Question 1

Jeff Beauseigneur wants to open a convenience store in Kingsville. What kind of wholesaler should he Contact for the chewing gum, tobacco products, candy bars, and other snack foods he will sell in his Store?

Accepted Answer

A)  a desk jobber 
B)  a commission merchant 
C)  a truck jobber 
D)  a manufacturer's sales office 
E)  a broker

Question 2

A drop shipper will most likely be used by a producer-supplier that is marketing:

Accepted Answer

A)  bricks. 
B)  bookshelves. 
C)  leather boots. 
D)  rocking horses. 
E)  air deodorizers.

Question 3

CDW typically sells electronic equipment and has a $130 million inventory on hand at any time. CDW Has a 450,000-square-foot _____, which contains a fully integrated system for the flow of products- Taking orders, filling them, and preparing them for delivery to customers nationwide.

Accepted Answer

A)  public warehouse 
B)  distribution center 
C)  market warehouse 
D)  private warehouse 
E)  intermodal center

Question 4

Wholesaling includes:

Accepted Answer

A)  sales made by manufacturers to retailers. 
B)  sales made by wholesalers to retailers. 
C)  sales made by manufacturers to wholesaling middlemen. 
D)  sales made by retailers to other retailers. 
E)  all of the above.

Question 5

The main function of freight forwarders is to:

Accepted Answer

A)  consolidate less-than-carload and less-than-truckload quantities. 
B)  facilitate the movement of merchandise over international borders. 
C)  respond to their customers' less than optimal inventory conditions by immediate order fulfillment. 
D)  handle reverse logistics arrangements. 
E)  analyze its customers' materials handling system and offer advice on how to make it more efficient.

Question 6

Apparel manufacturers manage inventories that move from raw materials to subassemblies to finished Goods, and from suppliers to subcontractors to final assembly to warehouse to retail outlet. Apparel Manufacturers not only need to track each component and finished product alike, but also they must Know what is pre-sold, on backorder, shipped, available to ship, and in retail inventory. Meanwhile,Apparel manufacturers also want to be able to identify garments by name, descriptor, style, size, and color Variations. _____ would be an effective tool for managing this inventory.

Accepted Answer

A)  Just-in-time (JIT) 
B)  Collaborative planning, forecasting, and replenishment (CPFR) 
C)  Fulfillment centers 
D)  Inventory management cooperatives 
E)  Distribution centers

Question 7

Why is the total sales volume of wholesale trade always greater than the total volume of retail sales (even
Though retail prices are generally higher than wholesale prices)?

Accepted Answer

A)  Wholesalers typically handle larger-quantity sales. 
B)  Agent middlemen and manufacturers' sales offices do not take title to the products they sell. 
C)  Many products sold by retailers are purchased directly from the producer, thus bypassing wholesalers. 
D)  Wholesalers rarely sell at discounted prices. 
E)  Wholesaling establishments sell to businesses and to other wholesalers as well as to retailers.

Question 8

The order processing subsystem of physical distribution management includes:

Accepted Answer

A)  preparing invoices. 
B)  collecting past-due accounts. 
C)  granting credit. 
D)  filling orders. 
E)  all of the above activities.

Question 9

By its nature, fashion dictates that suppliers and retailers identify what's hot so it can be ordered quickly And what's not to avoid markdowns. Saks Fifth Avenue is one retailer that uses _____. All Saks stores Have a point-of-scale scanner system that record each day's sales. When inventory falls below a minimum Level, orders are placed with vendors of fashion merchandise.

Accepted Answer

A)  just-in-time (JIT) 
B)  collaborative planning, forecasting, and replenishment (CPFR) 
C)  fulfillment centers 
D)  inventory management cooperatives 
E)  JIT II systems

Question 10

The central idea of the _____ is that expected or actual purchases by final customers, those who intend to Consume the product, should activate a process to produce and deliver replacement items.

Accepted Answer

A)  JIT inventory system 
B)  EOQ inventory control system 
C)  EDI response system 
D)  market-response system 
E)  sales replenishment system

Question 11

The Manitoba Goatmilk Cooperative uses a _____ because it needs a temperature-controlled facility, and The cooperative only wants to pay for the space they use when they need it.

Accepted Answer

A)  refrigerated distribution center 
B)  containerized storage 
C)  private warehouse 
D)  public warehouse 
E)  materials handling storage

Question 12

Physical distribution:

Accepted Answer

A)  creates time and place utility. 
B)  is also called logistics. 
C)  deals only with tangible products. 
D)  consists of the activities involved with getting a product from the manufacturer to the customer's Location. 
E)  is accurately described by all of the above.

Question 13

By shipping carpeting from where it is made in north Georgia to building supply stores in Nebraska, Physical distribution managers create:

Accepted Answer

A)  form utility. 
B)  place utility. 
C)  fads. 
D)  seasonal responsiveness. 
E)  time utility.

Question 14

The Alabama Paper Company serves business customers throughout Alabama. It has a diverse product Line with over 5,000 different paper-related items. It performs a wide-range of services for its customers Including financing, risk taking, inventory management, and physical distribution. Alabama Paper is an
Example of a:

Accepted Answer

A)  manufacturer's sales branch. 
B)  middleman broker. 
C)  manufacturer's sales office. 
D)  product agent. 
E)  full-service wholesaler.

Question 15

A _____ _____ is a specialized marketing institution serving firms that ship in less-than-carload and less-than-truckload quantities.

Accepted Answer

The answer of A _____ _____ is a specialized marketing...

Question 16

Containerization:

Accepted Answer

A)  increases the cost of materials handling. 
B)  has no effect on pilferage. 
C)  is an inventory control system similar to JIT. 
D)  is most appropriate for products with seasonal rather than stable distribution patterns. 
E)  is described by none of the above.

Question 17

Which of the following statements about the economic justification for wholesaling is True?

Accepted Answer

A)  Wholesaling skills are provided by a relatively large number of organizations that sometimes duplicate
Each others' efforts. 
B)  Wholesaling does not create transaction economies. 
C)  Wholesalers can typically perform wholesaling functions more efficiently than most manufacturers
Can. 
D)  Manufacturers are more effective at performing many of the wholesaling tasks than wholesalers. 
E)  Wholesaling creates integrated marketing communications economies.

Question 18

Piggyback and fishyback services are examples of _____ transportation.

Accepted Answer

The answer of Piggyback and fishyback services are examples of...

Question 19

Which of the following manufacturers would be most likely to use a manufacturers' agent to distribute its Product?

Accepted Answer

A)  a well-established, international company 
B)  a large cereal manufacturer that has developed a new eggnog-flavored cereal 
C)  a well-established Southwestern firm that wants to expand its market area by making its products . available for the first time in New York and New Jersey 
D)  an international sporting goods manufacturer that wants to add a line of snow toboggans 
E)  a company that wants to introduce product line extensions to its current market

Question 20

In inventory control, the economic order quantity (EOQ):

Accepted Answer

A)  is usually less than the optimal order quantity. 
B)  minimizes fixed costs. 
C)  ensures a seller can fill all orders promptly. 
D)  ensures the seller will never run out of stock. 
E)  may be used to determine initial inventory requirements, but not reorders.

Exam 16: Wholesaling and Physical Distribution