SCM 300 EXAM 2 MODULES 5-8 |
COMPLETE QUESTIONS AND
ANSWERS
4 Retailing Options - 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 - 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 - 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 - 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) - 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) - Inventory planning and replenishment system
where supplier(vendor) accepts negotiated
responsibilities that typically include monitoring and restocking.
,Last Mile - the portion of the supply chain between the final inventory holding facility
and the end consumer
4 Types of Retail ownership - 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 - 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 - 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 - a map of where every product goes on a retail store shelf
4 Store security issues - 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 - 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 - 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 - 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 - 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: - 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 - 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 - 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 - Bar right in the
front of a restaurant. Safeway.
Facilitating goods - 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? - When you allow suppliers to control
inventory in your store
Impact of VMI on different stakeholders
Challenges of VMI agreements - 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 - 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 - People demand equality in America
(First come first serve). Waiting times are indicative of overall service
Goals mand mTradeoffs mfor mQueuing msystem m- m mGoal: mTo mserve mpeople mefficiently. m
Tradeoffs: mHaving mtoo mmany mstaff mand munderutilizing mthem mOR mhaving mtoo mlong ma
mline, mand mangry mcustomers. mBoth mlose mmoney
What mdo mmanagers mhave mcontrol mover min ma mqueuing msystem? m- m mTime min msystem
mtime min mqueue
Service mutilization/service mfacility
number mof mservers
what mpeople mdo mwhile min mthe mline, metc
Why mdo mcustomers mhave msome mdegree mof mcontrol mover mservice mrates? m- m mSome
mcustomers mare munprepared, mothers mare mready mwhen mthey mget mto mthe mcounter.
Arrival mand mService mRates: mArrival mRates m- m mSteady mstream mof mcustomers? mBusy mand
mslow mtime mperiods? mBusy mand mslow mdays mof mweek? mSeasonal mtrends?
Service mRates: mAre mall mservers mequal? mAre mthey mmotivated? mDo mthey mget mtired/bored?
mStressed?
What mhappens mif mwe madd mmore memployees?
Full mtime, mpart mtime, mseasonal? mExperienced?
Type mof mcustomers: mPrepared/unprepared mcustomer, mBig/small morders, mhigh/low
mmaintenance mcustomers, mPaying mcash mvs. mcheck
Single mand mMultiple mLine mSystems;Single m- m mFCFS, msense mof mfairness
Multiple: mjockeying
Discipline/Priority mRules m1st mCome m- m m1st mServed m(Burger mKing)
Earliest mDue mDate mor mShortest mProcessing mTime m(Homework?)
Reservations mor mAppointments mPossible? m(Restaurants, mHomework)
Emergency mSituations? m(Emergency mRooms)
Preemptive mDiscipline: mSpecial mRules m(VIP mlines, mFrequent mFliers)
Infinite mpopulation mof mcustomers m- m mThe mnumber mof mpossible mcustomers mthat mmay
mcome minto mthe mstore mis mvery mhigh m(or munlimited). mWhen ma mcustomer menters mthe
