Chapter 14
Which of the following is most likely to be a product stocked solely by an industrial distributor?
Wind turbines
Cassie and Julian both are buying new iPhones this week. Cassie goes to the Apple store because she wants to actually see the phone before she makes a final decision. Julian knows that he does not need to see the phone, because he just wants to update from his older version. He simply orders it online. Cassie is purchasing her phone through_____, while Julian is purchasing his through ___.
a retailer; a direct-marketing channel
Rob Stevens is the head of a company that produces computer software for production scheduling. The firm is small and presently does not generate enough volume to justify hiring a sales force. The firm is probably using ____ to maintain contact with the firms using its products.
agents
At the annual managers' planning conference, Jackie Conrad asks the other managers to consider her proposal to increase the quantity of inventory to a five-week supply in order to increase the percentage of completely filled customer orders from 85% to 90%. She states that she is willing to trade off the ____ incurred for the positive effect of better customer service.
higher warehousing costs
If a retailer is reviewing its inventory and notices that the order lead time for one of the products it stocks has increased, the retailer should
increase its reorder point.
Jeff Wood's company buys machine tools from large producers and sells them to several Midwestern manufacturing companies. The company Jeff works for carries inventories of the tools, which reduces capital requirements for the producers. Jeff's company is an example of a(n) ____ in a distribution channel.
industrial distributor
River City, Inc. is an independent business that takes title to products and carries inventories. River City, Inc. is most likely a(n)
industrial distributor.
Declan is in charge of ensuring the successful transportation and storage of his company's products. He monitors the products from the time they leave the factory to when they are dropped off at retailers and purchased by customers. Declan's job title would most likely be
logistics manager.
Without wholesalers and other intermediaries,
products would likely be more expensive due to the use of less efficient channel members.
Supply chains for durable goods typically begin at _____ and end at _____.
raw materials; the customer
The coordination of all the activities involved with the flow and transformation of supplies, products, and information throughout the supply chain to the ultimate consumer is called
supply-chain management.
Your firm is launching a new product that everyone believes is going to be a blockbuster. Everyone is geared up to make this product launch the most successful in the firm's history. Your boss instructs you to make sure the product gets the highest intensity of market coverage the firm can support. To achieve this, you will implement which of the following distribution strategies?
Intensive distribution
Greg is a physical distribution manager. He is currently developing and maintaining assortments of products that are adequate for customer demand. In which stage in the physical distribution system is Greg currently involved?
Inventory management
You are the head of supply-chain management at a large manufacturing company in the Midwestern United States. You just returned from a series of workshops on how technology is being deployed by different companies around the world to improve their supply-chain management activities. You are excited about the prospect of increasing the use of technology in your firm. Which one of the following reasons would you use to convince your firm's CEO to invest more money in technology for supply-chain management?
It will create a more effective process for matching inventory needs to manufacturing requirements.
Liz Claiborne, Inc. markets several different brands, under their own Claiborne name label, as well as others. Their primary brands, such as Liz Claiborne, Liz & Co, and DKNY, are sold to wholesalers. These brands are then available through retail department stores such as Kohl's and Macy's. Their wholesale-based brands division is positioned as customer-focused and cost-efficient. Their premium brands division includes labels such as Kate Spade, Juicy Couture, and Mexx. These premium brands are sold through stores that the Claiborne company owns. Refer to Scenario 14.1. Liz Claiborne, Inc. uses which type of channel of distribution for its premium brands?
A short, direct channel
Aaron attends a seminar on just-in-time inventory management. Excited about the idea, he returns to his office at Atlanta Auto Supply to start designing such an inventory system. Which of the following steps must Aaron take as he institutes this change?
Increase order frequency
Which of the following physical distribution functions involves design and operation of facilities for storing goods?
Warehousing
Firestone manufactures tires and owns the service centers that sell them. Campbell's Soup does not actually own the other channel members. However, its dominant position allows it to influence the distribution decisions of the entire system. For example, it has a major influence over how its products are displayed in retail stores, how its products are promoted, and more. Firestone is an example of a(n) _______________. Campbell's is an example of a(n)
corporate VMS; administered VMS
Dell Computers is a nationally recognized manufacturer of computers for the small business and home markets. If Dell were to order one of its wholesalers not to carry any computer products other than those made by Dell, this arrangement would be called
exclusive dealing.
Currently, Star is using the ____ approach to distributing its janitorial supplies to its large customers.
just-in-time
Managers and consultants at Colgate-Palmolive are meeting to discuss better ways to package its products to reduce damage and make loading more efficient. The primary function they are trying to improve is
materials handling.
Del Monte markets ketchup for household use to supermarkets through grocery wholesalers. It markets ketchup for institutional use through industrial distributors and food brokers. Del Monte is using
multichannel distribution.
Many companies use more than one marketing channel to distribute their products to the same target market, a tactic called
multichannel distribution.
Logistics Plus is an organization that consolidates shipments from several industrial firms into more efficient lot sizes so that they can be more efficiently transported. What type of transportation company is Logistics Plus?
A freight forwarder
Suppose that Jackson Distributing has been told that it cannot carry the beers made by Anheuser-Busch because it also carries the products of the competitor, Miller Brewing. Jackson is then told that it must drop the Miller brands in order to carry the Anheuser-Busch products. If this were true, Anheuser-Busch would be engaging in which of the following channel management practices?
Exclusive dealing
Which of the following is the most commonly used channel for distributing business products?
Producer, organizational buyers
Large retailers such as JCPenney and Target are most likely to participate in which of the following channels?
Producer, retailers, consumers
For which of the following products would exclusive distribution be most appropriate?
Rolls Royce automobile
Which of the following describes a disadvantage of using industrial distributors?
They are unlikely to handle bulky items or items that are slow sellers.
Which of the following is an advantage of using an industrial distributor?
They help reduce a producer's financial burdens by extending credit to customers.
What function of physical distribution enables companies to compensate for dissimilar production and consumption rates and stabilize prices and availability of seasonal items?
Warehousing
A producer is not likely to receive ____ from an industrial distributor.
aggressive promotion of its brand
Possession utility is best described as
the customer having access to the product to use now or store and use later.
Which of the following includes activities such as manufacturing, research, sales, advertising, and shipping, as well as involving all entities that facilitate product distribution?
Supply-chain management
Rovio, the parent company of the popular Angry Birds app, made several marketing mix decisions that were considered to be part of its distribution. Which of the following was not a decision that relates to distribution?
The licensing of the Angry Birds to producers of T-shirts and costumes
The Diamond Salt Company needs to transport 20 tons of salt from Baton Rouge, Louisiana, to Cincinnati, Ohio. Which of the following methods would be the cheapest for transporting this cargo?
Waterways
Order handling involves all of the following activities except that the
customer places a purchase order.
Piggyback, fishyback, and birdyback are terms usually associated with gaining efficiency in shipping through
containerization
The main objective of physical distribution should be to
decrease costs while increasing service.
Eliminating a wholesaler from a marketing channel will
not eliminate the functions performed by that wholesaler.
The supply chain begins with______________ and ends with_________________.
raw materials; customers
Using only some of the available outlets to distribute a product is called
selective distribution
If a company's products require differentiation at the point of purchase, it will most likely use
selective distribution.
Durable goods such as television sets and appliances generally reach their target markets through ____; goods such as car batteries and tires generally reach their target markets through _____.
selective distribution; selective distribution
The notion of physical distribution is
the movement of products from producers to end users.
The reasons a vertically integrated channel can be more effective against competition is because of all of the following except
tightly controlled and bureaucratic management style.
Having products available when customers want them creates
time utility.
Magnetic Springs wants to ship its bottled water with the most flexible schedules and routes of all transportation modes. Magnetic Springs should use ____ as its transportation mode.
trucks
Warner Bros. sells cookie jars, puzzles, photo albums, and other items featuring its popular cartoon characters directly through its own retail outlets. This is an example of
vertical channel integration.
When three buyers purchase the products of three producers, nine transactions are required. If one intermediary serves both producers and buyers, the number of possible transactions is
6.
What is the reorder point if the usage rate is 10 units per day, the order lead time is five days, and the safety stock is 30?
80
What is a primary difference between an industrial distributor and a manufacturers' agent?
A manufacturers' agent does not acquire title nor usually take possession of the products whereas an industrial distributor does.
You have spent the last 20 years of your career in various marketing channel management roles with a variety of companies. One of the things you have learned is that channel conflict can be very destructive to all members of the marketing channel. Which of the following actions would you take to ensure that channel conflict does not occur in your current role?
Establish clearly defined roles and responsibilities for each member of the channel.
Honey Farms is a maker of fine chocolates. The company's latest product, Fudge-Dipped Strawberries, is the premier product in its Fudge-Dipped line. The product is very expensive and targeted to upscale consumers. Which form of distribution would Honey Farms be likely to use for its new product?
Exclusive
Product and target market characteristics usually determine the type of coverage a product receives. For which of the following products is selective distribution most appropriate?
Organic foods
What two modes of transportation are used when containers are shipped by piggyback?
Railroads and trucks
Anya, sales manager for Pacific Lumber, tells Ricardo, the firm's inventory manager, that the firm's failure to have adequate supplies of pressure-treated lumber on hand has cost the firm $175,000 in lost sales. This figure represents which of the following inventory management costs?
Stockout
Starbucks has an agreement with PepsiCo through which Pepsi distributes Starbucks' coffee drink, Frappuccino, to grocery stores and other retail outlets. This is an example of
a strategic channel alliance.
A public warehouse is a
business that leases storage space and related facilities for distribution to other firms.
Overall channel goals and individual channel member goals cannot be achieved together without
cooperation
The Limited, which produces and retails clothing products in a coordinated channel, is an example of a(n)
corporate vertical marketing system.
The Liz & Co brand is sold only at JCPenney. This is an example of ____ distribution.
exclusive
If Nokia decides to make changes in its marketing channels, the strategic significance is that channel decisions are
long-term commitments.
Freight transportation companies that offer several different shipment methods are called
megacarriers
Walgreens drug stores prefer to receive refills of prescriptions through a phone-based system where customers can directly key in the information about the drug. By receiving orders in this manner rather than through a paper-based system or by a phone conversation with a pharmacy employee, Walgreens has been able to save time and money on
order entry.
All of the following are concepts used in a just-in-time inventory management system except
safety stock is kept to reduce stockouts.
Eric is concerned about not having enough air conditioning units in inventory during June, July, and August so he keeps extra inventory to guard against stockouts during this critical period. Eric is keeping
safety stock.
When Amazon.com introduced its Kindle Fire HD, it was available through Amazon.com, Staples office supplies stores, and a few other retailers. The Kindle Fire HD was most likely distributed through the _____ of distribution.
selective level
According to the text, physical distribution cost tradeoffs enable firms to
utilize resources for greatest cost-effectiveness.
GNC sells vitamins and other products related to health and nutrition through franchises located in malls and shopping centers around the world. If GNC makes an agreement with Target to sell its private-label GNC vitamins in Target retail locations, this would likely lead to
channel conflict.
When one company in a marketing channel has the ability to influence another member's goal achievement, the company has
channel power.
Goodyear allows companies like Sears and Discount Tire to distribute and discount its tires. This action significantly increases the possibility of channel ____ with independent Goodyear dealers.
conflict
Fansteel manufactures parts used in jet engines, which it sells to companies such as Boeing. When shipping products to Boeing, Fansteel seals the parts in 8' × 8' × 40' boxes for shipping to decrease loss and damage. This method of materials handling is
containerization.
In the distribution channel for Domino's Pizza, channel members are linked by legal agreements that spell out the obligations and rights of each member. This is an example of a(n) ____ vertical marketing system.
contractual
When produce companies such as Dole Bananas bypass wholesalers and sell directly to retailers, it is likely to
create channel conflict between Dole and these wholesalers.
A goal of physical distribution is to reduce ____ or how long it takes to complete a process.
cycle time
An important goal of physical distribution is reducing the time it takes to complete
cycle time.
Expensive, high-quality products that are purchased infrequently often reach consumers through
exclusive distribution.
The major levels of intensity at which a company can choose to distribute its products are ____ distribution.
exclusive, selective, and intensive
Organizational buyers are especially partial to direct marketing channels when
expensive and/or complex equipment is involved.
What links producers to consumers through the purchase and reselling of products or contractual agreements?
marketing intermediaries
If a firm decides to contract its physical distribution functions to third parties that have no managerial authority within the marketing channel, it is using
outsourcing
After direct marketing, the next slightly longer marketing channel adds a(n)
retailer.
Star Supplies, Inc. is most likely using which of the following to market its vacuum, floor polisher, and janitorial supplies to its small business customers?
Industrial distributors
When a single channel member manages an integrated marketing channel to achieve low-cost, efficient distribution for satisfying target markets, ____ exists.
a vertical marketing system
A commonly used computerized means of integrating order processing with production, inventory, accounting, and transportation is
electronic data interchange.
To expand the number of its retail outlets in the Washington, D.C. area, Whole Foods bought out a small chain of organic food stores in northern Virginia. This type of integration is called
horizontal
In a simple economy of five producers and five consumers, there would be ____ transactions possible without an intermediary and ____ transactions possible with one intermediary.
25; 10
All of the following products are likely to use the producer-retailer-consumer marketing channel except for
U-Pick farm produce.
Order processing, inventory management, materials handling, warehousing, and transportation are the activities that define
physical distribution.
Using a freight forwarder usually
reduces transit time.
A drug maker got in trouble with the FTC. If patients of the drug maker wanted to purchase its schizophrenia drug, they also had to buy its blood-monitoring services. The FTC found this to be unfair. This is an example of a(n)
tying agreement.
Johnson Controls hires a consultant to assess its materials handling procedures. The consultant recommends the implementation of ____ if they want easier movement of items between internal destinations in the warehouse.
unit loading
If a microchip in a computer at the Pentagon failed, which method of transportation would be most appropriate to use to replace the chip immediately if one could get the new chip only from New York City?
Airway
In a corporate VMS,
all stages of the marketing channel are combined.
The result of an inventory stockout usually results in
an increase in lost sales.
Marketing channel members are likely to experience misunderstandings, frustration, and poorly coordinated strategies as a result of
channel conflict caused by inefficient communication between channel members.
Paper towels and trash can bags are most likely distributed through ____ and ____.
intensive; multichannel distribution
Luke is a transportation coordinator for Volkswagen of North America. In order to move a large order of vehicles from a plant in Germany to Chicago, he is planning to use both waterways and railroads. The combining and coordinating of these two modes of transportation in order to take advantage of benefits offered by each of the different types of carriers is called
intermodal transportation.
A manufacturer has decided to improve its inventory management by maintaining low inventory levels and waiting to purchase materials until right before they are needed in production. This inventory management technique is called
just-in-time (JIT).
When shopping for products, business customers often prefer to deal with _____, while consumers typically buy from _____.
manufacturers or channel intermediaries; retailers
Morgan Steel Company leases a warehouse in Jacksonville, Alabama, to serve Deep South markets that are large enough and stable enough to make a long-term commitment to fixed facilities. This is a
private warehouse.
Order processing is defined as
the receipt and transmission of sales order information.
Multichannel distribution is characterized as
the use of a variety of marketing channels to ensure maximum distribution.
Channel decisions are important to marketers mostly because
they involve long-term commitments and affect customer accessibility.
Which mode of transportation hauls more freight than any other?
Railroads
A channel that includes both a manufacturers' agent and an industrial distributor is appropriate under which of the following circumstances?
When the marketer wishes to enter a new geographic market but does not wish to expand the existing sales force
If Liz Claiborne were to distribute their Kate Spade brand through its company-owned stores and through wholesalers, to major department stores, then Liz Claiborne would be using ____ distribution.
multichannel
Marketing channels create four types of utility for consumers including
place, time, possession, and form.
Steelcase, Inc. markets furniture directly to businesses. This is an example of a(n) ____ channel.
producer-to-business buyer
Kristy orders a dress from JCPenney, straight from its catalog. Nancy goes to JCPenney to purchase the same dress. Kristy is using a _____________ marketing channel, and Nancy is using a ____________ marketing channel.
producer-to-consumer; producer-to-retailer-to-consumer
Fragile products that require special handling are more likely to be distributed through
shorter channels.
Tying agreements occur when a
supplier furnishes a product to a channel member with the stipulation that the channel member must purchase other products as well.
Physical distribution activities may be performed by a producer, wholesaler, retailer or
they may be outsourced.
Vertical channel integration
is made possible by purchasing the operations of a link in the channel.
In an administered VMS, informal coordination brings about a high level of inter-organizational management. Nonetheless,
the channel members remain autonomous.
BDP International specializes in planning, implementing, and controlling the efficient and effective flow and storage of products and information from the point of origin to consumption to meet their clients' needs and wants. It also specializes in delivering transportation services for their clients. Due to BDP International's efficiency in these areas, many firms outsource their core physical distribution activities to BDP. BDP is most likely to be a(n)
third-party logistics firm.
Kolder Inc. is using a new just-in-time inventory management system that requires ordering smaller quantities of parts more frequently. The success of its business depends significantly on receiving these parts very quickly, so like many other companies using just-in-time, Kolder Inc. is relying more on the ____ mode of transportation despite its expense.
airway
Brooklyn International Foods is an importer of food products from Europe. For its latest shipment, it did not have enough cash to immediately pay the customs duties and taxes. As a result, the imports were placed in _____ until the payment could be made.
bonded storage
A marketing channel is defined as a group of individuals and organizations that
directs the flow of products from producers to customers
_______________ involves developing and maintaining adequate assortments of products to meet customers' needs.
Inventory management
Netflix sells its movie services using its website while Redbox sells its movie services using vending machines. Each requires the products to be distributed through different channels. Netflix is using ____, while Redbox is using ___ to get the movies to its vending machines.
digital distribution; physical distribution
A local petrol dealer made an agreement to purchase petroleum from only one petroleum supplier. The petrol dealer was forced into the agreement because the petroleum supplier refused to do business with the dealer unless he agreed to source petroleum solely from that supplier. This is an example of
exclusive dealing.
Companies that sell products with high profit margins are more likely to use _______________. Companies selling products whose sales are directly related to product availability will most likely use ______________.
extensive distribution; intensive distribution
Supplier ABC requires all its channel members to purchase all of its products in order to be able to purchase any of its products. This is an example of
full-line forcing.
Josh is a vice-president for 20th Century Fox, a movie production company. He has the responsibility for managing the firm's marketing channels and its relationships with its marketing intermediaries. As a manager of its marketing intermediaries, part of Josh's role is to
link film producers to other middlemen.
An independent businessperson who is paid a commission to sell complementary products of different producers in an assigned territory without actually taking title of the merchandise is a(n)
manufacturers' agent.
When considering the best channel to use, all of the following are true with regard to larger firms except they
may be better suited to serve customers in a particular region.
Subway sells its food items through company-owned stores and through franchises. Subway uses ____ as a channel strategy.
multichannel distribution
Apple makes its computers available through its own stores, its website, and some major retailers. This is an example of
multichannel distribution.
Peabody Garden Supply is trying to optimize its method of getting products to customers. It has added electronic ordering systems for customers and improved the training process for workers in the warehouse who make the products ready for shipment. The improvements Peabody has made are to its
order processing.
ClearChem is a producer of chemicals used in car detailing and painting. Because of the volatility of their chemical products when exposed to dirt and heat, ClearChem operates its own facilities for storing and shipping its products. ClearChem's facilities are most likely known as
private warehouses.
Joseph works as a manager at a large manufacturing firm known for its sustainability. He works in the procurement area. Joseph is in charge of sourcing all the necessary resources, goods, and services from their suppliers to support supply-chain members. More specifically, he is in charge of managing the processes and activities that provide value all the way from the raw materials to the final customer. A nationwide recycling program encourages consumers to send used products they no longer want back to the company. Joseph works with others in the firm to redesign these products for other uses so they can be resold. Joseph is engaging in
supply management.
Kawasaki places several motorcycles in "pods" in order to load them efficiently using forklifts. This system of materials handling is called
unit loading.
The supply chain includes
all entities that facilitate product distribution
As her Internet quilt and bed linen business grew, Danielle could no longer perform all the distribution activities, so she hired a shipper and an information technology firm to assist with these functions. Danielle is using ____ for physical distribution for her business.
outsourcing
When Zappos, Inc., an online marketer of shoes, accessories, and clothing, contracts out the physical distribution task to third parties such as UPS, this arrangement is called ____. This is due to the fact that UPS does not have managerial authority within the Zappos marketing channel.
outsourcing
Assuming everything else is equal, the most cost-efficient way for British Petroleum to transport crude oil from remote oil drilling sites in central Alaska to shipping terminals on the Alaskan coast would be
pipelines.
Consumers receive the benefits of place utility when
products are available in locations where consumers want to buy them.
You are meeting with the new CEO of your company to discuss marketing channel strategies. You are delighted to learn that the CEO actually understands the importance of marketing channels in a firm's sales success. The CEO tells you that his primary concern is that the chosen marketing channel facilitates the firm's ability to make products available when customers want them, and in locations where they want them. He leaves it to you to decide on the appropriate marketing channel. Given his primary concern you should make sure the channel you choose is capable of creating lots of
time and place utility.
The best way to reduce overall distribution costs is to
use a total-cost approach to analyze and evaluate the entire system.
Alibaba is a Chinese e-commerce firm similar to Amazon.com in the United States. It has increased its power and global influence with strong leadership from its founder, including knowing when to acquire other organizations. For instance, in addition to acting as a platform for buyers to purchase products, it also acquired firms in the delivery and payment industries so it would have more control over the entire process. Alibaba's acquisition is an example of
vertical channel integration.
When Clint suggested that Star consider purchasing a paper shredding business and then offer the service to its large and small business customers, he was suggesting a method called ____, where Star would be the ____
vertical integration; channel captain
Which of the following is most likely the primary factor Liz Claiborne, Inc. used when selecting the marketing channel for its Juicy Couture brand?
Product attributes
What is the primary determinant in deciding how materials will be handled?
Product characteristics
Which of the following is least likely to be a factor affecting the selection of marketing channels?
Product packaging
In an administered vertical marketing system (VMS), inter-organizational relationships are
achieved by informal coordination.
General Steel wants to install technology into its logistics management system. This technology will enable General Steel to gain efficiency and accuracy in inventory tracking, stocking, and electronic notifications. General Steel is most likely using
radio frequency identification.
Which of the following types of distribution allow distribution and consumption to occur at the same time?
Digital distribution
Caruthers Paint Manufacturing Company buys the chemicals it needs for producing its products from a chemical producer, Roth Chemicals. In this instance, the chemicals are being distributed to Caruthers through which of the following types of channels?
Direct distribution
Select the greatest advantage of horizontal channel integration.
Efficiencies in advertising, marketing research, and purchasing are increased.
Which of the following products will most likely use the shortest distribution channel?
Fresh strawberries
______________ have special expertise in core physical distribution activities such as warehousing, transportation, inventory management, and information technology and can often perform these activities more efficiently.
Third-party logistics firms
WTA is a manufacturer of very large blades used in energy-reducing wind turbines. What is most likely the most expensive physical distribution function associated with the WTA product?
Transportation of the product
When channel members are linked by legal agreements that specify each member's rights and responsibilities, ____ exists.
a contractual VMS
The marketing channel of producer-retailer-consumer is most likely to be used by producers of which of the following products?
Automobiles
What are the three primary tasks of order processing?
Order handling, order entry, order delivery
NYK Logistics uses _____ technology to track containers through its distribution center in Long Beach, California. Each container has a special tag on it that allows hundreds of containers to be scanned simultaneously, improving the throughput of containers through the center.
RFID
Traditionally, Marshall's Candles has used direct sellers to distribute its products. However, it recently made the decision to allow customers to purchase candles directly from its website as well. This decision is likely to create ____________ with its independent distributors.
channel conflict
When Busch Light Beer was introduced as part of the Anheuser-Busch product line, the company most likely used ____ distribution.
intensive
Nathan is trying to decide which shipping company to use to transport his custom-made furniture to customers. Nathan is facing a decision about
order delivery.
The order-processing task that involves verifying product availability, checking prices and customer credit ratings, and filling orders is
order handling.
Air-Tech management learns that last month's production run of heaters at its Newark plant is defective and announces a recall of the specific models produced. To handle the large number of products it expects to receive for replacement of the defective thermostats, Air-Tech will probably need to add a ____ to its distribution network.
public warehouse
The main reason a manufacturer will prohibit intermediaries from selling its products outside designated sales territories is to
tighten its control over distribution of its products.
____ adds time and place utility to a product by moving it from where it is made to where it is purchased and used.
Transportation
The driving force behind marketing channel decisions should be
customer satisfaction.
Pandora and Spotify allow users to listen to music through the Internet or other device. Pandora and Spotify are engaging in
digital distribution.
A single leader who controls and organizes a marketing channel is called a
channel captain.
If Purina forced Kroger's grocery chain to place all of its products in the stores' most favorable locations, it would be
exercising channel power.
Garcia Wholesale Plumbing has seen its sales in the Southeast triple in the past two years. Materials handling director Barb Peterson announces plans to the board for an Atlanta facility that will combine shipments received from Garcia's 25 suppliers for nearly immediate shipment to plumbing stores and contractors in the region. This new facility would be best classified as which of the following?
Distribution center
Madison is responsible for the freight transportation of products sold by Richland Tech, a producer of cooking oils sold to large institutions. Since Madison needs to schedule freight transportation with the mode that provides the most flexible schedules and routes, which of the following should she use?
Trucks
Nike maintains a good deal of control over how its products are promoted, displayed, and sold. Because of this control, Nike would be appropriately described as the channel
captain
The United States Postal Service works hard to get priority mail from the sender to the recipient as quickly as possible in order to compete with companies such as UPS and FedEx. The postal service is competing with UPS and FedEx in terms of
cycle time.
Clint's suggestion for the uniform rental service was either picking up and delivering the uniforms themselves, or contracting this to a third party. If Star decides to pick up and deliver the uniforms with its own trucks, this is an example of a(n) ____ channel. If Star contracts this action to a third party, it is called ____.
direct; outsourcing
Sainsbury's is a large UK supermarket. The firm's supply chain operates using a number of _______________ to receive, store, and redistribute its many goods. Two of these facilities are used for frozen food. Many of the facilities are designed for the rapid flow of food products. They use automation such as forklifts and hoists to collect and move products to loading docks.
distribution centers
Because of the significant investment many companies have in the products they sell to customers, they must develop and maintain adequate varieties of products to meet their customers' needs. This is called
inventory management.
When Sophie buys organic produce for her household using a channel with only one intermediary, that intermediary is classified as a
retailer.
