Final exam pool items (Chs. 9, 11, 12, 13, 14, 15 & 17 not 18)



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ANS: D PTS: 1 REF: 176 OBJ: 12-3 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Customer | TB&E Model Distribution | TB&E Model Product

44. When Blockbuster decided to establish Radio Shack stores within its existing stores, it seemed like a "marriage made in heaven" between a video rental chain known for frequent, loyal shoppers and one of the most identifiable consumer electronics retail brands in America. Consumers who went to rent films at a Blockbuster store were surprised and unsure how to react to this example of:

a.

an agent/broker dominated channel

b.

logistical distribution

c.

multiplicative channels

d.

a nontraditional channel

e.

a strategic channel alliance


ANS: D PTS: 1 REF: 176 OBJ: 12-3 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Customer | TB&E Model Distribution

45. _____ use another manufacturer's already established channel and are used most often when the creation of marketing channel relationships may be expensive and time-consuming.



a.

Strategic channel alliances

b.

Relationship channels

c.

Reverse channels

d.

Multiple distribution systems

e.

Nontraditional channelization

ANS: A PTS: 1 REF: 176 OBJ: 12-3 TYPE: Def

TOP: AACSB Reflective Thinking | TB&E Model Distribution | TB&E Model Strategy

46. Selfridges is the second-largest department store in Great Britain. It works with House of Frasier, one of its competitors, to reduce operating costs by sharing channels of distribution to ship goods from 1,500 plus suppliers. Selfridges and House of Frasier are engaged in:



a.

vertical conflict

b.

an integrated supply chain

c.

a strategic channel alliance

d.

an information-based distribution channel

e.

a distribution cooperative

ANS: C


A strategic channel alliance is a cooperative agreement between businesses to use each other's already established distribution channels.

PTS: 1 REF: 176 OBJ: 12-3 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Distribution | TB&E Model Strategy

47. Cambridge Research & Instrumentation, Inc., a pioneer of liquid crystal-based imaging solutions, and Hinds Instruments, a leading developer of advanced birefringence measurement solutions, have announced that Hinds with its considerable experience serving the advanced applications segment of this market will distribute Cambridge's highly regarded imaging technology. The two companies will engage in:



a.

vertical conflict

b.

an integrated supply chain

c.

a strategic channel alliance

d.

an information-based distribution channel

e.

a distribution cooperative

ANS: C


A strategic channel alliance is a cooperative agreement between businesses to use each other's already established distribution channels.

PTS: 1 REF: 176 OBJ: 12-3 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Distribution | TB&E Model Strategy

48. When Delphi-Grundig, a manufacturer of state-of-the-art car radios, decided to expand its marketing efforts into countries in which its products are not currently available, it did not have the time or resources to spend on developing new channels of distribution. Delphi-Grundig should consider a(n):



a.

industrial distributor

b.

franchising system

c.

reverse channel

d.

strategic channel alliance

e.

channel cooperative

ANS: D


Strategic channel alliances use another manufacturer's already established channel and are used when the creation of marketing channel relationships may be expensive and time-consuming.

PTS: 1 REF: 176 OBJ: 12-3 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Distribution | TB&E Model Strategy

49. _____ coordinates and integrates all of the activities performed by channel members into a seamless process, from the source to the point of consumption, resulting in enhanced customer and economic value.



a.

Yield management

b.

Channel power

c.

Materials handling

d.

Supply chain management

e.

Physical distribution

ANS: D PTS: 1 REF: 176 OBJ: 12-4 TYPE: Def

TOP: AACSB Reflective Thinking | TB&E Model Customer

50. Which of the following statements about supply chain management is true?



a.

Supply chain management is supply chain-driven.

b.

Supply chain management focuses on pulling products into the marketplace.

c.

Outsourcing is not used with supply chain management.

d.

Supply chain management provides customers with maximum service levels.

e.

Supply chain management focuses on pushing products into the marketplace.

ANS: B


Supply chain management is customer-driven. Outsourcing is one option for supply chain managers. Supply chain management balances the costs of the supply chain with the level of service demands by customers; thus, customers may not get the maximum level of service.

PTS: 1 REF: 176-177 OBJ: 12-4 TYPE: Comp

TOP: AACSB Reflective Thinking | TB&E Model Product

51. Supply chain management:



a.

is a physical flow process

b.

is customer-driven

c.

provides enhanced customer and economic value

d.

plays the role of communicator of customer demand

e.

is accurately described by all of these statements

ANS: E PTS: 1 REF: 176-177 OBJ: 12-4 TYPE: Def

TOP: AACSB Reflective Thinking | TB&E Model Distribution

52. Peachtree Windows has no windows in inventory waiting for someone to order them. It does not make a window until it is ordered. It is able to make 27,000 different window configurations and promises delivery in five working days because of the excellent relationships it has established with its suppliers. This partnering relationship that Peachtree Windows has established with its suppliers and contractors indicates the use of:



a.

supply chain management

b.

yield management

c.

channel networks

d.

horizontal marketing channels

e.

intensive distribution strategy

ANS: A


Supply chain management coordinates and integrates all the activities from raw materials to product consumption.

PTS: 1 REF: 176-177 OBJ: 12-4 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Distribution

53. A large automotive after-market business wanted to improve its current situation, which is characterized by excessive inventory, incomplete information, high logistics costs, slow reactions to environmental change, and lost profits at the retail level. Would supply chain management be of any help to the business?



a.

Yes, supply chain management is designed to coordinate and integrate all the activities from raw materials to product consumption.

b.

No, supply chain management is only applicable to distribution strategies for products being sold to the consumer market.

c.

Yes, supply chain management would be very useful because it relies so heavily on benchmarking.

d.

Yes, supply chain management would alleviate all channel conflict.

e.

No, supply chain management requires an expensive investment of time and resources to make it worthwhile.

ANS: A


The correct answer contains the definition of supply chain management.

PTS: 1 REF: 176-177 OBJ: 12-4 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Distribution

54. Which of the following statements concerning how market factors affect channel decisions is true?



a.

Industrial customers tend to buy in larger quantities and require more customer service.

b.

Geographically concentrated target markets should be served with an indirect sales force.

c.

Widely dispersed markets require fewer intermediaries.

d.

New firms in extremely competitive markets will be more successful if they use indirect channels.

e.

A very large market requires fewer intermediaries.

ANS: A


Generally, a very large market requires more intermediaries, including wholesalers and retailers.

PTS: 1 REF: 178 OBJ: 12-5 TYPE: Comp



TOP: AACSB Reflective Thinking | TB&E Model Customer | TB&E Model Product

55. Selfridges is the second-largest department store in Great Britain. It works with House of Frasier, one of its competitors, to reduce operating costs by sharing channels of distribution to ship goods from 1,500 plus suppliers. In choosing a channel of distribution, Selfridges more than likely relied on:

a.

market factors

b.

ownership requirements

c.

producer factors

d.

production factors

e.

geodemographic factors


ANS: A

Market factors include customer considerations. Customers of Selfridges anticipate great product width and depth.

PTS: 1 REF: 177-178 OBJ: 12-5 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Pricing | TB&E Model Distribution | TB&E Model International Perspective

56. Canesta Company has developed a virtual keyboard out of light to be used with cell phones and personal digital assistants (PDAs). The product beams an image of a keyboard on a desk, allowing the user to type on the image. The words are picked up by the user's digital device. When introduced to the market, the device will sell for less than $50. If, in choosing its channel, Canesta is most concerned about the life cycle of the device, then its choice of channels will largely be influenced by:

a.

factors of production

b.

customer characteristics

c.

ownership factors

d.

product factors

e.

market factors


ANS: D

Stage of the product life cycle is a product factor.

PTS: 1 REF: 178 OBJ: 12-5 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Distribution | TB&E Model Product

57. Canesta Company has developed a virtual keyboard out of light to be used with cell phones and personal digital assistants (PDAs). The product beams an image of a keyboard on a desk, allowing the user to type on the image. The words are picked up by the user's digital device. When introduced to the market, the device will sell for less than $50. If, in choosing its channel, Canesta is most concerned about supplying the number of consumers who have expressed interest in such a device, then its choice of channels will largely be influenced by:

a.

exclusivity agreements

b.

market factors

c.

possession factors

d.

product factors

e.

internal environmental characteristics


ANS: B

The size of the demand and the type of consumers are market factors.

PTS: 1 REF: 177-178 OBJ: 12-5 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Distribution | TB&E Model Product

58. Canesta Company has developed a virtual keyboard out of light to be used with cell phones and personal digital assistants (PDAs). The product beams an image of a keyboard on a desk, allowing the user to type on the image. The words are picked up by the user's digital device. When introduced to the market, the device will sell for less than $50. If, in choosing its channel, Canesta is most concerned about its lack of financial, managerial, and marketing resources to support the product's introduction, then its choice of channels will largely be influenced by:

a.

factors of ownership

b.

market factors

c.

producer factors

d.

product factors

e.

internal environmental characteristics


ANS: C

Financial, managerial, and marketing issues are producer factors.

PTS: 1 REF: 178 OBJ: 12-5 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Distribution | TB&E Model Product

59. _____ is distribution aimed at maximum market coverage. It is used for many convenience goods and supplies that need to be available in every outlet where the potential customer might want to buy them.



a.

Selective distribution

b.

Channel franchising

c.

Intensive distribution

d.

Horizontal channeling

e.

Exclusive distribution

ANS: C PTS: 1 REF: 178 OBJ: 12-5 TYPE: Def

TOP: AACSB Reflective Thinking | TB&E Model Customer | TB&E Model Distribution | TB&E Model Product

60. Toothpaste is sold in grocery stores, service stations, convenience stores, drugstores, discount stores, and motel vending machines. This is a example of a(n) _____ distribution strategy.



a.

exclusive

b.

reciprocal

c.

selective

d.

horizontal

e.

intensive

ANS: E


Intensive distribution is distribution aimed at maximum market coverage. It is used for many convenience goods that need to be available in every outlet where the potential customer might want to buy them.

PTS: 1 REF: 178 OBJ: 12-5 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Distribution | TB&E Model Strategy

61. Which of the following manufacturers most likely uses intensive distribution?

a.

Cadbury Adams, manufacturer of Certs breath fresheners

b.

Dixieline, a manufacturer of lighting fixtures

c.

Citizen, a manufacturer of digital scales

d.

Landway USA, a manufacturer of inline skates

e.

Montana Rifle Company, a manufacturer of fine firearms


ANS: A

Only Certs is a low-value product. Low-value products are commonly sold in a variety of locations.

PTS: 1 REF: 178 OBJ: 12-5 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Distribution | TB&E Model Product

62. _____ distribution is achieved by screening dealers to eliminate all but a few in any single geographic area. Shopping goods and some specialty products that consumers are willing to search for are sold this way.



a.

Intensive

b.

Selective

c.

Exclusive

d.

Dual

e.

Controlled

ANS: B PTS: 1 REF: 178 OBJ: 12-5 TYPE: Def



TOP: AACSB Reflective Thinking | TB&E Model Distribution | TB&E Model Product

63. Husqvarna Viking manufactures sewing machines. The company carefully screens its dealers to ensure a quality dealer image and service ability. Only a few dealers are chosen in any single geographic area. This is an example of _____ distribution.

a.

dual

b.

intensive

c.

exclusive

d.

selective

e.

controlled


ANS: D

Selective distribution is achieved by screening dealers to eliminate all but a few in any single geographic area. Shopping goods and some specialty goods that consumers are willing to search for are sold by selective distribution.

PTS: 1 REF: 178 OBJ: 12-5 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Distribution

64. Canesta Company has developed a virtual keyboard out of light to be used with cell phones and personal digital assistants (PDAs). The product beams an image of a keyboard on a desk, allowing the user to type on the image. The words are picked up by the user's digital device. When introduced to the market, the device will sell for less than $50. What level of distribution intensity should the company use?

a.

exclusive

b.

controlled

c.

extensive

d.

reciprocal

e.

selective


ANS: E

Screening dealers will promote a quality image for the product. Price is also a factor in its level of distribution intensity. It is not a convenience good.

PTS: 1 REF: 178-179 OBJ: 12-5 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Pricing | TB&E Model Distribution | TB&E Model Product

65. The LaCoste brand apparel was once available at T.J. Maxx and a number of other nonluxury retailers. Today the LaCoste brand can only be found at Barney’s, Neiman-Marcus, Nordstrom, and LaCoste boutiques. From this information, you can surmise that LaCoste has adopted a(n) _____ distribution strategy.

a.

extensive

b.

intensive

c.

premium

d.

selective

e.

pioneering


ANS: D

Selective distribution is achieved by screening dealers to eliminate all but a few in any single geographic area. Shopping goods and some specialty goods that consumers are willing to search for are sold by selective distribution.

PTS: 1 REF: 178-179 OBJ: 12-5 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Distribution

66. The most restrictive form of market coverage, _____ distribution, entails establishing only one or a few dealers within a given geographic area. Because buyers need to be willing to search or travel to acquire the product, this form of distribution is limited to consumer specialty goods, a few shopping goods, and major industrial equipment.



a.

selective

b.

intensive

c.

exclusive

d.

dual

e.

premium

ANS: C PTS: 1 REF: 179 OBJ: 12-5 TYPE: Def



TOP: AACSB Reflective Thinking | TB&E Model Distribution | TB&E Model Product

67. Walker Zanger, Inc. manufactures decorative tile. The company has a policy of only having one or two dealers within a given large geographic area. Buyers of Walker Zanger brand terra-cotta and mosaic tiles for home decorating will travel to acquire just the right product, so _____ distribution is appropriate for the tile.

a.

exclusive

b.

intensive

c.

selective

d.

reciprocal

e.

premium


ANS: A

The most restrictive form of distribution, exclusive, entails establishing one or a few dealers within a given geographic area. Because buyers need to be willing to search or travel to acquire the product, this form of distribution is limited to consumer specialty goods, a few shopping goods, and major industrial equipment.

PTS: 1 REF: 179 OBJ: 12-5 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Distribution | TB&E Model Product

68. Caterpillar, the manufacturer of tractors and other earthmoving equipment, has an extremely high market share, which means customers seek the dealers out regardless of where they are. There are approximately 50 Caterpillar dealers in the United States--one in each state. From this information, you can surmise that Caterpillar uses _____ distribution.

a.

selective

b.

premium

c.

intensive

d.

exclusive

e.

inclusive


ANS: D

The most restrictive form of distribution, exclusive, entails establishing one or a few dealers within a given geographic area. Because buyers need to be willing to search or travel to acquire the product, this form of distribution is limited to consumer specialty goods, a few shopping goods, and major industrial equipment.

PTS: 1 REF: 179 OBJ: 12-5 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Distribution | TB&E Model Strategy

69. A channel leader is also called a(n):



a.

intermediary leader

b.

channel captain

c.

channel facilitator

d.

distribution supervisor

e.

channel gatekeeper

ANS: B PTS: 1 REF: 179 OBJ: 12-6 TYPE: Def

TOP: AACSB Reflective Thinking | TB&E Model Distribution

70. DeBeers sells most of the diamonds it produces to industry. The company controls over 90 percent of the market and has great power over its distributors. In its marketing channel, DeBeers would be considered a:

a.

channel authority

b.

channel member

c.

channel leader

d.

channel gatekeeper

e.

power broker


ANS: C

DeBeers has control over delivery, inventory, etc.

PTS: 1 REF: 179 OBJ: 12-6 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Distribution | TB&E Model Product

71. Johns Manville is the only manufacturer to offer a complete line of Formaldehyde-free fiber glass building insulation, which offers superior energy efficiency in hard-to-reach cathedral ceilings and flat roof cavities; plus it is an excellent sound control for interior floors. As the only manufacturer and patent-holder of this revolutionary insulation, Johns Manville has great power over its dealers. It is an example of a:

a.

channel authority

b.

channel regulator

c.

channel captain

d.

channel gatekeeper

e.

power broker


ANS: C

A channel captain or channel leader is a member of the marketing channel that exercises authority and power over the activities of other members in the channel.

PTS: 1 REF: 179 OBJ: 12-6 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Customer | TB&E Model Distribution

72. Channel conflict:



a.

always has an adverse effect on the members of the channel

b.

is not caused by ideological differences because such differences would prevent the members from ever operating as a channel

c.

is often caused by an inability of some channel members to keep up with the changing times

d.

can appear as either internal or external

e.

does not occur when multiple distribution channels are used

ANS: C


In a broad context, channel conflict can be good for a channel. It is sometimes caused by ideological differences. It appears as vertical or horizontal.

PTS: 1 REF: 179 OBJ: 12-6 TYPE: Comp

TOP: AACSB Reflective Thinking | TB&E Model Distribution

73. More than 800,000 fans are willing to buy subscriptions to watch Major League Baseball (MLB) games online at MLB.com. That business is worth more than $100 million to MLB. But this online broadcast takes those fans away from the broadcasters that pay MLB hundreds of millions of dollars for the right to carry the games. This _____ creates a clash of goals and methods between MLB and broadcast television.

a.

horizontal market share

b.

lateral channel takeover

c.

niche market conflict

d.

channel conflict

e.

market share conflict


ANS: D

Channel members may have conflicting goals resulting in channel conflict.

PTS: 1 REF: 179 OBJ: 12-6 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Distribution

74. Honda uses just-in-time manufacturing to build its Odyssey minivans. Five companies that make component parts for the Honda Odyssey relocated to Alabama and states bordering Alabama when Honda announced plans to build a new Odyssey manufacturing plant in Alabama. This relocation in order to provide efficient delivery of goods indicates Honda is a:

a.

channel captain

b.

horizontal integrator

c.

distribution champion

d.

distribution ombudsman

e.

demand maverick


ANS: A

A channel captain exercises authority and power over the other channel members.

PTS: 1 REF: 179 OBJ: 12-6 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Distribution | TB&E Model Product

75. Horizontal channel conflict occurs most often when manufacturers practice:



a.

multiple distribution

b.

trade loading

c.

value-added pricing

d.

exclusive distribution

e.

channel partnering

ANS: A


Horizontal conflict occurs when more than one channel is used to handle the same brand.

PTS: 1 REF: 180 OBJ: 12-6 TYPE: Comp

TOP: AACSB Reflective Thinking | TB&E Model Distribution

76. The Discovery Channel joined with the BBC to send an expedition of top scientists to explore a seabed site off Indonesia. Because these two cable networks compete for viewership, there is a potential for _____ as a result of this project.

a.

horizontal conflict

b.

trade loading

c.

value-added pricing

d.

exclusive distribution

e.

channel partnering


ANS: A

Horizontal conflict occurs when more than one channel is used to handle the same brand.

PTS: 1 REF: 180 OBJ: 12-6 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Distribution

77. _____ is the joint effort of all channel members to create a supply chain that serves customers and creates a competitive advantage.



a.

Selective partnering

b.

Direct distribution

c.

Channel partnering

d.

Intensive integration

e.

Closed channel distribution

ANS: C PTS: 1 REF: 180 OBJ: 12-6 TYPE: Def

TOP: AACSB Reflective Thinking | TB&E Model Customer | TB&E Model Distribution

78. Which of the following is NOT a logistics component of the supply chain?



a.

push marketing strategy

b.

production scheduling

c.

inventory control

d.

warehousing and materials-handling

e.

order processing

ANS: A


Supply chain management focuses on pulling products into the marketplace, so you would find a pull strategy being used.

PTS: 1 REF: 180 OBJ: 12-7 TYPE: Def

TOP: AACSB Reflective Thinking | TB&E Model Distribution

79. Which of the following is a member of a supply chain team that moves just-picked cotton to finished clothing and then to the consumer of that clothing?



a.

the warehouse in which the cotton was temporarily stored

b.

the ad agency that develops the promotion for the clothing

c.

the farmer who picks the cotton

d.

the trucking company that hauls the cotton to the clothing manufacturer

e.

all of the choices

ANS: E


The supply chain team is composed of everyone who participates in the movement from raw material to consumer, including all external participants like ad agencies, transportation companies, and lending institutions.

PTS: 1 REF: 181 OBJ: 12-7 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Customer | TB&E Model Distribution | TB&E Model Product

80. Peachtree Windows has no windows in inventory waiting for someone to order them. It does not make a window until it is ordered. It is able to make 27,000 different window configurations and will make special adjustments to these configurations if there is a request for modifications as long as the modifications meet the company's exacting safety requirements. Peachtree Window engages in:

a.

niche marketing

b.

product development

c.

mass customization

d.

marketing aggregation

e.

customer accumulation


ANS: C

Mass customization is a production method whereby products are not made until an order is placed by the customer; products are made to the customer's specifications.

PTS: 1 REF: 182 OBJ: 12-7 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Distribution | TB&E Model Strategy

81. _____ means that raw materials arrive at the assembly line in guaranteed working order, and finished products are generally shipped to the customer immediately after completion. It reduces inventory levels and delivers the product as it is needed in the store.



a.

Just-in-time manufacturing

b.

Electronic data interchange

c.

Intermodal manufacturing

d.

Value-added channelization

e.

Contract logistics

ANS: A PTS: 1 REF: 182 OBJ: 12-7 TYPE: Def

TOP: AACSB Reflective Thinking | TB&E Model Distribution

82. Another name for just-in-time production (JIT) is:



a.

supply/demand reciprocity

b.

lean production

c.

outsourcing

d.

mass customization

e.

disintermediation

ANS: B PTS: 1 REF: 182 OBJ: 12-7 TYPE: Def

TOP: AACSB Reflective Thinking | TB&E Model Strategy

83. A newspaper article on supply chain management discusses the importance of lean production. The article focuses on the role of _____ in supply chain management.



a.

supply chain organization

b.

just-in-time manufacturing

c.

materials requirement planning (MRP)

d.

materials-handling systems

e.

electronic distribution

ANS: B


Another name for just-in-time manufacturing is lean production.

PTS: 1 REF: 182 OBJ: 12-7 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Distribution

84. A strike by dockworkers at U.S. West Coast ports paralyzed transportation of goods across the Pacific Ocean and left manufacturers short of component parts and Asian importers with excess inventory. This paralysis would have had a more adverse impact on companies using:



a.

supply chain management

b.

just-in-time manufacturing

c.

materials requirements procurement (MRP)

d.

materials-handling systems

e.

electronic distribution

ANS: B


With JIT, inventory parts are delivered as they are needed in production. The loss of these deliveries would cause production to cease.

PTS: 1 REF: 182 OBJ: 12-7 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Distribution

85. A manufacturer of sewing machines has decided to implement just-in-time manufacturing and can expect:



a.

reduced errors in the purchasing system

b.

increased inventory control staff

c.

more frequent deliveries and reduced inventory

d.

finished product quality reductions

e.

the need for more sources of supply as backup suppliers

ANS: C


Just-in-time manufacturing is based on receiving the parts from suppliers at the assembly line at the time of installation.

PTS: 1 REF: 182 OBJ: 12-7 TYPE: Comp

TOP: AACSB Reflective Thinking | TB&E Model Distribution

86. Girls can log onto www.Barbie.com and design their own special Barbie doll. They can choose the doll's skin tone, hair color, clothes, accessories, and name. The doll is created to the new owner's specifications and mailed to her by Mattel. With this doll, Mattel is using:



a.

market aggregation

b.

customer accumulation

c.

niche marketing

d.

mass customization

e.

disintermediation

ANS: D


The doll is uniquely tailored for each girl.

PTS: 1 REF: 182 OBJ: 12-7 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Strategy

87. Using their online design tools and templates, lovers need do little more than choose the type of gift they want to give including candy, apparel, candles, and more. After a template is chosen, the personalized item--complete with a message declaring love--is only a few key strokes away. "Forget the cards, if lovers have something to say, they can say it proudly on a shirt, candy bar or even a yard sign," said Steve Grubbs, owner of VictoryStore.com. "Our designers have created a Web site full of cool designs; all the customer has to do is change the text, enter the credit card and wait for the gift to arrive a few days later." VictoryStore.com offers its customers:



a.

build-to-order

b.

market aggregation

c.

disintermediation

d.

market development

e.

batch production

ANS: A


The gifts are uniquely tailored to each customer. Built-to-order is a synonym for mass customization.

PTS: 1 REF: 182 OBJ: 12-7 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Customer | TB&E Model Product | TB&E Model Creativity

88. In which logistical component of the supply chain will you find electronic data interchange a common feature?



a.

production scheduling

b.

transportation

c.

order processing

d.

materials-handling

e.

all of these

ANS: C PTS: 1 REF: 183 OBJ: 12-7 TYPE: Comp

TOP: AACSB Reflective Thinking | TB&E Model Distribution

89. _____ is the direct electronic transmission, from computer to computer, of standard business forms between two organizations. When this technique is used, orders can become virtually paperless, and information about the order is available to both firms.



a.

Business prioritizing

b.

Electronic data interchange

c.

Just-in-time inventory

d.

Real-time inventory

e.

Direct sourcing

ANS: B PTS: 1 REF: 183 OBJ: 12-7 TYPE: Def

TOP: AACSB Reflective Thinking | TB&E Model Strategy

90. _____ is a method of developing and maintaining an adequate assortment of materials or products to meet a manufacturer's or a customer's needs.



a.

The materials-handling system

b.

An inventory control system

c.

Direct sourcing

d.

Contract logistics

e.

Warehousing

ANS: B PTS: 1 REF: 183 OBJ: 12-7 TYPE: Def

TOP: AACSB Reflective Thinking | TB&E Model Customer | TB&E Model Distribution

91. In which logistical component of the supply chain will you find distribution resource planning (DRP) a common feature?



a.

production scheduling

b.

transportation

c.

order processing

d.

materials-handling

e.

inventory control

ANS: E PTS: 1 REF: 183-184 OBJ: 12-7 TYPE: Comp

TOP: AACSB Reflective Thinking | TB&E Model Distribution

92. What kind of inputs are used in distribution resource planning?



a.

sales forecasts

b.

lead times

c.

mode of transportation to be used

d.

outstanding orders

e.

all of these

ANS: E PTS: 1 REF: 184 OBJ: 12-7 TYPE: Comp

TOP: AACSB Reflective Thinking | TB&E Model Distribution

93. The goal of inventory control is to:



a.

minimize inventory levels while maintaining an adequate supply to meet customer demands

b.

maximize inventory levels to prevent any possibility of stockouts

c.

determine order timing and order quantity

d.

estimate proper usage rates

e.

integrate JIT to reduce risks of obsolescence, theft, and damage

ANS: A


Inventory decisions affect physical distribution costs and service levels. The goal is to balance minimum inventory levels while meeting customer needs for stock.

PTS: 1 REF: 183 OBJ: 12-7 TYPE: Comp

TOP: AACSB Reflective Thinking | TB&E Model Customer | TB&E Model Distribution

94. _____ provides time utility to buyers and sellers and aids manufacturers in managing supply and demand.



a.

Containerization

b.

Distribution

c.

Storage

d.

Direct sourcing

e.

Channelization

ANS: C PTS: 1 REF: 184 OBJ: 12-7 TYPE: Def

TOP: AACSB Reflective Thinking | TB&E Model Distribution

95. _____ moves inventory into, within, and out of a warehouse.



a.

An inventory control system

b.

A multichannel system

c.

An ERP control system

d.

A freight forwarder

e.

A materials-handling system

ANS: E PTS: 1 REF: 184 OBJ: 12-7 TYPE: Def

TOP: AACSB Reflective Thinking | TB&E Model Distribution

96. The goal of any effective materials-handling system is to:



a.

reduce the time of the order-processing system

b.

optimize the inventory control system

c.

increase safety procedures

d.

move items quickly with minimal handling

e.

reduce the length of time a product is in the transportation subsystem

ANS: D PTS: 1 REF: 184 OBJ: 12-7 TYPE: Def

TOP: AACSB Reflective Thinking | TB&E Model Distribution

97. ZuTech makes sensitive monitors for measuring exposure to hazardous materials. ZuTech has suffered substantial losses when moving products from the assembly line to the warehouse and shipping docks. ZuTech should consider reducing the number of times an item is moved in the warehouse by installing a(n):



a.

inventory control system

b.

materials-handling system

c.

safety procedure to manage SKUs

d.

order-processing system

e.

outsourcing system

ANS: B


The goal of the materials-handling system is to move items quickly with minimal handling.

PTS: 1 REF: 184 OBJ: 12-7 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Distribution | TB&E Model Product

98. The mode of transportation that provides the most accessibility is:



a.

pipelines

b.

airfreight

c.

truck freight

d.

water transport

e.

railroad

ANS: C


Motor carriers (trucks) can go to more locations than any of the other modes of transportation.

PTS: 1 REF: 185 OBJ: 12-7 TYPE: Comp

TOP: AACSB Reflective Thinking | TB&E Model Distribution

99. The growers of Vidalia onions have determined that their chief priority for choosing a transportation mode within the United States is transit time. However, this must be tempered by practical cost considerations. In light of these considerations, Vidalia onion growers should use _____ to ship their onions.



a.

railroads

b.

motor carriers (trucks)

c.

airplanes

d.

water transportation

e.

pipelines

ANS: B


Motor carriers are not as fast as airplanes, but they are less expensive, particularly when dealing with a bulky product like onions.

PTS: 1 REF: 185 OBJ: 12-7 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Distribution | TB&E Model Pricing

100. One major advantage of pipelines over other modes of transportation is:



a.

availability

b.

points served

c.

flexibility

d.

speed

e.

dependability

ANS: E


Pipelines are rarely interrupted by weather, traffic, or labor disputes.

PTS: 1 REF: 185 OBJ: 12-7 TYPE: Comp

TOP: AACSB Reflective Thinking | TB&E Model Distribution

101. Which of the following describes a disadvantage associated with water transportation?



a.

cannot be used for international trade

b.

high cost

c.

capability

d.

lack of speed

e.

product weight restrictions

ANS: D


Shipping via water is the slowest mode of transportation.

PTS: 1 REF: 185 OBJ: 12-7 TYPE: Comp

TOP: AACSB Reflective Thinking | TB&E Model Distribution

102. Which of the following transportation modes can most easily determine the location of a package en route between shipper and receiver?



a.

air

b.

truck

c.

rail

d.

pipe

e.

water

ANS: A


In addition to speed, air transport offers an important additional benefit to shippers, the ease of tracing shipments. See Exhibit 12.5.

PTS: 1 REF: 185 OBJ: 12-7 TYPE: Comp

TOP: AACSB Reflective Thinking | TB&E Model Distribution

103. The Canadian lobster harvest requires special handling coupled with rapid transportation to ensure the cargo reaches destinations alive. The favored transportation mode would be:



a.

air

b.

water

c.

truck

d.

pipeline

e.

rail

ANS: A


Air transportation ensures the speed necessary for lobster delivery. (Air Canada has developed special handling and shipping techniques for the lobsters.)

See Exhibit 12.5.

PTS: 1 REF: 185 OBJ: 12-7 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Distribution

104. According to experts at a conference on supply chain management, increased traceability is the key requirement needed to improve today's supply chains. In this instance, traceability refers to:

a.

a carrier's ability to provide the appropriate equipment and conditions for moving specific kinds of goods

b.

the consistency with which a carrier delivers goods on time

c.

a carrier's ability to move goods over a specific route

d.

the relative ease with which a shipment can be located and transferred

e.

none of these

ANS: D


Traceability is one of the criteria used for choosing a mode of transportation.

See Exhibit 12.5.

PTS: 1 REF: 185 OBJ: 12-7 TYPE: Comp

TOP: AACSB Reflective Thinking | TB&E Model Distribution

105. According to experts at a conference on supply chain management, increased traceability is the key requirement needed to improve today's supply chains. _____ provides the highest level of traceability and _____ provides the lowest level.

a.

water; air

b.

air; pipe

c.

rail; truck

d.

pipe; air

e.

truck; water

ANS: B


See Exhibit 12.5.

PTS: 1 REF: 185 OBJ: 12-7 TYPE: App



TOP: AACSB Reflective Thinking | TB&E Model Distribution

106. A strike by dockworkers at U.S. West Coast ports paralyzed transportation of goods across the Pacific Ocean and left manufacturers short of component parts and Asian importers with excess inventory. The strike created low _____ because the ships could not be unloaded even though water transportation is typically highest in this criterion.

a.

flexibility

b.

relative cost

c.

responsiveness

d.

capability

e.

accessibility


ANS: D

Capability refers to the ability of the carrier to provide the appropriate goods and equipment for moving those goods.

PTS: 1 REF: 185 OBJ: 12-7 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Distribution | TB&E Model Product

107. Papa John's is a pizza chain that uses UPS trucks to carry supplies to its franchises. Papa John's does not own the trucks but has contracted with UPS to have all of the trucks it uses in its deliveries to Papa John's establishments painted with the Papa John's logo and company colors. Papa John's is using:

a.

a horizontal distribution channel

b.

a selective distribution channel

c.

outsourcing

d.

multi-sourcing

e.

a portable inventory control system


ANS: C

Papa John's supplier is an independent third party.

PTS: 1 REF: 186 OBJ: 12-8 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Distribution

108. BX Logistics is a company that offers a wide range of _____ solutions to fit its clients’ needs. These services for its business customers include warehousing, inventory management, packaging, and other value-added services.

a.

distribution downsizing

b.

technology interdependence

c.

contract logistics

d.

direct sourcing

e.

directed channel


ANS: C

The services the company provides are all logistical.

PTS: 1 REF: 186 OBJ: 12-8 TYPE: Comp

TOP: AACSB Reflective Thinking | TB&E Model Distribution

109. With _____, a manufacturer or supplier uses an independent third party to manage an entire function of the logistics system, such as transportation, warehousing, or order processing.

a.

intermodal sourcing

b.

private warehousing

c.

direct sourcing

d.

freight forwarding

e.

contract logistics


ANS: E PTS: 1 REF: 186 OBJ: 12-8 TYPE: Def

TOP: AACSB Reflective Thinking | TB&E Model Distribution

110. Volvo, working with FedEx, set up a warehouse in Memphis with a complete stock of truck parts. A dealer needing a part for an emergency phones a toll-free number, and the part is delivered by FedEx within 24 hours. This is an example of how manufacturers are using:

a.

outsourcing

b.

cross-docking

c.

disintermediation

d.

piggybacking

e.

an integrated demand channel


ANS: A

With outsourcing, a company would use an independent third party to operate some or all of its logistics system.

PTS: 1 REF: 186 OBJ: 12-8 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Strategy

111. A manufacturer of automobile component parts that has turned over all transportation functions to an independent third party in its supply chain has engaged in:

a.

creating a dependent materials-handling system

b.

outsourcing

c.

removing entry barriers

d.

task deployment

e.

channel rotation


ANS: B PTS: 1 REF: 186 OBJ: 12-8 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Strategy

112. Manufacturers who outsource their transportation function are seeking all the following EXCEPT:

a.

more carriers and more services from these additional carrier alternatives

b.

on-time delivery and pickup at competitive rates

c.

electronic communications that reduce delays and errors and provide information with less paperwork

d.

systems for tracing and tracking shipments every step of the way

e.

reliable delivery without loss or damage


ANS: A

Buyers of transportation are using fewer carriers.

PTS: 1 REF: 186 OBJ: 12-8 TYPE: Comp

TOP: AACSB Reflective Thinking | TB&E Model Distribution

113. When Rick purchased tickets to Six Flags over Georgia on the Internet, it was an example of:

a.

single-sourcing distribution

b.

one-way channelization

c.

electronic distribution

d.

mass customization

e.

aggregated marketing


ANS: C

Tickets are just one of many types of products and services that can be distributed electronically. It is not one-way communication because Rick could respond to questions on his computer screen.

PTS: 1 REF: 186 OBJ: 12-8 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Customer | TB&E Model Distribution

114. Horis Twild is the marketing manager for a small manufacturer of products to beautify, enhance, and maintain fish aquariums and terrariums. He decided NOT to enter the global market. His decision was probably primarily based on:

a.

lack of common languages and cultures among global customers

b.

inability to support a multinational promotion strategy

c.

uncertainties regarding global logistics

d.

cultural attitudes toward fish

e.

lack of a unified international pricing structure


ANS: C

Uncertainty regarding shipping usually tops the list of reasons why smaller companies resist international markets.

PTS: 1 REF: 186-187 OBJ: 12-9 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Distribution | TB&E Model International Perspective



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