SCM 300 Exam 2 ASU Davila
Everyday Low Pricing (EDLP) - CORRECT ANSWER-When suppliers resist the urge to
have sales promotions and instead offer their lowest prices each day, buyers do not see
an advantage to buying in bulk
vendor managed inventory system (VMI) - CORRECT ANSWER-Buyers share
inventory information with suppliers. Suppliers in turn take on the responsibility of
managing inventory levels for buyer by placing deliveries
Push System - CORRECT ANSWER-A system in which consumer demand is known
and expected. As a result a supply chain will preemptively buy materials, manufacture
finished goods, and even deliver them to a store or a picking and packing facility where
consumers can buy them at a later date. Inventory is "pushed" toward the consumer in
anticipation of consumer demand.
Characteristics of push system - CORRECT ANSWER-• A desire for finished goods to
be immediately and readily available
• Opportunities to take advantage of quantity discount
• End item are standardize with little opportunity for customization
• Vulnerable to obsolescence of inventory, high holding cost, and poor demand
forecasts that may result in stock outs or massive overstocks
Pull System - CORRECT ANSWER-A system that is activated by consumer demand.
As a result a supply chain will not make and store finished goods inventory. Instead, the
supply chain will wait for the consumer to place a specific order and only then will the
supply chain react by perhaps buying raw materials and/or parts, and then assembling
the desired goods, before quickly delivering them to the consumer. Inventory is "pulled"
by the consumer by communicating a specific desire to those in the supply chain.
Omni-channel retailing - CORRECT 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.
Retail sources of supply - CORRECT ANSWER-manufacturers, wholesalers, drop
shippers
drop shippers - CORRECT ANSWER-An organization that ties manufactures and/or
wholesalers directly to consumers. They never posses the product, they just take orders
to fulfill by another party.
, Brick-and-Mortar Business - CORRECT ANSWER-a business that operates in a
physical store without an internet presence
Online or E-tailing - CORRECT ANSWER-All products and services are sold to
customers through an online website. Example: Amazon.com
Brick and Clicks - CORRECT ANSWER-Companies that use both a physical store and
the Web to sell their products and services.
Clicks and Calls - CORRECT ANSWER-In addition to taking orders via the company
website, some companies will also offer sales via the phone. Examples: Lands' End and
L.L. Bean
Chargebacks - CORRECT ANSWER-effectively penalties charged by retail
organizations to their suppliers/vendors for any number of minor and major supply chain
offenses
Collaborative Planning, Forecasting, and Replenishment (CPFR) - CORRECT
ANSWER-A formalized effort by supply chain partners to share data and collectively
develop forecast in an attempt to reduce supply chain cost through better planning
vendor-managed inventory (VMI) - CORRECT 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 - CORRECT ANSWER-the portion of the supply chain between the final
inventory holding facility and the end consumer
Prototype Stores - CORRECT ANSWER-A series of stores that have common design,
construction and layout. Standardized plans that will work across many stores for chain
retailers.
Rationalized Retailing - CORRECT 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. An employee would easily be able to work at
almost any store since everything is done the same way.
Planogram - CORRECT ANSWER-A map of where every product goes on a retail store
shelf.
Customers cost for waiting lines - CORRECT ANSWER-Time
Company cost for waiting line - CORRECT ANSWER-Money paid to maintain the line
(employees)
Everyday Low Pricing (EDLP) - CORRECT ANSWER-When suppliers resist the urge to
have sales promotions and instead offer their lowest prices each day, buyers do not see
an advantage to buying in bulk
vendor managed inventory system (VMI) - CORRECT ANSWER-Buyers share
inventory information with suppliers. Suppliers in turn take on the responsibility of
managing inventory levels for buyer by placing deliveries
Push System - CORRECT ANSWER-A system in which consumer demand is known
and expected. As a result a supply chain will preemptively buy materials, manufacture
finished goods, and even deliver them to a store or a picking and packing facility where
consumers can buy them at a later date. Inventory is "pushed" toward the consumer in
anticipation of consumer demand.
Characteristics of push system - CORRECT ANSWER-• A desire for finished goods to
be immediately and readily available
• Opportunities to take advantage of quantity discount
• End item are standardize with little opportunity for customization
• Vulnerable to obsolescence of inventory, high holding cost, and poor demand
forecasts that may result in stock outs or massive overstocks
Pull System - CORRECT ANSWER-A system that is activated by consumer demand.
As a result a supply chain will not make and store finished goods inventory. Instead, the
supply chain will wait for the consumer to place a specific order and only then will the
supply chain react by perhaps buying raw materials and/or parts, and then assembling
the desired goods, before quickly delivering them to the consumer. Inventory is "pulled"
by the consumer by communicating a specific desire to those in the supply chain.
Omni-channel retailing - CORRECT 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.
Retail sources of supply - CORRECT ANSWER-manufacturers, wholesalers, drop
shippers
drop shippers - CORRECT ANSWER-An organization that ties manufactures and/or
wholesalers directly to consumers. They never posses the product, they just take orders
to fulfill by another party.
, Brick-and-Mortar Business - CORRECT ANSWER-a business that operates in a
physical store without an internet presence
Online or E-tailing - CORRECT ANSWER-All products and services are sold to
customers through an online website. Example: Amazon.com
Brick and Clicks - CORRECT ANSWER-Companies that use both a physical store and
the Web to sell their products and services.
Clicks and Calls - CORRECT ANSWER-In addition to taking orders via the company
website, some companies will also offer sales via the phone. Examples: Lands' End and
L.L. Bean
Chargebacks - CORRECT ANSWER-effectively penalties charged by retail
organizations to their suppliers/vendors for any number of minor and major supply chain
offenses
Collaborative Planning, Forecasting, and Replenishment (CPFR) - CORRECT
ANSWER-A formalized effort by supply chain partners to share data and collectively
develop forecast in an attempt to reduce supply chain cost through better planning
vendor-managed inventory (VMI) - CORRECT 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 - CORRECT ANSWER-the portion of the supply chain between the final
inventory holding facility and the end consumer
Prototype Stores - CORRECT ANSWER-A series of stores that have common design,
construction and layout. Standardized plans that will work across many stores for chain
retailers.
Rationalized Retailing - CORRECT 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. An employee would easily be able to work at
almost any store since everything is done the same way.
Planogram - CORRECT ANSWER-A map of where every product goes on a retail store
shelf.
Customers cost for waiting lines - CORRECT ANSWER-Time
Company cost for waiting line - CORRECT ANSWER-Money paid to maintain the line
(employees)
