Question 1

Grayville Rock and Gravel,located in a seaport town,sells rock,gravel,and sand to local markets.It has just been awarded a contract with a company 500 miles down the coast.Management should consider switching from truck to ________ transport to save money.

Accepted Answer

A)  water
B)  railroads
C)  pipeline
D)  air
E)  none of the above A

Question 2

Explain channel power in a vertical marketing system.

Accepted Answer

One channel member owns the others,has contracts with them,or wields so much power that they must all cooperate.

Question 3

Rack jobbers are important to both the producers and the customers of bulky products such as coal,oil,or lumber.

Accepted Answer

A) True 
 B)False  False

Question 4

A restaurant that features a serve-yourself buffet,which eliminates the need for a full wait staff,is using disintermediation.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following should be the first step in distribution planning?

Accepted Answer

A)  identifying the channel leader
B)  determining a distribution budget
C)  developing distribution objectives
D)  evaluating the internal and external environments
E)  determining the desired level of distribution intensity

Question 6

Which of the following are manufacturer-owned facilities that do not carry inventory but provide selling functions for the manufacturer in a specific geographic area?

Accepted Answer

A)  commission merchandise marts
B)  merchandise brokerages
C)  sales offices
D)  sales branches
E)  manufacturers' showrooms

Question 7

Explain the concept of the supply chain.

Accepted Answer

The answer of Explain the concept of the supply chain....

Question 8

Burt can visit his local hardware store and buy one 4-inch paint brush and not the case of 24 brushes that the retailer had to buy.This is an example of how the channel of distribution facilitates ________.

Accepted Answer

A)  assortment creation
B)  risk taking
C)  breaking bulk
D)  relationship management
E)  logistics

Question 9

Which of the following is in place when a producer,dealer,wholesaler,retailer,or customer interacts with more than one type of channel?

Accepted Answer

A)  dual or multiple distribution system
B)  intermediation
C)  knowledge management
D)  supply chain management
E)  vertical marketing system

Question 10

The theft and unauthorized repurposing of intellectual material via the Internet is called ________.

Accepted Answer

A)  information logistics theft
B)  non-permission-based downloading
C)  online distribution piracy
D)  disintermediation
E)  taking title

Question 11

A supply chain relies on profitable relationships all along the way.How might Walmart rely on its marketing partners in order to offer low prices?

Accepted Answer

The answer of A supply chain relies on profitable relationships...

Question 12

Producers benefit from using intermediaries because they ________.

Accepted Answer

A)  offer greater efficiency in making goods available to target markets
B)  bring a fresh point of view to strategy development
C)  eliminate risk
D)  are rarely backlogged with orders
E)  will store products indefinitely

Question 13

Wholesalers and retailers create efficiencies in the flow of goods from producer to end consumer by ________ when they provide a variety of products in one location.

Accepted Answer

A)  creating assortments
B)  just in time processing
C)  third-party logistics
D)  order processing
E)  inventory control

Question 14

The owner of a grocery store wants to have non-food items delivered,priced,displayed,and inventoried by a wholesaler.Which type of wholesaler best fits the owner's needs?

Accepted Answer

A)  drop shipper
B)  cash-and-carry wholesaler
C)  truck jobber
D)  rack jobber
E)  mail-order wholesaler

Question 15

Which of the following is most likely exclusively distributed?

Accepted Answer

A)  BMW automobiles
B)  Diesel blue jeans
C)  Bazooka bubble gum
D)  Prairie Farms yogurt
E)  Coca-Cola beverages

Question 16

Through a process of ________,traditional intermediaries are being eliminated as many companies question the value added by layers in the distribution channel.

Accepted Answer

A)  knowledge management
B)  disintermediation
C)  horizontal marketing
D)  vertical marketing
E)  hybrid marketing

Question 17

What type of utility does warehousing provide to consumers by holding onto products until consumers need them?

Accepted Answer

A)  time
B)  ownership
C)  production
D)  form
E)  packaging

Question 18

Jewels for the Rich and Famous sells very exclusive jewelry with a minimum price of $25,000 to customers around the world.Speed of delivery to distant markets is a must.Management should use ________ as its main carrier.

Accepted Answer

A)  railroads
B)  air
C)  trucks
D)  water
E)  pipeline

Question 19

What types of products are exclusively distributed?

Accepted Answer

The answer of What types of products are exclusively distributed?...

Question 20

Which of the following is another name for the channel leader?

Accepted Answer

A)  materials expert
B)  distribution facilitator
C)  franchiser
D)  channel captain
E)  logistics leader

Exam 11: Deliver Value Through Supply Chain Management,channels of Distribution,and Logistics