47) Ted is glad his company finally converted to an RFID system. Now, he no longer needs to go
through all the new goods to make sure what they ordered was what they received. Ted is
responsible for ________ in his company.
A) checking
B) dispatching
C) receiving
D) JIT
E) quick response
48) Radio frequency identification tags are
A) selective distribution designs used to maximize geographic efficiency.
B) electronic discount information tags used to provide reduced prices to select customers.
C) VMI demand scheduling data tags.
D) tiny computer chips that transmit information about a container’s contents.
E) information tags used for floor-ready merchandising.
49) ________ is when vendors ship merchandise prepackaged in the quantity required for each
store to the distribution center.
A) Quick response
B) Checking
C) Combination warehousing
D) Cross-docking
E) Horizontal merchandising
50) In a ________ distribution center, merchandise moves from vendors’ trucks to retailers’
delivery trucks in a matter of hours.
A) traditional
B) combination
C) cross-docking
D) vertical
E) horizontal
51) Walmart’s customers have come to expect to find P&G products in stores, and P&G depends
on Walmart to purchase a good portion of its output to sell to its own customers. This scenario
represents the first phase of a
A) quick-response system.
B) virtual marketing system.
C) horizontal marketing system.
D) vertical marketing system.
E) reward marketing system.
52) Colin has just received a delivery from the company’s distribution center. He opens the
containers and finds the popcorn and snacks are all bar-coded and priced and the package
includes an end-of-the-aisle display rack. Colin has received a(n) ________ shipment.
A) quick-response packaged
B) ahead of the curve
C) lead time synchronized
D) floor-ready
E) synthesized
53) Some retailers require their suppliers to ship merchandise ________, thus eliminating the
time and expense associated with ticketing and marking.
A) floor-ready
B) flattened
C) lead time synchronized
D) aggregated
E) synthesized
54) Getting merchandise floor-ready entails
A) distributing and dispatching.
B) ticketing and marking.
C) vertical supply chain wholesaling.
D) intensive cross-docking.
E) selective checking.
55) Which of the following is true regarding the ticketing and marking process?
A) It refers to marking off inventory that has been removed from the retailer’s shelves.
B) It is more efficient for a retailer to perform these activities at a distribution center than in its
stores.
C) It is more efficient to perform this task when the product is in the store aisles and ready to be
shelved.
D) The retailer should never consider having the vendor ship floor-ready merchandise.
E) It is more efficient for a retailer to perform these activities in its storeroom.
56) Each time a politician or celebrity writes a book, bookstores can expect at least some
customers to want the book, but whether or not it will become a best-seller is less certain. The
bookstore’s primary inventory management challenge is
A) how to get the author to sign copies of the book.
B) whether to price the books in the distribution center or at the retail store.
C) which other books to promote along with this book.
D) whether or not to display the book at the checkout counter.
E) having enough books to satisfy customer demands versus the cost of having the inventory.
57) H&M has adopted the inventory management system that delivers less merchandise on a
more frequent basis than in traditional inventory systems. The firm gets the merchandise just in
time for it to be used in the manufacture of another product or for sale when the customer wants
it. This is an example of a(n) ________ inventory system.
A) cross-docking
B) quick response (QR)
C) UPC
D) EDI
E) lead time
58) Forever 21 has adopted an inventory system that reduces the amount of time between the
recognition that an order needs to be placed and the arrival of the needed merchandise at the
seller’s store, available for sale. This increases product availability and lowers inventory
investment. These benefits are attributed to the ________ system.
A) cross-docking
B) UPC
C) just-in–time (JIT)
D) EDI
E) vendor-managed inventory
59) At the BMW plant in Spartanburg, South Carolina, rather than use a typical order–to–delivery
process, it has suppliers deliver parts every four hours when the plant is in operation. BMW uses
a ________ inventory control system.
A) cross-docking
B) lead time
C) just-in-time (JIT)
D) pick ticket
E) UPC
60) Because manufacturers with JIT systems produce merchandise closer to the time of sale, they
can
A) organize cooperative agreements among competing manufacturers to reduce oversupply.
B) reduce inventories needed to satisfy retailers’ demand.
C) use exclusive geographic territories to centralize production.
D) effectively eliminate the need for a dispatcher.
E) replace independent supply chains with corporate supply chains.
61) Especially in the fashion industry where styles and trends change rapidly, a quick response
system can
A) allow retailers to better forecast long-term demand.
B) reduce logistical overlay.
C) increase cross-docking promotional effectiveness.
D) align deliveries more closely with actual sales.
E) allow manufacturers to introduce unpopular styles and still be successful.
62) A recent innovation by Amazon, the Vendor Flex program, seeks to lower overall
transportation costs but also creates new forms of channel conflict with competitors. As a partner
in the Vendor Flex program, P&G agreed to allow Amazon to build fulfillment centers within
P&G’s own warehouses, thus helping to eliminate some of the costs of transporting P&G’s
products to Amazon’s fulfillment centers. Believing that the program was giving its competitor
Amazon an unfair advantage, Target reacted vigorously, moving all P&G products from
prominent end-cap positions in its stores to less prestigious and less visible locations. Target also
stopped using P&G as its primary source of advice for planning merchandising strategies within
each category. This is an example of ________ channel conflict.
A) horizontal
B) independent
C) conventional
D) coercive
E) vertical
63) The Stanley company wants Home Depot to carry all its tools but not the tools of its
competitors so that Stanley can maximize its sales. But Home Depot carries a mix of tool brands
so it can maximize the sales in its tool category. This misalignment of goals will likely lead to
a(n) ________ channel conflict.
A) horizontal
B) independent
C) conventional
D) coercive
E) vertical
64) Marketing channels and supply chains comprise various buying entities that form
relationships with one another. The basic motivating factor in these interactions is
A) collaboration creates transactional relationships.
B) the most powerful member of the supply chain always wins.
C) each party wants something from the others.
D) the participants must create the best possible EDI system.
E) retail floor salespeople need emotional support from management.
65) Although conflict is likely to occur in any marketing channel, it is generally more
pronounced when
A) the supply chain members are geographically too close to each other.
B) manufacturers pressure retailers.
C) retailers pressure manufacturers.
D) the channel members are independent entities.
E) the economy is booming.
66) Yesterday, Lorinda overheard a surprisingly unpleasant encounter between the manager of
the hardware store where she works and a sales rep who sells a well-known line of tools. The rep
insisted that his tools should be more prominently displayed and that a better assortment would
mean more sales. The manager had other plans and told him so, and the conversation turned into
a loud argument. What Lorinda observed was an example of
A) sales tactics.
B) channel conflict.
C) retail strategy tension.
D) passive aggressive behavior.
E) a failure of EDI processes.
67) In a(n) ________ marketing channel, each member attempts to satisfy its own objectives.
A) cooperative
B) corporate
C) contractual
D) administered
E) conventional
68) Because of its size and relative power, Walmart can easily impose controls on small
manufacturers, such as PenAgain, but with large, powerful suppliers such as P&G, the control is
more balanced between parties. Walmart’s various marketing channel relationships offer
examples of different forms of a(n) ________ marketing system.
A) cooperative
B) corporate
C) independent
D) administered vertical
E) conventional horizontal
69) In a(n) ________ marketing channel, several independent members each attempt maximize
their profits.
A) cooperative
B) independent
C) contractual
D) administered
E) corporate
70) In a vertical marketing system, if the system is ________, the less likely conflict will occur.
A) less formal
B) more independent
C) less independent
D) more conventional
E) more formal
71) In an administered vertical marketing system,
A) no individual participant has control over the others, since a third-party administrator
oversees the entire supply chain.
B) independent firms at different levels of the marketing channel join through contracts to obtain
economies of scale and coordination to reduce conflict.
C) there is no common ownership, and the dominant member has significant power to impose its
ideas and objectives.
D) independent firms join together formally to decide as a group how the marketing channel will
operate.
E) participants—such as warehouses, transportation companies, and retail outlets—are typically
owned by a parent company to ensure harmonious relations throughout the supply chain.
72) Franchising is the most common type of contractual ________ marketing system.
A) cooperative
B) corporate
C) vertical
D) administered
E) conventional
73) In a corporate vertical marketing system,
A) conflict tends to be a major problem.
B) independent firms at different levels of the marketing channel join through contracts to obtain
economies of scale and coordination to reduce conflict.
C) there is no common ownership, and the dominant member has significant power to impose its
ideas and objectives.
D) independent firms join together formally to decide how the marketing channel will operate.
E) participants—such as warehouses, transportation companies, and retail outlets—are typically
owned by a parent company where potential conflict among segments of the channel is lessened.
74) Felicia had just taken over her family’s business after spending ten years in the marketing
department of a large corporation. She met with a representative from one of her firm’s biggest
customers, who told her, “We should think about how we can make the pie bigger rather than
fighting over the size of the slices.” She had expected a more cutthroat approach rather than this
call for a
A) partnering relationship.
B) shared mission statement.
C) common marketing system.
D) corporate vertical marketing system.
E) linked supply chain.
75) All of the following are required to build a successful strategic relationship except
A) mutual trust.
B) open communications.
C) creation of a joint venture.
D) common goals.
E) credible commitments.
76) If a firm declared that it wanted to develop a strategic relationship, but was unwilling to
commit funds or any effort to make it succeed, there would be an obvious lack of
A) mutual trust.
B) common goals.
C) a contractual arrangement.
D) credible commitments.
E) open communication.
77) TT TOYS manufactures toys. The company recently started buying paint for its toys from a
Chinese firm. This Chinese company is part of TT Toys’
A) supply chain.
B) corporate vertical marketing system.
C) distribution center.
D) CFPR.
E) voluntary chain.
78) Walmart needs P&G to satisfy its customers, and P&G recognizes that if it can keep
Walmart happy, it will have more than enough business for years to come. Walmart and P&G
recognize that it is in their common interest to be
A) separate identities.
B) strategic partners.
C) supply chain intermediaries.
D) in a corporate vertical marketing system.
E) in an administered vertical marketing system.
79) All of the following statements about distribution centers are true except
A) they enable retailers to carry less merchandise in individual stores.
B) distribution center space is typically more expensive than retail space.
C) they are appropriate for all retailers, from the largest to the smallest.
D) they are the quickest way to get all products to retailers.
E) they complicate the process of predicting accurate sales forecasts.
80) A(n) ________ is a supply chain whose members act like a unified system.
A) vertical marketing system
B) independent marketing system
C) concentrated marketing system
D) conventional marketing system
E) strategic marketing system
81) A(n) ________ is a document used by a forklift driver indicating how much of each item to
get from specific storage areas.
A) pick ticket
B) warehouse receipt
C) bill of lading
D) certificate of origin
E) RFID tag
82) A(n) ________ is a 13-digit code retailers can use to track inventory.
A) UPC
B) CFPR
C) pick ticket
D) ASN
E) EDI
83) When Cynthia’s Boutique receives dresses, they already have price tags and are on hangers.
Cynthia’s Boutique receives ________ merchandise.
A) floor-ready
B) repurposed
C) just-in–time
D) quick response
E) horizontal channel
84) When Joe’s Chicken Shack wants chicken delivered in smaller batches more frequently, it
offers its distributors an incentive in the form of special bonuses to change their schedules. Joe’s
demonstrates which kind of power?
A) coercive
B) reward
C) referent
D) expertise
E) information