Question 1

A facility for the receipt, storage, and redistribution of goods to company stores or customers that may be operated by retailers, manufacturers, or distribution specialists is called a:

Accepted Answer

A distribution centre is specifically designed to receive, store, and redistribute goods to company stores or customers. Retailers, manufacturers, or distribution specialists may operate such facilities. A procurement centre typically focuses on purchasing goods and services, while a processing centre is designed for production or assembly of goods. A supply network refers to the entire system of suppliers, manufacturers, distributors, and retailers that work together to deliver products to customers. A warehouse is a more general term that can encompass any facility for storing goods.

Question 2

An electronic document that a supplier sends a retailer before a shipment to tell the retailer exactly what to expect in the shipment is called a(n):

Accepted Answer

An advanced shipping notice (ASN) is a document that includes information about the contents of a shipment, such as the products being shipped, their quantities, and any special handling requirements. This document is typically sent by a supplier to a retailer prior to the shipment being sent, so that the retailer can prepare for its arrival and ensure that they have the necessary space and resources to accept the shipment.

Question 3

A supply chain system in which there is no common ownership and no contractual relationships, but the dominant channel member controls the channel relationship is referred to as a(n)_____ vertical marketing system.

Accepted Answer

An administered vertical marketing system is characterized by a dominant player who controls the channel relationship without any contractual agreements or common ownership. The other channel members may cooperate with the dominant player but are not bound by any formal agreements. This type of system is also known as a power-based or leader-dominated system.

Question 4

Canmart is the largest retailer in Canada.The firm, because of its large scale of operation, has absolute control over the elements in its supply chain, including distributors and retailers.This is an example of a(n)_____ marketing system.

Accepted Answer

A corporate vertical marketing system is a type of vertical marketing system where a single firm has complete control over its supply chain. Canmart, being the largest retailer in Canada, has the power to control its distributors and retailers. This indicates the system is corporate vertical marketing.

Question 5

Which of the following combines the entrepreneurial advantages of owning a business with the efficiencies of vertical marketing systems that function under single ownership?

Accepted Answer

A franchise system allows entrepreneurs (franchisees) to own and operate their own business while benefiting from the marketing and operational support of a larger network (franchisor). This creates efficiencies similar to a vertical marketing system under single ownership while still allowing for entrepreneurial advantages.

Question 6

In a conventional distribution channel, relationships between members often are based on the argument over the:

Accepted Answer

The split of the profit pie is often a contentious issue in conventional distribution channels, as each member wants to maximize their own profits. This can lead to arguments and difficulties in maintaining positive relationships between members.

Question 7

The black and white bar code found on most merchandise is called a(n):

Accepted Answer

The black and white bar code found on most merchandise is called a universal product code (UPC).

Question 8

The computer-to-computer transfer of business documents from a retailer to a vendor and back is called a(n):

Accepted Answer

Electronic data interchange (EDI) is a computer-to-computer exchange of business documents such as purchase orders, invoices, and shipment notices between trading partners. It eliminates the need for paper documents and manual data entry, improving efficiency and reducing errors. Quick-response systems, just-in-time transfers, and enterprise resource systems are all related to supply chain management but do not specifically refer to the transfer of business documents. Data warehouses are used for storing large amounts of data for analysis and decision-making.

Question 9

A contractual agreement between two firms that allows one of the firms to operate a retail outlet, using a name and format developed and supported by the other firm, is called:

Accepted Answer

Franchising is a contractual agreement between two firms, where one firm (franchisee) is allowed to operate a retail outlet using the name and format developed and supported by the other firm (franchisor). The franchisee pays a fee to the franchisor for the right to use their brand and business model, and in return, the franchisor provides training, support, and ongoing assistance to the franchisee.

Question 10

A supply chain relationship in which members are committed to maintaining long-term interactions and investing in mutually beneficial opportunities is referred to as a(n)_____ relationship.

Accepted Answer

A strategic relationship in a supply chain involves a long-term commitment between the members. The members invest time, effort and resources in mutually beneficial opportunities to ensure that the relationship endures time. This relationship goes beyond just transactional benefits, but it mainly focuses on mutual collaboration and sharing of information, resources, and risks, among others, to achieve a common goal.

Question 11

Which of the following statements about strategic relationships is true?

Accepted Answer

Strategic relationships are formed with the intention of taking advantage of joint opportunities, and involve a high level of commitment and trust between partners. Supply chain members may need to have some shared goals or values in order for the relationship to be successful.

Question 12

Conflicts in a distribution channel are generally more pronounced when:

Accepted Answer

Conflicts in distribution channels are more pronounced when the channel members are independent entities because their goals, strategies, and operations may not always align, leading to disagreements and conflicts over priorities, practices, and profits.

Question 13

Green Constructions is a leading name in the construction business and is the major client for a new steel manufacturing unit, Mansion Steels.However, Green Constructions, being the dominant channel member, has total control over the relationship.This is an example of a(n)_____ vertical marketing system.

Accepted Answer

In an administered vertical marketing system, one member of the channel drives the relationship and exercises total control over the others. This is exactly the scenario described in the question, where Green Constructions is the dominant member and has total control over the relationship with Mansion Steels. Independent, franchised, and contractual vertical marketing systems all involve more equal partnerships between members of the channel, while a corporate system involves a single entity owning all the different levels of the channel.

Question 14

A system in which independent firms at different levels of the supply chain join together through agreements to obtain economies of scale and co-ordination and to reduce conflict is referred to as a(n)_____ vertical marketing system.

Accepted Answer

This type of system is referred to as a contractual vertical marketing system, where independent firms join together through contracts to achieve common goals such as cost reduction and coordination. The other options do not accurately describe this type of system. Administered vertical marketing systems involve dominant firms coordinating activities with others in the supply chain, while corporate vertical marketing systems involve a single firm owning multiple levels of the supply chain. Parental and member control systems are not commonly used terms in marketing.

Question 15

RFX Cycles is a manufacturer of bicycles.The firm is the only manufacturer of cycles in the country and controls and imposes terms on all its supply chain partners although it has no legal obligations.This is an example of a(n)_____ vertical marketing system.

Accepted Answer

This is an example of an administered vertical marketing system since RFX Cycles maintains control over its supply chain partners without any contractual obligations.

Question 16

DX Motors has established legal relationships with its suppliers and distributors in such a way as to establish overall economies of scale and to reduce conflict.This is an example of a(n)_____ vertical marketing system.

Accepted Answer

A contractual vertical marketing system involves independent firms at different levels of production and distribution who join together through contracts to obtain more economies of scale and reduce conflict. In this case, DX Motors has established legal relationships with its suppliers and distributors through contracts.

Question 17

A company with a corporate vertical marketing system is most likely to:

Accepted Answer

A corporate vertical marketing system is a combination of successive stages of production and distribution under a single ownership or management. This means that the company owns facilities such as manufacturing plants, warehouse facilities, and retail outlets, giving it complete control over the supply chain.

Question 18

A system in which the parent company has complete control and can dictate the priorities and objectives of the supply chain is referred to as a(n)_____ vertical marketing system.

Accepted Answer

A corporate vertical marketing system is characterized by complete control by the parent company over the supply chain, including setting priorities and objectives. The other options do not involve the same level of control by the parent company. Administered systems involve coordination rather than control, co-ordinative systems involve collaboration between different members of the supply chain, contractual systems involve formal agreements among different members, and member control systems give equal power to each member of the supply chain.

Question 19

Which of the following is one of the important factors for successful strategic relationships?

Accepted Answer

Mutual trust is one of the most important factors for successful strategic relationships as it builds a strong foundation for open communication, collaboration, and problem-solving. Closed communication, varied goals, intangible investments, and exclusive distribution can all hinder the success of strategic relationships.

Question 20

Successful strategic relationships require all the followings, EXCEPT:

Accepted Answer

Successful strategic relationships require open communication, common goals, mutual trust, and credible commitments. However, mutual contracts are not always necessary for successful strategic relationships, as they can be established through a variety of means such as formal or informal agreements or understandings.

Quiz 12: Distribution Channels

A facility for the receipt, storage, and redistribution of goods to company stores or customers that may be operated by retailers, manufacturers, or distribution specialists is called a:

An electronic document that a supplier sends a retailer before a shipment to tell the retailer exactly what to expect in the shipment is called a(n) :

A supply chain system in which there is no common ownership and no contractual relationships, but the dominant channel member controls the channel relationship is referred to as a(n) _____ vertical marketing system.

Canmart is the largest retailer in Canada.The firm, because of its large scale of operation, has absolute control over the elements in its supply chain, including distributors and retailers.This is an example of a(n) _____ marketing system.

Which of the following combines the entrepreneurial advantages of owning a business with the efficiencies of vertical marketing systems that function under single ownership?

In a conventional distribution channel, relationships between members often are based on the argument over the:

The black and white bar code found on most merchandise is called a(n) :

The computer-to-computer transfer of business documents from a retailer to a vendor and back is called a(n) :

A contractual agreement between two firms that allows one of the firms to operate a retail outlet, using a name and format developed and supported by the other firm, is called:

A supply chain relationship in which members are committed to maintaining long-term interactions and investing in mutually beneficial opportunities is referred to as a(n) _____ relationship.

Which of the following statements about strategic relationships is true?

Conflicts in a distribution channel are generally more pronounced when:

A system in which independent firms at different levels of the supply chain join together through agreements to obtain economies of scale and co-ordination and to reduce conflict is referred to as a(n) _____ vertical marketing system.

RFX Cycles is a manufacturer of bicycles.The firm is the only manufacturer of cycles in the country and controls and imposes terms on all its supply chain partners although it has no legal obligations.This is an example of a(n) _____ vertical marketing system.

DX Motors has established legal relationships with its suppliers and distributors in such a way as to establish overall economies of scale and to reduce conflict.This is an example of a(n) _____ vertical marketing system.

A company with a corporate vertical marketing system is most likely to:

A system in which the parent company has complete control and can dictate the priorities and objectives of the supply chain is referred to as a(n) _____ vertical marketing system.

Which of the following is one of the important factors for successful strategic relationships?

Successful strategic relationships require all the followings, EXCEPT: