Question 1

In an administered VMS the organization with the greatest economic influence has control.

Accepted Answer

In an administered vertical marketing system (VMS), the dominant organization, often a manufacturer or retailer with significant economic influence, coordinates the activities of the distribution channel without formal ownership or contractual agreements.

Question 2

A group of independent retailers that join together to establish a wholesaling operation (e.g., large distribution centre) is an example of a retail cooperative.

Accepted Answer

A retail cooperative is formed when independent retailers collaborate to create a wholesaling operation, allowing them to benefit from economies of scale and compete with larger chains.

Question 3

RFID technology enables supply chain members to monitor the flow of goods from raw materials through to finished product, and from manufacturer to consumer.

Accepted Answer

RFID technology allows for tracking and monitoring of goods throughout the supply chain by using radio frequency identification tags, which provide real-time data on the location and status of items.

Question 4

Trucks are the most efficient mode of transporting bulky items over long distances.

Accepted Answer

Trains and ships are generally more efficient than trucks for transporting bulky items over long distances due to their larger capacity and lower fuel consumption per ton-mile.

Question 5

An air carrier would be the transportation mode of choice for emergency medical supplies.

Accepted Answer

Air carriers are often used for emergency medical supplies due to their speed and ability to cover long distances quickly, which is crucial in urgent situations.

Question 6

When a customer orders a product that is unavailable for shipment it is called a stockout.

Accepted Answer

A stockout occurs when there is no inventory available to fulfill a customer's order, leading to an inability to ship the product.

Question 7

An auto manufacturer like Toyota will use just-in-time inventory management to maintain generous levels of stock of auto parts at all times.

Accepted Answer

Just-in-time inventory management aims to minimize inventory levels by receiving goods only as they are needed in the production process, not maintaining generous stock levels.

Question 8

A manufacturer of heavy farm machinery is likely to use trucks to deliver to destinations across Canada.

Accepted Answer

The answer of A manufacturer of heavy farm machinery is...

Question 9

A truckload of new car parts placed on a rail flatcar is an example of piggybacking.

Accepted Answer

Piggybacking refers to the transportation of truck trailers or containers on rail flatcars, combining rail and road transport.

Question 10

The use of RFID at large retailers promises to improve efficiency of many logistics functions, including providing automated scanning at shipping and receiving points.

Accepted Answer

RFID technology allows for automated tracking and scanning of goods, improving efficiency in logistics by reducing manual processes and errors at shipping and receiving points.

Question 11

An EDI represents the manual transfer of information or data using internal, hard-copy paperwork.

Accepted Answer

An EDI (Electronic Data Interchange) represents the automated transfer of information or data between organizations in a standardized electronic format, not using manual, hard-copy paperwork.

Question 12

The difference between a storage warehouse and a distribution warehouse is that the distribution warehouse typically stores items for a shorter period of time.

Accepted Answer

A distribution warehouse is designed for quick turnover and efficient movement of goods, while a storage warehouse holds items for longer periods.

Question 13

"A systematic decision-making process regarding the physical movement and transfer of ownership of goods and services from producer to consumer"is called

Accepted Answer

Distribution planning involves the systematic decision-making process regarding the physical movement and transfer of ownership of goods and services from producer to consumer.

Question 14

What is an advantage intermediaries provide to customers?

Accepted Answer

Intermediaries help make goods and services available to customers by bridging the gap between producers and consumers, ensuring products are accessible when and where needed.

Question 15

Consumers are increasingly purchasing cars over the Internet via online intermediaries such as Autobytel.com, Cars4U.com, and AutoTrader.ca. What is the biggest benefit to consumers from this sales channel?

Accepted Answer

The answer of Consumers are increasingly purchasing cars over the...

Question 16

Companies that sell online are examples of which type of distribution channel?

Accepted Answer

Companies that sell online typically use a direct distribution channel, where the manufacturer sells directly to the consumer without intermediaries.

Question 17

Convenience goods such as food, household cleaning products, personal care products, and pharmaceuticals are traditionally sold in which of the following channels?

Accepted Answer

Convenience goods are typically distributed through a channel where the manufacturer sells to a wholesaler, who then sells to a retailer, and finally to the consumer. This allows for widespread distribution and availability in various retail outlets.

Question 18

A grocery store displays tomatoes for sale to the consumer. The farmer complains that she only earns 50 cents per kilogram from the broker, but the store is selling the tomatoes to the consumer for $2 per kilogram. This is in part a factor of

Accepted Answer

Channel length refers to the number of intermediaries between the producer and the consumer. In this case, the farmer sells to a broker, who then sells to the grocery store, which sells to the consumer. The longer the channel, the more intermediaries there are, each taking a margin, which can result in a significant difference between the price the farmer receives and the price the consumer pays.

Question 19

A(n) ________ channel is one in which goods are moved from producer to consumer without the use of intermediaries.

Accepted Answer

A direct channel is one in which goods are moved from producer to consumer without the use of intermediaries.

Question 20

The addition of a(n) ________ is common in industries where products are sold through many types of retail outlets.

Accepted Answer

Wholesalers are commonly added in industries where products are sold through various retail outlets to help distribute products efficiently.

Quiz 12: Distribution and Supply Chain Management