Test your basic knowledge |

Supply Chain Strategy Management

Instructions:

Answer 50 questions in 15 minutes.
If you are not ready to take this test, you can study here.
Match each statement with the correct term.
Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.

This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.

1. Inventory
physical count of products
manufacturer - wholesaler - retailer
do not take title - independently owned
buy product - sell to customers on credit - receive revenue

2. Disintermediation Examples
use less personal labor - accelerate global business - intermodal transfer b/t ships - rail - trucks - load/unload faster
Book revenue when vehicle is sold to dealer - UAW contract pays workers not working - Make optimistic sales projections
furniture - shoes - clothes
Amazon.com - airlines tickets online - Zappos

3. Distribution Strategy
intensive - selective - exclusive
coverage strategy for manufacturer
time lag from suppliers to final buyers - uncertainty in supply and demand - economy of scale in cheaper unit cost of inventory
Pepsi Cola - cigarettes - M&Ms

4. Corporate Vertical Marketing Systems
ownership- no conflict
man to retailers to consumer
man to consumer
middleman who sells majority of sales to organizations

5. A sample agricultural produce supplier Business Model
Kenyan produce shipped daily to europe - days from harvest until arrival to Europe 2 days
take title - independently owned
man to consumer
buying/breaking bulk

6. Retailer
middleman who sells majority of sales to consumers
Amazon.com - airlines tickets online - Zappos
buying/breaking bulk
coal broker - eBay - infomercial products

7. No Intermediary Consumer Channel
man to consumer
time lag from suppliers to final buyers - uncertainty in supply and demand - economy of scale in cheaper unit cost of inventory
General electric - Costco - Sony
storing products

8. Manufacturer Working Capital
manufactures - assemblers - and intermediary selling to business and consumer buyers
man to user
ownership- no conflict
cost of production - sell to retailers on credit - receive revenue

9. Contractual VMS Examples
offers specialized wholesaling service
Toyota - Burger king - Holiday inn
middleman who sells majority of sales to organizations
intermediary business and consumer buyers

10. Corporate VMS Examples
Kenyan produce shipped daily to europe - days from harvest until arrival to Europe 2 days
textbooks - prescription drugs - new automobiles
Oracle - grocery supply - Kroger
take title - independently owned

11. Supply Chain Process
man to industrial distributor to user
time lag from suppliers to final buyers - uncertainty in supply and demand - economy of scale in cheaper unit cost of inventory
use less personal labor - accelerate global business - intermodal transfer b/t ships - rail - trucks - load/unload faster
Raw materials and component parts - Manufacturing/Assembly - Channels of Distribution - Consumers/Users

12. Full service
expanding in global distribution reduction of small wholesaler major cost efficiencies
offers complete wholesaling service
intensive - selective - exclusive
Pepsi Cola - cigarettes - M&Ms

13. Limited Service Drop Shipper
no physical possessio
ownership- no conflict
eliminating the middleman
Warehouses - shipping containers - Port

14. Administered VMS Examples
General electric - Costco - Sony
storing products
Branding - pricing - promotion
time lag from suppliers to final buyers - uncertainty in supply and demand - economy of scale in cheaper unit cost of inventory

15. Inventory Management
Just-in-time - safety stock - inventory theft
manufacturer - wholesaler - retailer
buying/breaking bulk
Amazon.com - airlines tickets online - Zappos

16. Assorting/sorting
no physical possessio
man to wholesaler to retailer to consumer
collect premiums - invest float - pay cost of repairs
buying/breaking bulk

17. Avg. days in US for US product to arrive in stores
7 days
man to user
storing products
buy product - sell to customers on credit - receive revenue

18. Wholesale Agents and Brokers
offers specialized wholesaling service
manufacturing representatives - selling agent - commercial insurance agent
Sysco - Cardinal health
no upfront inventory purchases positive cash flow cycle business can operate out of home

19. One Intermediary Consumer Channel
coal broker - eBay - infomercial products
man to retailers to consumer
offers specialized wholesaling service
cost of production - sell to retailers on credit - receive revenue

20. Cost Distribution Choice
provides and stocks racks
storing products
Kenyan produce shipped daily to europe - days from harvest until arrival to Europe 2 days
cost of distribution

21. Two Intermediaries Consumer Channel
man to wholesaler to retailer to consumer
buying/breaking bulk
offers complete wholesaling service
7 days

22. Channels of Distribution
consumer - business
Tiffany - Rolex - Cheesecake Factory
man to consumer
intermediary business and consumer buyers

23. Coverage Distribution Choice
cost of production - sell to retailers on credit - receive revenue
Continental airlines - Walmart stores
coverage strategy for manufacturer
do not take title - independently owned

24. Full service wholesaler examples
Sysco - Cardinal health
consumer - business
intensive - selective - exclusive
coverage strategy for manufacturer

25. Trends in Wholesaling
expanding in global distribution reduction of small wholesaler major cost efficiencies
Oracle - grocery supply - Kroger
customer buys a new shirt in a US city - hong kong computer operator processes order - worker in taiwan ships shirt to pennys store
man to user

26. Auto Insurance Working Capital
man to consumer
collect premiums - invest float - pay cost of repairs
size and power- conflict: Coke vs Costco
customer buys a new shirt in a US city - hong kong computer operator processes order - worker in taiwan ships shirt to pennys store

27. Agents and Brokers
use less personal labor - accelerate global business - intermodal transfer b/t ships - rail - trucks - load/unload faster
offers complete wholesaling service
do not take title - independently owned
take title - independently owned

28. Transportation
cost of production - sell to retailers on credit - receive revenue
General electric - Costco - Sony
moving products
customer buys a new shirt in a US city - hong kong computer operator processes order - worker in taiwan ships shirt to pennys store

29. Transaction Function
buy product - sell to customers on credit - receive revenue
provides and stocks racks
use less personal labor - accelerate global business - intermodal transfer b/t ships - rail - trucks - load/unload faster
bringing buyers and sellers together for the sale

30. Storage Management
eliminating the middleman
Warehouses - shipping containers - Port
no upfront inventory purchases positive cash flow cycle business can operate out of home
Toyota - Burger king - Holiday inn

31. Control Distribution Choice
power struggle bt the manufacturer and intermediaries
manufacturing representatives - selling agent - commercial insurance agent
Toyota - Burger king - Holiday inn
expanding in global distribution reduction of small wholesaler major cost efficiencies

32. Two Intermediary Business Channel
intensive - selective - exclusive
franchise/contract- conflict Dr pepper vs Dublin Dr. Pepper
customer buys a new shirt in a US city - hong kong computer operator processes order - worker in taiwan ships shirt to pennys store
man to selling agent to industrial distributor to user

33. Intensive Distribution Examples
Amazon.com - airlines tickets online - Zappos
Kenyan produce shipped daily to europe - days from harvest until arrival to Europe 2 days
use less personal labor - accelerate global business - intermodal transfer b/t ships - rail - trucks - load/unload faster
Pepsi Cola - cigarettes - M&Ms

34. Exclusive Distribution Examples
buy product - sell to customers on credit - receive revenue
Tiffany - Rolex - Cheesecake Factory
storing products
do not take title - independently owned

35. One Intermediary Business Channel
Transaction - Physical
Kenyan produce shipped daily to europe - days from harvest until arrival to Europe 2 days
man to industrial distributor to user
power struggle bt the manufacturer and intermediaries

36. Administered Vertical Marketing Systems
size and power- conflict: Coke vs Costco
middleman who sells majority of sales to organizations
General electric - Costco - Sony
eliminating the middleman

37. Conflicts in Administered VMS
intermediary business and consumer buyers
size and power- conflict: Coke vs Costco
manufacturer - wholesaler - retailer
Branding - pricing - promotion

38. Retailer Working Capital
eliminating the middleman
time lag from suppliers to final buyers - uncertainty in supply and demand - economy of scale in cheaper unit cost of inventory
buy product - sell to customers on credit - receive revenue
no upfront inventory purchases positive cash flow cycle business can operate out of home

39. Contractual Vertical Marketing Systems
Stihl chain saws - Snappen lawnmowers - John Deere lawnmowers
franchise/contract- conflict Dr pepper vs Dublin Dr. Pepper
textbooks - prescription drugs - new automobiles
Just-in-time - safety stock - inventory theft

40. Examples of not selling through Mass Merchants
bringing product from original sellers to final buyer
Stihl chain saws - Snappen lawnmowers - John Deere lawnmowers
use less personal labor - accelerate global business - intermodal transfer b/t ships - rail - trucks - load/unload faster
middleman who sells majority of sales to consumers

41. limited service
eliminating the middleman
Kenyan produce shipped daily to europe - days from harvest until arrival to Europe 2 days
offers specialized wholesaling service
intermediary business and consumer buyers

42. Selective Distribution Examples
physical count of products
Warehouses - shipping containers - Port
Branding - pricing - promotion
furniture - shoes - clothes

43. Distribution Functions
size and power- conflict: Coke vs Costco
coverage strategy for manufacturer
consumer - business
Transaction - Physical

44. Drop Shipping Examples
use less personal labor - accelerate global business - intermodal transfer b/t ships - rail - trucks - load/unload faster
coal broker - eBay - infomercial products
time lag from suppliers to final buyers - uncertainty in supply and demand - economy of scale in cheaper unit cost of inventory
cost of production - sell to retailers on credit - receive revenue

45. Advantages of Drop Shipping
General electric - Costco - Sony
use less personal labor - accelerate global business - intermodal transfer b/t ships - rail - trucks - load/unload faster
expanding in global distribution reduction of small wholesaler major cost efficiencies
no upfront inventory purchases positive cash flow cycle business can operate out of home

46. Physical Distribution Function
Continental airlines - Walmart stores
collect premiums - invest float - pay cost of repairs
power struggle bt the manufacturer and intermediaries
bringing product from original sellers to final buyer

47. A sample Shirt Replacement Process
customer buys a new shirt in a US city - hong kong computer operator processes order - worker in taiwan ships shirt to pennys store
time lag from suppliers to final buyers - uncertainty in supply and demand - economy of scale in cheaper unit cost of inventory
manufacturing representatives - selling agent - commercial insurance agent
moving products

48. No intermediary Business Channel
power struggle bt the manufacturer and intermediaries
man to user
man to wholesaler to retailer to consumer
customer buys a new shirt in a US city - hong kong computer operator processes order - worker in taiwan ships shirt to pennys store

49. Buying
expanding in global distribution reduction of small wholesaler major cost efficiencies
middleman who sells majority of sales to organizations
collect premiums - invest float - pay cost of repairs
intermediary business and consumer buyers

50. Selling
bringing product from original sellers to final buyer
Kenyan produce shipped daily to europe - days from harvest until arrival to Europe 2 days
manufactures - assemblers - and intermediary selling to business and consumer buyers
Tiffany - Rolex - Cheesecake Factory