Question 1

Which type of warehouse allows a firm to use inventory as collateral for a loan?

Accepted Answer

A)  Public 
B)  Private 
C)  Bonded 
D)  Field

Question 2

A major difference between industrial and consumer product channels of distribution is that an industrial channel is less likely to use

Accepted Answer

A)  specification selling. 
B)  direct channels of distribution. 
C)  retailers. 
D)  leasing, rather than selling.

Question 3

A major advantage of vertical integration (such as a manufacturer operating a factory outlet store) is that it

Accepted Answer

A)  increases profit margins. 
B)  reduces markdowns. 
C)  increases control over other channel members. 
D)  increases channel length.

Question 4

When a firm seeks to ship out 95 percent of its orders within five hours of receipt, it is involved with

Accepted Answer

A)  an order cycle. 
B)  just-in-time inventory management. 
C)  inventory turnover. 
D)  a distribution standard.

Question 5

What impact would a just-in-time inventory system have on a firm's warehousing strategy?

Accepted Answer

A)  Its use of private warehouses would increase, while its use of public warehouses would decrease. 
B)  Its use of both private and public warehouses would diminish. 
C)  Its use of bonded warehouses would diminish, but its use of field warehouses would increase. 
D)  Its use of both bonded and field warehouses would increase.

Question 6

The broad range of activities concerned with efficiently delivering raw materials, parts, semifinished items, and finished products to designated places, at designated times, and in proper condition constitutes

Accepted Answer

A)  channel functions. 
B)  the sorting process. 
C)  distribution planning. 
D)  logistics.

Question 7

With an administered channel arrangement,

Accepted Answer

A)  all the terms regarding distribution functions, prices, and other factors are clearly specified in writing. 
B)  the dominant firm in the distribution process plans the marketing program and itemizes and coordinates each member's duties. 
C)  all of the channel members are owned and controlled by the manufacturer. 
D)  the channel of distribution is direct.

Question 8

The Following Questions are linked to this scenario: A leading manufacturer of automobile tires is reevaluating its channel strategy.
-The tire manufacturer is interested in differentiated marketing in which it appeals to both price-conscious shoppers through mass merchandisers and to service-oriented shoppers through gasoline stations and tire specialty stores. The firm should utilize which type of distribution?

Accepted Answer

A)  Intensive 
B)  Dual channels 
C)  Selective 
D)  Direct

Question 9

Which concept is closest to an order cycle?

Accepted Answer

A)  Economic order quantity 
B)  Stock turnover 
C)  Order lead time 
D)  Safety stock

Question 10

With a contractual channel arrangement,

Accepted Answer

A)  the channel of distribution is direct. 
B)  the dominant firm in the distribution process plans the marketing program and coordinates the responsibilities of each member. 
C)  all of the channel members are owned and controlled by the manufacturer. 
D)  all the terms regarding distribution tasks, prices, and other factors are clearly specified in writing for each member.

Question 11

Relationship marketing is typically required for the success of

Accepted Answer

A)  economic order quantity management. 
B)  intermodal shipping. 
C)  just-in-time (JIT) inventory systems. 
D)  containerization.

Question 12

Independent intermediaries are used in a direct channel of distribution.

Accepted Answer

A) True 
 B)False

Question 13

a.	Under what circumstances should a company use selective distribution? Why?
b. Under what circumstances should a company use intensive distribution? Why?
c. Under what circumstances should a company use dual channels of distribution? Why?

Accepted Answer

The answer of a.	Under what circumstances should a company use...

Question 14

Explain the interrelationship among these concepts: stock turnover, reorder point, safety stock, economic order quantity (EOQ), and warehousing.

Accepted Answer

The answer of Explain the interrelationship among these concepts: stock...

Question 15

Administered channel arrangements are typically longer than contractual channel arrangements.

Accepted Answer

A) True 
 B)False

Question 16

A wholesaler uses a reorder point of 70 units. Its order lead time is 5 days, it holds no safety stock, and sells an average of 10 units per day. As long as an order is received within 6 days after it is placed, the firm will not run out of stock providing its usage rate is equal to or less than 10 units per day.

Accepted Answer

A) True 
 B)False

Question 17

The flexible scheduling of railroads makes this transportation mode ideal for just-in-time inventory systems.

Accepted Answer

A) True 
 B)False

Question 18

A firm seeking to maximize control over its channel strategy should use a direct channel of distribution.

Accepted Answer

A) True 
 B)False

Question 19

To retailers, a just-in-time inventory system is known as a quick response inventory system.

Accepted Answer

A) True 
 B)False

Question 20

Relationship marketing greatly facilitates the use of just-in-time inventory systems.

Accepted Answer

A) True 
 B)False

Exam 14: Value Chain Management and Logistics

Which type of warehouse allows a firm to use inventory as collateral for a loan?

A major difference between industrial and consumer product channels of distribution is that an industrial channel is less likely to use

A major advantage of vertical integration (such as a manufacturer operating a factory outlet store) is that it

When a firm seeks to ship out 95 percent of its orders within five hours of receipt, it is involved with

What impact would a just-in-time inventory system have on a firm's warehousing strategy?

The broad range of activities concerned with efficiently delivering raw materials, parts, semifinished items, and finished products to designated places, at designated times, and in proper condition constitutes

With an administered channel arrangement,

Which concept is closest to an order cycle?

With a contractual channel arrangement,

Relationship marketing is typically required for the success of

Independent intermediaries are used in a direct channel of distribution.

a. Under what circumstances should a company use selective distribution? Why? b. Under what circumstances should a company use intensive distribution? Why? c. Under what circumstances should a company use dual channels of distribution? Why?

Explain the interrelationship among these concepts: stock turnover, reorder point, safety stock, economic order quantity (EOQ), and warehousing.

Administered channel arrangements are typically longer than contractual channel arrangements.

The flexible scheduling of railroads makes this transportation mode ideal for just-in-time inventory systems.

A firm seeking to maximize control over its channel strategy should use a direct channel of distribution.

To retailers, a just-in-time inventory system is known as a quick response inventory system.

Relationship marketing greatly facilitates the use of just-in-time inventory systems.