Question 1

The 2002 strike by dockworkers at U.S.West Coast ports paralyzed transportation of goods across the Pacific Ocean and left manufacturers short of component parts and Asian importers with excess inventory.The strike created low _____ because the ships could not be unloaded even though water transportation is typically highest in this criterion.

Accepted Answer

A)  flexibility 
B)  relative cost 
C)  responsiveness 
D)  capability 
E)  accessibility

Question 2

SCENARIOS
R.H.Kurt & Son
R.H.Kurt & Son,Inc.,distributes rifles for both hunting and target shooting,rifle barrels,triggers,cleaning equipment,and reloading equipment to sporting equipment retailers and many large discount stores.It carries products from 41 different manufacturers.The manufacturers it carries are known for producing superior products and are leaders in their industries.In addition,Kurt is able to repair damaged rifles through its gunsmith service,which is available to all of its retailers.
-Refer to R.H.Kurt & Son.Its marketing channel is composed of:

Accepted Answer

A)  the distribution,objectives,strategies,and tactics used to move products from the manufacturer to the retailer 
B)  any organization that had a part in moving the product from the distributor to the retailer 
C)  the functions of transportation,storage,inventory control,materials handling,and order processing 
D)  the 41 different manufacturers,R.H.Kurt,the retailers it serves,and their customers 
E)  all organizations in the industry that make it possible for a consumer to buy his or her desired product

Question 3

An international consumer products manufacturer requires all of its suppliers to provide the lowest possible cost and to adhere to a just-in-time inventory system.Wholesalers and manufacturers generally yield to the authority of this large manufacturer.This consumer products manufacturer exercises channel power.

Accepted Answer

A) True 
 B)False

Question 4

Contract logistics allows companies to cut inventories,locate stock at fewer plants and distribution centers,and still provide the same service level or even better.

Accepted Answer

A) True 
 B)False

Question 5

Canesta Co.has developed a virtual keyboard out of light to be used with cell phones and personal digit assistants.The product beams an image of a keyboard on a desk,allowing the user to type on the image.The words are picked up by the user's digital device.When introduced to the market,the device will sell for less than $50.If in choosing its channel,Canesta is most concerned about its lack of financial,managerial,and marketing resources to support the product's introduction,then its choice of channels will largely be influenced by:

Accepted Answer

A)  factors of ownership 
B)  market factors 
C)  producer factors 
D)  product factors 
E)  internal environmental characteristics

Question 6

McKesson Corporation is a wholesale company that sells healthcare products to pharmacies,hospitals,rehabilitation centers,and nursing homes.This is an example of _____ distribution.

Accepted Answer

A)  intensive 
B)  multiple 
C)  selective 
D)  cumulative 
E)  aggregated

Question 7

The most typically used channel for industrial products is the _____ channel.

Accepted Answer

A)  direct 
B)  industrial distributor 
C)  wholesaler 
D)  retailer 
E)  extended

Question 8

Refer to Taco Bell.While the preparation of the vegetables used in the food is often performed in-house,Taco Bell has chosen to use:

Accepted Answer

A)  dependent materials handling 
B)  outsourcing 
C)  removing entry barriers 
D)  task deployment 
E)  job rotation

Question 9

What kind of inputs are used in distribution resource planning?

Accepted Answer

A)  sales forecasts 
B)  lead times 
C)  mode of transportation to be used 
D)  outstanding orders 
E)  all of the choices

Question 10

Companies that use supply chain management techniques typically also use a push promotional strategy.

Accepted Answer

A) True 
 B)False

Question 11

Canesta Co.has developed a virtual keyboard out of light to be used with cell phones and personal digit assistants.The product beams an image of a keyboard on a desk,allowing the user to type on the image.The words are picked up by the user's digital device.When introduced to the market,the device will sell for less than $50.If in choosing its channel,Canesta is most concerned about supplying the number of consumers who have expressed interest in such a device,then its choice of channels will largely be influenced by:

Accepted Answer

A)  exclusivity agreements 
B)  market factors 
C)  possession factors 
D)  product factors 
E)  internal environmental characteristics

Question 12

Refer to R.H.Kurt & Son.If Kurt wished to make sure its gunsmith service was profitable,it must consider:

Accepted Answer

A)  how it can minimize the time a customer must wait for his or her rifle to be repaired 
B)  how the opening of hunting season will affect demand for its services 
C)  how to maintain an adequate staff 
D)  whether to ship the repaired rifle to the customer or the retailer 
E)  must consider all of these options

Question 13

A manufacturer may only produce one product,yet additional products may be required to actually use the first product.This creates a:

Accepted Answer

A)  discrepancy of quantity 
B)  discrepancy of assortment 
C)  spatial discrepancy 
D)  temporal discrepancy 
E)  discrepancy of possession

Question 14

Horizontal conflict occurs among channel members on the same level,such as two or more different wholesalers or two or more different retailers that handle the same manufacturer's brands.

Accepted Answer

A) True 
 B)False

Question 15

Refer to R.H.Kurt & Son.Customers at retail stores only want one rifle or one scope.They do not want to buy in the quantities the manufacturers need to sell.This _____ is overcome by the marketing channels.

Accepted Answer

A)  discrepancy of quantity 
B)  spatial discrepancy 
C)  discrepancy of assortment 
D)  discrepancy of facilitation 
E)  discrepancy of possession

Question 16

Volvo,working with FedEx,set up a warehouse in Memphis with a complete stock of truck parts.A dealer needing a part for an emergency,phones a toll-free number,and the part is delivered by FedEx within 24 hours.This is an example of how manufacturers are using:

Accepted Answer

A)  outsourcing 
B)  cross-docking 
C)  disintermediation 
D)  piggybacking 
E)  an integrated demand channel

Question 17

Another name for just-in-time production (JIT)is:

Accepted Answer

A)  supply/demand reciprocity 
B)  lean production 
C)  outsourcing 
D)  mass customization 
E)  disintermediation

Question 18

Which of the following statements about merchant wholesalers is true?

Accepted Answer

A)  Products typically carried by merchant wholesalers are technically simple. 
B)  Customers of merchant wholesalers are typically concentrated. 
C)  The buyer is generally satisfied with a long lead time when the merchant wholesaler is acting as the facilitating intermediary. 
D)  Frequent ordering is commonplace with a merchant wholesaler. 
E)  Merchant wholesalers tend to carry products with low gross margin

Question 19

Companies wanting to sell to overseas markets are more likely to succeed with their own company-controlled sales force,rather than foreign intermediaries,when all of the following conditions are present EXCEPT:

Accepted Answer

A)  the product category is relatively mature and the products are standardized 
B)  few legal restrictions constrain direct foreign investment 
C)  close competitors have set up their own direct distribution channels 
D)  the foreign country's culture is very similar to the U.S.culture 
E)  the company already has experienced salespeople and an established distribution channel in the foreign country

Question 20

Marketing channels make distribution simpler by reducing the number of transactions required to get products from manufacturers to consumers.This is called:

Accepted Answer

A)  forward integration 
B)  contact efficiency 
C)  elimination of temporal discrepancies 
D)  sorting 
E)  reciprocity

Exam 12: Marketing Channels and Supply Chain Management

Contract logistics allows companies to cut inventories,locate stock at fewer plants and distribution centers,and still provide the same service level or even better.

McKesson Corporation is a wholesale company that sells healthcare products to pharmacies,hospitals,rehabilitation centers,and nursing homes.This is an example of _____ distribution.

The most typically used channel for industrial products is the _____ channel.

Refer to Taco Bell.While the preparation of the vegetables used in the food is often performed in-house,Taco Bell has chosen to use:

What kind of inputs are used in distribution resource planning?

Companies that use supply chain management techniques typically also use a push promotional strategy.

Refer to R.H.Kurt & Son.If Kurt wished to make sure its gunsmith service was profitable,it must consider:

A manufacturer may only produce one product,yet additional products may be required to actually use the first product.This creates a:

Horizontal conflict occurs among channel members on the same level,such as two or more different wholesalers or two or more different retailers that handle the same manufacturer's brands.

Refer to R.H.Kurt & Son.Customers at retail stores only want one rifle or one scope.They do not want to buy in the quantities the manufacturers need to sell.This _____ is overcome by the marketing channels.

Volvo,working with FedEx,set up a warehouse in Memphis with a complete stock of truck parts.A dealer needing a part for an emergency,phones a toll-free number,and the part is delivered by FedEx within 24 hours.This is an example of how manufacturers are using:

Another name for just-in-time production (JIT) is:

Which of the following statements about merchant wholesalers is true?

Companies wanting to sell to overseas markets are more likely to succeed with their own company-controlled sales force,rather than foreign intermediaries,when all of the following conditions are present EXCEPT:

Marketing channels make distribution simpler by reducing the number of transactions required to get products from manufacturers to consumers.This is called: