Exam 3 Case Study Questions

Why did KT's Wicked Dive Shop order massive quantities of some products?

 a. To attract more customers.

 b. To increase their in-stock rate/service level.

 c. To obtain quantity discounts and lower transportation costs.

 d. All of these answer choices are correct.

c. To obtain quantity discounts and lower transportation costs.

What made Kai and Thea realize that their supply chain strategy needed adjustments?

 a. Inconsistent product quality.

 b. Declining customer loyalty.

 c. Varying customer expectations.

 d. Decreased competition from online retailers.

c. Varying customer expectations.

What is the main goal of adjusting the supply chain for different customer segments?

 a. Providing the correct form/time/place value for each segment.

 b. Maximizing customization for every customer segment.

 c. Reducing total costs.

 d. Offering the same value to all customers.

a. Providing the correct form/time/place value for each segment.

What prompted Kai and Thea to reevaluate their customer value strategy?

 a. Competition from Walmart.

 b. None of these answer choices are correct.

 c. Declining sales.

 d. Focus group feedback.

 d. Focus group feedback.

What was the problem with KT's initial supply chain strategy?

 a. It focused too much on customization.

 b. It treated all customers and products the same.

 c. It couldn’t meet customer demand.

 d. It was too expensive for all customers.

b. It treated all customers and products the same.

What system would help better manage their storage facility and track the inventory they hold there?

 a. Customer Relationship Management (CRM) system.

 b. Enterprise Resource Planning (ERP) system.

 c. None of these answer choices are correct.

 d. Human Resource Management System (HRMS)

b. Enterprise Resource Planning (ERP) system.

What additional information technology component should Kai and Thea consider to help manage the storage facility and the inventory stored there?

 a. Customer management system.

 b. Warehouse management system.

 c. Social media marketing tools.

 d. Supplier management system.

 e. Artificial intelligence (AI) tools.

b. Warehouse management system.

What solution did Kai and Thea consider to meet the expectations of their new investors?

 a. Opening more stores.

 b. All of these answer choices are correct.

 c. Increasing their marketing spend.

 d. Implementing an integrated information system.

 e. Expanding their product range.

d. Implementing an integrated information system.

Their investors want to know how investment in an integrated information system brings ROI. Kai and Thea’s response should include how the new IT system will:

 a. Reduce operating costs through better managing the store, transportation, and warehousing

 b. Increase revenue through better customer service.

 c. All of these answer choices are correct.

 d. Reduced cost of goods sold through better supplier management

 e. Improve asset management through better management of inventory.

c. All of these answer choices are correct.

How would an integrated information system create value for KT’s business?

 a. Greater margins on all products, achieving the higher profits their investors demand.

 b. Faster response to customer demand with reduced inventory and operating costs.

 c. Improved sourcing resulting in lower cost of goods, improving KT’s bottom line.

 d. The ability to expand to global markets, unlocking additional revenue opportunities.

 b. Faster response to customer demand with reduced inventory and operating costs.

Based on the case, which country seems to be the best location for sourcing many of KT’s products?

 a. Any of these choices are suitable

 b. India

 c. Mexico

 d. Russia

 e. China

c. Mexico

Which of the following are possible risks which Kai and Thea may be exposed to? 

 a. All of these answer choices are correct.

 b. The failure of one of their key suppliers.

 c. The instance of a hacker breaking into their order management system.

 d. Inability to find labor to work in their new storage facility.

 e. Drop-off in demand for products, for which high levels of inventory are held.

a. All of these answer choices are correct.

How could KT’s mitigate the risk of a supply disruption due to the failure of a key dive equipment supplier?

 a. Sole source; reduce the number of suppliers for each item/category.

 b. Hold excessive levels of inventory to hedge against failure without regard to carrying costs.

 c. Diversify the supply base by increasing the number of suppliers in varied locations.

 d. Nothing needs to be done; failure of a key supplier is unlikely.

c. Diversify the supply base by increasing the number of suppliers in varied locations.

What risk mitigation strategy would best hedge against demand risk, where the demand for products with high levels of inventories suddenly drops off? 

 a. Invest in more accurate demand forecasting tools.

 b. Increase the number of products held in inventory to ensure high availability.

 c. Any of these actions would be effective.

 d. Shorten cycle time for supply orders to reduce inventory risk.

 e. Implement a more aggressive (and costly) marketing campaign to boost sales.

d. Shorten cycle time for supply orders to reduce inventory risk.

Which of the following are appropriate criteria for selecting a sourcing location? 

 a. Suppliers with the best website and broadest product line, irrespective of their location

 b. Locations offering the lowest unit purchase price.

 c. Both favorable trade partnerships plus low customs duties and tariffs and exchange rates

 d. Low customs duties and tariffs, as well as a favorable currency exchange rate.

 e. Favorable trade partnerships (ex. United States-Mexico-Canada, USCMA agreement).

 c. Both favorable trade partnerships plus low customs duties and tariffs and exchange rates

How can KTWDS utilize transportation to impact environmental improvement and also offer economic benefits?

 a. Outsourcing their physical distribution (outbound) shipping operations to a third party.

 b. Decrease shipment consolidation by shipping all items in a customer order individually to reduce lead times.

 c. Better materials management, ensuring inbound orders are consolidated to reduce the number of shipments.

 d. None of these answer choices are correct.

 e. Procure and sell all items without packaging to reduce waste, despite the protection they provide for items during the transportation process.

c. Better materials management, ensuring inbound orders are consolidated to reduce the number of shipments.

What initiative could help KT’s reduce their environmental impact and potentially recover economic value from returned products?

a. Better managing returns and finding ways to return products to the shelf or resale market.

b. Implementing an “all sales final – no returns allowed” policy.

c. Disposing all returned products in landfills to avoid the burden of processing returns.

d. None of these answer choices are correct.

a. Better managing returns and finding ways to return products to the shelf or resale market.

How can KT's Wicked Dive Shop improve its social impact through its supplier relationships?

a. Both work with vendors to ensure no child or slave labor plus require them to sign a code of conduct.

b. None of these answer choices are correct.

c. Source products globally without regard to supplier labor practices to provide customers with the best value possible.

d. Work with vendors to ensure they do not use upstream suppliers that utilize child or slave labor.

e. Require vendors to sign a code of conduct that upholds their commitment to ethical and sustainable business practices.

a. Both work with vendors to ensure no child or slave labor plus require them to sign a code of conduct.

How can KT’s positively impact the environment and achieve economic benefits in their supply chain operations at the product level?

 a. By emphasizing the sourcing and selling of sustainable products.

b. All of these answer choices are correct.

 c. By encouraging customers to bring in their own reusable shopping bags.

 d. By reducing, reusing, and recycling product packaging.

b. All of these answer choices are correct.

How can Kai and Thea positively impact society through their supply chain operations?

 a. Automate their warehousing operations as much as possible.

 b. Implement self-checkout kiosks to cut costs and improve the customer experience.

c. Hire people with developmental disabilities to work in the storage facility to store, pick, and pack inventories.

 d. All of these answer choices are correct.

c. Hire people with developmental disabilities to work in the storage facility to store, pick, and pack inventories.

Which of the following are key actions that KT’s can take in the face of these trends?

 a. Both Diversity the supply base AND develop stronger relationships with key suppliers.

 b. Digital marketing initiatives to attract more customers.

 c. Diversify the supply base to become more agile and responsive to disruptions.

 d. A heightened focus on improving the quality of their goods.

 e. Develop stronger relationships with key suppliers.

a. Both Diversity the supply base AND develop stronger relationships with key suppliers.

Which of the following is the most important factor for KT’s Wicked Dive Shop continued success?

 a. A focus on changing trends in the dive equipment industry.

 b. All of these answer choices are correct.

 c. An emphasis on reducing costs company-wide.

 d. The ability to create the appropriate form, time, and place value.

 e. A willingness to make dynamic changes to the business in response to external environmental trends.

e. A willingness to make dynamic changes to the business in response to external environmental trends.

How might disruptive technology be used to impact KT's supply chain?

 a. Both of these answer choices.

 b. Ability to produce custom products on-demand via additive manufacturing.

 c. None of these answer choices.

 d. Improved demand forecasting and better inventory management.

a. Both of these answer choices.

What are some key considerations for Kai and Thea in the face of rising geopolitical risks?

 a. Managing rising costs due to potential tariffs and trade barriers.

 b. Knowing where their sourced products are coming from.

 c. All of these answer choices are correct.

 d. Sourcing supply based on proximity, stable economies, trade relationships, etc.

 c. All of these answer choices are correct.

How will climate change impact Kai and Thea’s supply chain?

 a. KT will need to be aware of locations that they bring their dive groups to.

 b. KT will need to be aware of shipping locations that become more difficult to access as a result of rising sea levels, changes in weather patterns, etc.

 c. All of these answer choices are correct.

 d. KT will need to be aware of supplier locations that may be impacted by extreme weather.

c. All of these answer choices are correct.