Retail Supply Chain & Replenishment Flashcards
7 cards from real CRA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Retail Supply Chain & Replenishment flashcards as text
In demand planning, a 'cannibalization effect' occurs when:
Answer: A new SKU steals sales from an existing SKU in the same category
Cannibalization happens when a newly introduced product draws sales away from an existing product within the same retailer's assortment.
A grocery retailer uses continuous replenishment planning (CRP). What data does the retailer typically share with its supplier to enable this?
Answer: Point-of-sale data and current inventory levels
CRP relies on the retailer sharing real-time or near-real-time POS and inventory data so the supplier can automatically generate replenishment orders.
Which term describes the practice of positioning inventory closer to end customers to reduce delivery lead times?
Answer: Forward deployment
Forward deployment places inventory at regional DCs or forward stocking locations nearer to customers, cutting last-mile delivery time.
A retailer calculates its weeks of supply (WOS) as 8, but the industry standard for that category is 4. What does this most likely indicate?
Answer: The retailer may be overstocked, tying up excess capital
A WOS of 8 versus a standard of 4 suggests twice the normal inventory on hand, indicating potential overstock and excess working capital tied up.
A retailer adopts a 'pull' replenishment system rather than a 'push' system. What is the key distinguishing characteristic?
Answer: Replenishment is triggered by actual consumer demand signals at store level
A pull system replenishes only what has been consumed, driven by real demand signals, reducing overstock and waste.
What is the primary purpose of an advance ship notice (ASN) in retail logistics?
Answer: To provide the DC with pre-shipment details enabling faster receiving
An ASN gives the receiving DC detailed information about an inbound shipment (contents, quantities, packaging) before it arrives, accelerating the check-in process.
Which cost component is NOT typically included in a retailer's total landed cost calculation for imported goods?
Answer: Store-level labor for stocking shelves
Total landed cost covers all expenses to get goods to the DC (freight, duties, insurance, handling), but in-store stocking labor occurs after delivery and is excluded.