Question 1

Unlike facilitators, agents do not take title to products.

Accepted Answer

The answer of Unlike facilitators, agents do not take title...

Question 2

Refer to the scenario below to answer the following questions.
Miller Meat Company contracts with several Midwestern farmers to raise beef and pork for its meat processing center. To guarantee freshness, Miller Meat Company relies on a vast distribution network. For delivery to local grocers in Indiana, Miller Meat uses its own fleet of refrigerated trucks; delivery to these Indiana grocers constitutes 65 percent of Miller Meat's business. For deliveries in Illinois, Wisconsin, and points directly west of the Mississippi River, Miller Meat Company contracts with a refrigerated fleet that specializes in expediting smaller shipments. For faster delivery during peak times, Miller Meat Company often uses its own trucks to deliver to the expedited fleet's consolidation point from its distribution warehouse in Indiana. During the holiday season, however, several specialty distributors contract with Miller Meat Company to package specialty meats in gift boxes, then ship them directly to the recipients. For these specialty shipments within Indiana, Illinois, and Wisconsin, Miller uses its normal delivery mode. For all other specialty shipments, Miller ships from its distribution warehouse via air, then contracts with expedited carriers in various cities to deliver to the recipients.
-Management at a chain of Indiana grocery stores with a long history of purchasing products from Miller Meat is unhappy with the timing of deliveries. In fact, the grocery store's management is considering switching to another meat supplier who will delivery more frequently. This is an example of a(n) ________ conflict.
A) independent channel
B) vertical
C) horizontal
D) intermodal
E) conventional

Accepted Answer

This scenario describes a vertical conflict, which occurs between different levels within the same distribution channel, in this case between Miller Meat Company (the supplier) and the grocery store chain (the retailer).

Question 3

Refer to the scenario below to answer the following questions.
Miller Meat Company contracts with several Midwestern farmers to raise beef and pork for its meat processing center. To guarantee freshness, Miller Meat Company relies on a vast distribution network. For delivery to local grocers in Indiana, Miller Meat uses its own fleet of refrigerated trucks; delivery to these Indiana grocers constitutes 65 percent of Miller Meat's business. For deliveries in Illinois, Wisconsin, and points directly west of the Mississippi River, Miller Meat Company contracts with a refrigerated fleet that specializes in expediting smaller shipments. For faster delivery during peak times, Miller Meat Company often uses its own trucks to deliver to the expedited fleet's consolidation point from its distribution warehouse in Indiana. During the holiday season, however, several specialty distributors contract with Miller Meat Company to package specialty meats in gift boxes, then ship them directly to the recipients. For these specialty shipments within Indiana, Illinois, and Wisconsin, Miller uses its normal delivery mode. For all other specialty shipments, Miller ships from its distribution warehouse via air, then contracts with expedited carriers in various cities to deliver to the recipients.
-In using air transportation and then expedited truck carriers to deliver specialty items to customers outside of a designated delivery range, Miller Meats is using ________.
A) all of its supply chain
B) a direct channel
C) indirect marketing
D) intermodal distribution
E) a vertical marketing system

Accepted Answer

Miller Meat Company is using intermodal distribution by utilizing air transportation and expedited truck carriers to deliver specialty items to customers outside of its regular delivery range. This involves using multiple modes of transportation to deliver products to the customer, which is a characteristic of intermodal distribution.

Question 4

A major role played by intermediaries is to buy large quantities of products from many producers and break them down into the smaller quantities and broader assortments wanted by consumers.

Accepted Answer

This is a correct statement about the role of intermediaries in the distribution channel. Intermediaries such as wholesalers and retailers buy products in bulk from producers and then sell them in smaller quantities to consumers, providing a more convenient assortment of products for consumers to choose from.

Question 5

When customers prefer a wide assortment of products, it makes sense to select a longer channel structure.

Accepted Answer

A longer channel structure, with more intermediaries between the producer and the customer, allows for a wider range of products to be offered. Each intermediary in the channel can specialize in a particular type or subset of products, increasing the overall variety available to the customer. Conversely, a shorter channel structure with fewer intermediaries may be more efficient but may limit the range and diversity of products offered.

Question 6

Intensive distribution seeks many outlets in a market, while selective distribution seeks only one outlet in a given market area.

Accepted Answer

Intensive distribution seeks to have a wide and extensive distribution network with many outlets in a market area, whereas selective distribution strategy seeks to have a limited number of outlets or only one outlet in a given market area. Therefore, the statement given is false.

Question 7

A Universal Product Code (UPC) is a retail bar code that can be used to monitor inventory.

Accepted Answer

A UPC is a retail bar code that is used to monitor inventory and track products in a retail environment. It is a unique identifier that contains information about the product, such as the manufacturer and item number, which can be scanned using a barcode reader at the point of sale.

Question 8

A marketing channel can also be referred to as a channel of distribution.

Accepted Answer

A marketing channel and a channel of distribution are often used interchangeably to refer to the various intermediaries and paths that a product takes from the manufacturer to the end consumer.

Question 9

Logistics involves the coordination of all organizations that affect a producer's distribution process, while supply chain management involves only the coordination of inbound flow of products and services to a producer.

Accepted Answer

The statement is false. Logistics and supply chain management both involve the coordination of various organizations in a producer's supply chain, including the inbound and outbound flow of products and services. Supply chain management is a broader term that includes logistics as one of its key functions.

Question 10

Refer to the scenario below to answer the following questions.
Miller Meat Company contracts with several Midwestern farmers to raise beef and pork for its meat processing center. To guarantee freshness, Miller Meat Company relies on a vast distribution network. For delivery to local grocers in Indiana, Miller Meat uses its own fleet of refrigerated trucks; delivery to these Indiana grocers constitutes 65 percent of Miller Meat's business. For deliveries in Illinois, Wisconsin, and points directly west of the Mississippi River, Miller Meat Company contracts with a refrigerated fleet that specializes in expediting smaller shipments. For faster delivery during peak times, Miller Meat Company often uses its own trucks to deliver to the expedited fleet's consolidation point from its distribution warehouse in Indiana. During the holiday season, however, several specialty distributors contract with Miller Meat Company to package specialty meats in gift boxes, then ship them directly to the recipients. For these specialty shipments within Indiana, Illinois, and Wisconsin, Miller uses its normal delivery mode. For all other specialty shipments, Miller ships from its distribution warehouse via air, then contracts with expedited carriers in various cities to deliver to the recipients.
-Which of the following would be involved in Miller Meat Company's inbound logistics management?
A) local grocers in Indiana who sell the company's products
B) Midwestern farmers who raise beef and pork for the meat processing center
C) the refrigerated fleet that expedites small shipments
D) air carriers that take Miller's specialty shipments
E) recipients of Miller's gift boxes

Accepted Answer

Inbound logistics refers to the management of the transportation of raw materials or goods from suppliers to a company's production or processing facility. In this scenario, the Midwestern farmers who raise beef and pork for Miller Meat Company's meat processing center would be involved in the company's inbound logistics management.

Question 11

A transportation management system can be used to automate the shipping process and to make recommendations on carrier selection.

Accepted Answer

A transportation management system (TMS) can provide automation for the shipping process by allowing users to create and manage shipment transactions through a single platform. TMS can also provide recommendations on carrier selection based on factors such as shipment weight, destination, and carrier availability.

Question 12

Liquids such as oil and natural gas can be transported through pipelines.

Accepted Answer

Liquids such as oil and natural gas can be transported through pipelines over long distances, which is a common method of transportation in the oil and gas industry.

Question 13

In general, approximately 30% to 50% of the final selling price of a product can be attributed to distribution costs.

Accepted Answer

Distribution costs such as transportation, warehousing, and logistics can significantly add to the overall cost of a product, and typically account for 30% to 50% of the final selling price.

Question 14

Nita can visit her local supermarket and buy a dozen roses, a gallon of milk, two birthday cards, a bag of cat litter, and a pan for roasting a turkey. This illustrates how channels of distribution benefit consumers by ________.
A) creating atmospherics
B) creating assortments
C) directing logistics
D) managing knowledge
E) managing relationships

Accepted Answer

Channels of distribution benefit consumers by creating assortments, which is illustrated by Nita being able to buy various items in one place at her local supermarket.

Question 15

Despite storage and maintenance costs, most companies find it profitable to hold inventory for long periods of time.

Accepted Answer

Holding inventory for long periods can lead to increased costs (such as storage, insurance, and potential obsolescence) which can outweigh the benefits, making it generally unprofitable for most companies.

Question 16

Freight distribution is also known as intermodal distribution.

Accepted Answer

Freight distribution may involve different modes of transportation such as truck, train, or ship, but intermodal distribution specifically refers to the use of multiple modes of transportation (e.g. truck and train) to move cargo from one point to another.

Question 17

Burt can visit his local hardware store and buy one 4-inch paint brush and not the case of 24 brushes that the retailer had to buy. This is an example of how the channel of distribution facilitates ________.
A) assortment creation
B) risk taking
C) breaking bulk
D) relationship management
E) logistics

Accepted Answer

Breaking bulk refers to the process by which goods are divided into smaller quantities to make them more accessible and useful to consumers. In this case, the local hardware store is able to break bulk by purchasing and selling individual paint brushes instead of having to sell them in bulk like the manufacturer may have to do. The channel of distribution facilitates this process by making it possible for goods to be distributed to retailers who can then break bulk and sell to individual consumers.

Question 18

Goods that are cross-docked are warehoused, but the warehouse does not take title to the goods.

Accepted Answer

Cross-docking is a logistics practice where goods are unloaded from inbound delivery vehicles and directly loaded onto outbound vehicles, with minimal or no warehousing in between. The warehouse does not hold the goods for an extended period, nor does it take title to the goods; it simply facilitates the transfer from one transport vehicle to another.

Question 19

Conventional and horizontal channels do not have channel leaders.

Accepted Answer

Conventional and horizontal channels do not have a clear leader or hierarchy, but instead have more fluid and decentralized structures where different actors hold different levels of influence and power.

Question 20

A channel captain can motivate channel members through financial incentives.

Accepted Answer

Financial incentives can be a powerful motivator for channel members, such as offering bonuses or commissions for reaching sales targets or providing discounts for achieving certain levels of performance. As the channel captain, providing financial incentives can help align the interests of both parties and encourage channel members to work towards common goals.

Quiz 14: Supply Chain and Distribution Strategies