SCM 300 Exam 2 ASU Questions with Correct Answers (Grade A+)
Question 1: Omni-channel Retailing
Answer: 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. Ex. Nordstorm
Question 2: 3 Retail sources of supply
Answer: 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 wholesaler versus
having to purchase from each individual manufacturer. Drop shippers - This one is not really a source of
supply, but rather an organization that ties manufacturers and/or wholesalers directly to consumers.
Question 3: Chargebacks
Answer: These are effectively penalties charged by retail organizations to their suppliers/vendors for any
number of minor and major supply chain offenses.
Question 4: 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.
Question 5: VMI (Vendor Managed Inventory)
Answer: 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.
Question 6: Last Mile
Answer: 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.
Page 1
,Question 7: 4 types of retail ownership
Answer: 5 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, Gap, Macy's, Safeway
(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 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 -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."
Question 8: Prototype Stores
Answer: A series of stores that have common design, construction and layout
Question 9: Rationalized Retailing
Answer: 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. Example: Employee can work at
different locations without much change.
Question 10: Planogram
Answer: A map of where every product goes on a retail store shelf.
Question 11: 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 also any other personal property
Data - Company, customer, and vendor data
Question 12: Goal of waiting line management
Answer: - Balance the cost paid by the customers (time) with the cost paid by the company (money paid to
maintain the system)
Question 13: Parts of a waiting line system
Answer: Input Source ‚This is the population of people that might want service. Waiting Line - The area in
which customers wait for service. Service Facility - The area in which customers actually receive service
Page 2
, Question 14: 4 Managerial Considerations in Queues
Answer: Customers ‚ How many are there? How quickly are they arriving? The Waiting Lines - What types
of lines? How many lines? Employees - Who's working in the system? How many? Skill level and speed?
Service Facilities - How effective and efficient is the process? Tools?
Question 15: Basic waiting line terminology
Answer: Queue ‚ Line. Channel ‚ Line. Here it often refers to the number of lines available at each step.
Phase - A single step in a process. Example: Phases in college enrollment might include: Application
process, Registration, Orientation, Scheduling your courses for the first semester.
Question 16: Infinite population of customers
Answer: The 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.
Question 17: Finite population of customers
Answer: - The number of customers is limited. Example: If you have a bus company that has 10 busses, then
your company's repair shop has a finite population of 10 busses. If 1 bus is in the shop only 9 others are left
in the population. The odds of a 2nd bus entering the system decline.
Question 18: Balking
Answer: When a potential customer sees the line, but never joins the line because they think it looks too
long and/or too slow.
Question 19: Reneging
Answer: When a customer joins the line, gets frustrated and leaves the line.
Question 20: Product development and commercialization
Answer: What does the customer want? When? Can we organize the right suppliers, manufacturers,
distributors, and retail organizations to get the job done right?
Question 21: Supplier Relationship Management
Answer: Finding suppliers. Developing relationships. Managing present and future purchases from the
suppliers. Working together to improve quality.
Page 3
Question 1: Omni-channel Retailing
Answer: 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. Ex. Nordstorm
Question 2: 3 Retail sources of supply
Answer: 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 wholesaler versus
having to purchase from each individual manufacturer. Drop shippers - This one is not really a source of
supply, but rather an organization that ties manufacturers and/or wholesalers directly to consumers.
Question 3: Chargebacks
Answer: These are effectively penalties charged by retail organizations to their suppliers/vendors for any
number of minor and major supply chain offenses.
Question 4: 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.
Question 5: VMI (Vendor Managed Inventory)
Answer: 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.
Question 6: Last Mile
Answer: 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.
Page 1
,Question 7: 4 types of retail ownership
Answer: 5 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, Gap, Macy's, Safeway
(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 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 -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."
Question 8: Prototype Stores
Answer: A series of stores that have common design, construction and layout
Question 9: Rationalized Retailing
Answer: 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. Example: Employee can work at
different locations without much change.
Question 10: Planogram
Answer: A map of where every product goes on a retail store shelf.
Question 11: 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 also any other personal property
Data - Company, customer, and vendor data
Question 12: Goal of waiting line management
Answer: - Balance the cost paid by the customers (time) with the cost paid by the company (money paid to
maintain the system)
Question 13: Parts of a waiting line system
Answer: Input Source ‚This is the population of people that might want service. Waiting Line - The area in
which customers wait for service. Service Facility - The area in which customers actually receive service
Page 2
, Question 14: 4 Managerial Considerations in Queues
Answer: Customers ‚ How many are there? How quickly are they arriving? The Waiting Lines - What types
of lines? How many lines? Employees - Who's working in the system? How many? Skill level and speed?
Service Facilities - How effective and efficient is the process? Tools?
Question 15: Basic waiting line terminology
Answer: Queue ‚ Line. Channel ‚ Line. Here it often refers to the number of lines available at each step.
Phase - A single step in a process. Example: Phases in college enrollment might include: Application
process, Registration, Orientation, Scheduling your courses for the first semester.
Question 16: Infinite population of customers
Answer: The 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.
Question 17: Finite population of customers
Answer: - The number of customers is limited. Example: If you have a bus company that has 10 busses, then
your company's repair shop has a finite population of 10 busses. If 1 bus is in the shop only 9 others are left
in the population. The odds of a 2nd bus entering the system decline.
Question 18: Balking
Answer: When a potential customer sees the line, but never joins the line because they think it looks too
long and/or too slow.
Question 19: Reneging
Answer: When a customer joins the line, gets frustrated and leaves the line.
Question 20: Product development and commercialization
Answer: What does the customer want? When? Can we organize the right suppliers, manufacturers,
distributors, and retail organizations to get the job done right?
Question 21: Supplier Relationship Management
Answer: Finding suppliers. Developing relationships. Managing present and future purchases from the
suppliers. Working together to improve quality.
Page 3
