Vendor Managed Inventory (VMI) – approach for improving marketing channel efficiency in which the manufacturer is responsible for maintaining the retailer’s inventory levels in each of its stores Push marketing strategy – merchandise is allocated to stores based on previous sales forecasts; designed to increase demand by motivating sellers to highlight the product rather than the products of competitors & push the product onto consumer; ex slotting allowances, contests for salespeople Pull Marketing Strategy – the amount of merchandise sent to the store is determined based on sales data captured by POS terminals; the customers pull the product into the marketing channel by demanding it; ex advertising, social media, store displays Planners – employees responsible for the financial planning & analysis of merchandise& its allocation to stores Receiving – the process of recording the receipt of merchandise as it arrives at the distribution center; checking – making sure goods aren’t damaged & correct merchandise received Radio Frequency Identification Tags (RFID) – tiny computer chips that automatically transmit to a special scanner all the info about a container’s contents or individual products Ticketing & Marking – affixing price & identification labels to the merchandise Pick Ticket – document or display on a screen in a forklift truck indicating how much of each item to get from specific storage areas Just in Time Inventory Systems/Quick Response – inventory management systems that deliver less merchandise on a more frequent basis that traditional inventory systems; reduced lead time, increased product availability, & lower inventory investment 1. Supply chain management refers to a set of approaches and techniques firms employ to efficiently and effectively integrate their manufacturers, warehouses, transportation intermediaries, stores, and suppliers 2. As the dominant member of the channel of distribution, Coca Cola holds a lot of power in the relationship with independent grocery stores, and as such, it performs the functions of restocking merchandise, setting up special displays, and rotating merchandise. This is an example of an administered vertical marketing system 3. An advanced shipping notice is an electronic document sent by a supplier to a retailer prior to the shipment of a merchandise order. 4. Which type of strategy is most efficient for merchandise that has steady, predictable demand, such as milk and eggs? Push 5. All of the following are examples of the value provided by a supply chain in the production of kitchen stoves EXCEPT the product design team develops initial drawings for a new product offering – the retailer educates the customer about product features, & delivers & installs the stove, the components manufacturer helps the stove manufacturer by supplying parts, the transportation company gets the stove to the retailer, the stove maker turns the components into the stove 6. Purchase data collected at the point of sale is stored in
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