Question 1

A firm that brings in outside companies to accomplish supply chain activities is using ________.

Accepted Answer

Outsourcing involves contracting with outside companies to perform specific tasks or supply chain activities that would otherwise be done in-house.

Question 2

Channel members can help producers by identifying customer complaints, customer preferences, and new competitors in the market.These are all examples of the ________ function of channel intermediaries.

Accepted Answer

The communication function of channel intermediaries involves the transmission of information between producers and customers, as well as identifying customer complaints, preferences, and market trends. The marketing function involves the promotion and sale of products, while the promotional function involves specific activities to promote products such as advertising or sales promotion. The transaction function involves the physical exchange of products or services, while the management function involves strategic planning and decision-making within a channel.

Question 3

Intermediaries that do business with many different manufacturers and many different customers are most accurately referred to as ________.

Accepted Answer

Independent intermediaries work with multiple manufacturers and multiple customers, but are not owned or controlled by any one manufacturer or customer. Wholesalers and retail outlets may fit this description, but not necessarily. Interdependent intermediaries and dependent intermediaries suggest a closer relationship with specific manufacturers or customers.

Question 4

At minimum, a channel of distribution consists of a producer and a(n) ________.

Accepted Answer

The minimum channel of distribution consists of a producer and a customer. A customer is necessary to purchase the product from the producer. The other options, such as a wholesaler, agent, broker, or intermediary, may be present in a more complex distribution channel, but they are not necessary for a basic channel.

Question 5

Which of the following is the series of firms or individuals that facilitate(s) the movement of a product from the producer to the final customers?

Accepted Answer

The channel of distribution is the series of firms or individuals that facilitate the movement of a product from the producer to the final customers. A, B, C, and E are not accurate descriptions of this concept.

Question 6

Producers benefit from using intermediaries because they ________.

Accepted Answer

Intermediaries such as wholesalers and retailers have developed efficient systems for distributing products to target markets. This allows producers to focus on production while the intermediaries handle the logistics of getting the products to the end customers.

Question 7

Functions provided by channel intermediaries that make the purchase process easier for customers and manufacturers are referred to as ________ functions.

Accepted Answer

Facilitating functions provided by channel intermediaries include activities such as financing, grading, and marketing research that make the purchase process easier for customers and manufacturers.

Question 8

Through the practice of insourcing, a company brings in an external company to run its ________.

Accepted Answer

Insourcing refers to the practice of bringing in external companies or contractors to handle an organization's essential operations rather than outsourcing them to a third party. Therefore, the best choice is C.

Question 9

Limited-service merchant wholesalers are less likely than full-service merchant wholesalers to do which of the following?

Accepted Answer

Limited-service merchant wholesalers typically do not offer marketing assistance, delivery, or use their own sales force as part of their services, unlike full-service merchant wholesalers who provide a complete range of services to their customers. However, they still take title to the merchandise they sell and may set prices for it. While they may incur some losses if the merchandise is damaged or stolen, the extent of these losses is likely to be lower as they do not provide additional services that could add to their costs.

Question 10

Offering credit to buyers and providing refund services for products are both examples of ________ functions provided by channel intermediaries.

Accepted Answer

Facilitating functions refer to services provided by channel intermediaries to facilitate the purchase and sale of products, such as offering credit to buyers and providing refund services for products. The other options (communication, marketing, promotional, and management) are all important functions provided by intermediaries, but they do not specifically refer to facilitating the purchase and sale of products.

Question 11

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

Accepted Answer

Online distribution piracy refers to the act of stealing and distributing intellectual property, such as music, software, or video content, without permission from the owner. This type of piracy is facilitated by the ease and anonymity of online sharing, and it can have significant financial consequences for content creators and distributors.

Question 12

Through ________, many companies today are strengthening their connections to all partners, from providers of raw materials to components to final products that are delivered to final buyers.

Accepted Answer

The sentence is describing the process of connecting with all partners, from raw material providers to final buyers, which is the essence of supply chain management.

Question 13

Which of the following describes a comprehensive approach to collecting, organizing, storing, and retrieving a firm's information assets?

Accepted Answer

Knowledge management is a comprehensive approach to collecting, organizing, storing, and retrieving a firm's information assets. It involves creating systems and processes to ensure that valuable knowledge and expertise are captured and shared throughout the organization. Logistics involves managing the flow of goods and materials, facilitation refers to the process of making something easier or smoother, enterprise resource planning is a software system for managing a company's resources, and just in time techniques are a method of production that reduces waste by only producing goods as they are needed.

Question 14

Which group of independent intermediaries can be divided into the two broad types of full-service and limited-service?

Accepted Answer

The answer of Which group of independent intermediaries can be...

Question 15

Wholesalers and retailers purchase large quantities of goods from manufacturers but sell only one or a few at a time to many different customers.This process is called ________.

Accepted Answer

Breaking bulk refers to the process of purchasing goods in large quantities and selling them in smaller quantities to many different customers. This is a common practice among wholesalers and retailers. The other choices (creating assortments, third-party logistics, order processing, and inventory control) do not accurately describe this process.

Question 16

When a company uses ________, it brings in an external company to run some of its essential operations.

Accepted Answer

The answer of When a company uses ________, it brings...

Question 17

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

Accepted Answer

Disintermediation is the process of eliminating traditional intermediaries in the distribution channel. This is often driven by companies questioning the value added by layers in the distribution channel and seeking more direct methods of reaching their customers.

Question 18

Which of the following includes all the activities necessary to convert raw materials into a good or service and put it in the hands of the consumer or business customer?

Accepted Answer

The answer of Which of the following includes all the...

Question 19

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

Wholesalers and retailers create efficiencies by creating assortments, which means they offer a selection of different products in one location for the convenience of the end consumer. This reduces the need for customers to visit multiple locations to find the products they need, which saves time and effort.

Question 20

Which of the following is the term for the firms and individuals who help move a product to the consumer or the business user?

Accepted Answer

Channel intermediaries are the firms and individuals who help move a product to the consumer or the business user. Third-party logistics providers, strategic allies, and enterprise resource planners are all different entities that may be involved in the distribution process, but they are not specifically defined as intermediaries. Channel leaders, on the other hand, refer to the most dominant firms in a distribution channel.

Quiz 12: Deliver the Value Through Supply Chain Management, Channels of Distribution, and Logistics