Question 1

At the end of a recent year, Solectron, Milpitas, California, an electronics contractor, made half of his purchases under vendor-managed inventory programs. Solectron:

Accepted Answer

Solectron made half of its purchases under vendor-managed inventory programs, which means it used a system in which its suppliers determined the product amount and assortment that should be in stock. This is the definition of vendor-managed inventory (VMI), which allows suppliers to monitor and manage inventory levels for their customers, resulting in better supply chain efficiency and cost savings. Therefore, option D is the correct choice.

Question 2

Scott Baldwin, the owner of The Computer Company, located in Stillwater, Oklahoma, specializes in creating customized personal computers for home use. Baldwin buys basic computer components from mail-order companies and then upgrades the computers to fit the specific needs of each customer. In years past,
Baldwin carried a large inventory of hard drives, CD-ROMS, motherboards, memory upgrades, and other computer components. More recently, Baldwin has decided he
Can't afford to maintain a large inventory of components. Instead, The Computer
Company maintains a very low inventory and relies on mail-order suppliers to provide fast, on-time delivery of components as they are needed. The Computer Company is
Using:

Accepted Answer

The Computer Company is using a just-in-time inventory supply system where they maintain a very low inventory and rely on mail-order suppliers to provide fast, on-time delivery of components as they are needed. This helps the company to reduce carrying costs and optimize storage space while ensuring that they have the necessary components when required.

Question 3

Distinguish between a direct and an indirect channel.

Accepted Answer

The answer of Distinguish between a direct and an indirect...

Question 4

Reverse logistics is:

Accepted Answer

Reverse logistics is the process of reclaiming recyclable and reusable materials, returns, and reworks from the point of consumption or use for repair, remanufacturing, redistribution, or disposal. It deals with managing the flow of products and materials back through the supply chain after they have been sold to customers.

Question 5

According to the text, which of the following sales growth strategies will Amazon most likely be using in the future?

Accepted Answer

The text states that Amazon has been successful in growing through the sales of books, CDs, and videos and it is likely they will continue to use this strategy in the future. There is no mention of fast food, selling distribution centers, or consulting services as potential growth strategies for Amazon.

Question 6

The just-in-time concept requires very low inventories but fast, on-time delivery. When must parts needed for production arrive from suppliers?

Accepted Answer

The just-in-time (JIT) concept emphasizes minimizing inventory levels and having parts arrive exactly when they are needed in the production process, neither before nor after, to reduce storage costs and increase efficiency.

Question 7

List and define the three major types of vertical marketing systems.

Accepted Answer

The answer of List and define the three major types...

Question 8

An inventory-management system whereby the supplier determines the product amount and assortment a customer, such as a retailer, needs and automatically delivers the appropriate items is known as a(n):

Accepted Answer

Vendor-managed inventory is a system in which the supplier or vendor is responsible for managing the inventory levels of a customer or retailer. The supplier tracks the inventory levels and automatically delivers the appropriate items based on the demand. This system reduces the need for the customer to manage their inventory and ensures that the right products are available at the right time.

Question 9

Which of the following statements about the just-in-time (JIT)system is true?

Accepted Answer

The JIT system relies on demand and forecasting being reliable, so option C is true. Option A is false because the JIT system aims to minimize inventory storage. Option B is false because the JIT system aims to lower inventory costs. Option D is false because the JIT system aims to eliminate the need for reserve inventory.

Question 10

The process of reclaiming recyclable and reusable materials, returns, and reworks from the point of consumption or use for repair, remanufacturing, redistribution, or disposal is termed:

Accepted Answer

The process described in the question is known as reverse logistics, which involves the management and flow of materials, returns, and products after they have been consumed or used. Reverse logistics can include a variety of activities, such as remanufacturing, repair, redistribution, or disposal, and is an important aspect of sustainable and efficient supply chain management. The other options listed are not accurate or relevant descriptions of this process.

Question 11

Which of the following is an example of a risk cost that would be considered a part of inventory costs?

Accepted Answer

Costs due to possible loss, damage, pilferage, or obsolescence are all risks associated with holding inventory and are considered a part of inventory costs.

Question 12

Hi-Tech Recycling Canada, a computer and electronics recycling firm based in Toronto, is a lucrative business that focuses on the disposal of obsolete computer systems. Every monitor has four to six pounds of lead, which is mixed with
Phosphorous to protect users from radiation. The problem is that if the computers are thrown away in landfills, the lead and the phosphorous can get into the water supply, which is why many landfills won't accept computers. Hi-Tech Recycling Canada is
Divided into different divisions for taking care of computer board and memory
Recovery (which can often be recycled). The monitors it disposes of in accordance with legal regulations. Hi-Tech Recycling Canada has made a business out of:

Accepted Answer

The answer of Hi-Tech Recycling Canada, a computer and electronics...

Question 13

Explain the difference between full-service and limited-service merchant wholesalers. List the types of wholesalers that belong in each category.

Accepted Answer

The answer of Explain the difference between full-service and limited-service...

Question 14

Pharmaceutical companies such as Eli Lilly and SmithKline Beecham use a system to make sure retailers carrying their products maintain predetermined inventory levels in stock. The pharmaceutical companies do this by a daily monitoring of sales at individual stores and will automatically ship products out when the stores are running low. This is called a(n):

Accepted Answer

The system described is known as vendor-managed inventory (VMI), where the vendor (pharmaceutical company) takes on the responsibility of managing the inventory levels of the retailer. This allows for more efficient inventory management and replenishment, as the vendor can monitor sales and adjust shipments accordingly.

Question 15

Alberto Culver Canada is the number three provider of hair care products in Canada. It first set up operation in downtown Etobicoke, Ontario in 1961. By 1966, it had to move its facility to the edge of town so that it was closer to its raw materials suppliers and, thus, would be able to operate with very low inventories and require suppliers to make fast on-time deliveries. So in 1966, Alberto Culver Canada implemented what today is called a(n):

Accepted Answer

The description matches the principles of a just-in-time system, where inventory is minimized and suppliers are relied upon to make fast, on-time deliveries to meet production needs.

Question 16

Toyota Manufacturing is well-known for having parts arrive right when they need them in the manufacturing process of their vehicles. This is known as the:

Accepted Answer

The term used for Toyota Manufacturing's practice of having parts arrive right when they are needed in the manufacturing process is known as the just-in-time concept.

Question 17

Identify and describe the functions of agents and brokers.

Accepted Answer

The answer of Identify and describe the functions of agents...

Question 18

Define and describe a similarity and difference between multichannel marketing and a strategic channel alliance.

Accepted Answer

The answer of Define and describe a similarity and difference...

Question 19

Amazon uses supply chain and logistics management to:

Accepted Answer

Amazon's supply chain and logistics management is used to manage the flow of products from suppliers to distribution centers and the flow of customer orders from the distribution centers to individual's homes. This ensures that the right products are in the right places at the right time, which is essential for meeting customer demand and maintaining customer satisfaction.

Question 20

What are the functions performed by intermediaries?

Accepted Answer

The answer of What are the functions performed by intermediaries?...

Quiz 14: Managing Marketing Channels and Supply Chains