SCM 300 STUDY GUIDE TEST QUESTIONS
AND CORRECT ANSWERS SUCCESS
RESOURCE
●● 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.
●● Chargebacks
Answer: These are effectively penalties charged by retail organizations
to their suppliers/vendors for any number of minor and major supply
chain offenses.
●● 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: 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
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.
●● 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.”
,●● Prototype Stores
Answer: A series of stores that have common design, construction and
layout
●● 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: 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
●● 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)
, ●● 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
●● 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?
●● 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.
●● Infinite population of customers
AND CORRECT ANSWERS SUCCESS
RESOURCE
●● 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.
●● Chargebacks
Answer: These are effectively penalties charged by retail organizations
to their suppliers/vendors for any number of minor and major supply
chain offenses.
●● 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: 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
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.
●● 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.”
,●● Prototype Stores
Answer: A series of stores that have common design, construction and
layout
●● 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: 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
●● 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)
, ●● 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
●● 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?
●● 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.
●● Infinite population of customers
