ASU SCM 300-Davilla EXAM 2 -Study
Guide MODULES 5-8 Questions with
Correct Answers 2026-2027 Updated.
4 Retailing Options - Answer 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
Omnichannel Retailing - Answer 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.
3 Retail sources of supply - Answer 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
Chargebacks - Answer 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
CPFR (Collaborative, Planning, Forecasting, Rescheduling) - Answer 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 (Vendor Managed Inventory) - Answer Inventory planning and replenishment system
where supplier(vendor) accepts negotiated
responsibilities that typically include monitoring and restocking.
Last Mile - Answer the portion of the supply chain between the final inventory holding facility
and the end consumer
,4 Types of Retail ownership - Answer 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)
Prototype Stores - Answer 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
Rationalized Retailing - Answer 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
Planogram - Answer a map of where every product goes on a retail store shelf
4 Store security issues - Answer 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
Goal of waiting line management - Answer balance the cost paid by customers (time) with the
cost paid by the company (money paid to maintain the system)
Parts of a waiting line system - Answer 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
4 Managerial Considerations in Queues - Answer 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?
,Basic waiting line terminology - Answer 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
Ingredients/goals of a good sales environment - Relationship to SCM: - Answer Needs and
wants now and in the future. The customers: Product selection, availability, convenience, value,
the 5 senses. The organization: Controlling costs, shrinkage, profits.
Retail layout considerations Flow - Answer 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)
Grocery store layouts - Answer 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
Lecture examples of different retail and restaurant layout strategies - Answer Bar right in the
front of a restaurant. Safeway.
Facilitating goods - Answer Items that need to be kept in inventory to maintain operations.
Important to customer experience
Dry Cleaners: detergent, hangers, etc
Restaurant: ingredients, tables, plates
What is VMI? (Vendor Managed Inventory? - Answer When you allow suppliers to control
inventory in your store
Impact of VMI on different stakeholders
, Challenges of VMI agreements - Answer 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
Impact of VMI on different stakeholders - Answer 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
Importance of waiting lines in running a business - Answer People demand equality in America
(First come first serve). Waiting times are indicative of overall service
Goals and Tradeoffs for Queuing system - Answer 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
What do managers have control over in a queuing system? - Answer Time in system
time in queue
Service utilization/service facility
number of servers
what people do while in the line, etc
Why do customers have some degree of control over service rates? - Answer Some customers
are unprepared, others are ready when they get to the counter.
Arrival and Service Rates: Arrival Rates - Answer 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?
Guide MODULES 5-8 Questions with
Correct Answers 2026-2027 Updated.
4 Retailing Options - Answer 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
Omnichannel Retailing - Answer 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.
3 Retail sources of supply - Answer 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
Chargebacks - Answer 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
CPFR (Collaborative, Planning, Forecasting, Rescheduling) - Answer 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 (Vendor Managed Inventory) - Answer Inventory planning and replenishment system
where supplier(vendor) accepts negotiated
responsibilities that typically include monitoring and restocking.
Last Mile - Answer the portion of the supply chain between the final inventory holding facility
and the end consumer
,4 Types of Retail ownership - Answer 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)
Prototype Stores - Answer 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
Rationalized Retailing - Answer 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
Planogram - Answer a map of where every product goes on a retail store shelf
4 Store security issues - Answer 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
Goal of waiting line management - Answer balance the cost paid by customers (time) with the
cost paid by the company (money paid to maintain the system)
Parts of a waiting line system - Answer 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
4 Managerial Considerations in Queues - Answer 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?
,Basic waiting line terminology - Answer 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
Ingredients/goals of a good sales environment - Relationship to SCM: - Answer Needs and
wants now and in the future. The customers: Product selection, availability, convenience, value,
the 5 senses. The organization: Controlling costs, shrinkage, profits.
Retail layout considerations Flow - Answer 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)
Grocery store layouts - Answer 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
Lecture examples of different retail and restaurant layout strategies - Answer Bar right in the
front of a restaurant. Safeway.
Facilitating goods - Answer Items that need to be kept in inventory to maintain operations.
Important to customer experience
Dry Cleaners: detergent, hangers, etc
Restaurant: ingredients, tables, plates
What is VMI? (Vendor Managed Inventory? - Answer When you allow suppliers to control
inventory in your store
Impact of VMI on different stakeholders
, Challenges of VMI agreements - Answer 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
Impact of VMI on different stakeholders - Answer 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
Importance of waiting lines in running a business - Answer People demand equality in America
(First come first serve). Waiting times are indicative of overall service
Goals and Tradeoffs for Queuing system - Answer 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
What do managers have control over in a queuing system? - Answer Time in system
time in queue
Service utilization/service facility
number of servers
what people do while in the line, etc
Why do customers have some degree of control over service rates? - Answer Some customers
are unprepared, others are ready when they get to the counter.
Arrival and Service Rates: Arrival Rates - Answer 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?
