Exam 11: Marketing Channels and Supply Chain Management

The manager of each physical distribution function attempts to minimize costs.However, due to the impact of one physical distribution task on the other, he/she obtains less than optimal results.What is this condition called?

What is managing warehouse and storage facilities a part of?

Manufacturers of products that experience heavy volumes of repeat purchases find intermediaries to be less expensive, less time consuming, and more efficient.

Nor-for-profit organizations tend to distribute their products through long, multi-level channels using wholesalers as intermediaries.

Identify and discuss in detail the major transportation alternatives.

The components of physical distribution are interrelated, with a weakness in one area supported by other areas without much stress on the process.

Distribution channels perform four main functions: facilitate exchange, sort products based on demand, standardize exchange transactions, and facilitate buyer/seller product and information searches.

What is the rate given by carriers to shippers as a reward either for regular use or for large-quantity shipments called?

Customer-service standards set goals and define acceptable performance for the quality of service that a firm expects to deliver to its customers.The designers of the physical distribution systems must then try to attain these goals for the lowest possible cost.

What is the air freight industry currently facing?

One of the reasons that reverse channels are becoming more important is because of environmental concerns and regulations.

What is the MOST effective means of transporting products such as natural gas and crude oil?

An example of vertical conflict within the clothing industry would be when a firm such as Jones New York decides to sell its line of women's blazers direct to retailers, as opposed to distributing them via its usual wholesale channels.

Who is the dominant and controlling member of a marketing channel?

Roots produces a line of casual clothing and accessories, which it sells exclusively through its own retail stores.This is an example of forward integration of distribution channels.

In which of the following decision areas does physical distribution NOT extend beyond transportation?

Franchising agreements are a contractual horizontal marketing system.

Exclusive-dealing agreements violate the Competition Act if used by firms with a sizable market share seeking to bar competitors from the market.

In transportation, the class rate is the standard, undiscounted rate for a specific commodity moving between any two points.

What does the supply chain begin with?