Deck 13: Supply Chain Management and Marketing Channels

Question 1

Industrial distributors are channel members that buy and do not take title to products.

Answer 1

False

Question 2

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

Answer 2

True

Question 3

Nearshoring leads to high costs and increases supply chain risk.

Answer 3

False

Question 4

Offshoring reduces transportation costs of a company.

Question 5

The focus of businesses has shifted to determining how products and services are being ''pushed'' into the marketplace by manufacturers, and on partnering with members of the supply chain to enhance customer value.

Question 6

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 7

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

Question 8

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.

Question 9

Five types of internal integration are sought by firms interested in providing top-level service to customers: relationship integration, measurement integration, technology and planning integration, material and service supplier integration, and customer integration.

Question 10

Which of the following statements is true of the exchange utility?

A)It refers to the elements of the composition and appearance of a product that make it desirable.
B)It refers to the increase in customer satisfaction gained by making a good or service available at the appropriate time.
C)It refers to the usefulness of a good or service as a function of the location at which it is made available.
D)It refers to the increased value of a product that is created as its ownership is transferred.

Question 11

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

Question 12

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

Question 13

DutiLog Inc. is a company that specializes in providing warehouse 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 14

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

Question 15

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

Question 16

A common misconception surrounding both environmental and social sustainability is that their practice increases supply chain costs disproportionately, and therefore should be enacted only when business leaders are willing to act altruistically or for the purposes of good public.

Question 17

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 18

In today's marketplace, customers who expect to receive product configurations and services matched to their unique needs are decreasing in numbers.

Question 19

The best order fulfillment processes increase order cycle time.

Question 20

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

Question 21

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)supply chain management
B)yield management
C)returns management
D)asset lifecycle management

Question 22

Which of the following statements is true of three-dimensional printing?

A)It is expected to have a negative impact on businesses' carbon footprints and the environment at large.
B)It cannot be used in industries such as automobile parts, biomedical, and fast food.
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 23

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

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

Question 24

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)agent
D)broker

Question 25

Which of the following is true of nontraditional channels?

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

Question 26

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

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

Question 27

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 28

Which of the following is a function of marketing channel members?

A)They attain economies of scale through specialization and division of labor.
B)They aid downstream producers in marketing.
C)They aid retailers in creating time, place, and exchange utility for customers.
D)They attain economies of scale through minimum interaction with suppliers.

Question 29

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. The company believes that this initiative would help protect the environment. In this scenario, Castle Brew Inc. is practicing _____.

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

Question 30

Which of the following statements is true of customer integration?

A)It is a competency that enables firms to offer value-added offerings to those customers who represent the greatest value to the firm.
B)It requires firms to link to outsiders that provide goods and services to them so that they can provide high-quality customer experiences.
C)It is process in which companies will collaborate on projects so that the customer gains the maximum amount of total value possible from the supply chain.
D)It requires information hardware and software systems that can exchange information when needed between customers and suppliers.

Question 31

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 _____ functions of Mezzah Bros.

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

Question 32

Which of the following is true of retailers?

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

Question 33

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 incorporates features and cost-cutting measures into final products.
C)It enables suppliers and business units to operate with limited or no interaction.
D)It provides structural support for developing and maintaining relationships with suppliers.

Question 34

Which of the following statements is true of demand-supply integration?

A)It is composed of bundles of interconnected activities that stretch across firms in the supply chain.
B)It is a system of management practices that are consistent with a ''systems thinking'' approach.
C)It is focused on integrating the supply-management and demand-generating functions of an organization.
D)It is used to align supply and demand throughout the supply chain by anticipating customer requirements.

Question 35

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, resellers, and other vendors. IndigBlue Inc. is an example of a ____.

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

Question 36

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

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

Question 37

Which of the following is a characteristic of companies that adopt a supply chain orientation?

A)They have the capability to deliver on the promises they make.
B)They do not accept short-term risks on behalf of others.
C)They lack the support of the top management of the companies.
D)They do things that harm the entire supply chain in the long run.

Question 38

Which of the following entails the logistical function of intermediaries in marketing channels?

A)Sorting, accumulation, consolidation and/or allocation of assets
B)Researching about channel members and consumers
C)Explaining a product's features, advantages, and benefits
D)Contacting prospective buyers to make them aware of existing products

Question 39

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

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

Question 40

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

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

Question 41

Magnira Inc., an equipment manufacturing company, designs precision cutting tools 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)supplier relationship management process.
C)customer service management process.
D)order fulfillment process.

Question 42

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

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

Question 43

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 44

Which of the following statements is true of the demand management process?

A)It increases costs as it involves serving multiple types of customers who have variable wants and needs.
B)It can ease pressure on the production process and allow companies to satisfy most of their customers.
C)It focuses on providing a quick positive response to negative customer feedback.
D)It involves creating customer-focused plans of action prior to actual purchases being made.

Question 45

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

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

Question 46

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

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

Question 47

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 48

Which of the following statements is true of today's marketplace?

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

Question 49

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

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

Question 50

Which of the following is an advantage for companies that are globalizing their supply chains?

A)It increases the demand for imported products worldwide.
B)It helps reduce transportation and warehousing costs.
C)It decreases the length and risk of supply chains globally.
D)It helps standardize the quality of the products produced.

Question 51

In the context of demand management, _____ is a method companies use to align production with demand by merging tactical and strategic planning methods across functional areas of the business.

A)sales and operations planning
B)demand and order fulfillment planning
C)material and service planning
D)technology and integration planning

Question 52

Channel members are also known as _____.

A)intermediaries
B)laggards
C)early adopters
D)innovators

Question 53

Which of the following is true of a retailer channel?

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

Question 54

Which of the following is an advantage of outsourcing?

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

Question 55

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

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

Question 56

Which of the following 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)Customers are required to be the initiators of distribution in distribution channels.
D)It creates a main channel that acts as the sale and profit center.

Question 57

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

Question 58

Which of the following statements is true of agile companies?

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

Question 59

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 60

Which of the following statements is true of supply chain management?

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

Question 61

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 62

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 at its branch that is closest to Lina's home. In this case, which of the following technologies is used to produce the spare part?

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

Question 63

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

Question 64

In the context of demand-supply integration, _____ includes the ways in which two or more companies will collaborate on activities or projects so that the customer gains the maximum amount of total value possible from the supply chain.

A)material and service supplier integration
B)technology and planning integration
C)measurement integration
D)relationship integration

Question 65

Which of the following statements is true of channel members?

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

Question 66

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

Question 67

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

Question 68

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

Question 69

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

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

Question 70

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

Question 71

Briefly explain the emerging distribution channel structures with examples.

Question 72

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