{"id":205346,"date":"2025-03-24T10:59:15","date_gmt":"2025-03-24T10:59:15","guid":{"rendered":"https:\/\/learnexams.com\/blog\/?p=205346"},"modified":"2025-03-24T10:59:17","modified_gmt":"2025-03-24T10:59:17","slug":"match-each-scenario-a-e-with-only-one-closest-concept-1-14","status":"publish","type":"post","link":"https:\/\/www.learnexams.com\/blog\/2025\/03\/24\/match-each-scenario-a-e-with-only-one-closest-concept-1-14\/","title":{"rendered":"Match each scenario (A-E) with only one closest concept (1-14)"},"content":{"rendered":"\n

Match each scenario (A-E) with only one closest concept (1-14); each concept could be usedmorethanonetime.<\/p>\n\n\n\n

PossibleConcepts:<\/p>\n\n\n\n

ConsolidatedDistribution
DelayedDifferentiation
DirectNetwork Effects
EconomiesofScale
IndirectNetworkEffects
LocationPooling
OperationalTransparency
Over-ReactiveOrdering
QuickResponse SupplyChain
ShortageGaming
TradePromotions
Vendor-ManagedInventory
VerticalIntegration
VirtualPooling
Scenario:<\/p>\n\n\n\n

A. A Target store orders 5 times more than intended after learning that Amazon is running low on Fire TV Stick inventory as the product allocation tends to be proportional to the submitted order size.<\/p>\n\n\n\n

B. Amazon employees stationed at local BestBuy stores place restocking orders for Kindle e-readers based on the current inventory level, instead of letting BestBuy employees placing orders.<\/p>\n\n\n\n

C. Amazon opened Amazon Basics showrooms in several cities where customers can try out the products\/fit and store associates will submit orders to be shipped from a centralized warehouse.<\/p>\n\n\n\n

D. Using radio-frequency identification (RFID) that improved inventory accuracy, Amazon can make optimal allocation across their offline and online channels, making all of their inventory across their networks accessible at any other point in the network.<\/p>\n\n\n\n

E. AmazonFlexdrivershelpdeliverproducts tolast-milecustomers.Theyworkon-demand byquicklyrespondingtonewdelivery opportunitiespostedontheirdashboard.Datashowsthatmoreopportunitiesmotivatemoredriverstosupplytheirlabor.<\/p>\n\n\n\n

The correct answer and explanation is :<\/strong><\/mark><\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Let’s match each scenario with the most appropriate supply chain concept:<\/p>\n\n\n\n

A.<\/strong> A Target store orders 5 times more than intended after learning that Amazon is running low on Fire TV Stick inventory as the product allocation tends to be proportional to the submitted order size.<\/p>\n\n\n\n

Concept:<\/strong> Shortage Gaming<\/p>\n\n\n\n

Explanation:<\/strong> Shortage gaming occurs when retailers over-order products in anticipation of shortages, leading to inflated orders and inventory distortions. In this scenario, Target increases its order size after learning about Amazon’s low inventory, anticipating that product allocation will be proportional to order size, exemplifying shortage gaming. <\/p>\n\n\n\n

B.<\/strong> Amazon employees stationed at local BestBuy stores place restocking orders for Kindle e-readers based on the current inventory level, instead of letting BestBuy employees placing orders.<\/p>\n\n\n\n

Concept:<\/strong> Vendor-Managed Inventory<\/p>\n\n\n\n

Explanation:<\/strong> Vendor-Managed Inventory (VMI) involves the supplier managing the inventory levels of their products at the retailer’s location. Here, Amazon employees handle restocking of Kindle e-readers at BestBuy stores, ensuring optimal inventory levels and reducing stockouts.<\/p>\n\n\n\n

C.<\/strong> Amazon opened Amazon Basics showrooms in several cities where customers can try out the products\/fit, and store associates will submit orders to be shipped from a centralized warehouse.<\/p>\n\n\n\n

Concept:<\/strong> Virtual Pooling<\/p>\n\n\n\n

Explanation:<\/strong> Virtual pooling refers to the strategy of consolidating inventory from multiple locations into a central warehouse to optimize stock levels and reduce holding costs. By having associates submit orders from showrooms to a centralized warehouse, Amazon effectively utilizes virtual pooling to manage inventory.<\/p>\n\n\n\n

D.<\/strong> Using radio-frequency identification (RFID) that improved inventory accuracy, Amazon can make optimal allocation across their offline and online channels, making all of their inventory across their networks accessible at any other point in the network.<\/p>\n\n\n\n

Concept:<\/strong> Operational Transparency<\/p>\n\n\n\n

Explanation:<\/strong> Operational transparency involves sharing real-time inventory data across all channels to enhance decision-making and responsiveness. By implementing RFID, Amazon achieves accurate inventory tracking, allowing seamless allocation between offline and online channels.<\/p>\n\n\n\n

E.<\/strong> Amazon Flex drivers help deliver products to last-mile customers. They work on-demand by quickly responding to new delivery opportunities posted on their dashboard. Data shows that more opportunities motivate more drivers to supply their labor.<\/p>\n\n\n\n

Concept:<\/strong> Direct Network Effects<\/p>\n\n\n\n

Explanation:<\/strong> Direct network effects occur when the value of a service increases as more people use it. In this case, as more delivery opportunities are posted, more drivers are motivated to participate, enhancing the delivery network’s efficiency and responsiveness.<\/p>\n\n\n\n

Summary of Matches:<\/strong><\/p>\n\n\n\n