Question 1

Imaginex Toys, Inc., produces toys designed to stimulate the imaginations of young children. In order to control all of the marketing operations, Imaginex owns all of the organizations in the channel of distribution for its toys, including a chain of Imaginex retail stores. The approach taken by Imaginex is known as an administered distribution system.

Accepted Answer

The answer of Imaginex Toys, Inc., produces toys designed to...

Question 2

Lazee Ladd Furniture obtains materials from several suppliers and uses these materials to produce its goods. It relies on several marketing intermediaries to help it distribute the furniture. Together, Lazee Ladd, its suppliers, and the marketing intermediaries are all part of a supply chain.

Accepted Answer

This statement is true as it describes the various entities involved in the supply chain of Lazee Ladd Furniture, including suppliers and marketing intermediaries.

Question 3

Even though all of the hardware stores that operate under the name of Hardie's Hardware are independently owned and managed, they have signed an agreement to participate in chain promotions, and cooperate as a unified system of stores. The Hardie's Hardware stores are using a distribution system known as a wholesaler-sponsored chain.

Accepted Answer

The statement correctly describes a wholesaler-sponsored chain, in which independently owned stores agree to participate in chain promotions and cooperate as a unified system of stores.

Question 4

Because supply chains are so complex, firms have found it difficult to outsource supply chain management.

Accepted Answer

The answer of Because supply chains are so complex, firms...

Question 5

Hi! Notes Card Shops has been approached by Novel Teas, a producer of herbal teas and exotic spices. Novel Teas wants to sell its products in the Hi! Notes stores under an administered distribution system. If Hi! Notes accepts Novel Teas proposal, it will perform many marketing services for the tea maker in exchange for a flat fee.

Accepted Answer

The answer of Hi! Notes Card Shops has been approached...

Question 6

Wholesaler-sponsored chains consist of stores that are all owned by a single corporation.

Accepted Answer

Wholesaler-sponsored chains consist of stores that are owned independently by individual operators who are supplied by a wholesaler.

Question 7

A problem with the corporate distribution system is that the manufacturer has very little control over the operations of the retailers and other marketing intermediaries in the system.

Accepted Answer

The answer of A problem with the corporate distribution system...

Question 8

Logistics involves planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption.

Accepted Answer

Logistics is indeed the process of managing the flow of materials, goods, and information from their point of origin to the point of consumption. It encompasses various activities, including transportation, warehousing, inventory management, and order processing, among others. Effective logistics management is critical for ensuring timely and cost-effective delivery of products and services to customers.

Question 9

In an administered distribution system, retail stores manage all of the marketing functions at the retail level.

Accepted Answer

In an administered distribution system, the manufacturer or producer manages all of the marketing functions, including promotion and pricing. The retail stores only serve as a distribution outlet for the manufacturer's products.

Question 10

In the Reaching Beyond Our Borders box, we learned that natural disasters and other potential problems can wreak economic havoc on a supply chain.

Accepted Answer

The statement is true. Natural disasters or other potential problems can disrupt the supply chain and cause economic damage.

Question 11

Corporate distribution systems consist of several independently owned intermediaries, all of them organized as multinational corporations.

Accepted Answer

The answer of Corporate distribution systems consist of several independently...

Question 12

Franchise systems, wholesaler-sponsored chains, and retail cooperatives are all forms of contractual distribution systems.

Accepted Answer

Franchise systems, wholesaler-sponsored chains, and retail cooperatives are all examples of contractual distribution systems where a contract is established between different parties to distribute goods or services.

Question 13

One advantage of a franchise system of distribution is that it results in a consistent level of quality and service.

Accepted Answer

Franchisors typically have strict requirements and standards for their franchisees to maintain, resulting in a consistent level of quality and service across all franchise locations.

Question 14

Supply chain management not only deals with the movement of materials, parts, and finished goods, it also manages the return of goods and recycling of materials when appropriate.

Accepted Answer

Supply chain management includes managing the reverse logistics of returned goods and recycling processes.

Question 15

In retail cooperatives, the members of the distribution system are bound to cooperate by a contractual agreement.

Accepted Answer

In retail cooperatives, members typically sign a contractual agreement to cooperate and work together towards common goals. This agreement sets out the responsibilities and expectations of all members, and helps to ensure that the cooperative operates fairly and efficiently.

Question 16

The process of managing the movement of raw materials, parts, work in progress, finished goods, and related information through all of the organizations involved in the supply chain in a timely manner is called multi-modal management.

Accepted Answer

The correct term for this process is supply chain management. Multi-modal management refers specifically to the coordination and tracking of freight transportation across multiple modes (e.g. truck, train, ship) within a supply chain.

Question 17

For a supply chain to be efficient, all of the activities must be performed by organizations that are owned by the manufacturer.

Accepted Answer

A supply chain can involve multiple organizations that are not necessarily owned by the manufacturer. These organizations can include suppliers, logistics providers, distributors, and retailers. The key to efficiency in a supply chain is effective coordination and collaboration among these various organizations.

Question 18

The entire collection of organizations that move goods and services from the source of raw materials to the final consumer is referred to as the supply chain.

Accepted Answer

The statement is true.

Question 19

Supply chain management manages the movement of relevant information as well as the movement of parts and finished goods through all organizations involved in the supply chain.

Accepted Answer

Supply chain management is a comprehensive approach to managing the flow of materials, information, and finances from raw materials suppliers to end users through a network of interconnected businesses. It involves coordinating and optimizing all activities involved in sourcing, procurement, production, and delivery to ensure timely and cost-effective fulfillment of customer demands. Therefore, supply chain management manages both the movement of relevant information and the movement of goods through all organizations involved in the supply chain.

Question 20

Denise Shipman works in the marketing department of a major manufacturing firm. She spends a great deal of time trying to coordinate the movement of materials, parts, finished goods, and information through all of the organizations involved in the distribution process. These activities suggest that Denise's job responsibilities focus on supply chain management.

Accepted Answer

The description of Denise's job responsibilities indicates a focus on supply chain management, which involves coordinating the movement of materials and information throughout the distribution process.

Quiz 15: Distributing Products