SCM 300 Exam 2 Questions and
Answers
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.
Planogram - ANSWER-- A map of where every product goes on a retail store shelf.
4 Store Security Issues - ANSWER-1) Employees - Managers, store employees, and
potentially vendors
2) Store Assets - Inventory, cash, store property
3) Customers and their Assets - Store visitors, their cars and also any other personal
property
4) Data - Company, customer, and vendor data
Goals 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)
Parts of a Waiting Line System - ANSWER-1) Input Source - This is the population of
people that might want service
2) Waiting Line - The area in which customers wait for service
3) Service Facility - The area in which customers actually receive service
4 Managerial Considerations in Queues - ANSWER-1) Customers - How many are
there? How quickly are they arriving?
2) The Waiting Lines - What types of lines? How many lines?
3) Employees - Who's working in the system? How many? Skill level and speed?
4) Service Facilities - How effective and efficient is the process? Tools?
Basic Waiting Line Terminology
(Queue, Channel, Phase, Infinite/Finite Population of Customers, Balking, Reneging)
- 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.
• Infinite population of customers - 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.
• Finite population of customers - 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.
, • Balking - When a potential customer sees the line, but never joins the line because
they think it looks too long and/or too slow.
• Reneging - When a customer joins the line, gets frustrated and leaves the line.
Recap of Supply Chain Basics - ANSWER-• Focus on People - Good supply chain
decisions positively impact customers, employees, and investors.
• Competitive Priorities - Good supply chains deliver the right mix of cost, quality,
speed, and flexibility to their target market.
• Measuring success - The best supply chains are effective, efficient, and adaptable.
Effective - Creating and delivering great products and services customers want.
Efficient - Using minimal resources and eliminating waste. Adaptable - Ready for
change, constantly evolving.
• Maximize Value - Provide customers the best possible product and service bundle
at the lowest possible cost and in the most convenient way possible.
• Productivity - Maximize a company's high quality output using the fewest resources
possible."
8 Supply Chain Processes - ANSWER-1) Product development and
commercialization: What does the customer want? When? Can we organize the right
suppliers, manufacturers, distributors, and retail organizations to get the job done
right?
2) Supplier Relationship Management: Finding suppliers. Developing relationships.
Managing present and future purchases from the suppliers. Working together to
improve quality.
3) Manufacturing Flow Management: Making the right items to meet customer
expectations. Doing this using the least amount of resources possible.
4) Demand Management: Utilize forecasting to understand likely demand. Once a
forecast is available manage the firm's facilities and resources to meet expected
demand.
5) Order Fulfillment: If proper demand management has taken place, then it will be
time to fulfill orders. This might include picking, packing, and shipping items to the
customer.
6) Customer Relationship Management: Utilizing information to better understand the
needs and desires of your customers today and into the future.
7) Customer Service Management: Communication between customers and the
supply chain. Providing customers with product availability details and tracking
information. Providing customers with product assistance and maintenance
opportunities.
8) Returns Management: Dealing with reverse logistics issues such as damaged and
unwanted products, product recalls, the return of pallets to the distribution center,
etc. Understanding problems[...]"
Shrinkage Calculation - ANSWER-- Order Size Required = (Actual Demand) /
(Proportion of Acceptable Product per Order)
- Always round up
Square Root Rule - Risk Pooling - ANSWER-- Inv Future = Inv Present [ (SqRt WH
Future ) / (SqRt WH Present ) ]
- Inv Future = Total combined inventory needed in future
- Inv Present = Total combined inventory in present system
Answers
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.
Planogram - ANSWER-- A map of where every product goes on a retail store shelf.
4 Store Security Issues - ANSWER-1) Employees - Managers, store employees, and
potentially vendors
2) Store Assets - Inventory, cash, store property
3) Customers and their Assets - Store visitors, their cars and also any other personal
property
4) Data - Company, customer, and vendor data
Goals 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)
Parts of a Waiting Line System - ANSWER-1) Input Source - This is the population of
people that might want service
2) Waiting Line - The area in which customers wait for service
3) Service Facility - The area in which customers actually receive service
4 Managerial Considerations in Queues - ANSWER-1) Customers - How many are
there? How quickly are they arriving?
2) The Waiting Lines - What types of lines? How many lines?
3) Employees - Who's working in the system? How many? Skill level and speed?
4) Service Facilities - How effective and efficient is the process? Tools?
Basic Waiting Line Terminology
(Queue, Channel, Phase, Infinite/Finite Population of Customers, Balking, Reneging)
- 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.
• Infinite population of customers - 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.
• Finite population of customers - 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.
, • Balking - When a potential customer sees the line, but never joins the line because
they think it looks too long and/or too slow.
• Reneging - When a customer joins the line, gets frustrated and leaves the line.
Recap of Supply Chain Basics - ANSWER-• Focus on People - Good supply chain
decisions positively impact customers, employees, and investors.
• Competitive Priorities - Good supply chains deliver the right mix of cost, quality,
speed, and flexibility to their target market.
• Measuring success - The best supply chains are effective, efficient, and adaptable.
Effective - Creating and delivering great products and services customers want.
Efficient - Using minimal resources and eliminating waste. Adaptable - Ready for
change, constantly evolving.
• Maximize Value - Provide customers the best possible product and service bundle
at the lowest possible cost and in the most convenient way possible.
• Productivity - Maximize a company's high quality output using the fewest resources
possible."
8 Supply Chain Processes - ANSWER-1) Product development and
commercialization: What does the customer want? When? Can we organize the right
suppliers, manufacturers, distributors, and retail organizations to get the job done
right?
2) Supplier Relationship Management: Finding suppliers. Developing relationships.
Managing present and future purchases from the suppliers. Working together to
improve quality.
3) Manufacturing Flow Management: Making the right items to meet customer
expectations. Doing this using the least amount of resources possible.
4) Demand Management: Utilize forecasting to understand likely demand. Once a
forecast is available manage the firm's facilities and resources to meet expected
demand.
5) Order Fulfillment: If proper demand management has taken place, then it will be
time to fulfill orders. This might include picking, packing, and shipping items to the
customer.
6) Customer Relationship Management: Utilizing information to better understand the
needs and desires of your customers today and into the future.
7) Customer Service Management: Communication between customers and the
supply chain. Providing customers with product availability details and tracking
information. Providing customers with product assistance and maintenance
opportunities.
8) Returns Management: Dealing with reverse logistics issues such as damaged and
unwanted products, product recalls, the return of pallets to the distribution center,
etc. Understanding problems[...]"
Shrinkage Calculation - ANSWER-- Order Size Required = (Actual Demand) /
(Proportion of Acceptable Product per Order)
- Always round up
Square Root Rule - Risk Pooling - ANSWER-- Inv Future = Inv Present [ (SqRt WH
Future ) / (SqRt WH Present ) ]
- Inv Future = Total combined inventory needed in future
- Inv Present = Total combined inventory in present system
