Deck 16: Supply Chain and Channel Management

Question 1

Distribution centers are always operated by distribution specialists.

Answer 1

False

Question 2

A firm just starting out usually has the option of choosing from whom it buys and to whom it sells.

Answer 2

False

Question 3

A distribution center and a fulfillment center are one and the same.

Answer 3

False

Question 4

When manufacturers such as Pampered Chef sell directly to consumers,they perform both production and retailing activities.

Question 5

Conflicts within a supply chain tend to be more pronounced when the members are part of a corporate vertical marketing system.

Question 6

Quick response (QR)systems allow retailers to maximize their inventory holdings.

Question 7

Marketing channel relationships evolve when the parties have common goals.

Question 8

Radio frequency identification (RFID)tags automatically transmit information about a container's contents or individual products.

Question 9

In a direct marketing channel,there are no intermediaries between the buyer and the seller.

Question 10

In the four Ps of marketing,place refers to all the activities required to get the right products to the right customer when that customer wants it.

Question 11

Marketing channel management creates value by getting products to customers efficiently.

Question 12

Retailers generally have no prior knowledge of the merchandise they will be receiving from suppliers in any particular shipment.

Question 13

A marketing channel and a supply chain are virtually the same.

Question 14

The vertical marketing system that exhibits the most formalization and control is the corporate vertical marketing system.

Question 15

Universal product codes (UPCs)are used to describe products for inventory taxation purposes.

Question 16

The computer-to-computer exchange of business documents from a retailer to a vendor and back is referred to as vendor-managed inventory (VMI).

Question 17

Wholesalers are often used in an indirect marketing channel.

Question 18

When two competing retailers have a disagreement,it is an example of a horizontal channel conflict.

Question 19

Coercive power is based on getting a channel member to behave in a certain way because of a contractual agreement between the two firms.

Question 20

One reason retailers are reluctant to use distribution centers is that retail store space is typically much less expensive than space at a distribution center,so it is more cost-effective to store merchandise and get it ready for sale at the retail store rather than at a distribution center.

Question 21

Sophie made pies and sold them from her food truck to local businesses.This is an example of a(n)

A) direct marketing channel.
B) distribution center.
C) simplified transaction.
D) wholesale operation.
E) indirect marketing channel.

Question 22

A(n)_______ is used in the shipment of products directly to customers.

A) fulfillment center
B) distribution center
C) administration center
D) data warehouse
E) vendor warehouse

Question 23

Manufacturers use wholesalers and retailers because

A) they have no other choice.
B) they do not cost much.
C) they create value for customers through convenience and cost savings.
D) wholesalers control retailers.
E) most manufacturers are not familiar with logistics.

Question 24

Steven managed an auto parts store in the 1990s.At that time,stockouts-failure to have the parts auto mechanics needed to do their work that day-increased the likelihood of the mechanics becoming customers of competing auto supply stores.To avoid this problem and keep his business customers,Steven most likely

A) canceled orders and shifted the business to competitors.
B) increased promotional outlays to overcome customer dissatisfaction.
C) used exclusive geographic territories to reduce supply chain inefficiencies.
D) stockpiled inventory,adding to the cost of providing auto parts.
E) returned to traditional distribution center logistics.

Question 25

Trisha makes purses out of old blue jeans and sells them to customers at local craft fairs.What type of marketing channel does this represent?

A) indirect
B) vertical
C) horizontal
D) direct
E) simple

Question 26

A local furniture store buys furniture from various manufacturers and resells the furniture to its customers.What type of marketing channel does this represent?

A) horizontal
B) vertical
C) indirect
D) direct
E) simple

Question 27

A ________ is a facility for the receipt,storage,and redistribution of goods to company stores.

A) circulation center
B) distribution center
C) supply chain hub
D) collaborative replenishment office
E) floor-ready franchising center

Question 28

In a(n)_______ marketing channel,one or more intermediaries work with manufacturers to provide goods and services to customers.

A) indirect
B) vertical
C) horizontal
D) simple
E) direct

Question 29

Naomi knows she has to order her store's Christmas holiday merchandise in April to ensure delivery before the holiday season.Naomi is concerned with the supply chain management goal of

A) providing products at the right time.
B) providing products at the right locations.
C) providing the right quantities.
D) satisfying the service levels supply chain participants expect.
E) minimizing systemwide costs.

Question 30

Having no intermediaries between the buyer and seller is a defining characteristic of a(n)_______ marketing channel.

A) indirect
B) vertical
C) horizontal
D) simple
E) direct

Question 31

In marketing's four Ps,place refers to all activities required to get

A) the design of the terminal location for products accomplished.
B) the right products to the right customer when that customer wants it.
C) access to the physical space within a retail establishment.
D) consumers to the destination.
E) demand chain management functionally operable.

Question 32

Students of marketing often overlook or underestimate the importance of place in the marketing mix simply because

A) it happens behind the scenes.
B) it conflicts with promotion.
C) it occurs after making pricing decisions.
D) no one is directly in charge of place decisions.
E) the product itself is so much more important.

Question 33

When Costco sells to consumers directly,it acts as a _______; when it sells to other businesses,such as a restaurant owner,it acts as a _______.

A) wholesaler; retailer
B) retailer; manufacturer
C) retailer; wholesaler
D) manufacturer; wholesaler
E) marketing channel; supply channel

Question 34

When a customer purchases a DVD at a Best Buy Electronics store,all of the following information flows in the supply chain are started except

A) the sales associate scans the UPC recording the sale.
B) the sale is transmitted to Best Buy's distribution center to adjust inventory data.
C) the purchase is added to the customer's purchasing habit records.
D) Best Buy's buyer aggregates sales at all stores and uses the information to send a reorder to the manufacturer.
E) the point-of-sale terminal records the sale and sends it to Best Buy's buyer.

Question 35

In addition to merchandise and payments,information flows throughout a supply chain.Which of the following is not a good characterization of the flow of information in a supply chain?

A) A manufacturer will send and receive information from buyers,stores,and distribution centers.
B) Stores will send and receive information from manufacturers,buyers,distribution centers,and customers.
C) Distribution centers will send and receive information from stores and manufacturers.
D) Customers will send and receive information from stores and manufacturers.
E) Buyers will send and receive information from stores and manufacturers.

Question 36

Stores like Home Depot and Costco act as wholesalers when they

A) take delivery in whole-lot quantities.
B) sell directly to consumers.
C) sell products for distributors.
D) sell to contractors or restaurant owners.
E) compete with each other.

Question 37

Dawn works for a firm that buys products directly from the manufacturer and resells them to retailers,who then sell the products to consumers.Dawn works for a

A) retail distribution center.
B) retail jobber.
C) store representative.
D) wholesaler.
E) manufacturer's representative.

Question 38

Which element of the marketing mix specifically deals with supply chain management?

A) product
B) price
C) place
D) promotion
E) production

Question 39

A distribution center is typically operated by

A) the marketing department.
B) vertically integrated consumer networks.
C) retailers,manufacturers,or distribution specialists.
D) wholesalers.
E) electronic data interchange services.

Question 40

Typically,manufacturers and retailers exchange business documents through a(n)__________ system,the computer-to-computer exchange of business documents from a retailer to a vendor and back.

A) cross-docking exchange
B) electronic data interchange
C) vendor-managed inventory
D) vertical conflict reduction
E) radio frequency identification

Question 41

Each time a politician or celebrity writes a book,bookstores can expect at least some customers to want the book,but whether or not it will become a best seller is less certain.The bookstore's primary inventory management challenge is

A) how to get the author to sign copies of the book.
B) whether to price the books in the distribution center or at the retail store.
C) which other books to promote along with this book.
D) whether or not to display the book at the checkout counter.
E) having enough books to satisfy customer demands versus the cost of having the inventory.

Question 42

Which of the following is not an advantage of using a distribution center?

A) More accurate sales forecasts are possible.
B) Retailers need to keep less merchandise in the store as inventory if the stores get frequent deliveries.
C) It is easier to avoid running out of stock or having too much stock.
D) Use of a distribution center saves money since the storage space at a distribution center is generally less expensive than that of a store.
E) Customers know they are dealing with a more sophisticated and financially well-off operation if the firm uses a distribution center.

Question 43

_______ systems are designed to deliver smaller shipments of merchandise on a more frequent basis to retailers.

A) Cross-docking
B) UPC
C) Just-in-time (JIT)
D) Pick ticket
E) Lead time

Question 44

Which of the following is not one of the activities carried on in a distribution center?

A) coordinating inbound transportation
B) receiving,checking,storing,and cross-docking merchandise
C) distributing paychecks and paystubs for retail employees
D) getting merchandise floor ready
E) coordinating outbound transportation

Question 45

Merchandise that arrives in the delivery truck ready to be sold is considered

A) quick-response packaged.
B) ahead of the curve.
C) lead time synchronized.
D) floor-ready.
E) synthesized.

Question 46

__________ is when vendors ship merchandise prepackaged in the quantity required for each store to the distribution center.

A) Quick response
B) Checking
C) Combination warehousing
D) Cross-docking
E) Horizontal merchandising

Question 47

Getting merchandise floor-ready entails

A) distributing and dispatching.
B) ticketing and marking.
C) vertical supply chain wholesaling.
D) intensive cross-docking.
E) selective checking.

Question 48

Ted is glad his company finally converted to an RFID system.Now,he no longer needs to go through all the new goods to make sure what they ordered was what they received.Ted is responsible for __________ in his company.

A) checking
B) dispatching
C) receiving
D) JIT
E) quick response

Question 49

Radio frequency identification tags are

A) selective distribution designs used to maximize geographic efficiency.
B) electronic discount information tags used to provide reduced prices to select customers.
C) VMI demand scheduling data tags.
D) tiny computer chips that transmit information about a container's contents.
E) information tags used for floor-ready merchandising.

Question 50

In retailing,a just-in-time delivery system is called a _______ system.

A) cross-docking
B) quick response (QR)
C) UPC
D) EDI
E) lead time

Question 51

Because manufacturers with JIT systems produce merchandise closer to the time of sale,they can

A) organize cooperative agreements among competing manufacturers to reduce oversupply.
B) reduce inventories needed to satisfy retailers' demand.
C) use exclusive geographic territories to centralize production.
D) effectively eliminate the need for a dispatcher.
E) replace independent supply chains with corporate supply chains.

Question 52

At the BMW plant in Spartanburg,South Carolina,rather than use a typical order-to-delivery process,it has suppliers deliver parts every four hours when the plant is in operation.BMW uses a(n)______ inventory control system.

A) cross-docking
B) lead time
C) just-in-time (JIT)
D) pick ticket
E) UPC

Question 53

In vendor-managed inventory systems,

A) corporations send information to retail customers,bypassing wholesalers and retailers.
B) companies send information to cooperatives.
C) customers send information to retailers.
D) sales reps send sales information to the retailer.
E) retailers send sales information to the manufacturer.

Question 54

In a __________ distribution center,merchandise moves from vendors' trucks to retailers' delivery trucks in a matter of hours.

A) traditional
B) combination
C) cross-docking
D) vertical
E) horizontal

Question 55

Retailers often perform ticketing and marking functions in their distribution centers rather than in their retail stores because ticketing and marking is often

A) the responsibility of the dispatcher.
B) too complex for sales personnel to manage.
C) done in conjunction with supply chain promotional allowances.
D) the responsibility of the logistics department and not the marketing department.
E) inefficient and expensive.

Question 56

Roland has just received notification from a vendor that his clothing merchandise order has been processed and dispatched.Roland has just received a(n)

A) horizontal contractual notice.
B) vendor-managed inventory alert.
C) advanced shipping notice.
D) universal product code report.
E) EDI tag.

Question 57

Some retailers require their suppliers to ship merchandise ___________,thus eliminating the time and expense associated with ticketing and marking.

A) floor-ready
B) flattened
C) lead time synchronized
D) aggregated
E) synthesized

Question 58

Colin has just received a delivery from the company's distribution center.He opens the containers and finds the popcorn and snacks are all bar-coded and priced and the package includes an end-of-the-aisle display rack.Colin has received a(n)__________ shipment.

A) quick-response packaged
B) ahead of the curve
C) lead time synchronized
D) floor-ready
E) synthesized

Question 59

Flora is frustrated with her company's supply chain management information system.She wants to be able to receive sales data,initiate purchase orders,send and receive invoices,and receive returned merchandise documentation.Flora needs a(n)

A) cross-docking exchange.
B) electronic data interchange system.
C) vendor-managed inventory system.
D) vertical conflict reduction system.
E) radio frequency identification system.

Question 60

Today,when a customer orders merchandise from an online vendor,the vendor usually sends an immediate order confirmation message by e-mail.Usually within a day or two,a second message arrives stating that the order is in the mail.This second message is a type of

A) vertical contractual notice.
B) VMI requirement.
C) advanced shipping notice.
D) universal product code report.
E) RFID tag.

Question 61

In an administered vertical marketing system,

A) no individual participant has control over the others,since a third-party administrator oversees the entire supply chain.
B) independent firms at different levels of the marketing channel join through contracts to obtain economies of scale and coordination to reduce conflict.
C) there is no common ownership,and the dominant member has significant power to impose its ideas and objectives.
D) independent firms join together formally to decide as a group how the marketing channel will operate.
E) participants-such as warehouses,transportation companies,and retail outlets-are typically owned by a parent company to ensure harmonious relations throughout the supply chain.

Question 62

Especially in the fashion industry where styles and trends change rapidly,a quick response system can

A) allow retailers to better forecast long-term demand.
B) reduce logistical overlay.
C) increase cross-docking promotional effectiveness.
D) align deliveries more closely with actual sales.
E) allow manufacturers to introduce unpopular styles and still be successful.

Question 63

Yesterday,Lorinda overheard a surprisingly unpleasant encounter between the manager of the hardware store where she works and a sales rep who sells a well-known line of tools.The rep insisted that his tools should be more prominently displayed and that a better assortment would mean more sales.The manager had other plans and told him so,and the conversation turned into a loud argument.What Lorinda observed was an example of

A) sales tactics.
B) channel conflict.
C) retail strategy tension.
D) passive aggressive behavior.
E) a failure of EDI processes.

Question 64

Franchising involves a(n)__________ vertical marketing system.

A) cooperative
B) corporate
C) contractual
D) administered
E) conventional

Question 65

TT TOYS manufactures toys.The company recently started buying paint for its toys from a Chinese firm.This Chinese company is part of TT Toys'

A) supply chain.
B) corporate vertical marketing system.
C) distribution center.
D) CFPR.
E) voluntary chain.

Question 66

Felicia had just taken over her family's business after spending ten years in the marketing department of a large corporation.She met with a representative from one of her firm's biggest customers,who told her,"We should think about how we can make the pie bigger rather than fighting over the size of the slices." She had expected a more cutthroat approach rather than this call for a

A) partnering relationship.
B) shared mission statement.
C) common marketing system.
D) corporate vertical marketing system.
E) linked supply chain.

Question 67

In a(n)__________ marketing channel,none of the participants have any control over the others.

A) cooperative
B) corporate
C) contractual
D) administered
E) conventional

Question 68

_______ channel conflict occurs when there is disagreement or discord among members at the same level in a marketing channel,such as two competing retailers or two competing manufacturers.

A) Horizontal
B) Independent
C) Conventional
D) Coercive
E) Vertical

Question 69

Which of the following is not required to build a successful strategic relationship?

A) mutual trust
B) open communications
C) creation of a joint venture
D) common goals
E) credible commitments

Question 70

Marketing channels and supply chains comprise various buying entities that form relationships with one another.The basic motivating factor in these interactions is

A) collaboration creates transactional relationships.
B) the most powerful member of the supply chain always wins.
C) each party wants something from the others.
D) the participants must create the best possible EDI system.
E) retail floor salespeople need emotional support from management.

Question 71

_______ channel conflict occurs when members of the same marketing channel,for example,manufacturers,wholesalers,and retailers are in disagreement or discord.

A) Horizontal
B) Independent
C) Conventional
D) Coercive
E) Vertical

Question 72

Although conflict is likely to occur in any supply chain,it is generally more pronounced when

A) the supply chain members are geographically too close to each other.
B) manufacturers pressure retailers.
C) retailers pressure manufacturers.
D) the supply chain members are independent entities.
E) the economy is booming.

Question 73

A(n)__________ is the set of institutions that transfer the ownership of and move goods from the point of production to the point of consumption.

A) marketing channel
B) distribution center
C) logistics chain
D) strategic relationship
E) electronic data interchange

Question 74

The three types of vertical marketing systems are administered,contractual,and

A) cooperative.
B) corporate.
C) independent.
D) coercive.
E) conventional.

Question 75

If a firm declared that it wanted to develop a strategic relationship,but was unwilling to commit funds or any effort to make it succeed,there would be an obvious lack of

A) mutual trust.
B) common goals.
C) a contractual arrangement.
D) credible commitments.
E) open communication.

Question 76

In a vertical marketing system,if the system is _______,the less likely conflict will occur.

A) less formal
B) more independent
C) less independent
D) more conventional
E) more formal

Question 77

A(n)__________ is a supply chain whose members act like a unified system.

A) vertical marketing system
B) independent marketing system
C) concentrated marketing system
D) conventional marketing system
E) strategic marketing system

Question 78

Which of the following is a true statement about distribution centers?

A) They enable retailers to carry less merchandise in individual stores.
B) Distribution center space is typically more expensive than retail space.
C) They are appropriate for all retailers,from the largest to the smallest.
D) They are the quickest way to get all products to retailers.
E) They complicate the process of predicting accurate sales forecasts.

Question 79

In a corporate vertical marketing system,

A) conflict tends to be a major problem.
B) independent firms at different levels of the marketing channel join through contracts to obtain economies of scale and coordination to reduce conflict.
C) there is no common ownership,and the dominant member has significant power to impose its ideas and objectives.
D) independent firms join together formally to decide how the marketing channel will operate.
E) participants-such as warehouses,transportation companies,and retail outlets-are typically owned by a parent company to ensure harmonious relations throughout the supply chain.

Question 80

In a(n)__________ marketing channel,several independent members each attempt to satisfy their own objectives and maximize their profits,often at the expense of the other members.

A) cooperative
B) independent
C) contractual
D) administered
E) corporate