Deck 13: Supply Chain Management and Marketing Channels

Question 1

Offshoring reduces transportation costs of a company.

Answer 1

 False

Question 2

Third-party logistics companies or logistics integrators are consulting-based organizations that assess another's entire logistical service needs and provides integrated solutions,often drawing on multiple fourth-party logistics companies for actual service.

Answer 2

 False

Question 3

Agents and brokers are wholesaling intermediaries who take title to goods and services they market.

Answer 3

 False

Question 4

DutiLog Inc.is a company that specializes in providing warehousing space and transportation solutions to a diverse group of firms.Given this information,DutiLog Inc.is an example of a third-party logistics company.

Question 5

Nearshoring leads to high costs and increases supply chain risk.

Question 6

The best order fulfillment processes increase order cycle time.

Question 7

Third-party logistics companies sell logistics solutions and physical products.

Question 8

Sustainable supply chain management primarily involves integrating and balancing environmental,social,and economic thinking into all phases of the supply chain management process.

Question 9

Warehousing space is an example of a third-party logistics company product.

Question 10

The marketing channel is the upstream portion of the supply chain that is charged with moving component parts or raw materials to the producer.

Question 11

Measurement integration is a competency that enables firms to offer long-lasting,distinctive,value-added offerings to those customers who represent the greatest value to the firm or supply chain.

Question 12

Grand Trunk Inc.,a furniture manufacturing company,does not manufacture furniture until an order is received.It coordinates and integrates the activities of its suppliers,designers and carpenters to ensure an efficient production cycle.This enables Grand Trunk Inc.to deliver the products to customers within five working days.This is an example of _____.

A)customer service management​
B)yield management​
C)supply chain management
D)asset lifecycle management​

Question 13

A similarity between the customer relationship management process and the supplier relationship management process is that both provide structural support for developing and maintaining relationships with their respective supply chain partners.

Question 14

Drop and shop programs use convenience to get consumers to recycle products,like batteries or cell phones,during a regular trip to the store.

Question 15

Supply chain management gives assembly line employees total visibility and control of the materials,processes,money,and finished products both inside and outside the company they work for.

Question 16

In a multichannel marketing system,each channel does not hold its own inventory.

Question 17

Intensive distribution is a form of distribution that establishes one or a few dealers within a given area.

Question 18

Retailers simplify distribution by reducing the number of transactions required by consumers,and by making an assortment of goods available in one location.

Question 19

A strategic channel alliance is a cooperative agreement between business firms to use the other's already established distribution channel.

Question 20

A company's supply chain includes all of the companies involved in the upstream and downstream flow of products,services,finances,and information,extending from initial suppliers to the ultimate customer.

Question 21

Which of the following statements is true of the supplier relationship management process?

A)​It enables firms to act as leaders in protecting the natural environment.
B)It enables suppliers and business units to operate with limited or no interaction.​
C)It provides structural support for developing and maintaining relationships with suppliers.​
D)It introduces features and cost-cutting measures into final products.​

Question 22

Unlike in the mass production era,in today's marketplace:

A)businesses focus on partnering with members of the supply chain to enhance customer value.​
B)companies that focus on supply chain management commonly report high inventory costs.​
C)supply chain management reflects a completely employee-driven management philosophy.
D)standardized products are "pushed" down through marketing channels to consumers.​

Question 23

Identify a true statement about agile companies.

A)They use a "pull" strategy instead of a "push" strategy to market their products.​
B)They partner closely with suppliers and service providers to reduce customer wait times for products.​
C)They increase the complexity of the supply chain.
D)They spend less time than their competitors on activities that create direct customer benefits.​

Question 24

A _____ is defined as a system of management practices that are consistent with a systems thinking approach.

A)supply chain agility​
B)supply chain integration
C)supply chain orientation​
D)supply chain analytics​

Question 25

Nessca Solutions Inc.has recently created a hardware and software system for transmitting data among different departments within Nessca Solutions Inc.The system provides an easy and quick way of exchanging information.This has increased the firm's efficiency while reducing costs.This is an example of _____.

A)technology and planning integration​
B)customer integration​
C)material and service supplier integration​
D)​measurement and feedback integration

Question 26

Identify a true statement about the demand management process.

A)It eases the pressure on the production process of a company.​
B)It increases costs as it involves serving multiple types of customers who have variable wants and needs.
C)It focuses on providing quick positive response to negative customer feedback.​
D)It creates customer-focused plans of action prior to actual purchases being made.​

Question 27

Which of the following statements is true of public-private partnerships?

A)They are formed when the magnitude of a supply chain dilemma is of little importance to a company.​
B)They are critical to the satisfaction of both company and societal interests.​
C)They increase the negative impacts of potentially hazardous supply chain situations.
D)They lack power to solve future national and global supply chain problems.​

Question 28

Identify a true statement about supply chain management.

A)​It reflects a completely employee-driven management philosophy.
B)It enables supply chain managers to respond quickly to sudden changes in supply or demand.​
C)It enables supply chain managers to focus on pushing products down the marketing channels to consumers.​
D)It gives assembly line employees total control of materials, processes, money, and finished products.​

Question 29

Outsourcing enables companies to:

A)​locate stocks at fewer plants and distribution centers.
B)focus investment on their logistical functions rather than on core business.​
C)eliminate the need of using a third-party logistics company.​
D)lengthen the order-to-cash cycle.​

Question 30

Kate is a customer care executive at a telecommunications services company.She receives a complaint from Mike,a customer,about an unnecessary deduction of $10 from his phone credit.If the company follows customer service management,Kate is most likely to:

A)resolve the complaint only if the customer is highly valuable to the company.​
B)forecast whether such problems will arise in the future.
C)provide a quick response to the customer using customer care software.​
D)integrate the company's internal capabilities with customer's needs.​

Question 31

Under the _____ philosophy,functional areas in a company such as marketing,sales,or research/development communicate frequently and are synchronized with purchasing,manufacturing,and logistics.

A)demand-supply integration​
B)demand chain orientation
C)supply chain analytics​
D)supply chain agility​

Question 32

Which of the following is an advantage of offshoring?

A)​It reduces supply chain risks for a company.
B)It decreases labor costs incurred by a company.​
C)It enables a company to relocate outsourced operations closer to home.​
D)​It reduces the fuel costs spent on transporting goods.

Question 33

Companies that work closely with their suppliers:

A)​are free from problems such as corporate culture.
B)follow an internal supply chain integration.​
C)do not share responsibility with the suppliers for satisfying customer requirements.​
D)encounter problems such as information hoarding and trust issues.​

Question 34

Magnira Inc.,an equipment manufacturing company,designs precision cutting blades that can be used for various applications.A recent project required Magnira Inc.to work closely with a surgical tools manufacturing company to manufacture a stapler that staples closely,which would help ensure less traumatic procedures and quicker patient recoveries.This is an example of the:

A)​product development and commercialization process.
B)customer service management process.​
C)supplier relationship management process.​
D)order fulfillment process.​

Question 35

Which of the following best defines the order-to-cash cycle?

A)It is the amount of time between the cancellation of an order by a customer and the approval of cancellation.​
B)It is the time delay between the packaging of an order and the consumption of the product.​
C)It is the time gap between purchase of raw materials and manufacturing of the final product.
D)It is the amount of time between order placement and receipt of the customer's payment following order shipment.​

Question 36

Castle Brew Inc.,a leading multinational beverage manufacturing company,coordinates with Waste Yard Inc.,a waste management company,to devise a strategy that would help in recycling and reusing beverage bottles.Castle Brew Inc.plans to install hundreds of machines that would recycle empty bottles in many locations and provide rewards to those consumers who participate in the initiative as it believes that this initiative would help protect the environment.In this scenario,Castle Brew Inc.is practicing _____.

A)mass customization​
B)demand-supply integration​
C)outsourcing​
D)​sustainable supply chain management

Question 37

The best order fulfillment processes:

A)​manage volumes of returned product efficiently.
B)reduce coordination between multiple companies.​
C)reduce the time between order and customer receipt.​
D)increase inventory levels of the firm.​

Question 38

Which of the following statements is true of supply chain oriented firms?

A)They work against their partners when seeking to achieve goals.​
B)They are not better off financially in the long run.​
C)They lack the support of top managers.
D)They are willing to accept short-term risks on behalf of others.​

Question 39

In the context of supply chain integration,relationship integration:

A)enables companies to act as multiple individual units.​
B)makes performance assessments transparent and measurable across the borders of different firms.
C)includes ways in which companies collaborate on activities or projects.​
D)is a type of internal integration sought by firms interested in providing top-level service to customers.​

Question 40

Which of the following statements is true of companies that focus on supply chain management?

A)They have limited interactions with their suppliers.​
B)They report lower warehousing costs.​
C)They incur large incremental expenditure on company assets.​
D)​They report reduced logistical flexibility.

Question 41

Which of the following statements is true of three-dimensional printing (3DP)?

A)It cannot be used in industries such as auto parts, biomedical, and fast food.​
B)It is expected to have a negative impact on businesses' carbon footprints and the environment at large.
C)It will lead to mass production of standardized goods than custom products.​
D)It will eliminate the need for transportation of finished goods to distribution centers and retailers.​

Question 42

IndigBlue Inc.,a distributor of audio equipment,component parts,and supplies,takes title to all its products.It operates a few warehouses where it stores the finished goods and reships them to its clients.According to this scenario,IndigBlue Inc.is an example of a ____.

A)​sales agent
B)merchant wholesaler​
C)broker​
D)retailer​

Question 43

Lina orders a spare part for her custom-built bike from Lumberne Technologies Inc.The company makes use of three-dimensional printing to produce the spare part in one of the nearby branches of the firm.In this case,which of the following technologies is used to produce the spare part?

A)Lenticular printing​
B)Tampography
C)Molding​
D)Additive manufacturing​

Question 44

Which of the following statements is true of channel members?

A)Merchant wholesalers create form utility.​
B)Agents and brokers take ownership of goods in the marketing channel.​
C)They provide generalization of labor.​
D)​They provide contact efficiency.

Question 45

Which of the following statements is true of retailers?

A)They provide time and place utility to agents and brokers.​
B)They facilitate the movement of products from the manufacturer to producers and resellers.​
C)They provide contact efficiency for consumers.
D)They facilitate exchanges of ownership between buyers and sellers.​

Question 46

Which of the following is a similarity between merchant wholesalers and retailers?

A)Both take title to products in the marketing channel.​
B)Both provide form utility.
C)Both get a fee or commission based on sales volume.​
D)Both have little input into the terms of sale of a product.​

Question 47

Mezzah Bros.,a video store that sells DVDs and entertainment publications,stores its products in separate warehouses.Moreover,it uses different modes of transportation to deliver them to customers.This scenario illustrates the _____ of Mezzah Bros.

A)​transactional functions
B)research functions​
C)logistical functions​
D)financing functions​

Question 48

A _____ enables consumers to return products to the retailer or manufacturer in the event of a product defect,or at the end of the product's useful life to the consumer.

A)​gray marketing channel
B)reverse channel​
C)nontraditional channel​
D)digital channel​

Question 49

Companies are globalizing their supply chains because:

A)​of increasing demand for imported products worldwide.
B)it helps standardize the quality of the products produced.​
C)of a decrease in the length and risk of supply chains globally.​
D)it helps reduce transportation and warehousing costs.​

Question 50

_____ negotiate with one another,buy and sell products,and facilitate the change of ownership between buyer and seller in the course of moving finished goods from the manufacturer into the hands of the final consumer.

A)Innovators​
B)Laggards​
C)Intermediaries
D)Early adopters​

Question 51

Which of the following statements is true of a retailer channel?

A)It involves passing ownership directly from the producer to the ultimate consumer.​
B)It uses agents and brokers to procure products from manufacturers.​
C)It is most common when the retailer is large and can buy in large quantities directly from the manufacturer.
D)It is commonly used for low-cost items that are frequently purchased, such as candy, cigarettes, and magazines.​

Question 52

Phoenix Farm,a firm that sells farm products,gathers all fresh food ingredients at one place for its customers.The customers can buy eggs,milk,meat,vegetables,and so on without spending a great amount of time and energy.Phoenix Farm is a _____.

A)​merchant wholesaler
B)retailer​
C)broker​
D)agent​

Question 53

Which of the following is a disadvantage of supply chain globalization?

A)​It restricts companies from availing trade tariff.
B)It exposes companies to risks associated with geopolitical conflict.​
C)It increases labor costs and materials costs for companies.​
D)It leads to stagnation in the company's technology or knowledge.​

Question 54

The most prominent difference separating intermediaries is whether they:

A)​use "push" strategy.
B)take title to the products they sell.
C)raise profit margins for independent middlemen.
D)lower average production costs.​

Question 55

Marketing channels attain economies of scale:

A)through minimum interaction with suppliers.​
B)by aiding downstream producers to consumers.​
C)by providing form utility to producers.​
D)​through specialization and division of labor.

Question 56

Which of the following is an advantage of supply chain globalization?

A)It reduces competition from domestic suppliers.​
B)It lowers labor rates and material costs.​
C)It helps in delivering products that have highly consistent quality standards.
D)It provides consistency in transportation service.​

Question 57

_____ refers to the elements of the composition and appearance of a product that make it desirable.

A)Time utility​
B)Exchange utility​
C)Place utility​
D)​Form utility

Question 58

Which of the following statements is true of nontraditional channels?

A)They aid upstream producers in marketing to producers.​
B)They help differentiate a firm's product from the competition.​
C)They increase a brand's coverage in the market.
D)They lead to competition between distribution channels through cannibalization.​

Question 59

A _____ is a business structure of interdependent organizations that reaches from the point of production to the consumer and facilitates the downstream physical movement of goods through the supply chain.

A)common trade alliance​
B)marketing channel​
C)retailer monopoly​
D)​market grouping

Question 60

The logistical function of intermediaries in marketing channels involves:

A)researching about channel members and consumers​
B)sorting, accumulation, consolidation of products.
C)explaining about a product's features, advantages, and benefits.​
D)contacting prospective buyers to make them aware of existing products.​

Question 61

What are the advantages of M-commerce? Why is it important?

Question 62

How does the supply chain management of the mass production era differ from the supply chain management practiced today?

Question 63

Which of the following statements is true of multichannel marketing?

A)​Customers are offered information, goods, services, and/or support through one or more synchronized channels.
B)It becomes difficult to find the channel responsible for discrepancies in the inventory.​
C)It unifies transportation and distribution systems of different channels.​
D)It creates a main channel which acts as the sale and profit center.​

Question 64

Which of the following individuals or companies uses an emerging distribution channel structure?

A)​A retail store that sells counterfeit backpacks of famous brands
B)An online apparel store that offers subscription services for high-end fashion clothing​
C)An electronics retailer who sells products directly to customers through its shop-at-home television channel​
D)A department store that sells apparel, electronics, grocery, and home furnishing products of various manufacturers in one location​

Question 65

_____ is a form of distribution aimed at maximum market coverage.

A)​Narrow distribution
B)Intensive distribution​
C)Selective distribution​
D)Exclusive distribution​

Question 66

What are the disadvantages of globalizing a company's supply chain?

Question 67

Briefly explain the emerging distribution channel structures with examples.

Question 68

Unlike multichannel marketing,omnichannel marketing:

A)​requires each channel to have its own inventory, processes, and performance metrics.
B)creates redundancy and complexity in a firm's distribution system.​
C)creates greater customer control over the shopping experience.​
D)requires the construction of multiple and individual supply chains.​

Question 69

Laelle Inc.is a company that sells apparel for women.It recently shut down its physical store and is operating as a completely app-based store now.The app allows users to access the store's products anytime and anywhere using their cell phones,and it also has features that allow users to compare the prices of products across different online stores.This scenario exemplifies:

A)​M-commerce.
B)multichannel marketing.​
C)dual distribution.​
D)a drop and shop program.​

Question 70

What is supply chain orientation? Describe the five characteristics of supply chain oriented firms.

Question 71

What is the manufacturing flow management process? Briefly explain the differences between lean and agile supply chain strategies.

Question 72

Explain the producer factors that affect the selection of a distribution channel.