147. Morgan Steel Company leases a warehouse in Jacksonville, Alabama to serve Deep South markets that
were large enough and stable enough to make a long-term commitment to fixed facilities. This is a
a.
flexible warehouse.
b.
dispatching center.
c.
distribution center.
d.
private warehouse.
e.
public warehouse.
148. ClearChem is a producer of chemicals used in car detailing and painting. Because of the volatility of
their chemical products when exposed to dirt and heat, ClearChem operates its own facilities for
storing and shipping its products. ClearChem’s facilities are most likely known as
a.
distribution centers.
b.
product storehouses.
c.
public warehouses.
d.
megawarehouses.
e.
private warehouses.
149. Air-Tech management learns that last month‘s production run of heaters at its Newark plant is
defective and announces a recall of the specific models produced. To handle the large number of
products it expects to receive for replacement of the defective thermostats, Air-Tech will probably
need to add a ____ to its distribution network.
a.
distribution center
b.
private warehouse
c.
dispatching shipment system
d.
public warehouse
e.
materials handling system
150. A public warehouse is a
a.
business that leases storage space and related facilities for distribution to other firms.
b.
large, centralized warehouse that focuses on moving rather than storing goods.
c.
company that provides a complete array of logistical services for businesses.
d.
company-operated facility for storing and shipping products.
e.
warehouse used to store the personal property of many different customers.
151. Garcia Wholesale Plumbing has seen its sales in the Southeast triple in the past two years. Materials
handling director Barb Peterson announces plans to the board for an Atlanta facility that will combine
shipments received from Garcia’s 25 suppliers for nearly immediate shipment to plumbing stores and
contractors in the region. This new facility would be best classified as which of the following?
a.
Sales office
b.
Public warehouse
c.
Field public warehouse
d.
Distribution center
e.
Bonded warehouse
152. WTA is a manufacturer of very large blades used in energy-reducing wind turbines. What is most
likely the most expensive physical distribution function associated with the WTA product?
a.
Warehousing of the product.
b.
Order processing for each blade.
c.
Inventory management of the product.
d.
Transportation of the product.
e.
Materials handling of the product.
153. ____ adds time and place utility to a product by moving it from where it is made to where it is
purchased and used.
a.
Warehousing
b.
Containerization
c.
Distribution
d.
Materials handling
e.
Transportation
154. Madison is responsible for the freight transportation of products sold by Richland Tech, a producer of
cooking oils sold to large institutions. Since Madison needs to schedule freight transportation with the
mode that provides the most flexible schedules and routes, which of the following should she use?
a.
Trucks
b.
Waterways
c.
Warehousing
d.
Pipelines
e.
Railroads
155. Which mode of transportation hauls more freight than any other?
a.
Railroads
b.
Waterways
c.
Pipelines
d.
Trucks
e.
Airways
156. Magnetic Springs wants to ship its bottled water with the most flexible schedules and routes of all
transportation modes. Magnetic Springs should use ____ as its transportation mode.
a.
railroads
b.
waterways
c.
pipelines
d.
trucks
e.
airways
157. If a microchip in a computer at the Pentagon failed, which method of transportation would be most
appropriate to use to replace the chip immediately if one could get the new chip only from New York
City?
a.
Government vehicle
b.
Airway
c.
Waterway
d.
Truck
e.
Railroad
158. Kolder Inc. is using a new just-in-time inventory management system that requires ordering smaller
quantities of parts more frequently. The success of its business depends significantly on receiving
these parts very quickly, so like many other companies using just-in-time, Kolder Inc. is relying more
on the ____ mode of transportation despite its expense.
a.
railroad
b.
pipeline
c.
airway
d.
truck
e.
waterway
159. The Diamond Salt Company needs to transport 20 tons of salt from Baton Rouge, Louisiana, to
Cincinnati. Which of the following methods would be the cheapest for transporting this cargo?
a.
Pipelines
b.
Waterways
c.
Trucks
d.
Airways
e.
Railroads
160. Assuming everything else equal, the most cost-efficient way for British Petroleum to transport crude
oil from remote oil drilling sites in central Alaska to shipping terminals on the Alaskan coast would be
a.
waterways.
b.
intermodal transportation.
c.
tanker trucks.
d.
railroads.
e.
pipelines.
161. Luke is a transportation coordinator for Volkswagen of North America. In order to move a large order
of vehicles from a plant in Germany to Chicago, he is planning to use both waterways and railroads.
The combining and coordinating of these two modes of transportation in order to take advantage of
benefits offered by each of the different types of carriers is called
a.
Intermodal transportation.
b.
Transportation piggybacking.
c.
Containerized movement.
d.
Efficiency transportation
e.
Freight forwarding.
162. Piggyback, fishyback, and birdyback are terms usually associated with gaining efficiency in shipping
through
a.
transit time.
b.
warehousing.
c.
packaging.
d.
containerization.
e.
lot sizes.
163. What two modes of transportation are used when containers are shipped by piggyback?
a.
Railroads and airways
b.
Trucks and airways
c.
Pipelines and trucks
d.
Waterways and railroads
e.
Railroads and trucks
164. Logistics Plus is an organization that consolidates shipments from several industrial firms into more
efficient lot sizes so that they can be more efficiently transported. What type of transportation
company is Logistics Plus?
a.
A freight forwarder
b.
A forwarding agency
c.
A transport consolidator
d.
A specialty transportation company
e.
An Intermodal shipping company
165. Freight transportation companies that offer several different shipment methods are called
a.
megacarriers.
b.
intermodal transporters.
c.
freight forwarders.
d.
shipping experts.
e.
superfreighters.
166. Using a freight forwarder usually
a.
is not economical for a small firm.
b.
increases transit time and shipping costs.
c.
increases transit time and sometimes lowers shipping costs.
d.
lowers shipping costs for a large firm.
e.
reduces transit time.
167. Dual distribution is characterized as
a.
illegal under the Robinson-Patman Act.
b.
distribution channels that typically carry exclusive products, such as Rolex watches.
c.
marketing environments that are highly competitive.
d.
manufacturers that forbid an intermediary to carry products of competing producers.
e.
distribution of one manufacturer’s product through two or more different channel
structures.
168. In which of the following situations is dual distribution likely to be determined illegal?
a.
A manufacturer sells its product online and through independent and company-owned
retail outlets.
b.
A manufacturer opens its own retail outlets across the country and sells its entire line of
products.
c.
A producer uses company outlets to dominate independent retailers that carry its products.
d.
A producer sells its products both to wholesalers who deal with small and medium-sized
retailers and directly to retailers.
e.
A producer charges higher prices at its company-owned retail outlets than independent
retailers charge for the same products.
169. Subway sells its food items through company-owned stores and through franchises. Subway uses
____ as a channel strategy.
a.
channel extension
b.
intermediary exclusion
c.
broker utilization
d.
dual distribution
e.
channel diversification
170. The main reason a manufacturer will prohibit intermediaries from selling its products outside
designated sales territories is to
a.
tighten its control over distribution of its products.
b.
discourage competition from other manufacturers.
c.
incorporate selective distribution.
d.
contain distribution costs.
e.
punish intermediaries for past behavior.
171. Tying agreements occur when a
a.
producer distributes the same product through two or more different channels.
b.
manufacturer forbids an intermediary to carry products of competing manufacturers.
c.
supplier furnishes a product to a channel member with the stipulation that the channel
member must purchase other products as well.
d.
producer refuses to deal to channel members that seem unethical or illegitimate.
e.
manufacturer prohibits intermediaries from selling its products outside designated sales
territories.
172. An arrangement where a producer forbids an intermediary to carry products made by competing
manufacturers is called
a.
exclusive distribution.
b.
a tying agreement.
c.
refusal to deal.
d.
contractual VMS.
e.
exclusive dealing.
173. Dell Computers is a nationally recognized manufacturer of computers for the small business and home
markets. If Dell were to order one of its wholesalers not to carry any computer products other than
those made by Dell, this arrangement would be called
a.
a tying contract.
b.
refusal to deal.
c.
a restricted sales territory.
d.
a restricted channel.
e.
exclusive dealing.
174. Redlands Distributing wants to carry Tide detergent products, made by Procter & Gamble. P&G
agrees, but only if the supplier also purchases P&G’s entire line of detergents such as Gain, Dreft, and
Cheer. If this were to occur, Procter & Gamble would be engaging in which of the following channel
management practices?
a.
Exclusive dealing
b.
Dual distribution
c.
Tying agreement
d.
Refusal to deal
e.
Restricted sales territories
175. Suppose that Jackson Distributing has been told that it cannot carry the beers made by Anheuser–
Busch because it also carries the products of the competitor, Miller Brewing. Jackson is then told that
it must drop the Miller brands in order to carry the Anheuser-Busch products. If this were true,
Anheuser-Busch would be engaging in which of the following channel management practices?
a.
Exclusive dealing
b.
Dual distribution
c.
Tying contacts
d.
Refusal to deal
e.
Restricted sales territories
Scenario 15.1
Use the following to answer the questions.
Liz Claiborne, Inc. markets several different brands, under their own Claiborne name label, as well as
others. Their primary brands, such as Liz Claiborne, Liz & Co, and DKNY, are sold to wholesalers.
These brands are then available through retail department stores such as Kohl’s and Macy’s. Their
wholesale-based brands division is positioned as customer-focused and cost-efficient. Their premium
brands division includes labels such as Kate Spade, Juicy Couture, and Mexx. These premium brands
are sold through stores that the Claiborne company owns.
176. Refer to Scenario 15.1. Liz Claiborne, Inc. uses which type of channel of distribution for its premium
brands?
a.
A short, direct channel
b.
A long, direct channel
c.
Dual distribution
d.
Horizontal integration
e.
Intensive distribution
177. Refer to Scenario 15.1. The Liz & Co brand is sold only at J.C. Penney’s. This is an example of ____
distribution.
a.
selective
b.
routine
c.
horizontal
d.
intensive
e.
exclusive
178. Refer to Scenario 15.1. If Liz Claiborne were to distribute their Kate Spade brand through its
company-owned stores and through wholesalers, to major department stores, then Liz Claiborne would
be using ____ distribution.
a.
intensive
b.
vertical
c.
horizontal
d.
dual
e.
exclusive
179. Refer to Scenario 15.1. Which of the following is most likely the primary factor Liz Claiborne, Inc.
used when selecting the marketing channel for its Juicy Couture brand?
a.
characteristics of the intermediaries
b.
product attributes
c.
type of organization
d.
marketing environmental forces
e.
competition
Scenario 15.2
Use the following to answer the questions.
Star Supplies, Inc. manufactures commercial-grade floor cleaners, such as vacuums and floor
polishers. The firm has recently begun manufacturing other janitorial-related product lines, such as
paper products and chemical cleaners. Star Supplies distributes its products in two ways. It sells its
vacuum, floor polisher, and janitorial supply products to an independent business that takes title to the
products and then sells them to various small businesses throughout the region. Also, Star has a list of
large businesses that it distributes to directly, on an as-needed basis. These businesses keep very little
inventory and purchase janitorial supplies in small quantities. Recently, Star has decided to add new
two new service product lines⎯paper shredding and a uniform rental service. Clint Rodriguez, the
marketing manager, is conducting a meeting to discuss the ways in which Star can strategically
manage these new businesses. Star has the choice of marketing the paper shredding service to their
large business clients, by picking up the paper as they drop off the other janitorial supplies, or they can
buy a small paper shredding business and market to both large and small business customers. With
regard to the uniform rental service, Star can either pick up and deliver the uniforms to the small
businesses themselves, or contract that out to a third party.
180. Refer to Scenario 15.2. Star Supplies, Inc. is most likely using which of the following to market its
vacuum, floor polisher, and janitorial supplies to its small business customers?
a.
Wholesalers
b.
Retailers
c.
Merchants
d.
Industrial distributors
e.
Manufacturers’ agents
181. Refer to Scenario 15.2. Currently, Star is using the ____ approach to distributing its janitorial supplies
to its large customers.
a.
intensive
b.
just-in-time
c.
segmented
d.
outsourcing
e.
exclusive
182. Refer to Scenario 15.2. When Clint suggested that Star consider purchasing a paper shredding business
and then offer the service to its large and small business customers, he was suggesting a method called
____, where Star would be the ____.
a.
horizontal integration; channel manager
b.
horizontal integration; channel captain
c.
vertical integration; channel captain
d.
outsourcing; channel manager
e.
outsourcing; channel captain
183. Refer to Scenario 15.2. Clint’s suggestion for the uniform rental service was either picking up and
delivering the uniforms themselves, or contracting this to a third party. If Star decides to pick up and
deliver the uniforms with its own trucks, this is an example of a(n) ____ channel. If Star contracts this
action to a third party, it is called ____.
a.
long; industrial distribution
b.
direct; industrial distribution
c.
long; outsourcing
d.
direct; outsourcing
e.
exclusive; outsourcing