ 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
• Independents -✓✓ 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 -✓✓ Multiple stores/ facilities, one owner/ company. Example: Home
Depot, Wal-Mart, Costco, Amazon.com probably best fits this category
• Franchises -✓✓ A franchisor owns the rights to a company and the name. A
franchisee is allowed to open an outlet under than name. The franchisee must abide
by the rules and processes of the franchise. Examples: Jiffy Lube, McDonald's, 7-
Eleven, Buffalo Wild Wings
• Cooperatives -✓✓ Retailer that is owned by its customer members. These
organizations typically try and fit the very special needs of the consumers that
organized them. Examples: REI (Recreational Equipment Inc)
• Prototype Stores -✓✓ A series of stores that have common design, construction,
and layout.
Allows chain retailers to create standardized plans that will work their many stores.
• Pro: can help companies develop efficiencies across all their stores. Con: It can
hold companies back when the retail market evolves. -✓✓ Pros and cons of
Prototype stores
• Planogram -✓✓ a map of where every product goes on a retail store shelf
• store personnel -✓✓ Many of our biggest complaints when leaving a retail
environment are often related to _________
Exam Question and Answer (2026/2027)
| Detailed Rationales
• Brick and Mortar -✓✓ All products and services are sold to customers from
physical stores. Example: McDonald's
• Online or E-tailing -✓✓ All products and services are sold to customers through
an online website. Example: Amazon.com
• Bricks and clicks -✓✓ Products can be bought from a physical store or from an
online system. Example: Barnes and Noble and BN.com
• Clicks and calls -✓✓ In addition to taking orders via the company website, some
companies will also offer sales via the phone. Example: LL Bean and Lands End
• Omni Channel Retailing
True omni-channel retail readiness would require companies to have a very strong
presence in the many channels they choose to meet customers. -✓✓ Retailers that
are fully committed to engaging customers via catalogs, phone calls, websites,
email, internet chatrooms, social media sites or mobile apps, and of course also in
stores.
• Brick and Mortar, Online or E-tailing, Bricks and Clicks, and Clicks and Calls -
✓✓ Retailing Options
• humanitarian organization -✓✓ being prepared to deal with one and sometimes
more disasters at the same time; natural disasters, man made disaster, etc; they
must mobilize materials machines, etc to the disaster location
• Scan-based trading
-example: Cheese its. It gives it inventory to Wal-Mart. Wal-Mart doesn't pay for
it, if they sell the cheese its, then wal-mart will get a % of the profit. high risks of
theft -✓✓ You don't get any money until the product sells. It is the vendor
company that is in charge and keeps track of the inventory in the store (Walmart).
,So, these products are the stores so they are not responsible.
It has the potential of the vendor losing a lot of products.
But, if they vend for a company like Walmart, not doing scan based will cause
them to loose a ton of money by not vending through them so vendors do this to
create good relationships with the stores
As a vendor Downsides:
- Theft
- Employees not making damaged goods correctly
- Having the product expire and no one buys it
- Management/employees not caring as much about these items
• 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 -✓✓ Retail sources of supply
• Manufacturers -✓✓ 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 -✓✓ 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 ____________
versus having to purchase from each individual manufacturer.
• input souce -> balking -> waiting line (reneging) -> service facility -> served
customers -✓✓ Waiting line system
• Drop shippers
Example: Drop shipper has a website with pictures of items for sale. The consumer
places an order from the website. The drop shipper takes the order information and
sends it along to a manufacturer or wholesaler that actually holds and owns the
,inventory. That manufacturer or wholesaler will then pick, pack, and deliver the
order to the customer on behalf of the drop shipper. -✓✓ This one is not really a
source of supply, but rather an organization that ties manufacturers and/or
wholesalers directly to consumers. These organizations never actually possess the
product they simply take orders which are fulfilled by another party.
• Collaborative, Planning, Forecasting, and Rescheduling (CPFR)
CPFR helps not only in analysis and planning, it forces organizations to discuss
opinions and strategies. This in turn helps supply chain partners understand how
their supply chain partners think, what they believe, and also what they value -✓✓
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.
• Vendor Managed Inventory
The idea here is that rather than having a retail store try to monitor every item in
their stock and understand the supply chain preferences (order sizes, lead times) of
all of their vendors, instead just allow vendors to monitor the inventories on your
shelf. -✓✓ 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 -✓✓ in supply chain, typically refers to the portion of the supply chain
between the final inventory holding facility and the end consumer
• omni channel retailing -✓✓ 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.
• Jockeying -✓✓ When the customer enters one line and then switches to a
different one in an effort to reduce the waiting time
• Chargebacks -✓✓ These are effectively penalties charged by retail organizations
to their suppliers/vendors for any number of minor and major supply chain
offenses. The goal here is to motivate vendor compliance in the areas of on-time
shipments, shipment accuracy, product quality, incorrect packaging, label errors,
etc.
, • independents, chains, franchises, cooperatives -✓✓ 4 Types of retail ownerships
• prototype store -✓✓ 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
• Independents -✓✓ 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 -✓✓ Multiple stores/ facilities, one owner/ company. Example: Home
Depot, Wal-Mart, Costco, Amazon.com probably best fits this category
• Franchises -✓✓ A franchisor owns the rights to a company and the name. A
franchisee is allowed to open an outlet under than name. The franchisee must abide
by the rules and processes of the franchise. Examples: Jiffy Lube, McDonald's, 7-
Eleven, Buffalo Wild Wings
• Cooperatives -✓✓ Retailer that is owned by its customer members. These
organizations typically try and fit the very special needs of the consumers that
organized them. Examples: REI (Recreational Equipment Inc)
• Prototype Stores -✓✓ A series of stores that have common design, construction,
and layout.
Allows chain retailers to create standardized plans that will work their many stores.
• Pro: can help companies develop efficiencies across all their stores. Con: It can
hold companies back when the retail market evolves. -✓✓ Pros and cons of
Prototype stores
• Planogram -✓✓ a map of where every product goes on a retail store shelf
• store personnel -✓✓ Many of our biggest complaints when leaving a retail
environment are often related to _________
