Flexible element of a retailer's strategy mix is. A merchandise assortment



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Chapter 15
1) A retailer can most effectively track consumer purchases through ________.

A) a consumer loyalty program

B) panel data

C) want slips

D) want books

Answer: A

Diff: 1 Page Ref: 413

Skill: Terminology/Concept


2) A want book or want slip is used to record ________.

A) budget requests by store operations personnel

B) vendors that are preferred by retail personnel

C) budget requests for capital equipment

D) customer requests for merchandise that is either out of stock or unstocked

Answer: D

Diff: 1 Page Ref: 413

Skill: Terminology/Concept


3) Customer requests for unstocked or out-of-stock merchandise are recorded in a(n) ________.

A) generic product file

B) OCR-A system

C) UPC system

D) want book or want slip

Answer: D

Diff: 1 Page Ref: 413

Skill: Terminology/Concept


4) Which of the following is not a merchandise source?

A) resident buying office

B) company-owned

C) outside, regularly used supplier

D) outside, new supplier

Answer: A

Diff: 2 Page Ref: 414

Skill: Terminology/Concept


5) A deduction from a bill made by a retailer due to such infractions as late shipping or improper labeling is called a ________.

A) penalty

B) liquidated damage

C) chargeback

D) holdback

Answer: C

Diff: 1 Page Ref: 415

Skill: Terminology/Concept

6) A purchaser of fine antiques is most likely to evaluate merchandise through ________.

A) description

B) sampling

C) inspection

D) testing by an independent agency

Answer: C

Diff: 2 Page Ref: 417

Skill: Terminology/Concept


7) An example of items which should be evaluated by a retailer by inspection are ________.

A) college textbooks

B) antique furniture

C) color televisions

D) file cabinets

Answer: B

Diff: 1 Page Ref: 417

Skill: Terminology/Concept


8) Description buying is most appropriate for ________.

A) breakable, perishable, or expensive items

B) standardized, nonbreakable, and nonperishable merchandise

C) jewelry and art works

D) nonstandardized, breakable, and perishable merchandise

Answer: B

Diff: 1 Page Ref: 417

Skill: Terminology/Concept


9) A new or special order usually results in a ________.

A) negotiated contract

B) uniform contract

C) new task purchase

D) consignment sale

Answer: A

Diff: 1 Page Ref: 417

Skill: Terminology/Concept


10) A regular order is characterized by ________.

A) a high degree of negotiation on an ongoing basis

B) a high level of opportunistic buying

C) a uniform contract with standardized terms

D) the use of opportunistic buying by a discounter

Answer: C

Diff: 1 Page Ref: 417

Skill: Terminology/Concept

11) Opportunistic buying is most commonly utilized by ________.

A) full-line discount houses

B) off-price retailers

C) supermarkets

D) specialty stores

Answer: B

Diff: 1 Page Ref: 417

Skill: Terminology/Concept


12) An advantage to a retailer's placing large orders for merchandise is ________.

A) quantity discounts obtained through volume purchases

B) lower chance of fashion or functional obsolescence

C) lower inventory holding costs

D) high inventory turnover

Answer: A

Diff: 2 Page Ref: 417

Skill: Terminology/Concept


13) The retailer does not pay for items until they are sold and can return merchandise ________.

A) when title is transferred on purchase

B) when title is transferred when the shipment is received

C) for all generics

D) in a consignment purchase

Answer: D

Diff: 2 Page Ref: 418

Skill: Terminology/Concept


14) A retailer can most effectively reduce its inventory risk through ________.

A) memorandum purchases

B) consignment purchases

C) floor-ready merchandise

D) private label purchases

Answer: B

Diff: 2 Page Ref: 418

Skill: Terminology/Concept


15) A logistics system can best be defined as the ________.

A) reduction of inventory in a system through more rapid reordering of goods in lower quantities

B) use of computer-assisted ordering between retailers and their suppliers

C) total process of moving goods from a manufacturer to a customer in the most timely and cost-efficient manner possible

D) acquisition and maintenance of a proper merchandise assortment while ordering, shipping, handling, and other related costs are kept in check

Answer: C

Diff: 1 Page Ref: 422-423

Skill: Terminology/Concept

16) Unlike other methods of inventory management, logistics ________.

A) is concerned with the flow of information via paperless means

B) regards order processing and fulfillment, transportation, warehousing, customer service, and inventory management as interdependent

C) seeks to minimize inventory accumulations in the whole channel system

D) seeks to trade off the lower inventory levels with lower levels of customer service

Answer: B

Diff: 2 Page Ref: 422-423

Skill: Terminology/Concept


17) The logistics aspect of a value delivery chain is ________.

A) third-party logistics management

B) electronic data interchange (EDI)

C) quick response (QR) inventory management

D) supply chain management

Answer: D

Diff: 1 Page Ref: 425

Skill: Terminology/Concept


18) A broad-based approach to supply chain management among a network of trading partners is ________.

A) third-party logistics

B) collaborative planning, forecasting, and replenishment (CPFR)

C) supply chain management

D) electronic data interchange (EDI)

Answer: B

Diff: 2 Page Ref: 425

Skill: Terminology/Concept


19) A retailer reduces the amount of inventory it keeps on hand by ordering more frequently and in lower quantity through ________.

A) quick response (QR) inventory planning

B) top-down inventory planning

C) bottom-up inventory planning

D) UPC-based computerized ordering systems

Answer: A

Diff: 1 Page Ref: 425-426

Skill: Terminology/Concept


20) A disadvantage to the use of frequent ordering in small quantities is the ________.

A) loss of quantity discounts

B) high investment costs

C) high insurance costs

D) high storage costs

Answer: A

Diff: 2 Page Ref: 429

Skill: Terminology/Concept

21) A quick response (QR) inventory planning system is most effective when used in conjunction with ________.

A) scrambled merchandising

B) floor-ready merchandise

C) efficient consumer response (ECR)

D) electronic article surveillance

Answer: C

Diff: 1 Page Ref: 425-426

Skill: Terminology/Concept


22) The use of such strategies as quick response inventory planning, electronic data interchange, and logistics planning in an integrated manner by supermarkets is referred to as ________.

A) efficient consumer response (ECR)

B) efficient inventory management

C) effective inventory management

D) supermarket logistics

Answer: A

Diff: 1 Page Ref: 426

Skill: Terminology/Concept


23) Which one of the following activities by suppliers is not associated with a floor-ready merchandise strategy?

A) requiring large minimum order sizes

B) placing of special tags on merchandise

C) placing merchandise on hangers

D) pre-ticketing of merchandise

Answer: A

Diff: 2 Page Ref: 426

Skill: Terminology/Concept


24) A paperless, computer-to-computer relationship between retailers and vendors is ________.

A) electronic data interchange (EDI)

B) quick response inventory planning (QR)

C) floor-ready merchandise

D) a basic automatic replenishment system

Answer: A

Diff: 1 Page Ref: 427

Skill: Terminology/Concept


25) A retailer can eliminate use of its own warehouses through ________.

A) ordering goods in large quantities

B) use of direct store distribution (DSD)

C) use of electronic data interchange (EDI) with key vendors

D) taking advantage of opportunities for quantity discounts

Answer: B

Diff: 2 Page Ref: 428

Skill: Terminology/Concept

26) Direct store distribution works best with ________.

A) perishables

B) seasonal merchandise

C) fads


D) fashion merchandise

Answer: A

Diff: 1 Page Ref: 428

Skill: Terminology/Concept


27) Which of the following is an advantage of central warehousing for a chain retailer?

A) lower transportation costs to individual stores

B) closeness to individual stores

C) increased capability of quick response systems

D) increased use of mechanization in the processing of goods

Answer: D

Diff: 1 Page Ref: 429

Skill: Terminology/Concept


28) About what dollar amount in U.S. retail sales is lost each year due to inventory shrinkage (employee theft, customer shoplifting, vendor theft, and administrative errors)?

A) $15 billion

B) $45 billion

C) $50 billion

D) $100 billion

Answer: B

Diff: 1 Page Ref: 431

Skill: Terminology/Concept


29) According to a major study of inventory shrinkage, ________.

A) vendors' short shipping accounts for the major cause of inventory shrinkage

B) customers steal much more than employees

C) employee theft is much higher than shopper theft

D) electronic article surveillance is not an effective deterrent of inventory shrinkage

Answer: C

Diff: 1 Page Ref: 431

Skill: Terminology/Concept


30) Electronic article surveillance seeks to directly reduce inventory shrinkage by ________.

A) using cameras to monitor dressing room activity

B) reducing theft on specific items that have been targeted by management

C) setting up strict rules on the number of goods that can be tried on in dressing rooms at one time

D) chaining expensive clothes together to reduce theft

Answer: B

Diff: 1 Page Ref: 431

Skill: Terminology/Concept

31) A retailer found that a small percent of goods represented a large proportion of the store's total shrinkage. Which of the following strategies would be most effective?

A) use of in-store guards

B) electronic article surveillance on the affected goods

C) use of employee background checks

D) use of mystery shoppers to watch for shoplifting

Answer: B

Diff: 1 Page Ref: 431-432

Skill: Terminology/Concept


32) In a civil restitution law, ________.

A) shoplifters cannot plea bargain the minimum state sentence for their crime

B) shoplifters must undertake community service as restitution for their crime

C) shoplifters must pay for stolen merchandise or face arrests and criminal trials

D) employees convicted of stealing merchandise must be registered with local police departments

Answer: C

Diff: 1 Page Ref: 432

Skill: Terminology/Concept


33) An effective store security program needs to be operational ________.

A) only when the store is closed

B) only when the store is open

C) only with customers

D) with customers and employees when the store is both closed and open

Answer: D

Diff: 1 Page Ref: 432

Skill: Terminology/Concept


34) Which theft deterrent strategy can have a major negative impact on employee morale?

A) the use of security guards

B) the use of electronic article surveillance

C) the use of in-store cameras

D) offering rewards for employees that report co-workers involved in theft

Answer: D

Diff: 1 Page Ref: 432

Skill: Terminology/Concept


35) The merchandise flow from the retailer back through the supply chain is termed ________.

A) reverse logistics

B) inbound logistics

C) third-party logistics

D) supply chain management

Answer: A

Diff: 1 Page Ref: 432

Skill: Terminology/Concept

36) A major disadvantage with a want book system used to gather information about consumer demand is that ________.

A) it only records preferences of current customers

B) it does not record vendor preferences

C) it does not record style or color preferences

D) its accuracy depends on salesperson input

Answer: D

Diff: 2 Page Ref: 413

Skill: Applied/Comprehensive/Integrative


37) A major problem associated with the use of want books (want slips) is that they ________.

A) require a sophisticated data base

B) rely on retail salespeople to enter the relevant information

C) require a computer-based retail information system

D) require electronic data interchange (EDI) capability

Answer: B

Diff: 2 Page Ref: 413

Skill: Applied/Comprehensive/Integrative


38) Which source of merchandise utilizes vertical integration by a retailer?

A) company-owned

B) outside, new supplier

C) outside, regularly used supplier

D) cooperative-buying arrangement

Answer: A

Diff: 2 Page Ref: 414

Skill: Applied/Comprehensive/Integrative


39) A retailer and a supplier both utilize relationship marketing. Which merchandise source do they best illustrate?

A) outside, new supplier

B) outside, regularly used supplier

C) opportunistic buying

D) company-owned

Answer: B

Diff: 2 Page Ref: 414

Skill: Applied/Comprehensive/Integrative


40) A retailer reduces its invoice by 5 percent since a supplier shipped seasonal merchandise 10 days late. The price reduction is designed to compensate the retailer for additional markdowns. This reduction illustrates a ________.

A) markdown adjustment

B) slotting fee

C) slotting allowance

D) chargeback

Answer: D

Diff: 1 Page Ref: 415

Skill: Applied/Comprehensive/Integrative

41) Excessive use of chargebacks by a retailer illustrates ________.

A) scrambled merchandising

B) the retail life cycle

C) channel power

D) channel cooperation

Answer: C

Diff: 2 Page Ref: 415

Skill: Applied/Comprehensive/Integrative

42) An unsatisfactory evaluation may cause a retailer to reject an entire shipment. The retailer is using which form of merchandise evaluation?

A) sampling

B) inspection

C) description

D) statistical evaluation

Answer: A

Diff: 1 Page Ref: 417

Skill: Applied/Comprehensive/Integrative


43) Description buying is most frequently used for ________.

A) standardized, unbreakable merchandise

B) expensive, perishable merchandise

C) items purchased under new or special orders

D) expensive, one-time purchases

Answer: A

Diff: 2 Page Ref: 417

Skill: Applied/Comprehensive/Integrative


44) Opportunistic buying is most frequently used by ________.

A) specialty stores

B) department stores

C) membership clubs and off-price chains

D) category killers

Answer: C

Diff: 1 Page Ref: 417

Skill: Applied/Comprehensive/Integrative


45) The purchase of out-of-season goods, manufacturer overruns, or cancelled orders by a closeout retailer illustrates ________.

A) inspection buying

B) channel power

C) opportunistic buying

D) scrambled merchandising

Answer: C

Diff: 2 Page Ref: 417

Skill: Applied/Comprehensive/Integrative

46) A slotting allowance is a form of ________.

A) channel conflict

B) channel cooperation

C) short-run strategy by a manufacturer

D) electronic data interchange (EDI)

Answer: A

Diff: 2 Page Ref: 417

Skill: Applied/Comprehensive/Integrative


47) A manufacturer with low channel power may be able to get retailers to stock his or her goods through a ________.

A) uniform contract

B) negotiated contract

C) dated purchase

D) consignment purchase

Answer: D

Diff: 2 Page Ref: 418

Skill: Applied/Comprehensive/Integrative


48) Both consignment purchases and memorandum purchases enable a retailer to ________.

A) lower insurance costs

B) improve cash flow

C) reduce inventory levels

D) increase information flows

Answer: B

Diff: 2 Page Ref: 418

Skill: Applied/Comprehensive/Integrative


49) The major difference between a consignment purchase and a memorandum purchase is based on ________.

A) when title passes from seller to buyer

B) when an item is paid for

C) purchase price

D) eligibility for cooperative advertising allowances

Answer: A

Diff: 2 Page Ref: 418

Skill: Applied/Comprehensive/Integrative


50) The major difference between an inventory management system and a logistics system is that the ________.

A) inventory management system is more concerned with supplier-retailer linkages

B) inventory management system does not consider the impact of lost business due to stockouts

C) inventory management system also includes purchasing and customer service considerations

D) logistics system also includes purchasing and customer service considerations

Answer: D

Diff: 2 Page Ref: 419-423; 429-431

Skill: Applied/Comprehensive/Integrative

51) A disadvantage to the use of infrequent ordering in large quantities is ________.

A) loss of quantity discounts

B) high investment costs

C) high ordering costs

D) high transportation costs

Answer: B

Diff: 2 Page Ref: 421

Skill: Applied/Comprehensive/Integrative

52) Which of the following is not a major advantage of having a large inventory for a retailer?

A) quantity discounts in purchases

B) lower risk of obsolescence and deterioration

C) lower frequency of stockouts

D) low per-item shipping costs

Answer: B

Diff: 2 Page Ref: 424

Skill: Applied/Comprehensive/Integrative


53) Third-party logistics is another term for ________.

A) outsourcing logistics

B) supply chain management

C) quick response inventory management

D) floor-ready merchandise

Answer: A

Diff: 1 Page Ref: 424

Skill: Applied/Comprehensive/Integrative


54) Which inventory management system results in longer-term retailer-vendor relationships and frequent reordering?

A) computer-based UPC scanning

B) automatic recording

C) quick response (QR) inventory planning

D) economic order quantity

Answer: C

Diff: 1 Page Ref: 425

Skill: Applied/Comprehensive/Integrative


55) Which inventory management system in retailing corresponds to a just-in-time inventory management system?

A) computer-based UPC scanning

B) quick response (QR) inventory planning

C) automatic reordering

D) economic order quantity

Answer: B

Diff: 2 Page Ref: 425-426

Skill: Applied/Comprehensive/Integrative

56) In order for quick response (QR) inventory planning to be effective, ________.

A) inventory ordering costs need to be low

B) inventory holding costs need to be low

C) electronic data interchange must not be functioning

D) shipping costs must be reduced

Answer: A

Diff: 2 Page Ref: 425-426

Skill: Applied/Comprehensive/Integrative


57) Electronic data interchange (EDI) and floor-ready merchandise are important components of ________.

A) computer-based UPC scanning

B) reorder points

C) quick response (QR) inventory planning

D) economic order quantity

Answer: C

Diff: 1 Page Ref: 425-426

Skill: Applied/Comprehensive/Integrative


58) A retailer can shift labeling and handling functions to a manufacturer through the use of ________.

A) private labels

B) floor-ready merchandise

C) quick response (QR) inventory planning

D) Universal Product Codes

Answer: B

Diff: 2 Page Ref: 426

Skill: Applied/Comprehensive/Integrative


59) Prior to establishing a quick response (QR) inventory planning system, suppliers need to rethink their ________.

A) credit terms and quantity discount schedule

B) quantity discount schedule and minimum order sizes

C) purchase prices and minimum order sizes

D) credit terms and minimum order sizes

Answer: B

Diff: 2 Page Ref: 425-426

Skill: Applied/Comprehensive/Integrative


60) The use of advanced ship notices is an important aspect of ________.

A) efficient consumer response (ECR)

B) third party logistics

C) floor-ready merchandise

D) economic order quantity computation

Answer: A

Diff: 1 Page Ref: 427

Skill: Applied/Comprehensive/Integrative

61) Retailers can reduce the need for a central warehouse and for transferring goods after purchase through use of ________.

A) hub-and-spoke distribution systems

B) bonded warehouses

C) direct store distribution

D) public warehouses

Answer: C

Diff: 1 Page Ref: 428

Skill: Applied/Comprehensive/Integrative


62) A major cost advantage associated with direct store distribution for a retailer is the ________.

A) mechanized processing of goods

B) reduction in warehouse expenses

C) efficient marking of merchandise

D) ease of returns

Answer: B

Diff: 1 Page Ref: 428

Skill: Applied/Comprehensive/Integrative


63) Which strategy is the opposite of direct store distribution?

A) central warehousing

B) decentralized warehousing

C) third-party logistics providers

D) efficient consumer response

Answer: A

Diff: 2 Page Ref: 428

Skill: Applied/Comprehensive/Integrative


64) Inventory management planning is most difficult for ________.

A) fad products

B) mature products

C) growing products

D) staples

Answer: A

Diff: 2 Page Ref: 429

Skill: Applied/Comprehensive/Integrative


65) Which of the following does not enable a retailer to reduce its inventory levels?

A) direct store distribution

B) floor-ready merchandise

C) memorandum purchases

D) quick response (QR) inventory planning

Answer: C

Diff: 2 Page Ref: 430

Skill: Applied/Comprehensive/Integrative

66) A retailer found that inventory shrinkage rates varied greatly by department, as well as by merchandise item within departments. The retailer should consider using ________.

A) in-store cameras

B) point-of-sale computers

C) electronic article surveillance

D) burglar alarms

Answer: C

Diff: 2 Page Ref: 431

Skill: Applied/Comprehensive/Integrative


67) Effective employee theft deterrents include ________.

A) periodically testing burglar alarms

B) using iron gates and/or shatterproof glass on display windows

C) attaching expensive clothing together

D) locking up trash containers kept outside

Answer: D

Diff: 2 Page Ref: 432

Skill: Applied/Comprehensive/Integrative


68) Which of the following illustrates reverse logistics?

A) a retailer handling a product recall for a manufacturer

B) a wholesaler implementing direct store distribution for a retailer

C) a manufacturer implementing vendor-managed inventory (VMI) for a retailer

D) a wholesaler shipping a replacement part directly to a final consumer

Answer: A

Diff: 2 Page Ref: 432-433

Skill: Applied/Comprehensive/Integrative


69) The processing of returns and damaged goods is part of ________.

A) third-party logistics planning

B) slotting fees

C) quick response (QR) inventory planning

D) reverse logistics

Answer: D

Diff: 2 Page Ref: 432-433

Skill: Applied/Comprehensive/Integrative


70) A major difficulty with preventing theft of costly items by chaining items together (as with leather coats) is that these strategies ________.

A) have a negative effect on employee morale

B) impede sales of the affected items

C) do not reduce insurance costs

D) have limited effectiveness in reducing theft rates

Answer: B

Diff: 2 Page Ref: 432

Skill: Applied/Comprehensive/Integrative

71) An important source of information about consumer demand is the want book or want slip.

Answer: TRUE

Diff: 1 Page Ref: 413

Skill: Terminology/Concept


72) Some retailers excessively use chargebacks as a means of getting price reductions from vendors.

Answer: TRUE

Diff: 2 Page Ref: 415

Skill: Terminology/Concept


73) Opportunistic buying is common among off-price retailers.

Answer: TRUE

Diff: 2 Page Ref: 417

Skill: Terminology/Concept


74) Slotting allowances illustrate the high power large retailers have over major vendors.

Answer: TRUE

Diff: 2 Page Ref: 417

Skill: Terminology/Concept


75) A retailer's risk is minimized in a consignment purchase.

Answer: TRUE

Diff: 2 Page Ref: 418

Skill: Terminology/Concept


76) RFID is a similar concept to the UPC in identifying and keeping track of inventory.

Answer: TRUE

Diff: 2 Page Ref: 419

Skill: Terminology/Concept


77) Logistics is a narrower concept than inventory management.

Answer: FALSE

Diff: 2 Page Ref: 422-423, 429-430

Skill: Terminology/Concept


78) Collaborative planning, forecasting, and replenishment (CPFR) and efficient consumer response relies upon supply chain management.

Answer: TRUE

Diff: 1 Page Ref: 425

Skill: Terminology/Concept


79) In quick response (QR) inventory planning, a retailer seeks to increase the average value of inventory on hand.

Answer: FALSE

Diff: 1 Page Ref: 425-426

Skill: Terminology/Concept

80) Quick response (QR) inventory planning is generally used in conjunction with electronic data interchange.

Answer: TRUE

Diff: 2 Page Ref: 425-426

Skill: Terminology/Concept


81) Efficient consumer response (ECR) incorporates quick response (QR) inventory planning, electronic data interchange (EDI), and logistics planning.

Answer: TRUE

Diff: 1 Page Ref: 426

Skill: Terminology/Concept


82) A major benefit to central warehousing is direct product shipment to each store.

Answer: FALSE

Diff: 2 Page Ref: 427-428

Skill: Terminology/Concept


83) A comprehensive store security program needs to concentrate on losses due to employee, customer, and vendor theft.

Answer: TRUE

Diff: 1 Page Ref: 431

Skill: Terminology/Concept


84) Items with rather high pilferage should receive electronic product tags in addition to overall store security measures.

Answer: TRUE

Diff: 1 Page Ref: 431

Skill: Terminology/Concept


85) A supermarket's developing a system to handle returnable bottles is an example of reverse logistics.

Answer: TRUE

Diff: 2 Page Ref: 432-433

Skill: Terminology/Concept


86) Data from want books, want slips, and competition shopping reports should be stored and accessed in a retail information system.

Answer: FALSE

Diff: 2 Page Ref: 413

Skill: Applied/Comprehensive/Integrative


87) Generally, costly one-of-a-kind merchandise is evaluated via inspection.

Answer: TRUE

Diff: 2 Page Ref: 417

Skill: Applied/Comprehensive/Integrative

88) Orders for merchandise in a quick response (QR) inventory system are generally made using negotiated contracts.

Answer: TRUE

Diff: 2 Page Ref: 417, 425-426

Skill: Applied/Comprehensive/Integrative


89) Opportunistic buying generally relies upon negotiated contracts.

Answer: TRUE

Diff: 1 Page Ref: 417

Skill: Applied/Comprehensive/Integrative


90) The basic difference between consignment and memorandum purchases is based on the size of the order.

Answer: FALSE

Diff: 2 Page Ref: 418

Skill: Applied/Comprehensive/Integrative


91) If a logistics system works well, a firm can reduce stockouts and reduce inventory levels simultaneously.

Answer: TRUE

Diff: 2 Page Ref: 422-424

Skill: Applied/Comprehensive/Integrative


92) To be effective, supply chain management must involve all of the parties that participate in the retail logistics process.

Answer: TRUE

Diff: 2 Page Ref: 424

Skill: Applied/Comprehensive/Integrative


93) The use of collaborative planning, forecasting and replenishment (CPFR) is generally associated with outside, new suppliers.

Answer: FALSE

Diff: 2 Page Ref: 425

Skill: Applied/Comprehensive/Integrative


94) A disadvantage to the use of quick response (QR) inventory planning is that a retailer may not have adequate alternative sources of supply.

Answer: TRUE

Diff: 1 Page Ref: 425-426

Skill: Applied/Comprehensive/Integrative


95) Ideally, quick response (QR) inventory planning should be used in conjunction with electronic data interchange (EDI) and floor-ready merchandise.

Answer: TRUE

Diff: 2 Page Ref: 425-426

Skill: Applied/Comprehensive/Integrative

96) The sale of floor-ready merchandise by a supplier increases the responsibilities of the supplier beyond just providing the merchandise.

Answer: TRUE

Diff: 1 Page Ref: 426

Skill: Applied/Comprehensive/Integrative


97) Efficient consumer response (ECR) seeks to reduce inventory levels at manufacturers, wholesalers, and retailers using collaboration among these channel members.

Answer: TRUE

Diff: 2 Page Ref: 426-427

Skill: Applied/Comprehensive/Integrative


98) Loss prevention programs need to consider such areas as dressing rooms, placement of entrance areas, and delivery areas.

Answer: TRUE

Diff: 1 Page Ref: 431-432

Skill: Applied/Comprehensive/Integrative


99) Items with rather high pilferage should receive electronic product tags in addition to overall store security measures.

Answer: TRUE

Diff: 1 Page Ref: 431-432

Skill: Applied/Comprehensive/Integrative


100) Customer returns, product recalls, and deposit bottles all involve reverse logistics for the retailer.

Answer: TRUE

Diff: 2 Page Ref: 432-433

Skill: Applied/Comprehensive/Integrative


101) a. What are the basic difficulties in the use of want books or want slips as sources of information about consumer demand?

b. What other sources of information exist? Describe the advantages and disadvantages associated with each identified source.

Diff: 2 Page Ref: 413
102) Describe the pros and cons to the use of an outside, regularly used supplier as a merchandise source?

Diff: 1 Page Ref: 414


103) Describe the use of chargebacks from the perspectives of channel power and ethics.

Diff: 2 Page Ref: 415


104) Under what conditions should a retailer evaluate merchandise through inspection? sampling? description?

Diff: 1 Page Ref: 417

105) a. Explain the differences between RFID and UPC.

b. Why have retailers been slow to adopt RFID?

Diff: 1 Page Ref: 419
106) Differentiate among efficient consumer response; collaborative planning, forecasting, and replenishment (CPFR); and vendor managed inventory (VMI).

Diff: 1 Page Ref: 425, 429


107) What are the overall retail strategy implications for the use of quick response (QR) inventory planning by a retailer?

Diff: 1 Page Ref: 425-426


108) Describe the benefits and disadvantages associated with the use of centralized versus decentralized warehouses.

Diff: 1 Page Ref: 427-428


109) What are the pros and cons of direct store distribution from the perspective of the retailer?

Diff: 1 Page Ref: 428


110) Develop a 10-item store security checklist aimed at reducing customer theft.

Diff: 2 Page Ref: 431-432


111) Develop a 10-item store security checklist aimed at reducing employee theft.

Diff: 2 Page Ref: 431-432


112) Develop a reverse logistics policy for a supermarket that handles product recalls, as well as recyclable bottles.

Diff: 2 Page Ref: 432-433




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