Question 1

Which of the following are manufacturer- owned facilities that do NOT carry inventory but provide selling functions for the manufacturer in a specific geographic area?
A)manufacturers' showrooms
B)sales branches
C)commission merchandise marts
D)merchandise brokerages
E)sales offices

Accepted Answer

Sales offices are manufacturer-owned facilities that do not carry inventory but focus on selling functions in a specific geographic area.

Question 2

Burt can visit his local hardware store and buy one 4- inch paint brush and not the case of twenty- four that the retailer had to buy.This is an example of how the channel of distribution facilitates .
A)logistics
B)breaking bulk
C)assortment creation
D)relationship management
E)risk taking

Accepted Answer

Breaking bulk refers to the process of dividing larger quantities of goods into smaller, more manageable quantities for sale to consumers, allowing individuals like Burt to purchase a single item rather than a whole case.

Question 3

You own an independent store in your neighborhood and like to offer fresh seafood in your meat display case.Which type of wholesaler is likely to best serve you?
A)drop shipper
B)commission merchant
C)rack jobber
D)selling agent
E)cash- and- carry wholesaler

Accepted Answer

A cash-and-carry wholesaler is best suited for independent store owners as they offer a wide range of products, including fresh seafood, at competitive prices. They allow retailers to purchase goods in bulk and transport them themselves, which is ideal for small businesses looking to manage costs and inventory efficiently.

Question 4

A corporate VMS has the advantage of controlling the entire distribution chain under .
A)contractual agreements
B)mass distribution
C)a profit- maximizing strategic plan
D)single ownership
E)a limited number of intermediaries

Accepted Answer

A corporate VMS (Vertical Marketing System) controls the entire distribution chain under single ownership, allowing for streamlined operations and unified decision-making.

Question 5

A new company called LidRock is prospering because it figured out a novel way to get music,video games,and movies into the hand of consumers: on mini- CDs tucked into the lids of soft drinks.LidRock is focusing on which one of the four Ps?
A)product
B)price
C)promotion
D)packaging
E)place

Accepted Answer

The answer of A new company called LidRock is prospering...

Question 6

Through a process of ,traditional intermediaries are being eliminated as many companies question the value added by layers in the distribution channel.
A)horizontal marketing
B)hybrid marketing
C)disintermediation
D)vertical marketing
E)knowledge management

Accepted Answer

Disintermediation refers to the removal of intermediaries in a supply chain, or "cutting out the middlemen," as companies seek to reduce costs and improve efficiency by dealing directly with customers or suppliers.

Question 7

Which of the following are manufacturer- owned facilities that carry inventory and provide sales and services to customers?
A)manufacturers' showrooms
B)merchandise brokerages
C)sales offices
D)sales branches
E)manufacturers' offices

Accepted Answer

Manufacturers' sales branches are manufacturer-owned facilities that carry inventory and provide sales and services to customers.

Question 8

Primary activities in the general value chain include all of the following EXCEPT which one?
A)procurement
B)operations
C)outbound logistics
D)inbound logistics
E)service

Accepted Answer

Procurement is considered a support activity in the value chain, not a primary activity. Primary activities include operations, outbound logistics, inbound logistics, and service.

Question 9

The owner of a neighborhood grocery store wants to have non- food items delivered,priced,displayed and inventoried by a wholesaler.Which type of wholesaler best fits the owner's needs?
A)cash- and- carry wholesaler
B)truck jobber
C)rack jobber
D)drop shipper
E)mail- order wholesaler

Accepted Answer

A rack jobber specializes in delivering, pricing, displaying, and managing inventory for non-food items, making them the best fit for the grocery store owner's needs.

Question 10

Which stage of activity in the value chain involves shipping the product out to customers?
A)inbound logistics
B)outbound logistics
C)operations
D)services
E)marketing and sales

Accepted Answer

Outbound logistics involves shipping the product out to customers.

Question 11

The difference between distribution centers and storage warehouses is that distribution centers are designed to _.
A)be automated
B)perform other functions,such as breaking bulk
C)have greater capacity
D)primarily be owned by the manufacturer
E)store goods for longer periods

Accepted Answer

Distribution centers are designed to perform functions such as breaking bulk, which involves dividing larger quantities of goods into smaller, more manageable units for distribution.

Question 12

Grayville Rock and Gravel,located in a seaport town,sells rock,gravel,and sand to local markets.It has just been awarded a contract with a company 500 miles down the coast.Management should consider switching from truck to transport to save money.
A)none of the above
B)railroads
C)air
D)pipeline
E)water

Accepted Answer

Transporting goods by water is often more cost-effective for long distances, especially for bulk materials like rock, gravel, and sand, and is suitable for a seaport town.

Question 13

Which type of vertical marketing system (VMS)gives an organization more control over both supply sources and resale of its products,while at the same time increasing the organization's capital investment and its fixed costs?
A)corporate
B)horizontal
C)conventional
D)contractual
E)administered

Accepted Answer

A corporate vertical marketing system gives an organization more control over supply sources and resale of its products because the company owns multiple levels of the distribution and production process. This ownership increases capital investment and fixed costs due to the need to manage and maintain these additional operations.

Question 14

Through the use of ,a company is able to know locate exactly where a product is located within the distribution channel.
A)RFID
B)VMS
C)TQM
D)ERP
E)PRM

Accepted Answer

RFID (Radio Frequency Identification) technology allows companies to track and locate products within the distribution channel by using tags and readers to identify and manage inventory in real-time.

Question 15

Leadership in which type of marketing system is assumed not through common ownership or contractual ties but through the size and power of a single dominant channel member?
A)an administered vertical marketing system
B)a horizontal marketing system
C)a conventional marketing system
D)a corporate vertical marketing system
E)a multiple distribution system

Accepted Answer

An administered vertical marketing system is where leadership is assumed by the size and power of a dominant channel member, rather than through ownership or contracts.

Question 16

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?
A)the multilevel network
B)the conventional marketing system
C)the industrial network
D)the channel of distribution
E)the retailer chain

Accepted Answer

The channel of distribution refers to the series of firms or individuals that facilitate the movement of a product from the producer to the final customers.

Question 17

At some catalog retailers,employees on roller skates called pickers are handed a printout of the products a customer wants,and then the pickers skate through large warehouses accumulating the desired products into one central location.The pickers are engaged in .
A)transportation
B)inventory control
C)materials handling
D)enterprise resource planning
E)warehousing

Accepted Answer

The pickers are engaged in materials handling, which involves the movement, protection, storage, and control of materials and products throughout manufacturing, warehousing, distribution, consumption, and disposal.

Question 18

Tiffany & Co jewelry can only be found in a limited number of intermediaries.This is an example of _ distribution.
A)quality
B)exclusive
C)independent
D)intensive
E)high- end

Accepted Answer

Exclusive distribution refers to a strategy where a company limits the number of intermediaries to maintain a high level of control and exclusivity over its products, often used for luxury brands like Tiffany & Co.

Question 19

Which of the following is NOT a channel intermediary?
A)the distributor who sells stained glass windows
B)the supplier of the raw materials used to make glass windows
C)the manufacturer's agent who sells the stained glass windows
D)the wholesaler who buys the stained glass window from its creator
E)the showroom that displays glass windows for customers to see

Accepted Answer

The supplier of raw materials is not a channel intermediary; they provide the inputs for production rather than facilitating the sale of finished products.

Question 20

A business buys candy and gum from many different manufacturers and then resells the items to a variety of different stores.The business is an example of a(n).
A)independent intermediary
B)reverse marketer
C)disintermediator
D)manufacturer- owned intermediary
E)brokerage company

Accepted Answer

The business acts as an independent intermediary by purchasing products from manufacturers and reselling them to stores, facilitating the distribution process without being owned by the manufacturers.

Quiz 15: Deliver Value Through Supply Chain Manage-Ment: Channels of Distribution and Logistics

Which of the following are manufacturer- owned facilities that do NOT carry inventory but provide selling functions for the manufacturer in a specific geographic area?

Burt can visit his local hardware store and buy one 4- inch paint brush and not the case of twenty- four that the retailer had to buy.This is an example of how the channel of distribution facilitates .

You own an independent store in your neighborhood and like to offer fresh seafood in your meat display case.Which type of wholesaler is likely to best serve you?

A corporate VMS has the advantage of controlling the entire distribution chain under .

A new company called LidRock is prospering because it figured out a novel way to get music,video games,and movies into the hand of consumers: on mini- CDs tucked into the lids of soft drinks.LidRock is focusing on which one of the four Ps?

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

Which of the following are manufacturer- owned facilities that carry inventory and provide sales and services to customers?

Primary activities in the general value chain include all of the following EXCEPT which one?

The owner of a neighborhood grocery store wants to have non- food items delivered,priced,displayed and inventoried by a wholesaler.Which type of wholesaler best fits the owner's needs?

Which stage of activity in the value chain involves shipping the product out to customers?

The difference between distribution centers and storage warehouses is that distribution centers are designed to _.

Grayville Rock and Gravel,located in a seaport town,sells rock,gravel,and sand to local markets.It has just been awarded a contract with a company 500 miles down the coast.Management should consider switching from truck to transport to save money.

Which type of vertical marketing system (VMS) gives an organization more control over both supply sources and resale of its products,while at the same time increasing the organization's capital investment and its fixed costs?

Through the use of ,a company is able to know locate exactly where a product is located within the distribution channel.

Leadership in which type of marketing system is assumed not through common ownership or contractual ties but through the size and power of a single dominant channel member?

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?

At some catalog retailers,employees on roller skates called pickers are handed a printout of the products a customer wants,and then the pickers skate through large warehouses accumulating the desired products into one central location.The pickers are engaged in .

Tiffany & Co jewelry can only be found in a limited number of intermediaries.This is an example of _ distribution.

Which of the following is NOT a channel intermediary?

A business buys candy and gum from many different manufacturers and then resells the items to a variety of different stores.The business is an example of a(n) .