Question 1

The logistical function performed by intermediaries that involves maintaining inventory and protecting goods of manufacturers is called:

Accepted Answer

A)   promotion.
B)   financing.
C)   risk taking.
D)   physical distribution.
E)   selling. C

Question 2

Lead time is the amount of time between:

Accepted Answer

A)   the recognition that an order needs to be placed and the arrival of the needed merchandise.
B)   manufacturing a product and taking the product to the warehouse.
C)   the conception of a product idea and the manufacture of a product.
D)   the conception of a product idea and the procurement of raw materials.
E)   procuring the necessary raw materials and assembling the raw materials to a finished product. A

Question 3

Maintaining inventory on behalf of a manufacturer is an example of a facilitating function of intermediaries.

Accepted Answer

A) True 
 B)False  False

Question 4

Sodo Cola is a leading manufacturer of soda.The firm believes in making the products visible and continually attempts to place its products in as many outlets as possible.In the context of distribution intensity,what type of distribution strategy is the firm using?

Accepted Answer

A)   Exclusive
B)   Territorial
C)   Selective
D)   Intensive
E)   Expansive

Question 5

Drobex Manufacturing does not maintain stock in its warehouse and instead keeps stock in its retail outlets.Which of the following intermediary functions does Drobex Manufacturing expects its intermediaries to perform?

Accepted Answer

A)   Financing
B)   Risk taking
C)   Buying
D)   Promotion
E)   Distribution

Question 6

Which of the following will strengthen the chances of direct distribution?

Accepted Answer

A)   Low listing fees in the industry
B)   Scattered target consumers
C)   Low value of the products
D)   Fewer consumers
E)   Reduced shelf space in outlets

Question 7

The need for the supply chain members to constantly monitor and check up on each other's actions is reduced by:

Accepted Answer

A)   sharing common goals.
B)   avoiding risk taking.
C)   maintaining confidentiality.
D)   developing mutual trust.
E)   using closed communication.

Question 8

What is an inventory management system used in retailing in which merchandise is received just in time for sale when the customer wants?

Accepted Answer

A)   Electronic data interchange system
B)   Universal product system
C)   Franchising system
D)   Quick response system
E)   Radio frequency identification system

Question 9

Which of the following is an example of a transactional function that intermediaries perform?

Accepted Answer

A)   Transporting goods to customers
B)   Purchasing goods for resale
C)   Maintaining inventory
D)   Extending credit to customers
E)   Sharing competitive intelligence about customers

Question 10

Furntech Inc.sells office furniture.The firm procures merchandise from different manufacturers in Canada and sells it to smaller sellers in Lethbridge.Furntech is an example of a:

Accepted Answer

A)   producer.
B)   promoter.
C)   manufacturer.
D)   retailer.
E)   wholesaler.

Question 11

Novelty Stores is a small firm that sells its products directly to consumers.The company stores many brands of consumer goods and other low-value items.Novelty Stores is a(n):

Accepted Answer

A)   organizer.
B)   retailer.
C)   producer.
D)   supplier.
E)   wholesaler.

Question 12

A contractual agreement is formed between a franchisor and a franchisee in the franchising system.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is an example of using a pull strategy?

Accepted Answer

A)   A company increases the number of intermediaries to sell its products.
B)   A retail shop announces a stock clearance sale.
C)   An insurer hires more agents to sell more.
D)   A firm appoints more salespeople to increase sales.
E)   A company uses mass media advertisements for its products.

Question 14

Which of the following,if true,will weaken the chances that Fredox will sell more through direct distribution?

Accepted Answer

A)   The company sells only to a few business customers.
B)   Listing fees for confectionaries are relatively high.
C)   The products that Fredox sells have relatively low-unit value.
D)   Most of the firm's business comes from bulk selling.
E)   The company's sales increased by 6 percent last year.

Question 15

Mystic Gifts is a manufacturer of gift articles.The company sells its products to businesses and individual consumers.The company sells directly to most of its industrial buyers by using company salespeople and sells to individual consumers through third-party retail outlets.The company also has an Internet shop to sell gifts.What type of distribution strategy has Mystic Gifts adapted?

Accepted Answer

A)   Indirect distribution
B)   Circular distribution
C)   Direct distribution
D)   Personal distribution
E)   Multichannel distribution

Question 16

Retailers sell products directly to consumers.

Accepted Answer

A) True 
 B)False

Question 17

Briefly explain indirect distribution and provide an example of a company that uses it.

Accepted Answer

The answer of Briefly explain indirect distribution and provide an...

Question 18

Explain logistics management.

Accepted Answer

The answer of Explain logistics management....

Question 19

Which of the following is a type of distribution centre to which vendors ship merchandise prepackaged in the quantity required for each store?

Accepted Answer

A)   Traditional
B)   Combinations
C)   Cross-docking
D)   Vertical
E)   Corporate

Question 20

What are direct distribution channels? Give an example of a company that uses direct distribution.

Accepted Answer

The answer of What are direct distribution channels? Give an...

Exam 12: Services: The Intangible Product