a.
supply chain management
b.
yield management
c.
channel networks
d.
horizontal marketing channels
e.
intensive distribution strategy
54. 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.
55. Supply chain managers are responsible for all of the following EXCEPT:
a.
the management of information that flows through the supply chain
b.
auditing the accounting practices of suppliers to ensure compliance with ABC accounting
c.
coordinating the relationships between the company and its external partners
d.
coordinating customer service activities
e.
coordinating the sourcing and procurement of raw materials
56. All of the following are benefits of supply chain management EXCEPT:
a.
increases flexibility of supply chain activities
b.
improves customer service
c.
reduces supply chain costs
d.
decreases cash flow
e.
key means of differentiation for a firm
57. 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
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 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
59. 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
60. _____ 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
61. Chewing gum and soft drinks are 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
62. Which of the following manufacturers most likely uses intensive distribution?
a.
M&M’s candies
b.
Jen-Weld windows
c.
Calloway golf clubs
d.
Rollerblade inline skates
e.
Smith & Wesson firearms
63. _____ 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
64. 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
65. 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
66. Polo brand apparel is only available in fine department stores or from Polo retail stores. Which
distribution strategy has Polo adopted?
a.
extensive
b.
intensive
c.
premium
d.
selective
e.
pioneering
67. Which level of distribution intensity is the most restrictive and entails establishing only one or a few
dealers within a given geographic area?
a.
selective
b.
intensive
c.
exclusive
d.
dual
e.
premium
68. Rolex is an expensive brand of watches. The company has a policy of only having one or two dealers
within a given large geographic area. Buyers of Rolex watches will travel to acquire just the right
watch. This is an illustration of which level of distribution intensity?
a.
exclusive
b.
intensive
c.
selective
d.
reciprocal
e.
premium
69. 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
70. Which of the following types of distribution channel relationships is considered to be temporary?
a.
Arm’s Length
b.
functional
c.
cooperative
d.
hierarchical
e.
integrated
71. This summer, college student Pat is planning on selling kites at Panama City Beach. He has found
some suppliers and preordered all of the kites he thinks he can sell this summer. What type of a
distribution channel relationship does Pat have with his suppliers?
a.
Arm’s Length
b.
functional
c.
cooperative
d.
hierarchical
e.
integrated
72. With the _____ channel relationship, both parties retain their independence and pursue their own
interests while attempting to benefit from the goods or services provided by the other.
a.
Arm’s Length
b.
functional
c.
cooperative
d.
hierarchical
e.
integrated
73. _____ distribution channel relationships are situations where one company or several companies
acting as one perform all channel functions.
a.
Arm’s Length
b.
Functional
c.
Cooperative
d.
Hierarchical
e.
Integrated
74. One of the earliest, largest and most famous examples of vertical integration was the Carnegie Steel
Company. The company controlled not only the mills where the steel was manufactured but also the
mines where the iron ore was extracted, the coal mines that supplied the coal, the ships that transported
the iron ore and the railroads that transported the coal to the factory. Carnegie Steel has a(n) _____
channel relationship.
a.
Arm’s Length
b.
functional
c.
cooperative
d.
hierarchical
e.
integrated
75. _____ channel relationships include non-equity agreements such as franchising and licensing, as well
as equity-based joint ventures and strategic alliances.
a.
Arm’s Length
b.
Functional
c.
Cooperative
d.
Hierarchical
e.
Integrated
76. Which channel relationship is less ambiguous than an Arm’s Length relationship but without the
longer-term and/or capital investment required to achieve full integration?
a.
negotiated
b.
functional
c.
cooperative
d.
hierarchical
e.
intermediate
77. In 1935, Howard Johnson teamed up with Reginald Sprague to establish the first modern restaurant
franchise. Their idea was to let independent operators use the same name, food, supplies, logo and
even building design in exchange for a fee. In terms of the type of channel relationships established,
this non-equity agreement would require a(n) _____ relationship.
a.
negotiated
b.
functional
c.
cooperative
d.
hierarchical
e.
segregated
78. Some countries, such as the Peoples Republic of China and to some extent India, require foreign
companies to form joint ventures with domestic firms in order to enter a market. This requirement
often forces technology transfers and managerial control to the domestic partner. These types of equity
agreements also require the establishment of a(n) _____ channel relationship.
a.
Arm’s Length
b.
functional
c.
cooperative
d.
hierarchical
e.
integrated
79. All of the following are logistics components of the supply chain EXCEPT:
a.
trade promotions
b.
production scheduling
c.
inventory control
d.
warehousing and materials-handling
e.
order processing
80. Which of the following provides the technological link connecting all of the logistics components of
the supply chain?
a.
logistics information system
b.
materials requirement plan
c.
EDI
d.
RFID chips
e.
distribution resources strategy
81. One-quarter of Ace’s 60,000 SKUs are vendor-managed through software called the “Collaboration”
program. This software allows certain vendors to go online to get information to build their forecasts.
The result of this application is fewer shipments, fuller pallets, increased pallets per truck, and a
reduction in freight. Collaboration is part of Ace’s:
a.
logistics information system
b.
materials requirement plan
c.
EDI
d.
RFID chips
e.
distribution resources strategy
82. The supply chain team does all of the following EXCEPT:
a.
leverages the capabilities of the logistics information system
b.
embraces all parties who participate in moving the product to market
c.
typically cuts across organizational boundaries
d.
provides financing for distributors
e.
orchestrates the movement of goods, services and information from the source to the
consumer
83. 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
84. 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
85. _____ 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
86. _____ 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
87. Which of the following is the inventory control system that manages the replenishment of raw
materials, supplies, and components from the supplier to the manufacturer?
a.
electronic data interchange (EDI)
b.
distribution resource planning (DRP)
c.
third party logistics firm (3PL)
d.
materials requirement planning (MRP)
e.
activity-based costing (ABC)
88. 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
89. 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
90. All of the following are types of inputs used in both materials requirement planning and distribution
resource planning EXCEPT:
a.
source of funding
b.
lead times
c.
mode of transportation to be used
d.
outstanding orders
e.
sales forecasts
91. 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
92. When using _____, suppliers assume the responsibility for managing inventories at customer locations
through the use of highly automated electronic messaging systems, which allow the exchange of
information between vendors and customers.
a.
automatic replenishment programs
b.
distribution resources programs
c.
materials requirement planning
d.
automated logistics
e.
dynamic order fulfillment programs
93. _____ 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
94. Which of the following moves inventory into, within, and out of a warehouse?
a.
inventory control system
b.
multichannel system
c.
ERP control system
d.
freight forwarder
e.
materials-handling system
95. 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
96. A materials-handling system does all of the following EXCEPT:
a.
dispatching the goods to temporary storage areas
b.
selecting goods for shipment
c.
receiving goods into the warehouse
d.
transports the goods by rail, motor carriers, pipelines, or other modes
e.
identifying, sorting, and labeling the goods
97. All of the following are criteria used to choose a mode of transportation EXCEPT:
a.
diversity
b.
cost
c.
transit time
d.
reliability
e.
traceability
98. The mode of transportation that provides the most accessibility is:
a.
pipelines
b.
airfreight
c.
truck freight
d.
water transport
e.
railroad
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
100. One major advantage of pipelines over other modes of transportation is:
a.
availability
b.
points served
c.
flexibility
d.
speed
e.
reliability
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
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
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
104. All of the following are business trends currently having a strong influence on the job of the supply
chain manager EXCEPT:
a.
the globalization of supply chain management
b.
the advancement of computer technology
c.
the outsourcing of logistical functions
d.
replenishment benchmarking
e.
electronic distribution
105. A manufacturer’s or supplier’s use of an independent third party to manage an entire function of the
logistics system, such as transportation, warehousing, or order processing, is called:
a.
outsourcing
b.
mediation
c.
intermediary distribution
d.
benchmarking
e.
disintermediaton
106. Papa John’s pizza chain 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
107. 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
108. 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
109. When Rick purchased tickets to a concert 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
110. The capacity of a particular marketing channel member to control or influence the behavior of other
channel members is known as:
a.
channel power
b.
channel conflict
c.
channel control
d.
channel dominance
e.
channel inversion
111. Wal-Mart is the largest retailer in the world and many consumer package-goods manufacturers like
Kraft have offices in Bentonville, Arkansas where Wal-Mart is headquartered. Wal-Mart has the
ability to influence manufacturers to lower their prices so that it can deliver on its low-price guarantee
to consumers. Wal-Mart possesses:
a.
channel influence
b.
channel supremacy
c.
channel power
d.
channel exclusivity
e.
channel clout
112. A situation that occurs when one marketing channel member intentionally affects another member’s
behavior is called:
a.
channel power
b.
channel control
c.
channel conflict
d.
channel dominance
e.
channel inversion
113. A channel leader is also called a(n):
a.
intermediary leader
b.
channel captain
c.
channel facilitator
d.
distribution supervisor
e.
channel gatekeeper
114. 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
115. 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
116. 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
117. 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