Introduction to Supply Chain Management Final Exam Rutgers Taitt Chapters 9-12

A storage facility that is owned by the company that owns the goods being stored in the facility, is known as a?

Private Warehouse

A warehouse operation that divides full truckloads of items from a single source or manufacturer into smaller, more appropriate quantities for use or further distribution, is known as a?

Break-Bulk Warehouse

A business that provides storage and related warehouse functions to companies on a short or long-term basis for a month-to-month fee, is known as a?

Public Warehouse

A warehouse operation that receives products from different plants or suppliers, stores them, and then combines them with similar shipments from other plants or suppliers for further distribution, is known as a?

Consolidation Warehouse

A variation of warehousing that handles the shipping, receiving, and storage of goods on a contract basis for a fee., is known as a?

Contract Warehouse

An organization that physically moves goods to and from foreign destinations

International Freight Forwarder

An organization that puts buyers and sellers from different countries together and handles the export/import arrangements, documentation and transportation

Trading Company

An organization that operates like a freight forwarder but only uses scheduled ocean liners

Non-Vessel-Operating Common Carrier

An organization that moves global shipments through customs and handles the documentation

Customs Broker

Which of the following are global location factors?

SELECT ANY and ALL THAT APPLY

Environmental Issues

Labor Issues

Correct answer:

Taxes and Incentives

Healthcare

Public Safety

Competitiveness

Education

Social Environment

Trade Agreements

Mobility

What are the five R's of Reverse Logistics? (Select all five correct answers)

Repackaging, Returns, Recycling, Recalls, Repairs

What are the five (5) primary functions of a warehouse (Select all five correct answers)

Shipping, Packing, Picking, Receiving, Storage

What transportation intermediary consolidates LTL shipments into FTL shipments (i.e., they take small shipments from multiple companies and consolidate them into larger shipments)?

Freight Forwarder

What transportation intermediary purchases blocks of rail capacity and sells it to shippers?

Intermodal Marketing Company

What transportation intermediary is a nonprofit cooperative which arranges for members' shipments?

Shippers' Association

What transportation intermediary brings shippers and carriers together?

Transportation Broker

What transportation intermediary is an outsourced provider that manages all, or a significant part, of an organization's logistics requirements (including transportation) for a fee

Third Party Logistics Company

Which mode of transportation has the most capability?

Rail

Which mode of transportation provides the most accessibility?

Truck

Which mode of transportation has the lowest per-unit cost?

Pipeline

Which mode of transportation is the fastest over a long distance?

Air

Which mode of transportation is the most reliable?

Pipeline

Which of the following activities can be performed (i.e., permitted activities) in a Foreign Trade Zone (FTZ)

SELECT ANY and ALL THAT APPLY

Salvage, Exhibition, Testing, Destruction, Manufacturing

A factory set up to take advantage of government incentives, and/or reduced tax/tariff barriers, to meet regional or local market needs

Server Factory

Manufactures products at low cost but with skilled workers and significant managerial resources

Source Factory

Factory set up in an area with an abundance of advance suppliers, competitors, research facilities, etc.

Outpost Factory

A factory set up for manufacturing or assembly in a country where labor and/or raw materials are less expensive, for eventual import back into the manufacturer's home country

Offshore Factory

Focused on product development and engineering for products that they manufacture

Contributor Factory

What does 3PL stand for (i.e., 3PL is an acronym for what term)?

3PL stands for a "Third Party Logistics company," which is an outsourced provider that manages all, or a significant part, of an organization's logistics requirements for a fee.

Name five (5) services that a 3PL offers.

Inbound Transportation

Outbound Transportation

Warehousing

Picking and Packing

Freight Forwarding

Customs Brokerage

Customs Clearance

Order Taking

Billing and Invoicing

Inventory Auditing

Freight Bill Auditing and Payment

What is Cross-Docking?

The logistics practice of unloading materials from an incoming truck or railcar and loading these materials directly onto outbound trucks or railcars, with little or no storage in between to reduce inventory investment and storage space requirements.

Name the five modes of transportation.

Truck (or motor carrier), Rail, Air, Pipeline, Water

What is Intermodal Transportation?

Intermodal is the use of multiple modes of transportation to execute a single transport shipment.

OR

Moving freight by two or more modes of transportation to execute a single transport shipment.

OR

Intermodal freight transport involves the transportation of freight in an intermodal container or vehicle, using multiple modes of transportation, without any handling of the freight itself when changing modes.

(Part 1) What is the World Trade Organization (WTO) (Go to https://www.wto.org to find the official definition)

The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations. At its heart are the WTO agreements, negotiated and signed by the bulk of the world's trading nations and ratified in their parliaments. The goal is to help producers of goods and services, exporters, and importers conduct their business.

(Part 2) Where is the World Trade Organization located?

Location: Geneva, Switzerland

What is the mission of U.S. Customs and Border Protection (CBP)?

Its' mission is to safeguard America's borders thereby protecting the public from dangerous people and materials while enhancing the Nation's global economic competitiveness by enabling legitimate trade and travel.

What are Foreign Trade Zones (FTZ)?

Physical areas inside the US supervised by U.S. Customs and Border Protection that are considered to be outside of the U.S. territory. Usually located at or near a port of entry.

OR

Foreign Trade Zones (FTZ) are secure areas in the US where businesses can store, manipulate, and exhibit foreign and domestic goods without entering the US commerce stream. They offer benefits such as reduced taxes and duties and streamlined customs procedures.

What is the mission of the US Department of Homeland Security (DHS)?

Prevent terrorist attacks within the United States

Reduce America's vulnerability to terrorism

Minimize the damage from potential attacks and natural disasters

OR

Counter Terrorism and Homeland Security Threats.

Secure U.S. Borders and Approaches. Secure Cyberspace and Critical Infrastructure

Preserve and Uphold the Nation's Prosperity and Economic Security

Strengthen Preparedness and Resilience

Champion the DHS Workforce and Strengthen the Department

What is a Deemed Export?

he release of technology or source code that is subject to the Export Administration Regulations, to a foreign national (i.e., non-US citizen) located in the United States.

OR

The release to a foreign national in the United States of technology or source code required for the development, production, or use of the controlled pathogen or controlled equipment.

OR

The release of "technology" or "software" to a foreign national in the United States is "deemed" to be an export, even though the release took place within the United States.

Which of the following are goals or benefits of Customer Relationship Management (CRM)?

SELECT ANY and ALL THAT APPLY

Access to updated customer information and personalized interactions

Automation of repetitive tasks

Increased customer loyalty and retention

Increased revenue

Faster responses to customer inquiries

Customer Service Call Center

High Customer Contact System

Insurance Agent

High Customer Contact System

Customer Account Manager

High Customer Contact System

Hospital

Blended Delivery System

Restaurant

Blended Delivery System

Self-Service Gas Station

Low Customer Contact System

Automated Teller Machine

Low Customer Contact System

Online Appointment Scheduling Portal

Low Customer Contact System

Cable TV Service Technician

High Customer Contact System

Chatbot

Low Customer Contact System

The process of analyzing the customers who have stopped buying to determine why

Customer Defection Analysis

When a company aims its marketing efforts at a specific segment of customers

Target Marketing

A form of marketing that identifies key events in the customer and business lifecycle

Event Based Marketing

Collecting customers buying history, preferences, and trend information to be used to forecast or project customer buying habits going forward

Predicting Customer Behaviors

When a company customizes communications aimed at specific groups of customers

Personalizing Customer Communications

To minimize the high cost of hiring and laying off employees in a service supply chain, the service provider can use some specific strategies to deal with periods of high demand. Which of the following strategies could the service provider adopt? SELECT ANY and ALL THAT APPLY

Using technology

Using cross-trained employees to help with tasks that are busy

Using employee scheduling policies

Using part-time employees

Using customers as "hidden employees"

An approach to selling products and services in which a customer explicitly agrees in advance to receive marketing information

Relationship Marketing

The process of customers changing their buying preferences because they find better or cheaper products and services elsewhere

Customer Churn

Involves persuading a customer to buy a more expensive item or upgrade a product or service to make the sale more profitable. It also involves selling the customer extra features or add-ons to the product they are already buying

Up-Selling

The practice of dividing a customer base into groups of individuals that are similar in specific ways relevant to marketing

Customer Segmentation

Occurs when a company sells an additional related or complementary product or service to an existing customer after the initial purchase

Cross-Selling

Entering a customer order into the manufacturers order fulfillment database

Transaction

Making arrangements to repair a defective item sold to a customer

Post-Transaction

Establishing a website self-service portal so customers can enter/maintain their profile information

Pre-Transaction

Tool that enables quick decision making, better customer service, and a better-equipped sales staff

Knowledge Management

Tool that provides sales reps with a prescribed set of tactics for dealing with prospective customers and to aid in closing the deal

Lead Management

Tool offering sales reps a guided sequence of sales activities

Sales Activity Management

Used for documenting field activities, communications with the home office, and retrieving sales history in the field

Sales Force Automation

Tool that allows Sales Managers to obtain information on the activities of each sales rep in their organization

Sales Territory Management

A common line is formed. The customer at the head of the line proceeds to the first available service provider (from a group of service providers), who completes the required service for the customer.

Multiple Channel, Single Phase

A common line is formed, and the customer at the head of the line proceeds to the first available service provider (from a group of service providers), who provides part of the service, and the customer is then passed-off to the next service provider in sequence, and so on, until the full service is completed.

Multiple Channel, Multiple Phase

A common line is formed. The customer at the head of the line proceeds to the single service provider who completes the required service for the customer.

Single Channel, Single Phase

A common line is formed. The customer at the head of the line proceeds to the initial service provider who provides part of the service, and the customer is then passed-off to the next service provider in sequence, and so on, until the full service is completed.

Single Channel, Multiple Phase

Instead of eliminating excess capacity during times when capacity exceeds demand, service providers can take which of the following actions? SELECT ANY and ALL THAT APPLY

Use demand management techniques to shift demand from peak demand periods into non-peak periods.

Doing training or cross training of employees.

Doing other jobs.

If an Automobile Service Repair Shop, that operates for eight (8) hours per day, has a total of twelve (12) workstations available, and the average automobile repair job takes three (3) hours to complete, what is their daily Service Capacity (i.e., how many cars/customers can this service operation accommodate per eight (8) hour day)?

32 (8 hours a day x 12 work stations = 96 / 3 hours per repair = 32)

What are three (3) key characteristics of strategically significant customers?

Customers with high life-time value (Customers that are likely to provide the most value for the effort. Customers that will constantly buy the products or use the services in the long-term)

Customers who serve as role models (or benchmarks for other customers)

Customer who inspire change (in the supplier and/or the supply chain)

What are the steps to creating a successful Customer Relationship Management program?

1. Creating the CRM Plan

2. Involving CRM users from the outset

3. Selecting the right application provider

4. Integrating existing CM applications

5. Establishing performance measures

6. Providing CRM training for all users

What are three (3) key characteristics of service recovery systems?

Developing recovery procedures that are thought out prior to the bad event happening.

Training employees in these procedures prior to the event.

Empowering employees to remedy customer problems and recognizing them when they do.

What is Customer Lifetime Value?

A prediction of the net profit attributed to the entire future relationship with a particular customer.

Why is Customer Lifetime Value important?

Some customers are worth a lot more than others, and identifying your key or top tier customers can be extremely valuable to your business. --AND/OR-- CLV is an important metric for determining how much money a company is willing to spend on acquiring new customers and how much repeat business a company can expect from particular customers

What is Customer Relationship Management?

Correct Answer: Customer Relationship Management (CRM) is the transformation of the people, process, and technology required to become a customer-centric organization. --OR-- Customer relationship management (CRM) is the combination of practices, strategies and technologies that companies use to manage and analyze customer interactions and data throughout the customer lifecycle

What is Service Capacity measuring?

The number of customers per day, per shift, per hour, per month, or per year, that the company's service system is designed to serve.

-OR-

Service capacity measures the number of customers that the service provider can service at any one time.

(Part 1) What is Service Response Logistics?

Service Response Logistics is the management and coordination of the organization's service activities.

) What are the four (4) primary activities that Service Response Logistics manages?

The four primary activities are: Service Capacity, Waiting Times, Distribution Channels, and Service Quality.

What are Facilitating Goods?

Tangible elements that are used or consumed by the customer, or the service provider, along with the service provided.

What are four (4) major differences between goods and services?

Consumption: Services are generally produced and consumed simultaneously

Customer Involvement: Services have high customer interaction / involvement

Labor Content: Services are high in labor content

Location: Services are decentralized

Ownership: Transfer of ownership is not generally possible for services. The buyer cannot generally resell the service.

Perishability: Services are perishable while goods can be durable or perishable.

Quality Assessment: The assessment of quality is different for services

Return: Services cannot generally be returned

Separability: Services cannot be separated from the service provider.

Storage: Services cannot be inventoried / stored

Tangibility: Services are intangible

Uniqueness: Services are often unique to the customer