196) Sports Port, a motorcycle and fishing boat retailer located in a small northern Minnesota
town, was the world’s largest dealer for Crestliner fishing boats. To meet the demand of his many
customers, the owner of Sports Port works with a wide variety of channel members, ranging
from the manufacturer of the boats to trucking firms, other retailers, and even detailers (firms
that clean, polish, and wax boats). Such a diverse channel of distribution often resulted in
channel conflict. However, due to his strong consumer following, the owner of Sports Port had
the power to resolve disputes between channel members. The owner of Sports Port serves as the
________ in the channel of distribution.
A) wholesaler
B) producer
C) channel spokesperson
D) channel captain
E) channel arbitrator
197) A marketing channel relies on ________ to make products available to consumers and
industrial users.
A) logistics
B) exclusive dealing
C) strategic marketing planning
D) tying arrangements
E) value chain optimization
198) Activities that focus on getting the right amount of the right products to the right place at
the right time at the lowest possible cost are referred to as
A) vertical integration.
B) disintermediation.
C) logistics.
D) direct selling.
E) warehousing.
199) Logistics refers to
A) an inventory management system where the supplier determines the product amount and
assortment a retailer needs and automatically delivers the appropriate items.
B) mathematical formulas and calculations used in determining product volume and demand in
order to generate the greatest revenue at the lowest cost.
C) the sequence of firms that performs activities required to create and deliver a product or
service to ultimate consumers or industrial users.
D) activities that focus on getting the right amount of the right products to the right place at the
right time at the lowest possible cost.
E) a specialized intermediary in the distribution chain responsible for the coordination of all
production schedules.
200) Logistics is most closely related to which element of the marketing mix?
A) product
B) place
C) production
D) promotion
E) price
201) Johnson Controls can receive an order for automobile seats from Ford and deliver the order
four hours later, beginning with raw materials and ending with delivery of the finished seats to
Ford. To accomplish this, Johnson Controls must
A) focus on strong logistics for its customers.
B) provide Ford with a cost-effective dual distribution system.
C) increase the number of steps in the value proposition creation process.
D) establish itself in the role of channel captain.
E) avoid interfering with influence Ford’s supply chain.
202) 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 is referred to as
A) the inventory management process.
B) logistics management.
C) production management.
D) manufacturer distribution logistics.
E) supply-chain management.
203) Logistics management 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 integration and organization of information and logistics activities across firms in a supply
chain for the purpose of creating and delivering products and services that provide value to
ultimate consumers.
C) the integration and organization of information and logistical activities that actively bring
consumers together with sellers through the express use of agents and brokers.
D) systems that are designed to reduce a retailer‘s lead time for receiving merchandise, which
then lowers a retailer’s inventory investment, improves customer service levels, and reduces
logistics expense.
E) proprietary computer and telecommunication technologies used to exchange electronic
invoices, payments, and information among suppliers, manufacturers, wholesalers, and retailers.
204) As it relates to the definition of logistics management, flow refers to decisions needed to
move
A) raw materials to the producer.
B) semifinished materials to a merchant wholesaler.
C) finished products to the distributor.
D) finished products directly from the producer to the retailer.
E) a product from the source of raw materials to consumption.
205) In logistics management, a cost-effective decision implies which of these?
A) While it is important to drive down logistics costs, all channel members must equally benefit
financially or the chain will not function effectively.
B) Speed of delivery must be measured against increased savings in warehousing.
C) While it is important to drive down logistics costs, customer buying requirements must be a
part of the equation.
D) The need for multiple carriers always results in lower profit margins and therefore should be
avoided.
E) The choice of intermediaries should be made on their ability to perform their tasks
appropriately even if additional costs must be passed on to the consumer.
206) A firm needs to drive down logistics costs as long as it can deliver expected
A) balance sheet results.
B) customer service.
C) low levels of expenses.
D) product-market synergies.
E) target market goals.
207) The various firms involved in performing the activities required to create and deliver a
product or service to ultimate consumers or industrial users are referred to as
A) strategic distribution.
B) distribution management.
C) a supply chain.
D) value chain optimization.
E) logistics.
208) A supply chain refers to
A) the various firms involved in performing the activities required to create and deliver a product
or service to ultimate consumers or industrial users.
B) an inventory management system where the supplier determines the product amount and
assortment a retailer needs and automatically delivers the appropriate items.
C) mathematical formulas and calculations used in determining product volume and demand in
order to generate the greatest revenue at the lowest cost.
D) activities that focus on getting the right amount of the right products to the right place at the
right time at the lowest possible cost.
E) a specialized intermediary in the distribution chain responsible for the coordination of all
production schedules.
209) Which of the following statements best describes how a supply chain differs from a
marketing channel?
A) Communication is more important in the marketing channel than in the supply chain.
B) The marketing channel places more emphasis on cost-effectiveness than the supply chain.
C) A marketing channel includes suppliers that provide raw material inputs to a manufacturer.
D) A supply network moves materials from producer to consumer while a marketing channel
moves materials from the supplier to the producer.
E) A supply chain includes suppliers; marketing channels do not.
210) A ________ is essentially a sequence of linked suppliers and customers in which every
customer is, in turn, a supplier to another customer until a finished product reaches the ultimate
consumer or industrial user.
A) logistical flow
B) demand chain
C) supplier-customer alliance
D) supply chain
E) supply pipeline
211) Customers currently link to Cisco’s website to configure, price, and order its networking
equipment. Cisco then sends orders back out across the Internet to producers and assemblers
including Celestica, Flextronics, Jabil, and Solectron. Products are built and tested to Cisco’s
standards, sometimes with procedures run remotely by Cisco. Most items are then drop-shipped
to buyers, untouched by Cisco’s employees. This is a description of Cisco’s
A) virtual logistics.
B) supply chain.
C) electronic data interchange.
D) strategic information alliance.
E) product-specific delivery system.
212) Supply chain management refers to
A) the integration and organization of information and logistic activities across firms for the
purpose of creating and delivering products and services that provide value to ultimate
consumers.
B) 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.
C) the integration and organization of information and logistical activities that actively bring
consumers together with sellers through the express use of agents and brokers.
D) an inventory management system that is designed to reduce the retailer’s lead time for
receiving merchandise, which then lowers a retailer’s inventory investment, improves customer
service levels, and reduces logistic expenses.
E) a highly organized system that facilitates minute-to-minute communication between all
members of a supply chain and ensures the producer is aware of any changes in delivery or
demand for a product or service.
213) An important feature of supply chain management is its application of ________ that allows
companies to share and operate systems for order processing, transportation scheduling, and
inventory and facility management.
A) wholesaler cooperatives
B) mathematical and statistical models
C) sophisticated information technology
D) continuous inventory management
E) standardized distribution protocols
214) In the automobile industry, the carmaker’s ________ manager is responsible for translating
customer requirements into actual orders and arranging for delivery dates.
A) marketing
B) information technology
C) intermodal
D) supply chain
E) financial
215) Supply chain and logistics managers play a large part in the manufacture of automobiles. It
is estimated that logistics costs account for ________ percent of the retail price you pay for a
new car.
A) 1 to 2
B) 4 to 5
C) 8 to 10
D) 12 to 15
E) 25 to 30
216) 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
217) 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
218) The three steps used in choosing a supply chain are (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 mix.
D) understand the logistics.
E) understand the company’s goals.
219) 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.
220) IBM used its artificial intelligence supercomputer Watson to improve its own
A) logistical flow.
B) demand chain.
C) supplier-customer alliance.
D) supply chain.
E) channel conflict management.
221) IBM built a single ________ that would handle raw material procurement, manufacturing,
logistics, customer support, order entry, and customer fulfillment across all of IBM—something
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
222) 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.
223) The goals to be 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
224) Because its customers desire rapid delivery and a wide variety of customizable products,
Dell made a conscious decision to use ________ supply chain to meet these requirements.
A) an integrated
B) an efficient
C) a harmonized
D) a responsive
E) a multitiered
225) Which statement regarding responsive supply chains is most accurate?
A) They use slower modes of transportation but faster order processing.
B) They always use the least expensive mode of transportation possible.
C) They rely on large inventory warehouses.
D) They achieve economies of scale by having all inventory stored and sorted at a central
location.
E) They rely heavily on information technology.
226) Which statement regarding responsive supply chains is most accurate?
A) They use slower modes of transportation but faster order processing.
B) They often rely on more expensive express transportation.
C) They always use the least expensive type of packaging possible.
D) They rely on large inventory warehouses.
E) They achieve economies of scale by having all inventory stored and sorted at a central
location.
227) Walmart’s marketing strategy is to be a reliable, lower-price retailer for a wide variety of
mass consumption consumer goods. This strategy favors ________ designed to deliver products
to consumers at the lowest possible cost.
A) an integrated supply chain
B) a global supply chain
C) an efficient supply chain
D) a responsive supply chain
E) a customer service supply chain
228) Which statement regarding efficient supply chains is most accurate?
A) They often operate with relatively low inventory levels.
B) They use common platforms and common components across several products.
C) They rely on maintaining large geographically dispersed inventory warehouses.
D) They traditionally use expensive, but faster, modes of transportation.
E) They chains emphasize economies of scale by increasing the variety of system configurations
offered.
229) Which statement regarding efficient supply chains is most accurate?
A) They use common platforms and common components across several products.
B) They rely on large geographically dispersed inventory warehouses.
C) They traditionally use expensive, but faster, modes of transportation.
D) They may utilize cross-docking.
E) They emphasize economies of scale by increasing the variety of system configurations
offered.
230) 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 (IRS).
D) piggy-backing.
E) cross-docking.
231) 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 onto trucks and then barges or ships that sail
from port to port and then unloaded back onto 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.
232) Cross-docking is most closely related to
A) efficient supply chains.
B) intermodal transportation.
C) responsive supply chains.
D) reverse logistics.
E) exclusive distribution.
233) 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.
234) 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.