Question 1

Carrie is the marketing manager at University Sporting,where she works with many intermediaries to get University Sports teams their uniforms and equipment.She is trying to explain to her boss that they should be operating in a value network.Explain elements of a value network.

Accepted Answer

The answer of Carrie is the marketing manager at University...

Question 2

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

Accepted Answer

A restrictive agreement that prohibits intermediaries from selling competing products is known as an exclusive dealing contract. It is a type of vertical agreement where the supplier provides exclusivity to the intermediary in exchange for the intermediary handling only the supplier's products.

Question 3

In New York City it is common for independent retailers to band together to form retailer cooperatives (co-ops).Why are co-ops beneficial to the retailers?

Accepted Answer

The answer of In New York City it is common...

Question 4

________________ is a software application designed to integrate information related to logistics processes throughout the organization.

Accepted Answer

Enterprise Resource Planning Systems (ERP Systems) are specifically designed to integrate and manage information related to various processes and functions across an organization, including logistics processes. This integration ensures that all data related to logistics are captured, analyzed, and used effectively to optimize supply chain operations. Other options, such as outbound logistics systems, marketing information systems, AIMS, and Value Chain Supply Systems (VCSS), are not specifically designed to integrate logistics processes throughout the organization.

Question 5

Light-Tech creates highly technological lighting systems for theaters and entertainment venues.They have just hired a company to handle most of their supply-chain functions.Light-Tech is demonstrating which approach?

Accepted Answer

The answer of Light-Tech creates highly technological lighting systems for...

Question 6

Janice has a supplier that will sell her printers,but only if she agrees to buy the replacement ink cartridges from that supplier.This is demonstrating a(n)____________.

Accepted Answer

This scenario describes a tying contract, which is an agreement where the purchase of one product is conditioned on the purchase of another product from the same supplier. In this case, the supplier will only sell printers if Janice agrees to buy replacement ink cartridges from them.

Question 7

What are the differences between a direct and an indirect channel?

Accepted Answer

The answer of What are the differences between a direct...

Question 8

A(n)_______________ protects an intermediary from having to compete with others selling a producer's goods.

Accepted Answer

An exclusive territory protects an intermediary from having to compete with others selling a producer's goods in a particular geographical area.

Question 9

Mistakes easily occur at the ______________ step of moving through the supply chain.

Accepted Answer

Order processing is a critical step in supply chain management as mistakes made at this stage can lead to incorrect deliveries, delays, and increased costs. It involves receiving and processing orders from customers, transmitting them to the various supply chain partners, and scheduling and coordinating the delivery of goods or services. Errors in order processing can result in incorrect product quantity, wrong product delivery, or delayed due to backorders, which can negatively impact customer satisfaction and damage the company’s reputation.

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,a(n)______________ is in place.

Accepted Answer

This scenario describes a tying contract, where the seller requires the intermediary to purchase a supplementary product (the tie-in) in order to be able to purchase the primary product. This practice is often used to increase sales of less popular products or to discourage customers from buying from competitors.

Question 11

A franchise organization is an excellent example of which VMS? How do franchise organizations fall into this category?

Accepted Answer

The answer of A franchise organization is an excellent example...

Question 12

Explain why breaking bulk is an important function within the channel for retailers.

Accepted Answer

The answer of Explain why breaking bulk is an important...

Question 13

If the item is not in stock,referred to as a(n)______________,then inbound replenishment processes are triggered.

Accepted Answer

When an item is not in stock, it is referred to as a "stock out". This triggers the inbound replenishment processes to bring in more inventory to restock the shelves.

Question 14

George overheard two men at a business conference talking about the need for companies to be nimble these days.George does not quite understand what they meant by nimble.How would you explain it to him?

Accepted Answer

The answer of George overheard two men at a business...

Question 15

A manufacturer employing a pull strategy would engage in ____________.

Accepted Answer

A pull strategy aims to generate demand from the consumers and ultimately pull the products through the distribution channels. Consumer contests and advertising in mass media are effective methods to create consumer awareness, interest, and demand for the product, which will result in consumers seeking the product from the retailers. Therefore, both options A and B are correct. The other options, such as sales force contests or store displays, are more relevant to a push strategy where the manufacturer aims to push the products through the distribution channels by incentivizing the sales force or by improving product visibility at the point of purchase.

Question 16

You have always wanted to start a company selling golf clubs.You start to look at putting a business plan together and determining the best companies to use as manufacturers,transporters,retailers,etc.How could a channel of distribution help you?

Accepted Answer

The answer of You have always wanted to start a...

Question 17

Sylvia runs a successful sunglasses manufacturing company.Last year she started to purchase the companies that she bought her raw materials from,and this year she is looking to purchase both a transportation and warehousing company so that she can control her product from start to finish.What is Sylvia demonstrating?

Accepted Answer

The answer of Sylvia runs a successful sunglasses manufacturing company.Last...

Question 18

________________ deals with how to get goods back to a manufacturer or intermediary after purchase.

Accepted Answer

Reverse logistics specifically addresses the process of returning goods after purchase, whether to the manufacturer or an intermediary, for repairs, replacements, or refurbishing.

Question 19

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

Accepted Answer

The answer of To ensure that inventories of both raw...

Question 20

Jimmy is going to be taking over the family's manufacturing company.His father Riley is explaining why the family company does not have its own transportation and warehousing facilities.Why do you think Riley has made this decision?

Accepted Answer

The answer of Jimmy is going to be taking over...

Quiz 11: Managing Marketing Channels and the Supply Chain