Exam 14: B Supply Chain Management and Marketing Channels

Some marketing channels are organized and controlled by a single leader.

Convenience products usually are distributed intensively because sales of these products tend to have a direct relationship to availability.

Unit loading is grouping one or more boxes on a skid.

Pipelines are not one of the major transportation modes for moving goods between cities in the United States.

Safety stock helps protect an organization against stockouts.

Long-term commitments usually characterize the relationships among channel members.

Distribution decisions have little influence on the rest of the marketing mix.

When higher-priced or technically complex business products are involved,business buyers prefer to deal directly with producers rather than through intermediaries.

Middlemen bridge the gap between suppliers (or producers)and buyers (or consumers).

Drawing together the processes and functions of two or more stages of the channel under one management is horizontal integration.

Inventory management involves developing and maintaining adequate assortments of products to meet customers' needs.

Channel power is an ability related to influence over valued goals of other channel members.

Whereas the marketing channel is a group of interrelated organizations that directs products to customers,physical distribution deals with physical movement and storage of products both within and among intermediaries.

The reorder point can be calculated by multiplying the usage rate by the order lead time.

The exposure of the channel in terms of the number and kinds of outlets is influenced by the sellers' characteristics.

Place utility is created by the customer having access to the product to use or store for future use.

Refusal-to-deal arrangements involve a manufacturer that forbids an intermediary to carry products of competing manufacturers.

It is usually easier to change marketing channels than to change prices or promotion.

Materials handling is important in efficient warehouse operations but has little to do with customers' ultimate satisfaction with a product.

Agents are seldom used in channels for consumer products.