SCM 300 Exam 2 ASU Davila Arizona State University
Campus Immersion/ SCM 300 EXAM Guide 3 ASU/ SCM
300: Final Exam/ SCM 300 DAVILA ASU FINAL/With
complete ssolu)on NEW EDITION
Brick-and-Mortar Business - Ans a business that operates in a physical store without an
internet presence
Online or E-tailing - Ans All products and services are sold to customers through an online
website. Example: Amazon.com
Brick and Clicks - Ans Companies that use both a physical store and the Web to sell their
products and services.
Clicks and Calls - Ans In addi$on to taking orders via the company website, some companies
will also offer sales via the phone. Examples: Lands' End and L.L. Bean
Omni-channel retailing - Ans Retailers that are fully commi+ed to engaging customers via
catalogs, phone calls, websites, email, internet chatrooms, social media sites or mobile apps,
and of course also in stores.
Retail sources of supply - Ans manufacturers, wholesalers, drop shippers
, drop shippers - Ans An organiza$on that $es manufactures and/or wholesalers directly to
consumers. They never posses the product, they just take orders to fulfill by another party.
Chargebacks - Ans effec$vely penal$es charged by retail organiza$ons to their
suppliers/vendors for any number of minor and major supply chain offenses
Collabora$ve Planning, Forecas$ng, and Replenishment (CPFR) - Ans A formalized effort by
supply chain partners to share data and collec$vely develop forecast in an a+empt to reduce
supply chain cost through be+er planning
vendor-managed inventory (VMI) - Ans An arrangement where retailers allow vendors to
monitor in-store inventories, ini$ate orders/shipments to the store when inventories are low,
and also bring the items into the store and onto the shelf.
Last Mile - Ans the por$on of the supply chain between the final inventory holding facility and
the end consumer
Prototype Stores - Ans A series of stores that have common design, construc$on and layout.
Standardized plans that will work across many stores for chain retailers.
Ra$onalized Retailing - Ans This retail strategy has retail chains develop rigid control structures
to develop and manage processes such that all the retail outlets are managed in the same way.
An employee would easily be able to work at almost any store since everything is done the
same way.
Planogram - Ans A map of where every product goes on a retail store shelf.
Customers cost for wai$ng lines - Ans Time
,Company cost for wai$ng line - Ans Money paid to maintain the line (employees)
Wai$ng line Input Source - Ans The popula$on of people that might want service
Wai$ng Line - Ans The area in which customers wait for service
Wai$ng line Service Facility - Ans The area in which customers actually receive service
Infinite popula$on of customers - Ans 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 Popula$on of Customers - Ans number of customers is limited
Balking - Ans When a poten$al customer sees the line, but never joins the line because they
think it looks too long and/or too slow.
Reneging - Ans When a customer joins the line, gets frustrated and leaves the line
λ - Ans Lambda
Lambda - Ans Number of customers arriving/unit of $me
ex. 15 customers per hour
μ - Ans Mu
Mu - Ans Number of customers helped/unit of $me
, ex. 24 customers per hour
ρ - Ans Rho
ρ=λ/μ - Ans Percentage of $me worker is busy
n1=ρ[λ/(μ-λ)] - Ans Average number of customers in the line
t l =ρ[1/(μ-λ) - Ans Average amount of $me a customer waits in the line
n s =λ/(μ-λ) - Ans Average number of customers in the system
ρn=(1-ρ)ρ^n - Ans Probability there are n customers in the system
Order size required=(Actual Demand)/(Propor$on of Acceptable Product per Order) - Ans
Shrinkage Calcula$on. Must be performed at every stage of the supply chain in upstream
direc$on (customer back to manufacturer)
Consumer demands 300 units. Retail store allows 2% theG shrinkage - Ans 300/(1-
.002)=300/.98=306.12 or 300/(100%-2%)=300/98%, always round up, in this case 307
Inventory future= inventory present[(√warehouse future)/(√warehouse present)] - Ans Square
Root Rule
bullwhip effect - Ans the phenomenon in supply chains whereby ordering pa+erns experience
increasing variance as you proceed upstream in the chain
Campus Immersion/ SCM 300 EXAM Guide 3 ASU/ SCM
300: Final Exam/ SCM 300 DAVILA ASU FINAL/With
complete ssolu)on NEW EDITION
Brick-and-Mortar Business - Ans a business that operates in a physical store without an
internet presence
Online or E-tailing - Ans All products and services are sold to customers through an online
website. Example: Amazon.com
Brick and Clicks - Ans Companies that use both a physical store and the Web to sell their
products and services.
Clicks and Calls - Ans In addi$on to taking orders via the company website, some companies
will also offer sales via the phone. Examples: Lands' End and L.L. Bean
Omni-channel retailing - Ans Retailers that are fully commi+ed to engaging customers via
catalogs, phone calls, websites, email, internet chatrooms, social media sites or mobile apps,
and of course also in stores.
Retail sources of supply - Ans manufacturers, wholesalers, drop shippers
, drop shippers - Ans An organiza$on that $es manufactures and/or wholesalers directly to
consumers. They never posses the product, they just take orders to fulfill by another party.
Chargebacks - Ans effec$vely penal$es charged by retail organiza$ons to their
suppliers/vendors for any number of minor and major supply chain offenses
Collabora$ve Planning, Forecas$ng, and Replenishment (CPFR) - Ans A formalized effort by
supply chain partners to share data and collec$vely develop forecast in an a+empt to reduce
supply chain cost through be+er planning
vendor-managed inventory (VMI) - Ans An arrangement where retailers allow vendors to
monitor in-store inventories, ini$ate orders/shipments to the store when inventories are low,
and also bring the items into the store and onto the shelf.
Last Mile - Ans the por$on of the supply chain between the final inventory holding facility and
the end consumer
Prototype Stores - Ans A series of stores that have common design, construc$on and layout.
Standardized plans that will work across many stores for chain retailers.
Ra$onalized Retailing - Ans This retail strategy has retail chains develop rigid control structures
to develop and manage processes such that all the retail outlets are managed in the same way.
An employee would easily be able to work at almost any store since everything is done the
same way.
Planogram - Ans A map of where every product goes on a retail store shelf.
Customers cost for wai$ng lines - Ans Time
,Company cost for wai$ng line - Ans Money paid to maintain the line (employees)
Wai$ng line Input Source - Ans The popula$on of people that might want service
Wai$ng Line - Ans The area in which customers wait for service
Wai$ng line Service Facility - Ans The area in which customers actually receive service
Infinite popula$on of customers - Ans 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 Popula$on of Customers - Ans number of customers is limited
Balking - Ans When a poten$al customer sees the line, but never joins the line because they
think it looks too long and/or too slow.
Reneging - Ans When a customer joins the line, gets frustrated and leaves the line
λ - Ans Lambda
Lambda - Ans Number of customers arriving/unit of $me
ex. 15 customers per hour
μ - Ans Mu
Mu - Ans Number of customers helped/unit of $me
, ex. 24 customers per hour
ρ - Ans Rho
ρ=λ/μ - Ans Percentage of $me worker is busy
n1=ρ[λ/(μ-λ)] - Ans Average number of customers in the line
t l =ρ[1/(μ-λ) - Ans Average amount of $me a customer waits in the line
n s =λ/(μ-λ) - Ans Average number of customers in the system
ρn=(1-ρ)ρ^n - Ans Probability there are n customers in the system
Order size required=(Actual Demand)/(Propor$on of Acceptable Product per Order) - Ans
Shrinkage Calcula$on. Must be performed at every stage of the supply chain in upstream
direc$on (customer back to manufacturer)
Consumer demands 300 units. Retail store allows 2% theG shrinkage - Ans 300/(1-
.002)=300/.98=306.12 or 300/(100%-2%)=300/98%, always round up, in this case 307
Inventory future= inventory present[(√warehouse future)/(√warehouse present)] - Ans Square
Root Rule
bullwhip effect - Ans the phenomenon in supply chains whereby ordering pa+erns experience
increasing variance as you proceed upstream in the chain
