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Indicate whether the statement is true or false.
1. Customers expect service from the moment a product is purchased until it is disposed of, and the customer service
management process allows for touch points between the buyer and seller for nearly half this life cycle.
a. True
b. False
2. Industrial distributors are channel members that buy but do not take title to products.
a. True
b. False
3. Companies that work closely with their suppliers can eliminate problems relating to corporate culture, information
hoarding, and trust issues.
a. True
b. False
4. A retailer channel is most common when the retailer is large and can buy in large quantities directly from the
manufacturer, while a wholesaler channel is commonly used for low-cost items that are frequently purchased.
a. True
b. False
5. The best order fulfillment processes increase order cycle time.
a. True
b. False
6. Intensive distribution is a form of distribution that establishes one or a few dealers within a given area.
a. True
b. False
7. A common misconception surrounding both environmental and social sustainability is that their practice increases
supply chain costs disproportionately, and therefore should be enacted only when business leaders are willing to act
altruistically or for the purposes of good public relations.
a. True
b. False
8. The focus of businesses has shifted toward determining how products and services are being “pushed” into the
marketplace by manufacturers as well as on partnering with members of the supply chain to enhance customer value.
a. True
b. False
9. No matter how extensive the role of 3PLs and 4PLs may be in providing logistic support to a firm, they never are the
firm’s only point of interaction with the customer.
a. True
b. False
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10. The marketing channel is the “upstream” portion of the supply chain that is charged with moving component parts or
raw materials to the producer.
a. True
b. False
11. Offshoring reduces transportation costs of distributing a company’s product.
a. True
b. False
12. In today’s marketplace, the number of customers who expect to receive product configurations and services matched
to their unique needs is decreasing.
a. True
b. False
13. Five types of internal integration are sought by firms interested in providing top-level service to customers:
relationship integration, measurement integration, technology and planning integration, material and service supplier
integration, and customer integration.
a. True
b. False
14. In a multichannel marketing system, each channel does not hold its own inventory.
a. True
b. False
15. The job of a food broker is to facilitate the sale of many different manufacturers’ products to various grocery chains
by marketing the producers’ merchandise without ever taking ownership of any of the food products.
a. True
b. False
16. Order cycle time is the time between order and customer receipt.
a. True
b. False
17. Generally speaking, industry and government work uncooperatively even when problems common to both emerge. In
fact, they often work against one another. Thus, formation of successful PPPs is rare.
a. True
b. False
18. Warehouse space is an example of a third-party logistics company product.
a. True
b. False
19. Order fulfillment, manufacturing flow management, product development and commercialization, and returns
management are some of the key business processes.
a. True
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b. False
20. DutiLog Inc. is a company that specializes in providing warehouse space and transportation solutions to a diverse
group of firms. Given this information, DutiLog Inc. is an example of a third-party logistics company.
a. True
b. False
21. A strategic channel alliance is a cooperative agreement between business firms to use the other’s already established
distribution channel.
a. True
b. False
22. Third-party logistics companies (3PLs) or logistics integrators are consulting-based organizations that assess another
firm’s entire logistical service needs and provide integrated solutions. These 3PLs often draw on multiple fourth-party
logistics companies (4PLs) to provide the actual service.
a. True
b. False
23. Transactional, logistical, and facilitating functions are the three essential functions that intermediaries in marketing
channels perform to enable goods to flow between producer and consumer.
a. True
b. False
24. Drop and shop programs use convenience to get consumers to recycle products like batteries or cell phones during a
regular trip to the store.
a. True
b. False
25. Agents and brokers are wholesaling intermediaries who take title to the goods and services they market.
a. True
b. False
26. In certain industries, such as apparel e-retailing, returns can amount to as much as 40 percent of sales volume.
a. True
b. False
27. Nearshoring leads to high costs and increases supply chain risk.
a. True
b. False
28. Third-party logistics companies sell logistics solutions and physical products.
a. True
b. False
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29. A similarity between the customer relationship management process and the supplier relationship management process
is that both provide structural support for developing and maintaining relationships with their respective supply chain
partners.
a. True
b. False
Indicate the answer choice that best completes the statement or answers the question.
30. In the United Kingdom, Tesco Grocery stores plan afternoon shipments from distribution centers to stores only after
reading morning sales data. This way, they can replenish inventory sold only hours before. Tesco is an example of supply
chain that is ______.
a. partly agile, but mostly lean
b. partly lean, but mostly agile
c. strictly agile
d. strictly lean
31. Which is an advantage for companies that globalize their supply chains?
a. It allows companies to take advantage of cheaper labor and not have to contend with trade barriers and tariffs
encountered and thus increases the demand for imported products worldwide.
b. It helps reduce transportation and warehousing costs.
c. It decreases the length and risk of supply chains globally.
d. It helps standardize the quality of the products produced.
32. Nessca Solutions Inc. recently created a hardware and software system for transmitting data among different
departments within the firm. The system provides an easy and quick way of exchanging information. This has increased
the firm’s efficiency while reducing costs. With regard to demand-supply integration, this is an example of _____
integration.
a. measurement and feedback
b. material and service supplier
c. customer
d. technology and planning
33. Which of the following is an advantage of supply chain globalization?
a. It helps in delivering products that have highly consistent quality standards.
b. It provides consistency in transportation service.
c. It lowers labor rates and material costs.
d. It reduces competition from domestic suppliers.
34. In the context of demand management, merging tactical and strategic planning methods across functional areas of the
business to align production with demand is known as ______ planning.
a. sales and operations
b. demand and order fulfillment
c. material and service
d. technology and integration
35. Which of the following statements is true of the exchange utility?
a. It refers to the elements of the composition and appearance of a product that make it desirable.
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b. It refers to the increase in customer satisfaction gained by making a good or service available at the appropriate
time.
c. It refers to the usefulness of a good or service as a function of the location at which it is made available.
d. It refers to the increased value of a product that is created as its ownership is transferred.
36. Castle Brew Inc., a leading multinational beverage manufacturing company, coordinates with Waste Yard Inc., a
waste management company, to devise a strategy to recycle and reuse beverage bottles. Castle Brew Inc. plans to install
hundreds of machines that would recycle empty bottles in many locations and toreward consumers who participate in the
initiative. The company believes that this initiative would help protect the environment. In this scenario, Castle Brew Inc.
is practicing _____.
a. sustainable supply chain management
b. outsourcing
c. mass production
d. demand-supply integration
37. Two companies enter an agreement such that Company A can now use Company B’s already established marketing
channels. Company A made this decision because it was too expensive and time consuming to create a new marketing
channel. This is an example of ______.
a. strategic channel alliance
b. agent/broker channel
c. dual or multiple distribution
d. gray marketing channel
38. Which of the following compares customer relationship management (CRM) with customer service management
(CSM)?
a. Whereas the CRM process is designed to analyze consumer feedback to understand trends, the CSM process is
designed to ensure that marketing and advertising addresses those findings.
b. Whereas the CSM process is designed to analyze consumer feedback to understand trends, the CRM process is
designed to ensure that marketing and advertising addresses those findings.
c. Whereas the CRM process is designed to identify and build relationships with good customers, the CSM process is
designed to ensure that those customer relationships remain strong.
d. Whereas the CSM process is designed to identify and build relationships with good customers, the CRM process
is designed to ensure that those customer relationships remain strong.
39. Kate is a customer care executive at a telecommunications service provider. She receives a complaint from a customer
about an unnecessary $10 charge on his phone bill. If the company follows the customer service management process,
Kate is most likely to:
a. forecast whether such problems will arise in the future.
b. integrate the company’s internal capabilities with the customer’s needs.
c. provide a quick response to the customer using customer care software.
d. resolve the complaint only if the customer is highly valuable to the company.
40. Companies that focus on supply chain management commonly report ______.
a. higher packaging costs
b. lower warehousing costs
c. lower logistical flexibility
d. lower revenues
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41. Which of the following is a similarity between merchant wholesalers and retailers?
a. Both provide form utility.
b. Both take title to products in the marketing channel.
c. Both have little input into the terms of sale of a product.
d. Both get a fee or commission based on sales volume.
42. Which of the following statements is true of public-private partnerships?
a. They increase the negative impacts of potentially hazardous supply chain situations.
b. They are critical to the satisfaction of both company and societal interests.
c. They are formed when the magnitude of a supply chain dilemma is of little consequence to a company.
d. They lack the power to solve future national and global supply chain problems.
43. Which is a characteristic of companies that adopt a supply chain orientation?
a. They have the capability to deliver on the promises they make.
b. They cannot accept short-term risks on behalf of others.
c. They work independentlyof top management of the companies.
d. They do things that harm the entire supply chain in the long run.
44. Unlike multichannel marketing, omnichannel marketing:
a. requires each channel to have its own inventory, processes, and performance metrics.
b. creates redundancy and complexity in a firm’s distribution system.
c. creates greater customer control over the shopping experience.
d. requires the construction of multiple and individual supply chains.
45. Which of the following describes third-party logistics company (3PL)?
a. It sells physical products as well as services.
b. It minimizes the order-to–cash cycle in a firm’s order fulfillment process.
c. It is a permanent part of the firm’s supply chain.
d. It does not include information sharing.
46. Every year, a manufacturer in Milwaukee, WI, makes raincoats and employs its own fleet of vans to make the product
available in stores across coastal Oregon and Washington State just when the rainy season begins in those parts of the
United States. The manufacturer is creating ______.
a. form, time, and place utility
b. form, time, and exchange utility
c. time and place utility, but not form utility
d. form and place utility, but not time utility
47. Which of the following statements is true of supply chain–oriented firms?
a. They lack the support of top managers.
b. They are willing to accept long-term risks on behalf of others.
c. They work against their partners when seeking to achieve goals.
d. They are financially better off in the long run than companies that are not.
48. Which of the following is true of multichannel marketing?
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a. Customers are offered information, goods, services, and/or support through one or more synchronized channels.
b. It becomes difficult to identify which channel is responsible for discrepancies in the inventory.
c. Customer products are sold through distribution channels.
d. Multichannel marketing creates a main channel that acts as the sale and profit center.
49. When a customer buys a pair of jeans, which of the following is creating form utility?
a. The government
b. The supermarket
c. The transport company
d. The clothing factory
50. Lina orders a spare part for her custom-built bike from Lumberne Technologies Inc. The company makes use of three-
dimensional printing to produce the spare part at its location closest to Lina’s home. In this case, which of the following
technologies is used to produce the spare part?
a. Tampography
b. Lenticular printing
c. Additive manufacturing
d. Molding
51. Which of the following statements is true of agile companies?
a. They increase the complexity of the supply chain.
b. They use the “push” strategy instead of the “pull” strategy to market their products.
c. They spend less time than their competitors on activities that create direct customer benefits.
d. They partner closely with suppliers and service providers to reduce customer wait times for products.
52. Which of the following best describes the functioning of the various companies/business units that are part of a world-
class, well-integrated supply chain?
a. The customer should be able to distinguish between the companies based on their activities.
b. Multiple entities should work together to perform tasks as a single unified system.
c. All companies must follow a standard documentation process.
d. No company makes sacrifices for the sake of the system as a whole.
53. Allen Inc., which produces component parts for elevators, has co-located its engineering, logistics, and procurement
divisions. Which of the following describes its demand-supply integration?
a. The promises that salespeople make to customers present challenges to the company’s logistics arm.
b. Costs, more than customer specifications, determine which raw materials are placed into production.
c. The company gains efficiencies from ordering and using only those materials that lead directly to sales.
d. Raw material inventories are always stocked well above the levels dictated by production capacity.
54. Which of the following statements is true of the supplier relationship management process?
a. It enables firms to act as leaders in protecting the natural environment.
b. It incorporates features and cost-cutting measures into final products.
c. It enables suppliers and business units to operate with limited or no interaction.
d. It provides structural support for developing and maintaining relationships with suppliers.
55. Which of the following statements is true of channel members?
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a. They provide contact efficiency.
b. Agents and brokers take ownership of goods.
c. They provide generalization of labor.
d. Merchant wholesalers create form utility.
56. IndigBlue Inc., a distributor of audio equipment, component parts, and supplies, takes title to all its products. It
operates a few warehouses where it stores the finished goods and reships them to its clients, resellers, and other vendors.
IndigBlue Inc. is an example of a ____.
a. sales agent
b. merchant wholesaler
c. retailer
d. broker
57. Phoenix Farm, a firm that sells farm products, gathers fresh food products in one place for its customers. Customers
can buy eggs, milk, meat, vegetables, and so on without spending a great amount of time and energy shopping around.
Phoenix Farm is a _____.
a. merchant wholesaler
b. retailer
c. agent
d. broker
58. Which of the following is true of U.S. businesses in the current globalized world?
a. Companies generally offshore to service providers located in countries with higher labor costs but with proven
technical expertise.
b. As fuel costs have risen and security issues become more prominent, many companies have begun to relocate
outsourced operations closer to home.
c. Nearshoring to locations such as Mexico or the Caribbean nations reduces supply chain risk but leads to higher
costs.
d. Nearshoringgives the supplier a chance to make its presence known at a local level but locates manufacturing
farther away from major demand centers.
59. Because wholesalers neither dramatically alter the product they handle nor sell it directly to the consumer, their value
hinges on their providing retailers ______.
a. time and place utility, but not contact efficiency
b. form and place utility, but not contact efficiency
c. time and place utility and contact efficiency
d. form and place utility and contact efficiency
60. Which of the following is true of a retailer channel?
a. It is most common when the intermediary is large and can buy in large quantities directly from the manufacturer.
b. It uses agents and brokers to procure products from manufacturers.
c. It is commonly used for low-cost items that are frequently purchased, such as candy, cigarettes, and magazines.
d. It involves transferring ownership directly from the producer to the ultimate consumer.
61. Which of the following best defines the order-to-cash cycle?
a. It is the time gap between purchase of raw materials and manufacturing of the final product.
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b. It is the amount of time between order placement and receipt of the customer’s payment following order
shipment.
c. It is the time delay between the packaging of an order and the consumption of the product.
d. It is the amount of time between the cancellation of an order and the approval of cancellation.
62. How do you separate intermediaries from buyers and sellers for the ownership of merchandise in terms of taking title?
a. The intermediary neither owns the merchandise nor controls the terms of the sale.
b. The intermediary does not own the merchandise but controls the terms of the sale.
c. The intermediary owns the merchandise and controls the terms of the sale.
d. The intermediary owns the merchandise but does not control the terms of the sale.
63. West Coast Traders provides expertise for a range of products within a category. It markets and facilitates the sale of
many different manufacturers’ products to a grocery chain. However, West Coast Traders never takes ownership of any
food products, so it would be considered a(n) ____________________.
a. retailer or a wholesaler
b. agent or a broker
c. broker or a manufacturer
d. agent or a wholesaler
64. An objective of flexible manufacturing includes ___________________________.
a. creating a single variety of goods and/or services through heavy investment to maximize profit from a specific
production technique
b. reaching economies of scale with minimized costs associated with a single production technique customized for a
single product
c. sacrificing profitability so that multiple members of the supply chain can improve overall manufacturing output in
terms of quality, delivery speed, and flexibility
d. creating flexible agreements with suppliers and shippers so that unexpected demand bursts can be accommodated,
without disruptions to customer service or satisfaction
65. Which of the following is NOT a function of the retailer?
a. Selling directly to consumers as its primary function
b. Reducing the number of transactions required by consumers
c. Making an assortment of goods available in one location
d. Transacting sales without taking title to products it sells
66. Which of the following statements is true of three-dimensional printing?
a. It is expected to lead businesses to act in ways that will increase their carbon footprints.
b. It cannot be used in the automobile parts, biomedical, and fast food industries.
c. It will lead to the mass production of standardized goods rather than custom products.
d. It will nearly eliminate the need to transport finished goods to distribution centers and retailers.
67. Three-dimensional printing (3DP) is also referred to as ______ manufacturing.
a. flexible
b. postponed
c. offshore
d. additive
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68. The composition and appearance of a product that make it desirable constitute its ______ utility.
a. form
b. time
c. exchange
d. place
69. Three-dimensional printing is expected to dramatically reduce businesses’ carbon footprints because the technology
______.
a. enables the use of only recyclable raw materials and renewable energy sources
b. will be heavily taxed so that the tax revenues can be channeled into green programs
c. nearly eliminates transportation of finished goods to distribution centers and retailers
d. is usable only locally and thus will tend to promote local economies that are small
70. Which of the following is true of channel members within marketing channels?
a. They play roles that are different from those of intermediaries and resellers.
b. They facilitate the change of ownership but not the sale to the final consumer.
c. They provide division of labor but without any particular specialization in moving goods.
d. They help provide contact efficiency as goods move into the hands of the final consumer.
71. Which form of distribution is aimed at maximum market coverage?
a. Narrow distribution
b. Intensive distribution
c. Selective distribution
d. Exclusive distribution
72. Channel members are also known as _____.
a. intermediaries
b. laggards
c. early adopters
d. innovators
73. Which of the following statements is true of the demand management process?
a. It increases costs as it involves serving multiple types of customers who have variable wants and needs.
b. Demand management can ease pressure on the production process and allow companies to satisfy most of their
customers through greater flexibility in manufacturing, marketing, and sales programs.
c. It focuses on providing a quick positive response to negative customer feedback.
d. It involves creating customer-focused plans of action prior to actual purchases being made.
74. Which of the following is true of returns management?
a. It allows the firm to recognize weaknesses in product design and/or areas for potential improvement through
customer feedback.
b. It adds additional costs to marketing and is a burden on the already strained workforce in the customer relations
department.
c. Handling returns creates a negative image as the company loses credibility for its inability to deliver on what it
claims to sell.
d. Granting customers the freedom to try products without being charged for returning them ultimately reduces
revenues for companies.
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75. Connections between cargo vessels or trucks and transportation networks may eventually lead to the development of
smart transportation modes that reroute in real time based on local traffic patterns, weather events, and accidents. Which
of the following will someday enable such a possibility?
a. Supply chain analytics
b. The Internet of Things
c. Cloud computing
d. Strategic channel alliances
76. Four consumers each want to buy a refrigerator. Without a retail intermediary like Best Buy, fridge manufacturers
Walton, Sub-Zero, Bosch, Kenmore, and General Electric would each have to make four contacts to reach the four
consumers who are in the target market, for a total of twenty transactions. But when Best Buy acts as an intermediary
between the producer and consumers, each producer needs to make only one contact, reducing the number to nine
transactions. This is an example of a ______.
a. retailer offering contact efficiency
b. manufacturer offering exchange utility
c. manufacturer using additive manufacturing
d. retailer using contract logistics
77. Supply chain analytics programs have many objectives that, if realized, would ______.
a. mean higher prices for customers but will lead to greater customer satisfaction
b. mean higher prices for customers and thus lower customer satisfaction
c. offer lower prices for customers but lead to lower customer satisfaction
d. offer lower prices for customers and lead to greater customer satisfaction
78. When considering the types of demand-supply integration, _____ includes the ways in which two or more companies
will collaborate on activities or projects so that the customer gains the maximum amount of total value possible from the
supply chain.
a. material and service supplier integration
b. technology and planning integration
c. measurement integration
d. relationship integration
79. Buying and managing transportation, warehousing, and/or light postponed manufacturing are logistical functions that
typically lend themselves to ______.
a. sustainable supply chain management
b. outsourcing and contract logistics
c. returns management
d. supplier relationship management
80. Walmart outsourced portions of its transportation to C.H. Robinson and was thus able to focus on merchandising
rather than shipping. In this example, ______.
a. Walmart is a 3PL company
b. Walmart is a 4PL company
c. C.H. Robinson is a 3PL company
d. C.H. Robinson is a 4PL company
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81. Which of the following describes either lean or agile supply chains?
a. In a lean supply chain, products are built before demand occurs; unsold goods are treated as short-term loss
incurred to increase market presence.
b. Lean supply chains wait until demand is big enough to help production reach economies of scale so that the waste
is minimum or nil.
c. Agile strategies try to forecast demand and reduce waste, with the aim to maximize customer responsiveness in
specific market segments.
d. Agile supply chains wait for demand to occur and use communication and flexibility to fill that demand quickly.
82. Which of the following is a function of marketing channel members?
a. They attain economies of scale for producers through specialization and division of labor.
b. They aid downstream producers in marketing.
c. They aid retailers in creating time, place, and exchange utility for customers.
d. They attain economies of scale through minimum interaction with suppliers.
83. A _____ enables consumers to return products to the retailer or manufacturer in the event of a product defect or at the
end of the product’s useful life to the consumer.
a. gray marketing channel
b. reverse channel
c. nontraditional channel
d. digital channel
84. Which of the following is true of big data’s use in supply chain management?
a. It offers only limited information about supply chain operations.
b. It refers to data that previously had been hard to capture, store, manage, and analyze.
c. It lends itself to the challenge of extracting usable date from information available about supply chain operations.
d. It is difficult to access on geographically remote network servers.
85. Which of the following is an advantage of outsourcing logistics functions?
a. It enables firms to locate stock at fewer plants and distribution centers.
b. It helps firms focus investment on their logistical functions rather than on core business.
c. It lengthens the order-to-cash cycle.
d. It eliminates the need to use a third-party logistics company.
86. Which statement is true of the demand management process?
a. It aligns supply and demand throughout the supply chain by creating customer-focused plans of action
immediately after an actual purchase is made
b. It seeks to minimize the costs of serving multiple types of customers who have variable wants and needs
c. It presents a multi-company, unified response system to the customer whenever concerns are voiced
d. It ensures that firms in the supply chain have the needed resources to manufacture with flexibility and to move
products through a multistage production process
87. Which of the following describes sales and operations planning (S&OP) meetings?
a. Marketing and sales work with procurement and logistics, not production.
b. Marketing and sales work with production and logistics, not procurement.
c. Procurement, production, and logistics work together with marketing and sales.
d. Procurement and logistics work with marketing and production works with sales.