Question 1

The number of times during a stated period (usually one year) that the average inventory on hand is sold is known as

Accepted Answer

A)  stock turnover. 
B)  the just-in-time inventory ratio. 
C)  the reorder point ratio. 
D)  the economic order quantity. 
A)  stock turnover. 
B)  the just-in-time inventory ratio. 
C)  the reorder point ratio. 
D)  the economic order quantity. A

Question 2

A major advantage of a direct channel is

Accepted Answer

A)  better efficiency in selling to small accounts. 
B)  lower investment requirements. 
C)  control over a firm's entire marketing efforts. 
D)  fewer customer transactions. 
A)  better efficiency in selling to small accounts. 
B)  lower investment requirements. 
C)  control over a firm's entire marketing efforts. 
D)  fewer customer transactions. C

Question 3

Which concept in distribution is based upon the concept of long-term relationships, and partnerships between customers and their suppliers?

Accepted Answer

A)  Relationship marketing 
B)  Customer service 
C)  Direct channels of distribution 
D)  Vertical integration 
A)  Relationship marketing 
B)  Customer service 
C)  Direct channels of distribution 
D)  Vertical integration A

Question 4

Too low an inventory turnover can cause a firm to lose quantity discounts or to be out of stock.

Accepted Answer

A) True 
 B)False

Question 5

The transportation method with the lowest shipping cost may not be selected due to its high inventory-carrying costs. This illustrates

Accepted Answer

A)  economic order quantity calculations. 
B)  distribution standards. 
C)  the total-cost approach. 
D)  customer service. 
A)  economic order quantity calculations. 
B)  distribution standards. 
C)  the total-cost approach. 
D)  customer service.

Question 6

The order volume corresponding to the lowest sum of order-processing and inventory-holding costs is known as the

Accepted Answer

A)  economic order quantity. 
B)  reorder point. 
C)  total-cost quantity. 
D)  electronic data interchange level. 
A)  economic order quantity. 
B)  reorder point. 
C)  total-cost quantity. 
D)  electronic data interchange level.

Question 7

Outsourcing is an important decision in formulating the total delivered product.

Accepted Answer

A) True 
 B)False

Question 8

Franchising is a form of channel power for the franchisor.

Accepted Answer

A) True 
 B)False

Question 9

Which method of coordinating transportation facilitates the use of intermodal shipping?

Accepted Answer

A)  Freight forwarding 
B)  Electronic data interchange 
C)  Quick response planning 
D)  Containerization 
A)  Freight forwarding 
B)  Electronic data interchange 
C)  Quick response planning 
D)  Containerization

Question 10

A firm can best appeal to multiple market segments through a dual channel of distribution.

Accepted Answer

A) True 
 B)False

Question 11

In a just-in-time (JIT) inventory system,

Accepted Answer

A)  firms rely on usage rate formulas in ordering decisions. 
B)  ordering costs are minimized. 
C)  the economic order quantity (EOQ) is used in ordering. 
D)  firms order frequently and in lower quantities. 
A)  firms rely on usage rate formulas in ordering decisions. 
B)  ordering costs are minimized. 
C)  the economic order quantity (EOQ) is used in ordering. 
D)  firms order frequently and in lower quantities.

Question 12

The Following Questions are linked to this scenario: A leading manufacturer of automobile tires is reevaluating its channel strategy.
-The tire manufacturer wishes to minimize retail price competition among retailers. It should utilize ___ distribution.

Accepted Answer

A)  dual channels of 
B)  intensive 
C)  selective 
D)  exclusive 
A)  dual channels of 
B)  intensive 
C)  selective 
D)  exclusive

Question 13

An activity should not be performed as part of the value chain if it is not considered important by final consumers.

Accepted Answer

A) True 
 B)False

Question 14

The order cycle and order lead time are opposite concepts.

Accepted Answer

A) True 
 B)False

Question 15

The balance of power has shifted from manufacturers to wholesalers due to

Accepted Answer

A)  the decline in importance of franchising. 
B)  higher brand loyalty in purchasing by final consumers. 
C)  the popularity of private brands. 
D)  vertical integration by manufacturers. 
A)  the decline in importance of franchising. 
B)  higher brand loyalty in purchasing by final consumers. 
C)  the popularity of private brands. 
D)  vertical integration by manufacturers.

Question 16

Which statement concerning waterways is NOT correct?

Accepted Answer

A)  Few new technological developments have affected waterway transportation. 
B)  Waterways are used primarily for coal, iron ore, gravel, grain, and cement. 
C)  The use of waterways is heavily seasonal. 
D)  Waterways have the lowest shipping cost per ton mile of any major form of transportation. 
A)  Few new technological developments have affected waterway transportation. 
B)  Waterways are used primarily for coal, iron ore, gravel, grain, and cement. 
C)  The use of waterways is heavily seasonal. 
D)  Waterways have the lowest shipping cost per ton mile of any major form of transportation.

Question 17

The use of rebates, coupons, and other sales promotions aimed at final consumers by a manufacturer illustrate a pushing strategy.

Accepted Answer

A) True 
 B)False

Question 18

What role does assorting perform in the sorting process?

Accepted Answer

A)  It consolidates small shipments from several manufacturers to reduce freight costs. 
B)  It enables consumers to have a wide choice of products and complementary goods by shopping at one retailer. 
C)  It distributes items to a wide range of geographic markets. 
D)  It separates merchandise into grades, colors, and sizes. 
A)  It consolidates small shipments from several manufacturers to reduce freight costs. 
B)  It enables consumers to have a wide choice of products and complementary goods by shopping at one retailer. 
C)  It distributes items to a wide range of geographic markets. 
D)  It separates merchandise into grades, colors, and sizes.

Question 19

Containerization greatly facilitates the efficiency of intermodal shipping.

Accepted Answer

A) True 
 B)False

Question 20

Which specialized transportation form receives profits on the basis of the difference between carload (cl) and less than carload (lcl) rates?

Accepted Answer

A)  Freight forwarders 
B)  Private parcel services 
C)  Specialized express companies 
D)  Container shipping services 
A)  Freight forwarders 
B)  Private parcel services 
C)  Specialized express companies 
D)  Container shipping services

Exam 14: Value Chain Management and Logistics

The number of times during a stated period (usually one year) that the average inventory on hand is sold is known as

A major advantage of a direct channel is

Which concept in distribution is based upon the concept of long-term relationships, and partnerships between customers and their suppliers?

Too low an inventory turnover can cause a firm to lose quantity discounts or to be out of stock.

The transportation method with the lowest shipping cost may not be selected due to its high inventory-carrying costs. This illustrates

The order volume corresponding to the lowest sum of order-processing and inventory-holding costs is known as the

Outsourcing is an important decision in formulating the total delivered product.

Franchising is a form of channel power for the franchisor.

Which method of coordinating transportation facilitates the use of intermodal shipping?

A firm can best appeal to multiple market segments through a dual channel of distribution.

In a just-in-time (JIT) inventory system,

The Following Questions are linked to this scenario: A leading manufacturer of automobile tires is reevaluating its channel strategy. -The tire manufacturer wishes to minimize retail price competition among retailers. It should utilize ___ distribution.

An activity should not be performed as part of the value chain if it is not considered important by final consumers.

The order cycle and order lead time are opposite concepts.

The balance of power has shifted from manufacturers to wholesalers due to

Which statement concerning waterways is NOT correct?

The use of rebates, coupons, and other sales promotions aimed at final consumers by a manufacturer illustrate a pushing strategy.

What role does assorting perform in the sorting process?

Containerization greatly facilitates the efficiency of intermodal shipping.

Which specialized transportation form receives profits on the basis of the difference between carload (cl) and less than carload (lcl) rates?

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