Mini Test 8

Unlike a storage warehouse, a distribution center is primarily for? a. Transshipment of products b. Vertical integration c. Climate control d. Reintermediation e. Storage

a. Transshipment of products

Carlina operates an automobile parts manufacturing plant in Chillicothe, Ohio. She has automotive customers in Michigan, Ohio, Tennessee, Georgia and Indiana. Because most of her customers insist on Just In Time inventory management she needs to know exactly when the shipments of her product to the customer will arrive. Carlina uses _________ transportation for this part of her business? a. Truck b. Water c. Rail d. Air e. Pipeline

a. Truck

Which of the following is NOT an example of a third-party provider of logistics? a. A parcel delivery company b. A public warehouse. c. An export/import firm d. A freight forwarder e. A design firm

e. A design firm

One of the issues in order processing is ________ which recognizes that customer orders cannot always be filled immediately? a. Dependability b. Variability c. Flexible manufacturing d. Communication e. Lead time

e. Lead time

Coca Cola's basic strategy is they you should never be more than an arms length away from a cold, refreshing Coke. In order to achieve this strategy they try to make Coke products available for sale through as many outlets as possible. You can buy bottled Coke in the grocery store, fountain coke at a restaurant, single cans and bottles at convenience stores and gas stations, and individual cans from vending machines while you are waiting in line for a ride at an amusement park. Because the goal of the supply chain is to maximize __________, Coke is willing to bear the expense of having several different channels of distribution? a. Upstream activities b. Efficiency. c. Downstream activities. d. Variety e. Responsiveness

e. Responsiveness

A distributor is simply a wholesaler serving the B2B (business to business) market. True False

TRUE

Which of the following is NOT a cost typically associated with logistics? a. Advertising b. Transportation c. Inventory d. Order processing e. Stockout.

a. Advertising

Carlina operates a wholesale flower market serving florists in her city. She orders her roses from Ecuador because the quality is good and the prices are very competitive. Because the roses become unsalable after a day or two, Carlina uses _________ transportation for this part of her business? a. Air b. Pipeline c. Truck d. Water e. Rail

a. Air

Which of the following is NOT an example of an intermediary? a. Consumer b. Retailer c. Agent d. Broker e. Distributor

a. Consumer

The goal of a marketing channel is to? a. Create the most efficient way to move products from producer to consumer b. Create a network of suppliers, intermediaries and customers to support long-term sales of the product. c. Identify groups of people with needs that are similar to each other and different from everyone else d. Communicate with groups of people who are similar to each other and different from everyone else. e. Create economies of scale for the producer.

a. Create the most efficient way to move products from producer to consumer

A storage warehouse creates value by? a. Holding inventory closer to where customers are likely to use it b. Act as a transshipment point as products move from manufacturer to retailer c. A storage warehouse does all of these things d. Creating possession utility for producers e. Providing a place for last minute assembly

a. Holding inventory closer to where customers are likely to use it

Which of the following is NOT a reason a company might want to have more than one marketing channel? a. In order to earn back money that otherwise would have been earned by your retail network. b. To avoid becoming dependent on a single middleperson c. To serve customers in different industries. d. To provide local service to customers in different areas of the country. e. Because you sell the same product to two completely different customer groups

a. In order to earn back money that otherwise would have been earned by your retail network.

In a market with four producers and six retailers, the addition of a wholesaling middleman can decrease the number of transactions needed to have an efficient market form 24 to 10. This is an example of? a. The economy of transactions b. Disintermediation c. Selective distribution d. Disruptive innovations e. Economies of scale

a. The economy of transactions

The decision to hold inventory is critical to providing customer service through the supply chain. There are both costs and benefits. Which of these is NOT a benefit of holding inventory? a. To create possession utility for producers b. Serve as a buffer against supply interruptions c. Serve as a hedge against inflation for price-sensitive goods. d. Make it possible to save money buy buying in volume. e. To create time utility for customers

a. To create possession utility for producers

What is the difference between the supply chain and the value chain? a. Very little. The supply chain is the part of the value chain. b. The supply chain deals with the cost side of the product while the value chain deals with the revenue side of the product. c. Supply chain is a term used in marketing textbooks while value chain is a term used in Management textbooks. d. the supply chain refers to activities around the physical product while the value chain deals with information flows associated with distribution. e. The supply chain concept is used with tangible products while the value chain concept is used with services.

a. Very little. The supply chain is the part of the value chain.

Kendra runs a wholesale distribution center for candy. Each week she receives candy from all of the major manufacturers and repackages it so that a retailer can buy a case of candy bars and have some from every manufacturer in the case. Kendra is adding value by ___________? a. Grading b. Creating assortment c. Storing d. Transporting e. Disintermediating

b. Creating assortment

Wal-Mart's basic strategy is to provide products to customers at rock bottom prices. Thus their slogan, "Always Low Prices." In order to achieve this strategy, Wal-Mart's Supply chain is designed to maximize ___________? a. Variety b. Efficiency c. Downstream activities d. Responsiveness e. Upstream activities

b. Efficiency

BruceCo sells medical devices used in surgical operations. It requires a great deal of training to be able to use these medical devices properly and there is a potential liability to BruceCo if they are used improperly. Because each product has to be numbered and monitored for quality and sanitation, the products must be handled carefully and are expensive. Which of these market coverage strategies would be best for BruceCo? a. Selective distribution b. Exclusive distribution c. Excessive distribution d. Invasive distribution e. Intensive distribution

b. Exclusive distribution

The _________________ channel flow involves two-way communication between producer and consumer? a. Ownership b. Negotiation c. Ordering d. Promotion e. Risking

b. Negotiation

A marketing channel helps to create ______ utility? a. Image b. Place c. Electric d. Form e. Time

b. Place

Carlina operates a wholesale lumber business serving contractors in her Midwestern city. She takes orders from a central location and delivers the lumber and other building materials to the contractor's jobsite using her own trucks. She orders her lumber from a mill in Washington State. Because the lumber is bulky and she orders large quantities she uses _________ transportation to ship the lumber from Washington? a. Pipeline b. Rail c. Air d. Truck e. Water

b. Rail

One of the advantages of ____________ is that they can be moved from one platform to another without having been loaded or unloaded. Names such as piggyback, fishyback relate to the variety of transportation options? a. Trucks b. Shipping containers c. Conveyer belts d. Packages e. Forklifts

b. Shipping containers

Kendra runs a wholesale distribution center for candy. Each week she receives candy from all of the major manufacturers at her warehouse. She then puts cases of each brand of candy in her delivery trucks so that her drivers can visit her retail customers and resupply their candy racks. Kendra is adding value by ___________? a. Creating confusion. b. Transporting c. Grading. d. Storing e. Breaking bulk

b. Transporting

I can't believe it, said Wiley Coyote, I am the president of Acme enterprises and we make $200,000 a year profit with me working my tail off. Our distributor, Road Runner Representatives, made over $800,000 in commissions. I don't understand why they are making all of that money when all they do is run around all day and say beep-beep to customers. I think we should lower the commission rate to bring their income down to a more reasonable level. This is an example of? a. Horizontal conflict b. Vertical conflict c. A price war d. Suspended animation e. Vertical integration

b. Vertical conflict

Carlina operates a tofu making factory in Taiwan. She uses soybeans grown in Northwest Ohio for her tofu because they are very high quality and the prices are low. Soybeans will keep for a very long time without spoiling. Because her main concern is how to get the thousands of bushels of soybeans to her factory for the least cost, Carlina uses _________ transportation for this part of her business? a. Rail b. Water c. Truck d. Pipeline e. Air

b. Water

_____________ occurs when there is a clash of goals and methods between distribution channel members. a. Cognitive dissonance b. Whining c. Channel conflict d. Disintermediation e. Administered systems

c. Channel conflict

When I order a book from Amazon.com, an online marketplace, I receive an order confirmation that tells me when my package will leave the Amazon warehouse, the name of the shipper, and a link to the shipper's website that allows me to track the progress of my package from the warehouse to my home. This way I know exactly when to expect my package. This is an example of the use of ____________ to smooth the flow of goods and services through the channel of distribution? a. Permission b. Payment c. Information d. Intermediation. e. Warehousing

c. Information

A ________________ is all of the organizations and activities associated with moving the product from producer to end user? a. Sales organization b. Cartel c. Marketing Channel d. Business e. Market segment

c. Marketing Channel

Which of the following is NOT a cost typically associated with logistics? a. Materials handling b. Stockout c. Product development d. Order processing e. Storage

c. Product development

Which of these is NOT a tool used in materials handling? a. Conveyor belts b. Forklifts c. Safety stock d. Bar code scanners e. RFID (radio frequency identification)

c. Safety stock

The supply chain centers on the producer. Downstream activities consist of? a. Quality control and service monitoring after production begins b. The channel flows that deal with the physical product. c. The flow of finished product from the producer to the end user d. The flow of raw materials from the supplier to the producer e. Actions that will allow the company to exit from an unattractive market.

c. The flow of finished product from the producer to the end user

Carlina operates an automobile parts manufacturing plant in Chillicothe, Ohio. She has automotive customers in Michigan, Ohio, Tennessee, Georgia and Indiana. Because most of her customers insist on Just In Time inventory management she needs to know exactly when the shipments of her product to the customer will arrive. Carlina uses _________ transportation for this part of her business? a. Water b. Pipeline c. Truck d. Air e. Rail

c. Truck

BruceCo is an inventory liquidator. The company identifies other businesses that have huge amounts of unsold inventory and buys it from them at pennies on the dollar. They then try to find another company that can use the inventory and sell it to them at a profit. What makes this business so fun is that you never know from day to day what product you will be dealing in or who might be a prospective customer. What type of wholesaler would BruceCo be considered? a. A regional warehouse which keeps inventory nearer to the customer. b. A distributor who carries a variety of products and sells to a variety of customers. c. A manufacturer's representative to call manufacturing businesses send the orders into BruceCo. d. A broker who negotiates deals with any customer who wishes to purchase what BruceCo is trying to liquidate. e. A direct channel, selling to customers through a company website, charging $10 shipping and handling for ground delivery and $20 shipping and handling for rush delivery.

d. A broker who negotiates deals with any customer who wishes to purchase what BruceCo is trying to liquidate.

Which of these would be considered an indirect marketing channel? a. A producer, a wholesaler, and a retailer. b. A producer and a retailer c. A retailer and a customer d. A customer, a retailer, and a producer e. A producer and a customer

d. A customer, a retailer, and a producer

Which of the following is NOT an issue typically addressed in developing a channel strategy? a. Service level b. Market Coverage c. In-stock levels d. Advertising e. After-sale service

d. Advertising

The _______________ concept recognizes that there are a set of functions that need to happen in order to move a product from the producer to the consumer? a. Utility b. Four "P's" c. Value d. Channel flow e. Intermediary

d. Channel flow

Caterpillar makes heavy equipment for the construction industry. These machines are used hard and need fast reliable service to keep them running once a customer has purchased one. Because of this, there is only one Caterpillar dealer in any market. This is an example of __________ distribution? a. Intensive b. Heavy-duty c. Exhaustive d. Exclusive e. Selective

d. Exclusive

Thomasville furniture decided to reduce the number of dealers carrying its line fine furniture. Stores who wished to carry Thomasville were required to dedicate at least 10,000 square feet in their store for a Thomasville gallery. This meant that only the larger dealers in a given market would be able to carry Thomasville. This is an example of? a. Exhaustive b. Intensive c. Exclusive d. Selective e. Discriminating

d. Selective

When dealing with order processing, there is a trade-off between ____________ and ____________? a. Speed of delivery, cost b. Speed of delivery, damage c. Financial cost, risk-related costs d. Transaction costs, inventory levels e. Storage, distribution intensity

d. Transaction costs, inventory levels

BruceCo makes novelty products such as whoopee cushions and plastic vomit. The company sells about $2 million dollars worth of product. The major customers for BruceCo products are small independent novelty shops that will typically order less than $200 worth of product at a time. Which of these marketing channels would be the best for BruceCo to adopt? a. Set up a series of regional warehouses to keep inventory nearer to the customer. b. Work with a broker to negotiate deals with each of the novelty shops who wish to carry BruceCo products. c. Recruit junior high school students to demonstrate the product during lunch. d. Hire a manufacturer's representative to call on independent novelty shops and send the orders into the factory. e. Work with a distributor who carries a variety of products sold in novelty shops.

e. Work with a distributor who carries a variety of products sold in novelty shops