Q&A Hero

Q: In a supply chain setting, replenishment time refers to lead time for an item, which means the lag from ordering an item until it is a. billed to the customer. b. acknowledged by the customer. c. billed and paid for by the customer. d. promised for delivery. e. received and ready for use or sale.

Q: Physically moving a product to customers would be an example of a __________ function. a. transactional b. logistical c. facilitating d. selling e. risk taking

Q: Another name for order cycle time is a. physical distribution sequence. b. total logistics cycle. c. replenishment time. d. logistical support time. e. billing cycle.

Q: Purchasing products in large quantities and breaking them into smaller amounts desired by customers would be an example of a __________ function. a. logistical b. transactional c. facilitating d. transporting e. risk taking

Q: Order cycle time refers to a. the time between when an order is placed and when payment is received. b. the time between the sale of the first production batch to the sale of the next production batch. c. the cycle between one full warehouse shipment to the next full warehouse shipment. d. the lag from ordering an item until it is received and ready for use or sale. e. the average time between reorders by a given wholesaler or retailer in the marketing channel.

Q: Assembling and protecting products at a convenient location to offer better customer service would be an example of a __________ function. a. transactional b. facilitating c. grading d. risk taking e. logistical

Q: The lag from ordering an item until it is received and ready for use or sale is referred to as a. order cycle time. b. order handling time. c. order-to-ship duration. d. purchase cycle. e. logistics cycle.

Q: Creating product assortments from several sources to serve customers would be an example of a __________ function. a. transactional b. facilitating c. selling d. logistical e. risk taking

Q: Which of the following statements regarding supply chain customer service is most accurate? a. The output of a supply chain is measured in total units sold. b. Customer service is seen not just as an expense but also as a means to increase customer satisfaction and sales. c. The output of a supply chain is measured either in total units sold or total number of customers served. d. A firm's goal should be to provide superior customer service regardless of logistics costs. e. Customer service is the responsibility of marketing channel members and not the supplier network.

Q: When Hunter went to the hardware store looking for gloves to wear while refinishing a table, he bought one pair because that was all he needed. But when the hardware store purchased the gloves, it purchased a case containing 100 pairs of identical gloves. Which logistical function did the hardware store perform for Hunter and its other customers? a. marketing b. buying c. sorting d. assorting e. risk taking

Q: The output of a supply chain is the a. units of products delivered. b. total generated revenue. c. service delivered to customers. d. total number of customers served. e. total profits realized.

Q: When marketing channel members are engaged in gathering, sorting, and dispersing products, they are performing __________ functions. a. logistical b. merchandising c. facilitating d. implementation e. transactional

Q: Supply chain managers balance total logistics cost factors against customer service factors. Customer service factors include a. reliability, flexibility, consistency, and dependability. b. time, dependability, communication, and convenience. c. consistency, responsiveness, durability, and communication. d. time, assurance, responsiveness, and dependability. e. convenience, flexibility, time, and value.

Q: Logistical function activities include a. buying and selling. b. gathering, sorting, and dispersing products. c. financing and grading. d. risk taking. e. marketing information and research.

Q: The importance of time, dependability, communication, and convenience are all important concepts of __________. a. consumer service b. supplier service c. wholesaler service d. retailer service e. stakeholder service

Q: Purchasing products for resale or as an agent for supply of a product would be an example of a __________ function. a. logistical b. facilitating c. risk taking d. transactional e. assorting

Q: Within the context of a supply chain, __________ is the ability of a logistics system to satisfy users in terms of time, dependability, communication, and convenience. a. quick response b. customer service c. distribution management d. efficient consumer response e. lead time

Q: A marketing channel intermediary that purchases merchandise for resale at retail outlets would be an example of a(n) __________ function. a. transactional b. logistical c. facilitating d. risk taking e. assorting

Q: Customer service refers to a. adhering to the belief that the customer is always right. b. satisfying the customers' needs no matter what the price. c. accepting full liability if a product fails to meet a customer's expectations. d. the ability of logistics management to satisfy users in terms of time, dependability, communication, and convenience. e. the ability of logistics management to satisfy users in terms of product, price, promotion, and place.

Q: In terms of distribution, when marketing channel members are engaged in buying, selling, and risk taking, they are performing __________ functions. a. logistical b. merchandising c. facilitating d. implementation e. transactional

Q: The customer service concept suggests that firms should a. automate customer service. b. maximize customer service levels. c. minimize customer service levels. d. minimize total logistics costs and let customer service follow. e. provide superior customer service while controlling logistics costs.

Q: The "risk" in a transactional function refers to a. unpredictable costs of transportation because of fuel prices. b. product liability from poorly produced products that become defective. c. the need to stock merchandise in anticipation of sales, which may become obsolete. d. trying new promotional campaigns. e. investments in new product development.

Q: Figure 1. Which of the following best describes the goal of a firm's combination of inventory and transportation costs? a. minimize required inventory costs b. minimize required transportation costs c. minimize the sum of inventory and transportation costs d. maximize the difference between required inventory and transportation costs e. set a level of transportation costs and minimize the required inventory costs

Q: Intermediaries performing a transactional function in distribution are engaged in buying, selling, and __________. a. storing b. financing c. transporting d. risk taking e. merchandising

Q: Figure 1. Which of the following is an element of total logistics cost? a. new product development b. inventories c. advertising d. personal selling e. market research

Q: Figure 1. Intermediaries perform three basic functions. According to Figure 1. above, "C" represents a(n) __________. a. transactional function b. facilitating function c. middleman function d. logistical function e. operational function

Q: Figure 1. Figure 1. above indicates that supply chain managers must balance total logistics cost factors against customer service factors. The four customer service factors ("A," "B," "C," and "D") include all of the following EXCEPT: a. communication. b. dependability. c. convenience. d. place. e. time.

Q: Figure 1. Intermediaries perform three basic functions. According to Figure 1. above, "B" represents a(n) __________. a. logistical function b. transactional function c. middleman function d. facilitating function e. operational function

Q: Total logistics costs refer to a. the design, installation, and maintenance of in-store displays, cabinets, and free standing promotional materials for retail outlets. b. expenses associated with activities performed by brokers and agents to bring buyers and sellers together. c. expenditures associated with the clerical or bookkeeping side of the procurement process, which include purchase, design, and maintenance of the EDI system. d. expenses associated with product adaptations that are made by the manufacturer in response to the needs of a channel member closest to the consumer. e. expenses associated with transportation, materials handling and warehousing, inventory, stockouts, order processing, and return products handling.

Q: Figure 1. Figure 1. Intermediaries perform three basic functions. According to Figure 1. above, "A" represents a(n) __________. a. middleman function b. logistical function c. facilitating function d. operational function e. transactional function

Q: Expenses associated with transportation, materials handling and warehousing, inventory, stockouts (being out of inventory), order processing, and return products handling are referred to as __________. a. supplier service cost b. manufacturing cost c. total logistics cost d. social responsibility cost e. total supply chain cost

Q: The three basic functions intermediaries perform are a. accommodating functions, logistical functions, and transactional functions. b. implementation functions, accommodating functions, and contractual functions. c. contractual functions, facilitating functions, and logistical functions. d. transactional functions, logistical functions, and facilitating functions. e. facilitating functions, accommodating functions, and implementation functions.

Q: The objective of information and logistics management in a supply chain is to deliver maximum customer service and to a. minimize logistics costs. b. maximize distribution outlets. c. maximize profits. d. maximize supply chain membership. e. maximize supply chain inefficiency.

Q: Two students, Nick and Lee, were studying for an upcoming exam in their introduction to marketing course. While studying the chapter on marketing channels and wholesalers, Nick made the following statement: "If it weren"t for wholesalers and other intermediaries in the channel of distribution, the products we buy would cost a lot less!" After contemplating Nick's statement, Lee said, "Wait a minute. We learned in class that channel intermediaries actually make marketing more efficient by minimizing the number of transactions necessary to sell products." Lee's statement refers to a. channel intermediary development. b. the relationships between channel intermediaries themselves. c. the value created by channel intermediaries. d. channel intermediary promotional efforts. e. an inaccurate statement by Lee; Nick was correct.

Q: The objective of information and logistics management in a customer-driven supply chain is to minimize logistics costs while a. satisfying suppliers. b. maximizing profits. c. maximizing supply chain membership. d. delivering maximum customer service. e. maximizing supply chain inefficiency.

Q: Figure 1. A variety of terms are used for marketing intermediaries. According to Figure 1. above, "F" represents a(n) __________. a. dealer b. retailer c. middleman d. wholesaler e. agent or broker

Q: Which of the following statements regarding supply chains is most accurate? a. The most common form of supply chain is the collaborative-response efficiency strategy. b. In order for a supply chain to work effectively, key decisions should be made by a third-party logistics provider. c. The longer the supply chain, the greater the economies of scale and the better the profit margin. d. Supply chains should consider the needs of suppliers, provided those needs are consistent with marketing strategies. e. Supply chain managers often need to make trade-offs between efficiency and responsiveness.

Q: Figure 1. A variety of terms are used for marketing intermediaries. According to Figure 1. above, "E" represents a(n) __________. a. retailer b. middleman c. wholesaler d. distributor e. agent or broker

Q: Which of the following statements regarding supply chains is most accurate? a. The best supply chain is the one that is consistent with the needs of the customer segment being served and complements a company's marketing strategy. b. The most common form of supply chain is the collaborative-response efficiency strategy. c. In order for a supply chain to work effectively, key decisions should be made by a third-party logistics provider. d. The longer the supply chain, the greater the economies of scale and the better the profit margin. e. Supply chains should consider the needs of suppliers, provided those needs are consistent with marketing strategies.

Q: Figure 1. A variety of terms are used for marketing intermediaries. According to Figure 1. above, "D" represents a(n) __________. a. retailer b. wholesaler c. distributor d. agent or broker e. middleman

Q: Which of the following statements regarding supply chains is most accurate? a. The most common form of supply chain is the collaborative-response efficiency strategy. b. In order for a supply chain to work effectively, key decisions should be made by a third-party logistics provider. c. There is no one best supply chain for every company. d. The longer the supply chain, the greater the economies of scale and the better the profit margins. e. Supply chains should consider the needs of suppliers, provided those needs are consistent with marketing strategies.

Q: Figure 1. A variety of terms are used for marketing intermediaries. According to Figure 1. above, "C" represents a(n) __________. a. retailer b. dealer c. wholesaler d. distributor e. agent or broker

Q: Cross-docking is most closely related to __________. a. efficient supply chains b. intermodal transportation c. responsive supply chains d. reverse logistics e. logistics management

Q: Figure 1. A variety of terms are used for marketing intermediaries. According to Figure 1. above, "B" represents a(n) __________. a. retailer b. middleman c. wholesaler d. distributor e. agent or broker

Q: Cross-docking refers to a. the practice of organizing the cost-effective flow of raw materials, in-process inventory, finished goods, and related information from point of origin to point of consumption to satisfy customer requirements. b. the practice of storing finished goods in the same trucks from which they will be dispensed and sold to consumers. c. using large cargo containers that will be loaded to trucks and then to barges or ships that sail from port to port and then unloaded back to trucks for final transport and delivery. d. a practice that involves unloading products from suppliers, sorting products for individual stores, and quickly reloading products onto trucks for a particular store. e. the practice of transporting retail goods from a centralized warehouse to the loading docks of regionally located satellite warehouses.

Q: Figure 1. A variety of terms are used for marketing intermediaries. According to Figure 1. above, "A" represents a(n) __________. a. retailer b. middleman c. wholesaler d. distributor e. agent or broker

Q: The practice that involves unloading products from suppliers, sorting products for individual stores, and quickly reloading products on trucks that will deliver the products to specific stores is referred to as __________. a. just-in-time (JIT) delivery b. intermodal distribution c. immediate response system (ERS) d. piggy-backing e. cross-docking

Q: Automakers such as Chrysler, Ford, and General Motors utilize a __________ network. a. dealer b. broker c. retailer d. distributor e. wholesaler

Q: Which statement regarding efficient supply chains is most accurate? a. Efficient supply chains use common platforms and common components across several products. b. Efficient supply chains rely on large geographically dispersed inventory warehouses. c. Efficient supply chains traditionally use expensive, but faster, modes of transportation. d. Efficient supply chains may limit their assembly and inventory storage facilities to a single location. e. Efficient supply chains emphasize economies of scale by increasing the variety of system configurations offered.

Q: Intermediaries who perform a variety of functions, including selling, maintaining inventories, extending credit, and so on are referred to as __________. a. dealers b. brokers c. retailers d. wholesalers e. distributors

Q: Which statement regarding efficient supply chains is most accurate? a. Efficient supply chains traditionally use inexpensive but slower modes of transportation. b. Efficient supply chains use common platforms and common components across several products. c. Efficient supply chains rely on maintaining large geographically dispersed inventory warehouses. d. Efficient supply chains traditionally use expensive, but faster, modes of transportation. e. Efficient supply chains emphasize economies of scale by increasing the variety of system configurations offered.

Q: A distributor refers to a. intermediaries who perform a variety of distribution functions, including selling, maintaining inventories, extending credit, and so on. b. an intermediary who sells only to manufacturers. c. an intermediary who takes possession of a product, alters it in some way, and then sells it to the ultimate consumer. d. an intermediary who sells to other intermediaries, usually to retailers. e. an intermediary who sells only to other intermediaries.

Q: Walmart's marketing strategy is to be a reliable, lower-price retailer for a wide variety of mass consumption consumer goods. This strategy favors a(n) __________ designed to deliver products to consumers at the lowest possible cost. a. integrated supply chain b. global supply chain c. efficient supply chain d. responsive supply chain e. customer service supply chain

Q: Several artists in Charleston, South Carolina, have created an arrangement to sell their paintings. They have set up an art gallery in downtown Charleston so tourists and art lovers can look at their paintings and buy the ones they like. Each artist takes a turn acting as the sales clerk at the gallery. In terms of the marketing channel, the artist who is on duty in the gallery is acting as a(n) __________. a. ultimate consumer b. manufacturer c. wholesaler d. retailer e. distributor

Q: Walmart made a conscious decision to use a(n) __________ supply chain in order to best meet the needs of its consumers. a. integrated b. responsive c. harmonized d. efficient e. multi-tiered

Q: A(n) __________ is an intermediary who sells to consumers. a. agent b. retailer c. wholesaler d. distributor e. broker

Q: Which statement regarding responsive supply chains is most accurate? a. Responsive supply chains use slower modes of transportation but faster order processing. b. Responsive supply chains often rely on more expensive express transportation. c. Responsive supply chains always use the least expensive mode of transportation possible. d. Responsive supply chains rely on large inventory warehouses. e. Responsive supply chains achieve economies of scale by having all inventory stored and sorted at a central location.

Q: A retailer refers to a. an intermediary who sells only to other intermediaries. b. any intermediary between a manufacturer and industrial markets. c. an intermediary who sells to other distributors. d. an intermediary who takes possession of a product, alters it in some way, and then sells it to the ultimate consumer. e. an intermediary who sells to consumers.

Q: Which statement regarding responsive supply chains is most accurate? a. Responsive supply chains use slower modes of transportation but faster order processing. b. Responsive supply chains always use the least expensive mode of transportation possible. c. Responsive supply chains rely on large inventory warehouses. d. Responsive supply chains achieve economies of scale by having all inventory stored and sorted at a central location. e. Responsive supply chains rely heavily on information technology.

Q: An intermediary who sells to consumers is referred to as a(n) __________. a. agent b. broker c. retailer d. wholesaler e. distributor

Q: Dell made a conscious decision to use a(n) __________ supply chain to best meet the requirements of its consumers. a. integrated b. efficient c. harmonized d. responsive e. multi-tiered

Q: Establishments primarily engaged in selling livestock, grain, and other farm products would be classified as a. retailers. b. brokers. c. ultimate consumers. d. wholesalers. e. middlemen.

Q: Dell has adopted a(n) __________ supply chain strategy to better serve its customers. a. responsive b. reactionary c. efficient d. proficient e. economical

Q: A(n) __________ is an intermediary who sells to other intermediaries. a. agent b. wholesaler c. retailer d. manufacturer e. broker

Q: The goals achieved by a firm's marketing strategy determine whether its supply chain needs to be more __________ in meeting customer requirements. a. cost effective b. broadly expanded c. responsive or efficient d. centrally located e. geographically distributed

Q: An intermediary who sells to other intermediaries, usually to retailers in consumer markets, is referred to as a(n) __________. a. broker b. agent c. retailer d. distributor e. wholesaler

Q: Often companies must choose between a responsive supply chain and an efficient supply chain. This decision is based on __________. a. the specific needs of customer segments b. monetary considerations c. supplier alternatives d. the business mission e. a lack of an appropriate channel captain

Q: A wholesaler refers to a. independent firms or individuals whose principal function is to bring buyers and sellers together. b. any intermediary who takes ownership of a manufacturer's products or services and then finds multiple buyers for those products or services. c. an intermediary who sells to other intermediaries, usually to retailers in consumer markets. d. an intermediary who sells to consumers. e. a manufacturing "matchmaker" who actively seeks out potential consumers and brings them to retailers.

Q: What is the first step in choosing the right supply chain? a. understand the supply chain b. develop a list of qualified channel members c. enumerate logistics specifications d. compare multiple-channel alternatives e. understand the customer

Q: An agent refers to a. any intermediary with legal authority to act on behalf of the manufacturer. b. independent firms or individuals whose principal function is to transport goods. c. any intermediary who takes ownership of a manufacturer's goods or services and then finds multiple buyers for them. d. a manufacturer's paid representative and acting voice in initial sales transactions. e. a manufacturing "matchmaker" who actively seeks out potential consumers and brings them to retailers.

Q: The three steps used in choosing a supply chain include: (1) understand the customer; (2) understand the supply chain; and (3) __________. a. understand the environment b. harmonize the supply chain with the marketing strategy c. understand the marketing strategy d. understand the logistics e. understand the company's goals

Q: Any intermediary with legal authority to act on behalf of the manufacturer is referred to as a __________. a. dealer b. agent c. retailer d. wholesaler e. distributor

Q: The choice of a supply chain involves three steps: (1) understand the customer; (2) __________; and (3) harmonize the supply chain with the marketing strategy. a. understand the environment b. consider the legal consequences c. understand the supply chain d. understand the marketing strategy e. understand the company's goals

Q: Jaffar (Jeff) Tabrizi is the owner and president of Tabrizi Oriental Rugs located in Toronto, Canada. He personally shops the world over, handpicks and orders authentic and beautiful handmade rugs, which he has shipped to Canada, where he sells them through his brick-and-mortar stores and at his www.tabrizi.com website. In terms of the marketing channel, Jeff is acting as a(n) _________. a. consumer b. retailer c. wholesaler d. brokerage firm e. middleman

Q: The choice of a supply chain follows from a clearly defined marketing strategy and involves three steps: (1) _________; (2) understand the supply chain; and (3) harmonize the supply chain with the marketing strategy. a. understand the environment b. consider the legal consequences of partnering c. understand the marketing strategy d. understand the customer e. understand the company's goals

Q: A(n) __________ is any intermediary between a manufacturer and end-user markets. a. agent b. wholesaler c. retailer d. middleman e. broker

Q: IBM has set about to build a single __________ that would handle raw material procurement, manufacturing, logistics, customer support, order entry, and customer fulfillment across all of IBMsomething that had never been done before. a. integrated supply chain b. extranet computer system c. customer service department d. intranet supply network system e. global procurement network

Q: Any intermediary between a manufacturer and end-user markets is referred to as a a. retailer. b. middleman. c. wholesaler. d. broker. e. distributor.

Q: IBM has adopted a(n) __________ supply chain strategy to better serve its customers. a. efficient b. responsive c. harmonized d. integrated e. multi-tiered

Q: A middleman refers to a. a person or firm whose sole responsibility is bringing a buyer to the last link in the distribution chain. b. a person or firm whose sole responsibility is to find distributors for a manufacturer's products. c. any intermediary between a manufacturer and end-user markets. d. a person or firm that takes possession of a product and in some way alters it before passing it on to ultimate consumers. e. an intermediary who sells to ultimate consumers.