Question 1

Which of the following products is most likely to be stored in a private warehouse?

Accepted Answer

A)   water skis
B)   flower seed packages
C)   holiday greeting cards
D)   pecans
E)   microwave ovens E

Question 2

According to the total cost concept, management should focus on minimizing the cost of each individual distribution activity in order to minimize costs and maximize profits.

Accepted Answer

A) True 
 B)False  False

Question 3

Why are the average operating expenses for agent wholesaling middlemen substantially lower than those
For merchant wholesalers?

Accepted Answer

A)   Agent wholesaling middlemen perform fewer services.
B)   Agent wholesaling middlemen have higher initial markups on their products.
C)   The primary customers of agent wholesaling middlemen are industrial users.
D)   Agent wholesaling middlemen never carry inventory.
E)   Agent wholesaling middlemen are more efficient. D

Question 4

A _____ is an independent agent wholesaling middleman that sells part or all of a manufacturer's product Mix in an assigned geographic territory.

Accepted Answer

A)   truck jobber
B)   manufacturers' agent
C)   broker
D)   selling agent
E)   commission merchant

Question 5

Which of the following products would most likely be distributed by a truck jobber?

Accepted Answer

A)   bricks
B)   radiator hoses
C)   swim suits
D)   chewing gum
E)   ceiling tile

Question 6

In its full scope, physical distribution for manufacturers includes the flow of raw materials from their sources of supply to the product line and the movement of finished goods from the end of production to the final users' locations.

Accepted Answer

A) True 
 B)False

Question 7

A camera manufacturer like Olympus has virtually no seasonal fluctuation in national demand for its Products. As part of its physical distribution system, Olympus is likely to use:

Accepted Answer

A)   general merchandise warehouses.
B)   cold storage warehouses.
C)   private warehouses.
D)   special commodity warehouses.
E)   no warehouses because it has such efficient inventory control.

Question 8

There is no difference between package delivery firms and freight forwarders.

Accepted Answer

A) True 
 B)False

Question 9

When a bakery decides on a mode of transportation to use, which of the following is LEAST likely to be A concern?

Accepted Answer

A)   speed (door-to-door time) 
B)   cost of transportation
C)   geographic locations served
D)   reliability in meeting schedules
E)   inventory system used

Question 10

What is the most expensive mode of transportation?

Accepted Answer

A)   pipeline
B)   water
C)   rail
D)   air
E)   highway

Question 11

The manufacturers for which independent agent wholesaling middlemen sell are frequently referred to As:

Accepted Answer

A)   channel captains.
B)   licensors.
C)   intermediaries.
D)   principals.
E)   contractors.

Question 12

The core of supply chain management (SCM) is:

Accepted Answer

A)   electronic data interchange.
B)   just-in-time inventory management.
C)   calculating economic order quantities.
D)   containerization.
E)   coordinated logistics.

Question 13

Gary is the logistics manager for a manufacturer of optical lenses. His areas of responsibility will most Likely include:

Accepted Answer

A)   inventory location and warehousing.
B)   order processing.
C)   transportation.
D)   materials handling.
E)   all of the above.

Question 14

Economic order quantity (EOQ) is most closely associated with:

Accepted Answer

A)   shipping.
B)   materials handling.
C)   distribution centers.
D)   inventory control.
E)   containerization.

Question 15

Worldwide Chain Stores is a(n) ______ system installed across the world by a number of leading Distribution companies. The system provides real time information and covers all activities from the Raising of a purchase order by a customer for stock replenishment, to the production of member invoices after delivery is complete.

Accepted Answer

A)   the customer-distribution
B)   economies of scale
C)   integrated marketing distribution (IM
D)  
D)   supply chain management
E)   materials handling.

Question 16

A _____ is a type of manufacturer's sales facility, which does not carry an inventory of the product being
Sold.

Accepted Answer

A)   manufacturer's sales branch
B)   middleman broker
C)   manufacturer's sales office
D)   product agent
E)   drop shipper

Question 17

Fresh cut flowers typically last about two weeks. Moving them quickly from the fields in the Andes Mountains where they are grown to consumers is important-the quicker the flowers reach florists, the more the florists can charge consumers for them. Ceres Flowers, Inc. is a company that expedites the transportation of flowers imported from South America by having its personnel meet the flowers when they reach Miami and escort them through customs and into distributors' trucks several hours faster than happens without its services. Ceres Flowers is an example of a(n):

Accepted Answer

A)   third-party logistics provider.
B)   marketing mix outsourcer.
C)   channel captain.
D)   import/export agent.
E)   supply chain ombudsman.

Question 18

Years ago, sons traditionally entered the profession of their fathers. It has become much less commonplace today--but not for the Pulley family. The father Keith Pulley is a selling agent, a type of middlemen, and all four of his sons are also involved closely with distribution strategy. The oldest son Craig operates a manufacturer's sales office. George is a broker while Troy operates a trucking company. The youngest Jonathan runs a wholesale company that specializes in importing fresh-cut flowers.
-Which of the following types of products is George Pulley most likely to wholesale?

Accepted Answer

A)   salmon, lobster, and other types of seafood
B)   dishwashers, stoves, refrigerators, and other major appliances
C)   building supplies
D)   technological equipment
E)   MRO supplies

Question 19

The order-processing subsystem of a physical distribution system involves order filling, granting credit,collecting past-due accounts, and providing warranty information.

Accepted Answer

A) True 
 B)False

Question 20

Agent wholesaling middlemen do not take title to the products they distribute.

Accepted Answer

A) True 
 B)False

Exam 16: Wholesaling and Physical Distribution

Which of the following products is most likely to be stored in a private warehouse?

According to the total cost concept, management should focus on minimizing the cost of each individual distribution activity in order to minimize costs and maximize profits.

Why are the average operating expenses for agent wholesaling middlemen substantially lower than those For merchant wholesalers?

A _____ is an independent agent wholesaling middleman that sells part or all of a manufacturer's product Mix in an assigned geographic territory.

Which of the following products would most likely be distributed by a truck jobber?

In its full scope, physical distribution for manufacturers includes the flow of raw materials from their sources of supply to the product line and the movement of finished goods from the end of production to the final users' locations.

A camera manufacturer like Olympus has virtually no seasonal fluctuation in national demand for its Products. As part of its physical distribution system, Olympus is likely to use:

There is no difference between package delivery firms and freight forwarders.

When a bakery decides on a mode of transportation to use, which of the following is LEAST likely to be A concern?

What is the most expensive mode of transportation?

The manufacturers for which independent agent wholesaling middlemen sell are frequently referred to As:

The core of supply chain management (SCM) is:

Gary is the logistics manager for a manufacturer of optical lenses. His areas of responsibility will most Likely include:

Economic order quantity (EOQ) is most closely associated with:

A _____ is a type of manufacturer's sales facility, which does not carry an inventory of the product being Sold.

The order-processing subsystem of a physical distribution system involves order filling, granting credit,collecting past-due accounts, and providing warranty information.

Agent wholesaling middlemen do not take title to the products they distribute.