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Managerial Accounting Exam 2.
Managerial Accounting Exam 2.
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SCM 300 EXAM 2 MODULES 5-84 Retailing Options - CORRECT ANSWER-Brick and Mortar: All products and
services are sold to customers from physical stores
•Online or E tailing: All products and services are sold to customers through an
online website
•Bricks and clicks: products can be bought from a physical store or from an
online system
•Clicks and calls: in addition to taking orders via the company website, some
companies will also offer sales via the phone
Omnichannel Retailing - CORRECT ANSWER-retailers who fully seek to provide
the customer with seamless shopping experience whether the customer is
shopping online from a desktop or mobile device, by telephone or in a bricks and
mortar store.
3 Retail sources of supply - CORRECT ANSWER-manufacturers actually create
the finished goods. Retailer responsible for distribution
wholesalers: organizations that purchase goods from manufacturers. Purchase
assortments of goods from many manufacturers, thus a retailer can purchase all
goods from a single wholesaler
drop shippers: manufacturers and/ or wholesalers directly to consumers. Not
really a source of supply
Chargebacks - CORRECT ANSWER-penalties charged by retail organizations to
their suppliers/ vendors for any number of minor and major supply chain
offenses. GOAL to motivate vendor compliance in the areas of on time
shipments, shipment accuracy, product quality, incorrect packaging, label errors
CPFR (Collaborative, Planning, Forecasting, Rescheduling) - CORRECT
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) - CORRECT ANSWER-Inventory planning and
replenishment system where supplier(vendor) accepts negotiated
,responsibilities that typically include monitoring and restocking.
Last Mile - CORRECT ANSWER-the portion of the supply chain between the
final inventory holding facility and the end consumer
4 Types of Retail ownership - CORRECT ANSWER-independents ;one store,
one owner. Satisfy specialized market. EX: family owned corner stores
chains: multiple stores, one owner/company. EX: home depot, walmart, amazon
franchises: Franchisor owns the right to a company and name. Franchisee
allowed to open a store under that name and must abide to the rules and
processes. EX: McDonald's, 7eleven
cooperatives: retailer that is owned by its customer members. Fit special needs
of the consumers. EX: REI (recreational equipment inc)
Prototype Stores - CORRECT ANSWER-a series of stores that have common
design, construction and layout. EX: Camry 2014 to Camry 2015, Target 2014
prototype store also a 2010 prototype store
Rationalized Retailing - CORRECT ANSWER-retail chains develop rigid control
structures to develop and manage processes such that all the retail outlets are
managed in the same way. EX: a store manager or 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
4 Store security issues - CORRECT ANSWER-employees, managers, store
employees, and potentially vendors
store assets: inventory, cash, store property
Customers and their assets: store visitors, their cars, and personal property
data: data
Goal of waiting line management - CORRECT ANSWER-balance the cost paid
by customers (time) with the cost paid by the company (money paid to maintain
the system)
Parts of a waiting line system - CORRECT ANSWER-3 parts
,input source: population of people that might want service
waiting line: area where customers wait for service
service facility: areas where customer actually receive service
4 Managerial Considerations in Queues - CORRECT ANSWER-customers: how
many are there? How quickly they're arriving?
the waiting lines; what type of lines? How many lines?
employees: who's working the system? How many? Skill level and speed?
service facilities: how effective and efficient is the process? Tools?
Basic waiting line terminology - CORRECT ANSWER-queue: line
channel: Refers to number lines available at each step
phase: a single step in a process
infinite population of customers: number of possible customers that may come
into the store is very high ( or unlimited). When a customer enters the system,
the odds of another entering the system are not impacted in any significant
manner
finite population of customers: number of customers is limited. EX: a bus
company has 10, 1 in repair shop, the odds of another in repair shop decline
balking: when a potential customer sees the line, but never joins the line because
they think it looks too long/ slow
reneging: when a customer joins the line, gets frustrated and leaves the line
Ingredients/goals of a good sales environment - Relationship to SCM: -
CORRECT ANSWER-Needs and wants now and in the future. The customers:
Product selection, availability, convenience, value, the 5 senses. The
organization: Controlling costs, shrinkage, profits.
Retail layout considerations Flow - CORRECT ANSWER-How do customers
navigate through a store and why?
Considering the entrance and exits points
Product Location: Customer convenience, planograms, perimeter vs. central,
where do you want things located? (high profit items, high theft items, high
turnover items)
Grocery store layouts - CORRECT ANSWER-Produce(Fruits & Vegetables)
Section: Usually first thing you see upon entering
, Meat, Fish, and Poultry at the Rear of the Store
Long Aisles hold smaller per unit profit items
Dairy and Bakery at farthest point from main entrance
Lecture examples of different retail and restaurant layout strategies - CORRECT
ANSWER-Bar right in the front of a restaurant. Safeway.
Facilitating goods - CORRECT ANSWER-Items that need to be kept in inventory
to maintain operations. Important to customer experience
Dry Cleaners: detergent, hangers, etc
Restaurant: ingredients, tables, plates
What is VMI? (Vendor Managed Inventory? - CORRECT ANSWER-When you
allow suppliers to control inventory in your store
Impact of VMI on different stakeholders
Challenges of VMI agreements - CORRECT ANSWER-Goal attainment vendor,
retailer, customer
Everything must be defined and discussed prior to arrangement
Process related: different ways of getting things done
Schedule related: When should things get done?
Performance and Quality related: Metrics, Motivation, Discipline, Reliability,
Consistency
People related: Everyone MUST BUY IN Culture clashes, equity issues, attire,
professionalism.
IT Compatibility, Sharing concerns
Impact of VMI on different stakeholders - CORRECT ANSWER-Common goal,
End customer is the focus (retail consumer)
Learning opportunities: Vendor and retailer learn about each other and their
needs. Vendor has more interactions with end customer in the retail environment.
Retailer: Fewer responsibilities, decreases costs.
Vendor: Better understanding of demand rates, fewer retailer errors, responsive
Importance of waiting lines in running a business - CORRECT ANSWER-People
demand equality in America (First come first serve). Waiting times are indicative
of overall service
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