Question 1

The sorting process consists of acquiring a broad range of products to offer the final consumer the convenience of one-stop shopping.

Accepted Answer

A) True 
 B)False

Question 2

A firm has a planned usage rate of 20 units per day, a planned safety stock of 20 units, and an expected order lead time of 5 days. If the actual usage rate is 25 units per day, the firm will be out of stock

Accepted Answer

A)  at no time in the order cycle. 
B)  for one-quarter of a day. 
C)  for 1 1/4 days. 
D)  for 2 1/4 days. 
A)  at no time in the order cycle. 
B)  for one-quarter of a day. 
C)  for 1 1/4 days. 
D)  for 2 1/4 days.

Question 3

Keiretsus can be either vertical or horizontal.

Accepted Answer

A) True 
 B)False

Question 4

A central component to relationship marketing is

Accepted Answer

A)  a long-term relationship among distribution intermediaries. 
B)  a written contract among distribution intermediaries. 
C)  high levels of customer service. 
D)  an adversarial relationship among distribution intermediaries. 
A)  a long-term relationship among distribution intermediaries. 
B)  a written contract among distribution intermediaries. 
C)  high levels of customer service. 
D)  an adversarial relationship among distribution intermediaries.

Question 5

A wholesaler can best protect itself from premature termination from a manufacturer through a contract provision stating

Accepted Answer

A)  the length of the supplier/distribution intermediary contract. 
B)  the role of full-line forcing. 
C)  a provision against vertical integration by the manufacturer. 
D)  a provision against horizontal integration by the manufacturer. 
A)  the length of the supplier/distribution intermediary contract. 
B)  the role of full-line forcing. 
C)  a provision against vertical integration by the manufacturer. 
D)  a provision against horizontal integration by the manufacturer.

Question 6

Which concept is central to a pulling strategy?

Accepted Answer

A)  Channel conflict among channel members 
B)  Derived demand 
C)  Vertical integration by retailers 
D)  Distribution efficiency through the elimination of some channel members 
A)  Channel conflict among channel members 
B)  Derived demand 
C)  Vertical integration by retailers 
D)  Distribution efficiency through the elimination of some channel members

Question 7

Which of these illustrates channel conflict?

Accepted Answer

A)  A manufacturer granting retailers a cooperative advertising allowance 
B)  A manufacturer training a retailer's salespeople in proper sales techniques 
C)  A retailer making late payments to a vendor 
D)  A retailer adhering to a manufacturer's suggested list price 
A)  A manufacturer granting retailers a cooperative advertising allowance 
B)  A manufacturer training a retailer's salespeople in proper sales techniques 
C)  A retailer making late payments to a vendor 
D)  A retailer adhering to a manufacturer's suggested list price

Question 8

In a pulling strategy, the various firms in a distribution channel cooperate in the promotional efforts for a product.

Accepted Answer

A) True 
 B)False

Question 9

Vertical integration (such as a manufacturer's undertaking retail responsibilities through ownership) is an example of a(n)

Accepted Answer

A)  contractual channel arrangement. 
B)  administered channel arrangement. 
C)  direct channel of distribution. 
D)  indirect channel of distribution. 
A)  contractual channel arrangement. 
B)  administered channel arrangement. 
C)  direct channel of distribution. 
D)  indirect channel of distribution.

Question 10

Which of these is NOT a channel member?

Accepted Answer

A)  Retailers 
B)  Manufacturers 
C)  Consumers 
D)  Competitors 
A)  Retailers 
B)  Manufacturers 
C)  Consumers 
D)  Competitors

Question 11

Exclusive distribution can be characterized by broad market coverage (wide channels).

Accepted Answer

A) True 
 B)False

Question 12

The battle of the brands illustrates

Accepted Answer

A)  a pushing strategy. 
B)  a pulling strategy. 
C)  channel cooperation. 
D)  channel conflict. 
A)  a pushing strategy. 
B)  a pulling strategy. 
C)  channel cooperation. 
D)  channel conflict.

Question 13

Outsourcing is an activity most closely related to

Accepted Answer

A)  relationship marketing. 
B)  customer service. 
C)  a direct channel of distribution. 
D)  a value delivery chain. 
A)  relationship marketing. 
B)  customer service. 
C)  a direct channel of distribution. 
D)  a value delivery chain.

Question 14

No independent intermediaries are used in which type of distribution channel?

Accepted Answer

A)  Direct 
B)  Indirect 
C)  Vertical 
D)  Horizontal 
A)  Direct 
B)  Indirect 
C)  Vertical 
D)  Horizontal

Question 15

An example of an administered channel arrangement is the franchisor-franchisee arrangement.

Accepted Answer

A) True 
 B)False

Question 16

A product typically moves from exclusive to intensive distribution as it passes from the introduction to the growth stages in the product life cycle.

Accepted Answer

A) True 
 B)False

Question 17

The economic order quantity (EOQ) formula attempts to minimize inventory-holding costs.

Accepted Answer

A) True 
 B)False

Question 18

Channel width refers to the

Accepted Answer

A)  diversity of channel members at any stage of distribution. 
B)  levels of independent members along a channel. 
C)  diversity of products carried by any channel member. 
D)  number of independent channel members at any stage of distribution. 
A)  diversity of channel members at any stage of distribution. 
B)  levels of independent members along a channel. 
C)  diversity of products carried by any channel member. 
D)  number of independent channel members at any stage of distribution.

Question 19

The total delivered product and the concept of service quality are closely related.

Accepted Answer

A) True 
 B)False

Question 20

There are two components to a value chain: the value chain itself and the value delivery chain.

Accepted Answer

A) True 
 B)False

Exam 14: Value Chain Management and Logistics

The sorting process consists of acquiring a broad range of products to offer the final consumer the convenience of one-stop shopping.

A firm has a planned usage rate of 20 units per day, a planned safety stock of 20 units, and an expected order lead time of 5 days. If the actual usage rate is 25 units per day, the firm will be out of stock

Keiretsus can be either vertical or horizontal.

A central component to relationship marketing is

A wholesaler can best protect itself from premature termination from a manufacturer through a contract provision stating

Which concept is central to a pulling strategy?

Which of these illustrates channel conflict?

In a pulling strategy, the various firms in a distribution channel cooperate in the promotional efforts for a product.

Vertical integration (such as a manufacturer's undertaking retail responsibilities through ownership) is an example of a(n)

Which of these is NOT a channel member?

Exclusive distribution can be characterized by broad market coverage (wide channels).

The battle of the brands illustrates

Outsourcing is an activity most closely related to

No independent intermediaries are used in which type of distribution channel?

An example of an administered channel arrangement is the franchisor-franchisee arrangement.

A product typically moves from exclusive to intensive distribution as it passes from the introduction to the growth stages in the product life cycle.

The economic order quantity (EOQ) formula attempts to minimize inventory-holding costs.

Channel width refers to the

The total delivered product and the concept of service quality are closely related.

There are two components to a value chain: the value chain itself and the value delivery chain.

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