Question 1

A part of ERP, ________, guides overall management of the inbound materials from suppliers to facilitate minimal production delays.

Accepted Answer

Materials requirement planning (MRP) is a component of ERP that helps in managing the inbound materials from suppliers to meet production demands and minimize production delays. MRP system identifies the inventory requirements, schedules replenishment orders, and tracks the movement of materials to ensure timely delivery of materials. It helps businesses to optimize their inventory levels, reduce material waste, and improve overall production efficiency.

Question 2

Websites where customers come to engage with other customers, the sponsoring firm, and others in the ecosystem to share ideas and collaborate on topics of mutual interest are called ________.

Accepted Answer

Customer communities are websites or online platforms where customers come together to engage with each other, the sponsoring firm, and others in the ecosystem to share ideas and collaborate on topics of mutual interest. These communities can help businesses foster stronger relationships with their customers, gain insights into their needs and preferences, and generate ideas for new products or services.

Question 3

________ logistics is the process that starts with production and ends with the delivery of a final product.

Accepted Answer

Outbound logistics refers to the movement of goods from production to the end customer. Therefore, it starts with production and ends with the delivery of a final product.

Question 4

A manufacturer employing a pull strategy would engage in ________.

Accepted Answer

A pull strategy involves creating demand for a product among consumers who then request the product from retailers or intermediaries. Advertising in mass media is a key component of a pull strategy as it aims to generate consumer demand and pull the product through the distribution channel. Offering discounts, investing in intermediaries, paying slotting allowances, and offering shelf fees are all examples of a push strategy, where the manufacturer pushes the product through the distribution channel to the end consumer.

Question 5

A manufacturer employing a(n) ________ strategy focuses much of its promotional investment on the end-user consumer.

Accepted Answer

A manufacturer employing a pull strategy focuses on creating demand among end-users, who then demand the product from retailers, who then demand the product from the manufacturer. This involves a strong promotional investment aimed at attracting the attention and interest of end-users, such as advertising or social media campaigns. The opposite, a push strategy, focuses on promoting a product directly to retailers or wholesalers, who then push the product onto their customers. Selective or limited distribution refers to limiting the number of retailers or distributors who carry a product, while exclusive distribution refers to granting exclusive rights to sell the product to one retailer or distributor.

Question 6

________ is the fastest-growing retail format.

Accepted Answer

Electronic retailing, also known as e-commerce or online shopping, has been the fastest-growing retail format in recent years due to the increasing use and availability of technology and mobile devices, along with the convenience and ease of online shopping.

Question 7

________ is the point of contact in the supply chain with the consumer of the product.

Accepted Answer

Retailing is the point of contact in the supply chain with the consumer of the product. It involves the sale of products or services directly to end-users or consumers for personal or household use. Retailers typically purchase products from wholesalers or manufacturers and then sell them to consumers for a profit. They are responsible for creating a positive shopping experience for consumers, including the selection of products, pricing, merchandising, and customer service.

Question 8

Venus Office Supplies offers customers a $0.50 coupon for turning in their empty printer cartridges. Venus collects the cartridges and then returns them to the producer for recycling. This is an example of ________.

Accepted Answer

This is an example of reverse logistics, as it involves the collection and return of used products for recycling or disposal rather than the traditional flow of products from producer to consumer.

Question 9

________ is any business activity that creates value in the delivery of goods and services to consumers for their personal, nonbusiness consumption.

Accepted Answer

Retailing is the only choice that fits the definition provided, which pertains specifically to the delivery of goods and services to individual consumers. Distribution, wholesaling, stocking, and merchandising all describe activities beyond this scope.

Question 10

If a seller requires an intermediary to purchase a supplementary product to qualify to purchase the primary product the intermediary wishes to buy, it results in ________.

Accepted Answer

The situation described in the question is an example of a tying contract. In a tying contract, a seller forces a buyer to purchase a product or service that they do not want in order to be able to purchase the product or service that they do want. This can be anti-competitive and is illegal in certain situations.

Question 11

Explain the difference between merchant and agent intermediaries.

Accepted Answer

The answer of Explain the difference between merchant and agent...

Question 12

Explain the important aspects of a value network.

Accepted Answer

The answer of Explain the important aspects of a value...

Question 13

When a supplier creates a restrictive agreement that prohibits intermediaries that handle its product from selling competing firms' products, ________ has occurred.

Accepted Answer

Exclusive dealing refers to a type of restrictive agreement in which a supplier prohibits intermediaries from selling competing firms' products. This allows the supplier to maintain control over the distribution and sale of its product.

Question 14

Logistics and other processes are managed using sophisticated and integrated ________.

Accepted Answer

Logistics and other processes are managed using sophisticated and integrated enterprise resource planning systems which provide end-to-end visibility, real-time monitoring and control, automation, and efficient communication across departments and with external partners. Partner relationships management strategies, total quality management strategies, vertical marketing systems, and integrated contractual systems may also play a role in logistics management, but are not specifically designed to manage logistics and other processes as comprehensively as enterprise resource planning systems.

Question 15

When an item is not in stock, it is called ________. In this case, inbound replenishment processes are triggered.

Accepted Answer

When an item is not in stock, it is called a stock-out. This triggers inbound replenishment processes to replenish the stock.

Question 16

Channel intermediaries enhance utilities by providing a wide array of specific functions. Their contributions can be classified into physical distribution functions, transaction and communication functions, and facilitating functions. Give an example of an activity under each of these functions and explain its importance in the value chain.

Accepted Answer

The answer of Channel intermediaries enhance utilities by providing a...

Question 17

A stationary store offers a 5 percent discount on pens and pencils to students if they agree to purchase all the books needed for the academic year from the store. This is an example of a(n) ________.

Accepted Answer

This is an example of a tying contract, where the discount on pens and pencils is tied to the purchase of all the books needed for the academic year from the store.

Question 18

NextGen Electronix Inc. is a wholesaler of electronic goods in the city of Erbia. The company sells goods manufactured by CellDer Inc. The wholesaler enjoys monopoly because it is the only intermediary selling those products in the city. This is an example of a(n) ________.

Accepted Answer

This is an example of an exclusive territory, where NextGen Electronix Inc. is the only wholesaler allowed to sell CellDer Inc.'s products in the city of Erbia, giving them a monopoly in that region.

Question 19

To ensure that inventories of both raw materials and finished goods are sufficient to meet customer demand without undue delay, firms utilize sophisticated ________.

Accepted Answer

Just-in-time (JIT) inventory control systems are designed to ensure that inventories of both raw materials and finished goods are sufficient to meet customer demand without undue delay.

Question 20

________ refers to sourcing materials and knowledge inputs from external suppliers to the point at which production begins.

Accepted Answer

Inbound logistics refers to the process of sourcing materials and knowledge inputs from external suppliers to the point at which production begins.

Quiz 12: Manage Marketing Channels, Logistics, and Supply Chain