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1.

Molly goes shopping at Publix, picks up 25 items that she needs for the week, and is
quickly on her way. Publix, being an intermediary, makes it possible for Molly to buy all
of her items in one place with only one transaction instead of ordering each item
separately from 25 different manufacturers. Even though marketing intermediaries may
sometimes cause headaches for manufacturers, they are here to stay because
intermediaries:

Student Value Correct Feedback


Response Answer
make the 100%
A. channel of
distribution
more
efficient.
B. have a higher 0%
success rate
because they
are
franchises.
C. cause less 0%
channel
conflict.
D. can avoid the 0%
"supply
chain
management
" fallacy.
E. are always 0%
"channel
captains".

General Lecture page 92:


Feedback
: A. Correct! Marketing intermediaries are very important. Imagine if Molly had
to purchase her 25 different items from 25 different manufacturers. She might
have to make 25 different trips to accomplish this. As a result, it is more
efficient for Molly to visit just one store, in this case Publix, for all 25 items.
B. This answer choice makes no sense in the context of the question.
C. Intermediaries are often a source of channel conflict.
D. Created term.
E. A channel captain refers to the firm that maintains the most influence over
how the channel operates, and can be the manufacturer, the wholesaler, or the
retailer.
Score: 1/1

2.
Macy's is referred to as an "anchor store" in a large regional mall. It carries a wide variety
of merchandise, including clothing, shoes, and household merchandise. Macy's would
best be described as a _______.

Student Value Correct Feedback


Response Answer
A. Power 0%
Retailer
B. Discounter 0%
C. Specialty 0%
Store
D. Wholesaler 0%
Departmen 100%
E. t Store

General Lecture page 91:


Feedback
: A. Power retailers, known as category killers, are large and generally have a
narrow product line with great depth. The question states that Macy’s carries a
wide variety of merchandise, thus we can eliminate this possible answer
choice.
B. Discounters generally have many product lines with shallow selection.
Unlike department stores such as Macy’s, discounters do not add much value
to the products they sell. Examples of discounters include Target and Wal-
Mart.
C. Specialty stores are generally small and carry limited product lines, the
exact opposite of Macy’s.
D. A wholesaler acts as an intermediary between manufacturers and retailers.
E. Correct! Department stores are large, carry a wide variety of product lines
with average to deep selection, and are generally the anchor stores within
malls. This accurately describes Macy’s.
Score: 1/1
3.
The two types of channel conflict are:

Student Value Correct Feedback


Response Answer
A. divisional and 0%
organizational.
B. external and 0%
internal.
C. supervisor- 0%
subordinate and
subordinate-
subordinate.
horizontal and 100%
D. vertical.

E. transactional 0%
and
transformational
.

General Text page 407: Choice D is the answer. Horizontal conflict occurs between
Feedback intermediaries at the same level in a marketing channel, for example between
: two wholesalers or two retailers. Vertical conflict occurs between different
levels in a marketing channel, for example between the manufacturer and the
wholesaler, or between the wholesaler and the retailer. The other answers are
distracters.
Score: 1/1

4.
Cross-docking and inventory management are examples of what concept?

Student Value Correct Feedback


Response Answer
The 0%
A. distinction
between a
channel of
Student Value Correct Feedback
Response Answer
distribution
and actual
physical
distribution
of a product
B. Logistics 100%

C. Transaction 0%
Marketing
D. Channel 0%
Dynamics
E. Relationshi 0%
p Marketing

General Lecture page 94: Logistics focuses on getting the right amount of the right
Feedback product to the right place at the right time at the lowest possible cost. The
: emphasis of logistics is on distribution, getting the product from point of
origin to point of consumption. Cross-docking allows for the quick and
efficient method of sorting goods coming from the manufacturer to the retailer.
Cross-docking essentially involves two docks, an arrival dock and a departure
dock. Goods coming from the manufacturer enter the plant at the arrival dock
and are then sorted and prepared to exit on the departure dock. Thus, cross-
docking serves an important logistical function since it allows goods to flow
quickly and efficiently from the manufacturer to the retailer. Inventory
management requires coordination between suppliers and vendors in order to
maintain optimal levels of inventory. This an example of logistics since
inventory management focuses on the movement of products in a cost
effective manner throughout the supply chain.
Score: 0/1

5.
_____ refers to the linkage of computers among suppliers, manufacturers, and resellers to
transmit documents such as electronic purchase orders, invoices, and information.

Student Value Correct Feedback


Response Answer
A. Strategic 0%
Student Value Correct Feedback
Response Answer
B. Reciprocal 0%
data
exchange
C. Integrated 0%
information
system
D. Integrated 0%
sales
managemen
t system
Electronic 100%
E. data
interchange

General Text page 421: EDI’s are used to transmit and manage information in a supply
Feedback chain. This is achieved through the linking of computers and the continuous
: flow of information throughout the supply chain. An electronic data
interchange combines proprietary computer and telecommunication
technologies to exchange electronic invoices, payments, and information
among suppliers, manufacturers, and retailers.
Score: 1/1

6.
Schneider National is a logistics firm that places on-board computers in each of its trucks.
By using communication satellites, the Schneider's customer service representatives
located in Green Bay, Wisconsin, can tap into a truck's on-board computer to find out
exactly when a customer's order will arrive and the specific items included in the order.
Schneider National is using a(n) _____ to provide more meaningful information to its
customers.

Student Value Correct Feedback


Response Answer
A. just-in-time 0%
inventory
systems
B. electronic 0%
Student Value Correct Feedback
Response Answer
data
manipulatio
n
C. creative 0%
computer
imagery
electronic 100%
D. data
interchange
E. product- 0%
specific
delivery
system

General Text page 421:


Feedback
: A. Just-in-time delivery by definition is an inventory supply system that
operates with very low inventories and requires fast, on-time delivery.
B. Created term.
C. Created term.
D. Correct! An electronic data interchange combines proprietary computer and
telecommunication technologies to exchange electronic invoices, payments,
and information among suppliers, manufacturers, and retailers. EDI’s are used
to transmit and manage information in a supply chain. Schneider is using
technology in order to gather information and create a more efficient supply
chain, which is one of the objectives of EDI.
E. Created term.
Score: 1/1

7.
Zook Company is a wholesaler that buys footballs and then sells them to other businesses,
such as Sports Authority and Target. The company is independent of the manufacturer it
buys from and it takes possession of the footballs. In addition to storing the inventory, the
company provides financing services to the retailers. However, it does not provide any
feedback from the retailers to the manufacturers. What type of wholesaler is Zook
Company?
Student Value Correct Feedback
Response Answer
Distributo 0%
A. r

B. Jobber 100%

C. Vertically 0%
integrated
D. Franchise 0%
E. Agent 0%

General Lecture page 90


Feedback A) Distributors are full-function retailers so would they provide feedback from
: the retailers to manufacturers.
B) A jobber is a limited merchandise wholesaler because it does not perform
all of the functions we expect out of a channel. Zook Company does not
provide any feedback from the retailers to the manufacturers.
C) Vertically integrated is not a type of wholesaler.
D) A franchise is a type of contractual vertical marketing system. There is not
a franchise wholesaler.
E) Agents operate more like salespeople and do not take possession of the
goods. Zook Company takes possession of the footballs so it is not an agent.
Score: 0/1

8.
You probably own several pairs of blue jeans. Further, it is highly likely you purchased
those jeans at retail stores located in a shopping mall. It is quite unlikely you bought the
jeans directly from the manufacturer. In fact, most goods are brought to you via a(n)
_____, which consists of several organizations involved in the process of marketing
products or services and making them available for our use as consumers.

Student Valu Correct Feedback


Response e Answer
A. marketing 0%
chain of
command
Student Valu Correct Feedback
Response e Answer
B. marketing 100%
channel
organizationa 0%
C. l hierarchy

D. marketing 0%
hierarchy
E. organizationa 0%
l chain of
command

General Text page 390


Feedback A) This is not a marketing term.
: B) A marketing channel consists of individuals and firms involved in the
process of making a product or service available for use or consumption by
consumers or industrial users.
C) This is term is too vague to be the correct answer.
D) This is not a marketing term.
E) An organizational chain of command usually refers to the chain of authority
within one organization, not across several.
Score: 0/1

9.
Larry's parents decide to buy him a car as a graduation present, so Larry places an order
through Jeep.com for a customized Jeep Wrangler. The information that he specifies is
transferred electronically to DaimlerChrysler, the manufacturer of Jeeps. The order is then
sent electronically from DaimlerChrysler to its suppliers so they can send the necessary
parts exactly when needed to assemble Larry's Jeep Wrangler. Larry's Jeep is
manufactured and sent to the local dealer for Larry to pick up. The entire process, from
order to delivery, took only ten days. This process is an example of _____ made possible
by _____.

Student Value Correct Feedback


Response Answer
A. warehousing 0%
and materials
handling;
continuous
Student Value Correct Feedback
Response Answer
flow of goods
B. order 0%
processing;
cross-docking
C. customization 0%
; back-order
shipping
D. transportation 0%
; vendor-
managed
inventory
"just-in-time" 100%
E. inventory
management;
electronic
data
interchange

General Lecture page 94


Feedback A) Warehousing deals with keeping and maintaining a finished product. In this
: example, the finished Jeep is never in a warehouse. Once it is manufactured it
is shipped directly to the dealer.
B) Sending the order electronically is an example of order processing but that
is just part of the entire inventory process. Also, cross-docking is a materials
handling process that has nothing to do with orders.
C) A backorder is created when an item is out of stock. Back-order shipping is
a made up term that does not really make sense.
D) Vendor managed inventory is an inventory-management system whereby
the supplier determines the product amount and assortment a customer (such
as a retailer) needs and automatically delivers the appropriate items. This is
not the case in this question because Larry’s parents place an order to
DaimlerChrysler for the customized Jeep they want.
E) Just-in-time inventory management is an inventory supply system that
operates with very low inventories and requires fast, on-time delivery. The
emergence of electronic data interchange (EDI) has facilitated order
processing. DaimlerChrysler use EDI with Jeep.com to make order processing
more efficient.
Score: 1/1
10
.
Saks Fifth Avenue employs a quick response system to order fast-moving fashion items.
Saks' point-of-sales scanner records each sale. When stock falls below a minimum level,
the system automatically sends an electronic order to the vendor (e.g., Donna Karan),
which processes the order within 48 hours. This system has effectively reduced _____.

Student Value Correct Feedback


Respons Answer
e
A. product 0%
flow
supply 0%
B. lag

C. logistical 0%
lag
D. customer 0%
response
cycle
E. lead time 100%

General Text page 423


Feedback A) This is not an actual marketing term.
: B) This is not an actual marketing term.
C) This is not an actual marketing term.
D) This is not an actual marketing term.
E) Lead time is the lag from ordering an item until it is received and ready for
use or sale. It is also referred to as order cycle time or replenishment time.
Score: 0/1

1.
Marco traveled across three states to shop at Tiffany's to buy his girlfriend, Jana, a
present. This is the only Tiffany's store in the entire region. The degree of channel
coverage for Tiffany's is:
Student Valu Correct Feedback
Response e Answer
A. Intensive 0%
Exclusive 100%
B.
C. Transactiona 0%
l
D. Logistical 0%
E. Speed 0%

General Lecture page 90:


Feedback
: A. Intensive channel coverage is where the product is distributed in as many
places as possible. This strategy is commonly used for convenience goods.
B. Correct! Exclusive channel coverage means that the good is not widely
distributed. Exclusive channel coverage provides an individual store with the
exclusive right to distribute the product in a given area. Exclusive coverage is
generally used for specialty goods.
C. This term does not define a degree of channel coverage.
D. This term does not define a degree of channel coverage.
E. This term does not define a degree of channel coverage.
Score: 1/1

2.
Ralph Lauren has numerous ways to distribute its famous shirts to customers. Ralph
Lauren has its own Polo stores throughout the U.S. and a Ralph Lauren website where
customers can design and purchase their own shirts. In addition, Ralph Lauren sells its
shirts through various retail stores such as Bloomingdales and Nordstrom. What type of
channel is being used to sell Polo shirts through Nordstrom?

Student Value Correct Feedback


Response Answer
A. direct 0%
B. indirect 100%

C. vertically 0%
Student Value Correct Feedback
Response Answer
-
integrated
intensive 0%
D.
E. exclusive 0%

General Lecture page 90:


Feedback
: A. A direct channel is where the producer and the ultimate consumer deal
directly with each other. When selling shirts through Nordstrom’s Ralph
Lauren is using an intermediary, and therefore is using an indirect channel.
B. Correct! An indirect channel involves the use of an intermediary between
the producer and the ultimate consumer. When selling shirts through
Nordstrom’s Ralph Lauren is using an intermediary, and therefore is using an
indirect channel.
C. A vertically-integrated channel is one whereby a single channel member
owns two or more different aspects of the distribution channel. Ralph Lauren
selling shirts through its owns stores would be an example of a vertically
integrated channel.
D. This refers to a certain degree of channel coverage, not the channel type.
E. This refers to a certain degree of channel coverage, not the channel type.
Score: 0/1

3.
In a direct channel, all channel functions are performed by:

Student Value Correct Feedback


Response Answer
A. middlemen. 0%
producers. 100%
B.
C. wholesalers 0%
.
D. retailers. 0%
Student Value Correct Feedback
Response Answer
E. brokers and 0%
agents.

General Text page 395: Choice B is the correct answer. A direct channel is a situation
Feedback where the producer deals directly with the ultimate consumer. There are no
: wholesalers or retailers acting as intermediaries. As a result, the producer must
perform all the channel functions in a direct channel.
Score: 1/1

4.
Mark is in the logistics department at Lowe's. Which of the following would not be one of
his duties?

Student Value Correct Feedback


Response Answer
A. Inventory 0%
management
B. Transportatio 0%
n
C. Warehousing 0%
and materials
handling
Servicing the 100%
D. product after
delivery to the
customer
E. Order 0%
processing

General Lecture page 94: The four logistical functions of a supply chain are
Feedback transportation, warehousing and materials handling, order processing, and
: inventory management. Logistics deals with getting the right amount of the
right products to the right place at the right time at the lowest possible cost.
Logistics would not involve servicing the product after it has been delivered to
the customer.
Score: 1/1

5.
Within the domain of logistics management, the customer service concept implies that
firms should:

Student Value Correct Feedback


Response Answer
A. automate 0%
customer
service.
set customer 100% Customer service is the ability of logistics
B. service levels management to satisfy users in terms of
and logistic time, dependability, communication, and
costs convenience. The ultimate goal is to
simultaneousl achieve customer satisfaction in the most
y in order to cost-effective manner. This involves
achieve balancing the logistical cost factors against
strategic customer service factors. This implies that
goals. firms should set customer service levels
and logistic costs simultaneously in order to
achieve strategic goals.
C. establish 0%
logistics costs
and let
customer
service follow.
D. maximize 0%
customer
service levels,
then make the
necessary
logistics
decisions.
E. minimize 0%
customer
service levels,
then make the
necessary
logistics
Student Value Correct Feedback
Response Answer
decisions.

General Text page 423


Feedback A) This doesn't make sense; some services cannot be automated.
: B) Customer service is the ability of logistics management to satisfy users in
terms of time, dependability, communication, and convenience. The ultimate
goal is to achieve customer satisfaction in the most cost-effective manner. This
involves balancing the logistical cost factors against customer service factors.
This implies that firms should set customer service levels and logistic costs
simultaneously in order to achieve strategic goals.
C) The ultimate goal is to achieve customer satisfaction in the most cost-
effective manner. Therefore customer service takes precedence over logistical
costs. Without satisfied customers the need for low costs disappears.
D) You do not need to maximize customer service levels first; however you
need to make sure that the customers are satisfied and that logistical costs are
as low as possible to achieve the desired level of customer service. It is best to
make logistical cost decisions and customer service decisions simultaneously
in order to achieve a happy balance between cost and service.
E) You do not want to minimize customer service levels. It is best to make
logistical cost decisions and customer service decisions simultaneously in
order to achieve a happy balance between cost and service.
Score: 1/1

6.
A marketing expert described a _____ as looking like a butterfly. The manufacturer is the
body of the butterfly with many different suppliers accumulated on one side of the body
for the left wing and a large number of buyers collected on the other side to form the right
wing.

Student Value Correct Feedback


Response Answer
A. materials 0%
handling
facility
B. market 0%
C. retailer 0%
cooperativ
Student Value Correct Feedback
Response Answer
e
logistical 0%
D. flow

E. supply 100%
chain

General Text page 416: The supply chain is the sequence of firms that perform
Feedback activities required to create and deliver a good or service to consumer or
: industrial users. Thus, manufacturers receive materials from the “left wing”,
and transform them into products to be sold to the “right wing”.
Score: 0/1

7.
What type of stores rely on their large size and very deep selection to try to dominate the
market?

Student Value Correct Feedback


Response Answer
A. specialty 0%
stores
B. discounter 0%
s
C. department 0%
stores
D. anchors 0%
power 100%
E. retailers

General Lecture page 91


Feedback A) Specialty stores are small and specialize in a particular type of
: merchandise. The smaller stores in a mall are specialty stores.
B) Discounters are firms like Wal-Mart and Target that emphasize many
different prices at relatively low prices.
C) Department stores are large stores that have multiple departments within
them. They usually are the “anchor stores” in a mall like Macy’s ad JC Penney.

D) Anchor stores are well known national or regional stores, like Sears,
Macy’s and such that are usually found in malls.
E) Power retailers offer very large and deep selections in a narrow range of
products. Best Buy and Home Depot are good examples because they carry
huge selections of products in their respective categories.
Score: 1/1

8.
The Hallmark Card Company is able to maintain good dealer relationships because it
limits the number of stores in a geographic area and carefully monitors the quality of the
stores through which it sells. Hallmark uses _____ distribution.

Student Value Correct Feedback


Response Answer
selective 100%
A.
B. extensive 0%
C. concentrate 0%
d
D. exclusive 0%
E. intensive 0%

General Text page 404


Feedback A) Selective distribution is when a firm selects a few retail outlets in a specific
: geographical area to carry its products.
B) Extensive distribution is not a real term. It is a combination of exclusive
and intensive distribution.
C) Concentrated distribution is a made up term.
D) Exclusive distribution is the extreme opposite of intensive distribution
because only one retail outlet in a specified geographical area carries the
firm’s product.
E) Intensive distribution is when a firm tries to place its products and services
in as many outlets as possible.
Score: 1/1
9.
Relationship Marketing is characterized by:
I. A long-term perspective
II. A product quality focus
III. Interdependence
IV. An emphasis on price

Student Value Correct Feedback


Respons Answer
e
A. II, III, 0%
and IV
only
I, II, III, 0%
B. and IV

C. I and III 100%


only
D. I, II, and 0%
IV only
E. I and IV 0%
only

General Lecture page 94


Feedback A) A long-term perspective characterizes relationship marketing, while price
: emphasis and product quality focus are characteristics of transaction marketing
not relationship marketing.
B) Price emphasis and product quality focus are characteristics of transaction
marketing not relationship marketing.
C) A long-term perspective and interdependence are characteristics of
relationship marketing.
D) Interdependence is a characteristic of relationship marketing. Price
emphasis and product quality focus are characteristics of transaction marketing
not relationship marketing
E) Price emphasis is not a characteristic of relationship marketing.
Score: 0/1

10
.
Activities that focus on getting the right amount of the right product to the right place at
the right time at the lowest possible cost are called:

Student Value Correct Feedback


Response Answer
strategic 0%
A. distribution

B. logistical- 0%
assisted
manufacturin
g (LAD)
C. logistics 100%

D. movement 0%
and storage
E. direct selling 0%

General Text page 416


Feedback A) Determining the best strategy of distribution is one part of logistics.
: B) This is a made up term.
C) This is the definition of logistics.
D) Movement and storage of goods are part of logistics decisions.
E) Selling is only part of the channel function and does not really deal with
logistics.
Score: 0/1

1.
Mike is an avid musician who opened a new music store called MP3s a few years ago.
Since then Mike has become much more knowledgeable about the business and has
decided to launch his own record label in order to have more control over the music that
he sells in his stores. This is an example of what?

Student Valu Correct Feedback


Response e Answer
A. Administered 0%
Student Valu Correct Feedback
Response e Answer
channel
B. Mass 0%
Merchandisin
g
Backward 100% Mike is in the retail aspect of music (his
C. vertical music store) and is moving towards the
integration manufacturing aspect (his record label).
This is an example of backward vertical
integration. Moving the other direction
from manufacturing towards retail is called
forward integration.
D. Contractual 0%
channel
E. Forward 0%
vertical
integration

General Lecture page 91


Feedback A) An administered vertical marketing system achieves coordination at
: successive stages of production and distribution by the size and influence of
one channel member.
B) This is a term describing a particular type of low price retailer, equivalent
to discounter.
C) Mike is in the retail aspect of music (his music store) and is moving
towards the manufacturing aspect (his record label). This is an example of
backward vertical integration. Moving the other direction from manufacturing
towards retail is called forward integration.
D) A contractual channel would involve would involve independent
production and distribution firms integrating their efforts on a contractual basis
to obtain greater functional economies and marketing impact than they could
achieve alone.
E) Forward vertical integration is moving from manufacturing towards retail.
An example of forward integration in this case it would involve a record label
opening a retail outlet.
Score: 1/1

2.
Marco traveled across three states to shop at Tiffany's to buy his girlfriend, Jana, a
present. This is the only Tiffany's store in the entire region. The degree of channel
coverage for Tiffany's is:

Student Valu Correct Feedback


Response e Answer
A. Intensive 0%
Exclusive 100%
B.
C. Transactiona 0%
l
D. Logistical 0%
E. Speed 0%

General Lecture page 90:


Feedback
: A. Intensive channel coverage is where the product is distributed in as many
places as possible. This strategy is commonly used for convenience goods.
B. Correct! Exclusive channel coverage means that the good is not widely
distributed. Exclusive channel coverage provides an individual store with the
exclusive right to distribute the product in a given area. Exclusive coverage is
generally used for specialty goods.
C. This term does not define a degree of channel coverage.
D. This term does not define a degree of channel coverage.
E. This term does not define a degree of channel coverage.
Score: 1/1

3.
A consumer buys berries at Remlinger Farms, flour and sugar at a bulk food store, and
milk and butter at a local dairy, then returns home to bake two dozen strawberry pies for a
family reunion. Considering only her shopping behavior (not the baking of the pies),
which logistical function activity did the consumer engage in that is ordinarily performed
by a retailer, such as a supermarket?

Student Value Correct Feedback


Response Answer
A. risk taking 0%
Student Value Correct Feedback
Response Answer
B. assorting 100%

transportin 0% Transporting means physically moving a


C. g product to customers. In this case, the
consumer performs the last leg of the
transportation function by hauling the items
from the stores to her home. However, the
consumer also hauls items home from the
supermarket, so this aspect of transportation
is not performed by the supermarkets either.
D. storing 0%
E. creating 0%
form utility

General Text page 391


Feedback A) Risk taking is a transactional function. This is what the retailer does when
: they assume ownership of inventory, (such as milk etc.) that can become
obsolete or deteriorate.
B) Assorting involves creating product assortments from several sources to
service customers. Since the consumer is buying products directly from the
producers on an independent basis, the consumer is performing the assorting
function normally performed by retailers such as supermarkets. Instead of
buying berries, flour, sugar, milk, and butter all at a single retail store, the
consumer independently seeks out these products from the producers.
C) Transporting means physically moving a product to customers. In this case,
the consumer performs the last leg of the transportation function by hauling
the items from the stores to her home. However, the consumer also hauls items
home from the supermarket, so this aspect of transportation is not performed
by the supermarkets either.
D) Storing involves assembling and protecting products at a convenient
location to offer better customer service. The consumer is not performing this
task by buying various goods from producers.
E) Form utility involves enhancing a product or service to make it more
appealing to buyers. The consumer is still buying the same product whether or
not he/she buys from the producer or retailer. As a result, form utility is not
created by the consumer's actions.
Score: 0/1

4.
Mr. D is the manager of a local Walgreens. His biggest concern is to make sure that his
store is always making the most profit possible. He cuts costs by focusing on certain
logistical decisions. Every other day Walgreens receives shipments from Pepsi, Evian,
Hershey, and numerous other manufacturers. Walgreens insists on small shipments every
two days, which helps to keep their inventory costs low. What system is Mr. D using at
Walgreens to reduce his costs?

Student Value Correct Feedback


Response Answer
A. electronic 0%
data
interchang
e
B. materials 0%
handling
C. backward 0%
vertical
integration
just in time 100%
D. inventory

E. vendor 0%
managed
inventory

General Lecture page 94:


Feedback
: A. EDI’s are used to transmit and manage information in a supply chain. This
is achieved through the linking of computers and the continuous flow of
information throughout the supply chain. An electronic data interchange
combines proprietary computer and telecommunication technologies to
exchange electronic invoices, payments, and information among suppliers,
manufacturers, and retailers.
B. Materials handling deals with how products are handled throughout the
supply chain.
C. Backward vertical integration occurs when a retailer owns a manufacturing
operation, or whenever a firm moves backward in the supply chain in order to
gain more control over the previous link.
D. Correct! Just-in-time delivery by definition is an inventory supply system
that operates with very low inventories and requires fast, on-time delivery. In
such a system materials needed for production arrive from suppliers “just in
time”, which means neither before not after they are needed. Mr. D is
attempting to employ this system by insisting on small shipments every two
days.
E. Vendor managed inventory is when the retailer allows the supplier or
manufacturer to control the amount of inventory the store has. For example, if
Walgreens allowed Pepsi, Evian, Hershey, and other manufacturers to monitor
stock levels and deliver products when they wanted, they would be employing
a vendor managed inventory system.
Score: 1/1

5.
_____ refers to the linkage of computers among suppliers, manufacturers, and resellers to
transmit documents such as electronic purchase orders, invoices, and information.

Student Value Correct Feedback


Response Answer
A. Strategic 0%
information
alliance
B. Reciprocal 0%
data
exchange
C. Integrated 0%
information
system
D. Integrated 0%
sales
managemen
t system
Electronic 100%
E. data
interchange

General Text page 421: EDI’s are used to transmit and manage information in a supply
Feedback chain. This is achieved through the linking of computers and the continuous
: flow of information throughout the supply chain. An electronic data
interchange combines proprietary computer and telecommunication
technologies to exchange electronic invoices, payments, and information
among suppliers, manufacturers, and retailers.
Score: 1/1
6.
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 standards, sometimes with procedures run remotely by Cisco. Most are
then drop-shipped to buyers, untouched by human hands on Cisco's payroll. The
individuals who monitor these transactions and make sure each is performed in a cost-
effective and timely fashion are engaged in:

Student Value Correct Feedback


Response Answer
just-in-time 0%
A. management
.
B. point-to- 0%
point
management
.
C. materials 0%
handling.
D. total 0%
distribution
cost
management
.
E. supply chain 100%
management
.

General Text page 416: Supply chain management is the integration and organization
Feedback of information and logistics activities across firms in a supply chain for the
: purpose of creating and delivering goods and services to consumers. Cisco’s
supply chain requires sophisticated information technology that allows
different companies to share and operate systems for delivering the product to
the consumer. Supply chain management involves overseeing and applying
these different methods in order to ensure their smooth operation.
Score: 0/1
7.
MGM is a company that makes and distributes movies and television shows, but some
say the company's real value lies in its library of over 4,100 films, on which it currently
collects licensing fees. Concerning future growth for the company, a news article states,
"[MGM CEO] Yemenidjian's vision, viewed as solid by Wall Street and industry watchers
alike, is to develop branded channels, such as MGM Drama or MGM Comedy, through
which it can leverage the library to reap distribution and advertising fees as well." MGM's
strategy of launching cable television channels on which to display its movies and shows
is an example of:

Student Value Correct Feedback


Response Answer
A. franchising 0%
B. horizontal 0%
integration
C. administere 0%
d
channeling
D. backward 0%
vertical
integration
forward 100%
E. vertical
integration

General Lecture page 91


Feedback A) Franchising is a contractual arrangement between a parent company and an
: individual or firm that allows the franchisee to operate a certain type of
business under an established name and according to specific rules. Here
MGM would own everything and not be contracting with another firm.
B) Horizontal integration occurs when a company buys another firm in the
same industry. In this case if MGM bought another film library this would be
horizontal integration.
C) Administered vertical marketing systems achieve coordination at
successive stages of production and distribution by the size and influence of
one channel member rather through ownership. Administered channeling is
not a marketing term.
D) Backward vertical integration occurs when a firm owns the channel of
distribution at a level further away from the consumer. In this example, if
MGM owned TV channels and then bought a film library to show on the
channels that would be backward vertical integration.
E) MGM is a producer of movies and TV channels are a mode of distributing
movies to consumers. By starting its own cable TV channels, MGM is forward
vertically integrating toward the consumer market rather than selling or
renting its movies to independently owned cable channels.
Score: 1/1

8.
The Hallmark Card Company is able to maintain good dealer relationships because it
limits the number of stores in a geographic area and carefully monitors the quality of the
stores through which it sells. Hallmark uses _____ distribution.

Student Value Correct Feedback


Response Answer
selective 100%
A.
B. extensive 0%
C. concentrate 0%
d
D. exclusive 0%
E. intensive 0%

General Text page 404


Feedback A) Selective distribution is when a firm selects a few retail outlets in a specific
: geographical area to carry its products.
B) Extensive distribution is not a real term. It is a combination of exclusive
and intensive distribution.
C) Concentrated distribution is a made up term.
D) Exclusive distribution is the extreme opposite of intensive distribution
because only one retail outlet in a specified geographical area carries the
firm’s product.
E) Intensive distribution is when a firm tries to place its products and services
in as many outlets as possible.
Score: 1/1

9.
Larry's parents decide to buy him a car as a graduation present, so Larry places an order
through Jeep.com for a customized Jeep Wrangler. The information that he specifies is
transferred electronically to DaimlerChrysler, the manufacturer of Jeeps. The order is then
sent electronically from DaimlerChrysler to its suppliers so they can send the necessary
parts exactly when needed to assemble Larry's Jeep Wrangler. Larry's Jeep is
manufactured and sent to the local dealer for Larry to pick up. The entire process, from
order to delivery, took only ten days. This process is an example of _____ made possible
by _____.

Student Value Correct Feedback


Response Answer
A. warehousing 0%
and materials
handling;
continuous
flow of goods
B. order 0%
processing;
cross-docking
C. customization 0%
; back-order
shipping
D. transportation 0%
; vendor-
managed
inventory
"just-in-time" 100%
E. inventory
management;
electronic
data
interchange

General Lecture page 94


Feedback A) Warehousing deals with keeping and maintaining a finished product. In this
: example, the finished Jeep is never in a warehouse. Once it is manufactured it
is shipped directly to the dealer.
B) Sending the order electronically is an example of order processing but that
is just part of the entire inventory process. Also, cross-docking is a materials
handling process that has nothing to do with orders.
C) A backorder is created when an item is out of stock. Back-order shipping is
a made up term that does not really make sense.
D) Vendor managed inventory is an inventory-management system whereby
the supplier determines the product amount and assortment a customer (such
as a retailer) needs and automatically delivers the appropriate items. This is
not the case in this question because Larry’s parents place an order to
DaimlerChrysler for the customized Jeep they want.
E) Just-in-time inventory management is an inventory supply system that
operates with very low inventories and requires fast, on-time delivery. The
emergence of electronic data interchange (EDI) has facilitated order
processing. DaimlerChrysler use EDI with Jeep.com to make order processing
more efficient.
Score: 1/1

10
.
Moving goods over short distances into, within, and out of warehouses and manufacturing
plants is called:

Student Value Correct Feedback


Response Answer
A. just-in-time 0%
inventory
management
system
B. production 0%
control
C. inventory 0%
expediting
D. materials 100%
handling
intermodal 0%
E. transportatio
n

General Text page 429


Feedback A) Just-in-time inventory management is used when a firm wants their
: inventory “just in time” to use it. It is an inventory supply system that operates
with very low inventories and requires fast, on time delivery. This term is too
broad to be the definition in the question.
B) This term is too vague. Also, this question is talking about moving or
shipping goods not producing them.
C) This is a made up term.
D) This is the definition of materials handling. An example would be cross-
docking.
E) Intermodal transportation involves combining different transportation
modes to get the best features of each. Materials handling may use intermodal
transportation.
Score: 0/1

1.

Historically, the "channel captain" has been the manufacturer. In


recent years, the power has been shifting to:

Student Response
Value
Correct Answer
Feedback

A.
Suppliers
0%

B.
Retailers
100%

C.
Consumers
0%

D.
Wholesalers
0%
E.
Advertisers
0%

General Feedback:
Lecture page 91: Retailers have consolidated or grown such that many
of them are now larger than the manufacturers that sell to them.
Plus, retailers have been using more and more technology to record
their customers' purchases. This detailed information about consumer
spending patterns gives retailers more power in the marketplace.
Score:
0/1

2.

Macy's is referred to as an "anchor store" in a large regional mall.


It carries a wide variety of merchandise, including clothing, shoes,
and household merchandise. Macy's would best be described as a _______.

Student Response
Value
Correct Answer
Feedback
A.
Power Retailer
0%

B.
Discounter
0%

C.
Specialty Store
0%

D.
Wholesaler
0%
E.
Department Store
100%

General Feedback:
Lecture page 91:

A. Power retailers, known as category killers, are large and


generally have a narrow product line with great depth. The question
states that Macy’s carries a wide variety of merchandise, thus we can
eliminate this possible answer choice.
B. Discounters generally have many product lines with shallow
selection. Unlike department stores such as Macy’s, discounters do
not add much value to the products they sell. Examples of discounters
include Target and Wal-Mart.
C. Specialty stores are generally small and carry limited product
lines, the exact opposite of Macy’s.
D. A wholesaler acts as an intermediary between manufacturers and
retailers.
E. Correct! Department stores are large, carry a wide variety of
product lines with average to deep selection, and are generally the
anchor stores within malls. This accurately describes Macy’s.
Score:
1/1

3.

Manufacturer's agents:

Student Response
Value
Correct Answer
Feedback

A.
furnish the racks or shelves that display merchandise in retail
stores, perform all channel functions, and sell on consignment to
retailers.
0%

Rack jobbers furnish the racks or shelves that display merchandise in


retail stores, perform all channel functions, and sell on consignment
to retailers, which means they retain the title to the products
displayed and bill retailers only for the merchandise sold.
B.
take title to merchandise but sell only to buyers who call on them,
pay cash for merchandise, and furnish their own transportation for
merchandise.
0%

C.
work for several producers and carry noncompetitive, complementary
merchandise in an exclusive territory.
100%

D.
own the merchandise they sell but do not physically handle, stock, or
deliver it.
0%

E.
have a small warehouse from which they stock their trucks for
distribution to retailers.
0%

General Feedback:
Text page 399
A) Rack jobbers furnish the racks or shelves that display merchandise
in retail stores, perform all channel functions, and sell on
consignment to retailers, which means they retain the title to the
products displayed and bill retailers only for the merchandise sold.
B) Cash and carry wholesalers take title to merchandise but sell only
to buyers who call on them, pay cash for merchandise, and furnish
their own transportation for merchandise
C) Manufacturer's agents work for several producers and carry
noncompetitive, complementary merchandise in an exclusive territory.
Manufacturer's agents act as a producer's sales arm in a territory
and are principally responsible for the transactional channel
functions, principally selling.
D) Drop shippers, or desk jobbers, own the merchandise they sell but
do not physically handle, stock, or deliver it.
E) Truck jobbers have a small warehouse from which they stock their
trucks for distribution to retailers.
Score:
0/1

4.

Mr. D is the manager of a local Walgreens. His biggest concern is to


make sure that his store is always making the most profit possible.
He cuts costs by focusing on certain logistical decisions. Every
other day Walgreens receives shipments from Pepsi, Evian, Hershey,
and numerous other manufacturers. Walgreens insists on small
shipments every two days, which helps to keep their inventory costs
low. What system is Mr. D using at Walgreens to reduce his costs?

Student Response
Value
Correct Answer
Feedback

A.
electronic data interchange
0%

B.
materials handling
0%

C.
backward vertical integration
0%

D.
just in time inventory
100%

E.
vendor managed inventory
0%

General Feedback:
Lecture page 94:

A. EDI’s are used to transmit and manage information in a supply


chain. This is achieved through the linking of computers and the
continuous flow of information throughout the supply chain. An
electronic data interchange combines proprietary computer and
telecommunication technologies to exchange electronic invoices,
payments, and information among suppliers, manufacturers, and retailers.
B. Materials handling deals with how products are handled throughout
the supply chain.
C. Backward vertical integration occurs when a retailer owns a
manufacturing operation, or whenever a firm moves backward in the
supply chain in order to gain more control over the previous link.
D. Correct! Just-in-time delivery by definition is an inventory
supply system that operates with very low inventories and requires
fast, on-time delivery. In such a system materials needed for
production arrive from suppliers “just in time”, which means neither
before not after they are needed. Mr. D is attempting to employ this
system by insisting on small shipments every two days.
E. Vendor managed inventory is when the retailer allows the supplier
or manufacturer to control the amount of inventory the store has. For
example, if Walgreens allowed Pepsi, Evian, Hershey, and other
manufacturers to monitor stock levels and deliver products when they
wanted, they would be employing a vendor managed inventory system.
Score:
0/1

5.

Within the domain of logistics management, the customer service


concept implies that firms should:

Student Response
Value
Correct Answer
Feedback

A.
automate customer service.
0%

This doesn't make sense; some services cannot be automated.


B.
set customer service levels and logistic costs simultaneously in
order to achieve strategic goals.
100%

C.
establish logistics costs and let customer service follow.
0%

D.
maximize customer service levels, then make the necessary logistics
decisions.
0%

E.
minimize customer service levels, then make the necessary logistics
decisions.
0%

General Feedback:
Text page 423
A) This doesn't make sense; some services cannot be automated.
B) Customer service is the ability of logistics management to satisfy
users in terms of time, dependability, communication, and
convenience. The ultimate goal is to achieve customer satisfaction in
the most cost-effective manner. This involves balancing the
logistical cost factors against customer service factors. This
implies that firms should set customer service levels and logistic
costs simultaneously in order to achieve strategic goals.
C) The ultimate goal is to achieve customer satisfaction in the most
cost-effective manner. Therefore customer service takes precedence
over logistical costs. Without satisfied customers the need for low
costs disappears.
D) You do not need to maximize customer service levels first; however
you need to make sure that the customers are satisfied and that
logistical costs are as low as possible to achieve the desired level
of customer service. It is best to make logistical cost decisions and
customer service decisions simultaneously in order to achieve a happy
balance between cost and service.
E) You do not want to minimize customer service levels. It is best to
make logistical cost decisions and customer service decisions
simultaneously in order to achieve a happy balance between cost and
service.
Score:
0/1

6.

In a logistics setting, replenishment time refers to lead time for an


item, which means the lag from ordering an item until it is:

Student Response
Value
Correct Answer
Feedback

A.
promised for delivery.
0%

B.
billed and paid for.
0%

C.
acknowledged by the customer.
0%
D.
received and ready for use or sale.
100%

E.
billed to the customer.
0%

General Feedback:
Text page 423: By definition, the time between ordering an item until
it is received and ready for use or sale is replenishment time.
Replenishment time is also known as order cycle time or lead time. A
current emphasis in supply chain management is to reduce lead time,
or replenishment time, so that the inventory levels may be minimized.
Score:
0/1

7.

David's job for Walgreen’s consists of looking at different sites and


determining which one is the best location to build a new store. He
prefers sites that are on the "evening" side of the street where
people are returning home from work, since these locations are
usually more profitable. This is an example of the _____ aspect of
_____ utility.

Student Response
Value
Correct Answer
Feedback

A.
speed, time
0%

B.
convenience, time
0%

C.
convenience, place
100%

D.
place, time
0%

E.
prestige, place
0%

General Feedback:
Lecture page 89
A) The location of the Walgreen’s creates place utility moreso than
time utility. Also, the convenience aspect is more important than the
speed aspect.
B) Although it may be true that the more convenient location also
creates time utility, place utility is the basis for the time savings
and therefore a better answer.
C) The location is convenient because it is on the side of the street
that people returning from work in the evening are driving on. The
convenient location of the store creates its place utility.
D) Place is not one of the aspects of time utility. Place is a whole
different type of utility.
E) There is no mention of the location being prestigious. The utility
is created by the convenience of the location.
Score:
0/1

8.

In terms of distribution, when marketing channel members are engaged


in financing, grading, marketing information and research, they are
performing the _____ function.
Student Response
Value
Correct Answer
Feedback

A.
transformational
0%

B.
logistical
0%

C.
transactional
0%

D.
implementing
0%

E.
facilitating
100%

General Feedback:
Text page 391
A) Transformational function is not one of the functions performed by
marketing channel members.
B) Logistical functions include assorting, storing, sorting, and
transporting products.
C) Transactional functions involve buying, selling, and risk taking
because intermediaries stock merchandise in anticipation of sales.
D) Implementing is not one of the functions performed by intermediaries.
E) The facilitating function includes financing, grading, and
marketing information and research.
Score:
0/1

9.

Susie goes to Publix and buys Dawn dish soap, Crest toothpaste, and
Tide laundry detergent. As the cashier is scanning the bar codes of
the various items at the cash register, it is sending a signal to
computers at Procter & Gamble that those items have been bought. When
they see enough customers have bought a certain product, P&G managers
instructs the warehouse to ship more to that store location. Which of
the following is this scenario describing?

Student Response
Value
Correct Answer
Feedback

A.
Electronic data interchange
100%

B.
Sales forecasting
0%

C.
Facilitating function
0%

D.
Transportation function
0%
E.
Supply chain management
0%

General Feedback:
Lecture Page 94
A) Electronic data interchange (EDI) combines proprietary computer
and telecommunication technologies to exchange electronic invoices,
payments, and information among suppliers, manufacturers, and
retailers. In this example Publix is connected with Procter & Gamble
by using EDI.
B) A sales forecast is the total sales of a product that a firm
expects to sell during a specified time period. In this example
Procter & Gamble is not forecasting any sales, they are just
responding to actual sales.
C) The facilitating function describes the financing, grading, and
marketing information and research performed by intermediaries.
D) The transportation function involves the buying, selling, and risk
taking performed by intermediaries.
E) Supply chain management is the integration and organization of
information and logistics activities across firms in a supply chain
for the purpose of creating and delivering goods and services that
provide value to consumers. EDI may be used in supply chain
management, but overall this answer is too broad.
Score:
1/1

10.

For 20 years, Regardo Inc. has produced small specially-ordered


machine parts. It sends out numerous small-sized orders throughout
the week. This has been a very expensive way of doing business, and
its logistics manager wants to save money on outbound transportation
costs. What should she do?

Student Response
Value
Correct Answer
Feedback

A.
Use an air express company to ensure that orders arrive on time
0%

B.
Use an intermodal transportation method to haul the orders
0%

C.
Charter a plane once a week to carry all necessary orders
0%

D.
Employ the services of a freight forwarder
100%

E.
Work with her suppliers to design a JIT system
0%

General Feedback:
Text page 428
A) Orders arriving on time is not the problem. The problem is high
transportation costs and air freight is very costly.
B) An intermodal approach would generally be larger shipments and
Regardo Inc. has many small-sized orders.
C) Chartering a plane would not save money on transportation costs
and would be very expensive in fuel costs alone
D) Regardo Inc. sends out a lot of small orders. This is a precisely
the circumstance that calls for the use of a freight forwarder, which
combines small shipments from several sources to secure all of them
more efficient shipping and lower their expense.
E) Designing a JIT system has to do with inventory costs. It will not
help her reduce her outbound transportation costs.
Score:
0/1
1.

Jeb is trying to market a new type of chewing gum. His new gum, Popsalot, is a low
involvement purchase. Which type of channel coverage should he employ?

Student Value Correct Feedback


Respons Answer
e

A direct 0%
.

B. exclusiv 0%
e

C. intensive 100%

D indirect 0%
.

E. selective 0%

General Lecture page 90


Feedback
: A. This term does not define a degree of channel coverage. It represents a
type of marketing channel.
B. Exclusive coverage would be inappropriate since it is generally used for
specialty goods, and involves giving an individual store the exclusive right
to distribute the product in a given area.
C. Correct! Intensive channel coverage is commonly used for convenience
goods. Intensive channel coverage involves trying to distribute the product
in as many locations as possible. Intensive distribution makes sense for
chewing gum, a convenience good, since it would be in Jeb’s best interest
to have his gum sold at as many locations as possible.
D. This term does not define a degree of channel coverage. It represents a
type of marketing channel.
E. Selective coverage involves selecting a few retail outlets in a specific
area to carry the product. This is done in order to maintain a certain image
for the product.
Score: 0/1
2.

Historically, the "channel captain" has been the manufacturer. In recent years, the
power has been shifting to:

Student Valu Correct Feedback


Response e Answer

A Suppliers 0%
.

B. Retailers 100%

C. Consumers 0%

D Wholesaler 0%
. s

E. Advertisers 0%

General Lecture page 91: Retailers have consolidated or grown such that many of
Feedback them are now larger than the manufacturers that sell to them. Plus, retailers
: have been using more and more technology to record their customers'
purchases. This detailed information about consumer spending patterns
gives retailers more power in the marketplace.
Score: 0/1

3.

Jacob has opened Total Lawn Care, a service firm that will revolutionize the lawn care
industry. Although Jacob has limited operating capital, he still wants to open as many
stores as he can, as quickly as possible. Which of the following options should he
choose?

Student Valu Correct Feedback


Response e Answer

A An 0%
Student Valu Correct Feedback
Response e Answer

. administere
d vertical
marketing
system in
order to
achieve
distribution.

B. A 0%
wholesaler-
sponsored
vertical
marketing
system to
obtain
greater
economies
of scale.

C. A 100%
contractual
vertical
marketing
system
(franchise).

D Branch 0%
. offices
around the
country to
provide the
exposure he
needs.

E. A corporate 0%
vertical
marketing
system to
control the
distribution
system
established.
General Text page 400
Feedback A) An administered vertical marketing system requires coordination at
: successive stages of production and distribution, much like the corporate
vertical marketing system does, however it achieves it by the size and
influence of one channel member rather than through ownership.
B) Although a wholesaler-sponsored vertical marketing system would help
the reduce the cost of operating Jacob's business, it would not given him
the capital needed to expand.
C) A contractual vertical marketing system is Jacob's best option since he
has limited capital and wants to expand rapidly. Franchising Jacob's
business will allow it to grow quickly without much additional capital
invested. The franchisees are the ones investing the additional capital
which makes it possible for the franchisor, Jacob, to expand his business
rapidly.
D) Since Jacob has limited operating capital, and having branch offices
around the country would require a large amount of money, this is not the
best approach.
E) A corporate vertical marketing system involves the combination of
successive stages of production and distribution under a single ownership.
Examples of this include forward and backward integration. This system is
used to reduce distribution costs and gain greater control over supply
sources. It requires a lot of capital and will not help Jacob open stores as
quickly as possible.
Score: 0/1

4.

Mr. D is the manager of a local Walgreens. His biggest concern is to make sure that his
store is always making the most profit possible. He cuts costs by focusing on certain
logistical decisions. Every other day Walgreens receives shipments from Pepsi, Evian,
Hershey, and numerous other manufacturers. Walgreens insists on small shipments
every two days, which helps to keep their inventory costs low. What system is Mr. D
using at Walgreens to reduce his costs?

Student Value Correct Feedback


Response Answer

A electronic 0%
. data
interchang
e
Student Value Correct Feedback
Response Answer

B. materials 0%
handling

C. backward 0%
vertical
integration

D just in time 100%


. inventory

E. vendor 0%
managed
inventory

General Lecture page 94:


Feedback
: A. EDI’s are used to transmit and manage information in a supply chain.
This is achieved through the linking of computers and the continuous flow
of information throughout the supply chain. An electronic data interchange
combines proprietary computer and telecommunication technologies to
exchange electronic invoices, payments, and information among suppliers,
manufacturers, and retailers.
B. Materials handling deals with how products are handled throughout the
supply chain.
C. Backward vertical integration occurs when a retailer owns a
manufacturing operation, or whenever a firm moves backward in the
supply chain in order to gain more control over the previous link.
D. Correct! Just-in-time delivery by definition is an inventory supply
system that operates with very low inventories and requires fast, on-time
delivery. In such a system materials needed for production arrive from
suppliers “just in time”, which means neither before not after they are
needed. Mr. D is attempting to employ this system by insisting on small
shipments every two days.
E. Vendor managed inventory is when the retailer allows the supplier or
manufacturer to control the amount of inventory the store has. For
example, if Walgreens allowed Pepsi, Evian, Hershey, and other
manufacturers to monitor stock levels and deliver products when they
wanted, they would be employing a vendor managed inventory system.
Score: 0/1
5.

_____ refers to the linkage of computers among suppliers, manufacturers, and resellers
to transmit documents such as electronic purchase orders, invoices, and information.

Student Valu Correct Feedback


Response e Answer

A Strategic 0%
. information
alliance

B. Reciprocal 0%
data
exchange

C. Integrated 0%
information
system

D Integrated 0%
. sales
managemen
t system

E. Electronic 100%
data
interchange

General Text page 421: EDI’s are used to transmit and manage information in a
Feedback supply chain. This is achieved through the linking of computers and the
: continuous flow of information throughout the supply chain. An electronic
data interchange combines proprietary computer and telecommunication
technologies to exchange electronic invoices, payments, and information
among suppliers, manufacturers, and retailers.
Score: 0/1

6.
_____ are firms that perform most or all of the logistics functions that manufacturers,
suppliers, and distributors would normally perform themselves.

Student Valu Correct Feedback


Response e Answer

A Freight 0%
. forwarders

B. Freight 0%
jobbers

C. Wholesaler 0%
s

D Rack 0%
. jobbers

E. Third-party 100%
logistics
providers

General Text page 425:


Feedback
: A. Freight forwarders are firms that accumulate small shipments into larger
lots and then hire a carrier to move them, usually at reduced rates. Thus,
they do not perform all of the logistical functions necessary for a supply
chain to operate.
B. Created term.
C. Wholesalers are just one link in the supply chain, and certainly do not
perform all of the logistical functions required to operate a supply chain
effectively.
D. Rack jobbers furnish the racks or shelves that display merchandise in
retail stores, perform all channel functions, and sell on consignment to
retailers, which means they retain the title to the products displayed and
bill retailers only for the merchandise sold.
Correct! Third-party logistics providers perform most or all of the logistics
functions that manufacturers, suppliers, and distributors would normally
perform. Thus, they perform the four key logistical functions of a supply
chain: transportation, warehousing and materials handling, order
processing, and inventory management. In the competitive business world
these functions are complex and often costly. As a result many companies
are choosing to outsource them to third parties.
Score: 0/1

7.

Many elementary schools participate in programs where students go out into the
community on behalf of a company to sell products from a catalog of goods, which the
company ships directly to the consumer. Usually the school gets a cut of the profits and
the kids are rewarded with prizes based on how much they sell. What type of channel
member do the school children represent in this example?

Student Value Correct Feedback


Response Answer

A Network 0%
. Marketer

B. Merchant 0%
Wholesale
r

C. Agent 100%

D Jobber 0%
.

E. Distributor 0%

General Lecture page 90


Feedback A) Network Marketer refers to network marketing or multi-level
: marketing, where independent distributors build a network of distributors
under them.
B) Merchant wholesalers are independently owned firms that take title to
the merchandise they handle. In this example the kids do not take
possession of the goods they are selling.
C) Agents serve primarily as the independent selling arm of producers and
represent a producer or in this case the catalog company. Agents do not
take the title to the goods, nor do they ever take physical possession of the
goods. The kids simply represent the company, take orders, and transfer the
orders back to the manufacturer.
D) Jobbers are limited merchandise wholesalers. They do not perform all
functions but they do more than simply sell the product, including taking
title to the goods.
E) Distributors are general merchandise wholesalers. They perform all the
functions of a channel including taking possession of the goods.
Score: 0/1

8.

In terms of distribution, when marketing channel members are engaged in financing,


grading, marketing information and research, they are performing the _____ function.

Student Valu Correct Feedback


Response e Answer

A transformationa 0%
. l

B. logistical 0%

C. transactional 0%

D implementing 0%
.

E. facilitating 100%

General Text page 391


Feedback A) Transformational function is not one of the functions performed by
: marketing channel members.
B) Logistical functions include assorting, storing, sorting, and transporting
products.
C) Transactional functions involve buying, selling, and risk taking because
intermediaries stock merchandise in anticipation of sales.
D) Implementing is not one of the functions performed by intermediaries.
E) The facilitating function includes financing, grading, and marketing
information and research.
Score: 0/1
9.

Susie goes to Publix and buys Dawn dish soap, Crest toothpaste, and Tide laundry
detergent. As the cashier is scanning the bar codes of the various items at the cash
register, it is sending a signal to computers at Procter & Gamble that those items have
been bought. When they see enough customers have bought a certain product, P&G
managers instructs the warehouse to ship more to that store location. Which of the
following is this scenario describing?

Student Valu Correct Feedback


Response e Answer

A Electronic 100%
. data
interchange

B. Sales 0%
forecasting

C. Facilitating 0%
function

D Transportatio 0%
. n function

E. Supply chain 0%
management

General Lecture Page 94


Feedback A) Electronic data interchange (EDI) combines proprietary computer and
: telecommunication technologies to exchange electronic invoices,
payments, and information among suppliers, manufacturers, and retailers.
In this example Publix is connected with Procter & Gamble by using EDI.
B) A sales forecast is the total sales of a product that a firm expects to sell
during a specified time period. In this example Procter & Gamble is not
forecasting any sales, they are just responding to actual sales.
C) The facilitating function describes the financing, grading, and
marketing information and research performed by intermediaries.
D) The transportation function involves the buying, selling, and risk taking
performed by intermediaries.
E) Supply chain management is the integration and organization of
information and logistics activities across firms in a supply chain for the
purpose of creating and delivering goods and services that provide value to
consumers. EDI may be used in supply chain management, but overall this
answer is too broad.
Score: 0/1

10
.

Within the context of a supply chain, _____ is the ability of a logistics system to
satisfy users in terms of time, dependability, communications, and convenience.

Student Valu Correct Feedback


Response e Answer

A distribution 0%
. management

B. customer 100%
service

C. stockout 0%
creation

D lead time 0%
.

E. replenishmen 0%
t

General Text page 423


Feedback A) Distribution management is too vague of a term to fit in this answer.
: B) In the context of a supply chain this is the definition of customer
service.
C) Stockouts occur when firms run out of inventory. Firms would not want
to create a stockout.
D) Lead time is the lag from ordering an item until it is received and ready
for use or sale.
E) Replenishment refers to restocking inventory. When a stockout occurs
inventory needs to be replenished.
Score: 0/1
1.

Cindy wants to open a retail store in the mall where she can sell a few carefully
selected lines of women's clothing. If Cindy opens her shop, what kind of store
would it be considered?

Student Response Value Correct Answer Feedback

A. Specialty Store 100% Student Response

B. Nonstore Retailer 0%

C. Department Store 0%

D. Discounter 0%

E. Power Retailer 0%

General Feedback: Lecture page 91:

A. Correct! Specialty stores are generally small and carry limited product lines with
average to deep selection. This is the best description of Cindy’s shop.

B. Distracter

C. Department stores are large, carry a wide variety of product lines with average to
deep selection, and are generally the anchor stores within malls.

D. Discounters generally have a large number of product lines with shallow


selection.

E. Power retailers, known as category killers, are large and generally have a narrow
product line with great depth.

Score: 0/1

2.
Marco traveled across three states to shop at Tiffany's to buy his girlfriend, Jana, a
present. This is the only Tiffany's store in the entire region. The degree of channel
coverage for Tiffany's is:

Student Response Value Correct Answer Feedback

A. Intensive 0%

B. Exclusive 100% Student Response

C. Transactional 0%

D. Logistical 0%

E. Speed 0%

General Feedback: Lecture page 90:

A. Intensive channel coverage is where the product is distributed in as many places


as possible. This strategy is commonly used for convenience goods.

B. Correct! Exclusive channel coverage means that the good is not widely
distributed. Exclusive channel coverage provides an individual store with the
exclusive right to distribute the product in a given area. Exclusive coverage is
generally used for specialty goods.

C. This term does not define a degree of channel coverage.

D. This term does not define a degree of channel coverage.

E. This term does not define a degree of channel coverage.

Score: 0/1

3.

Manufacturer's agents:

Student Response Value Correct Answer Feedback

A. furnish the racks or shelves that display merchandise in retail stores, perform
all channel functions, and sell on consignment to retailers. 0%
B. take title to merchandise but sell only to buyers who call on them, pay cash
for merchandise, and furnish their own transportation for merchandise. 0%

C. work for several producers and carry noncompetitive, complementary


merchandise in an exclusive territory. 100% Student Response

D. own the merchandise they sell but do not physically handle, stock, or deliver
it. 0%

E. have a small warehouse from which they stock their trucks for distribution to
retailers. 0%

General Feedback: Text page 399

A) Rack jobbers furnish the racks or shelves that display merchandise in retail
stores, perform all channel functions, and sell on consignment to retailers, which
means they retain the title to the products displayed and bill retailers only for the
merchandise sold.

B) Cash and carry wholesalers take title to merchandise but sell only to buyers who
call on them, pay cash for merchandise, and furnish their own transportation for
merchandise

C) Manufacturer's agents work for several producers and carry noncompetitive,


complementary merchandise in an exclusive territory. Manufacturer's agents act as
a producer's sales arm in a territory and are principally responsible for the
transactional channel functions, principally selling.

D) Drop shippers, or desk jobbers, own the merchandise they sell but do not
physically handle, stock, or deliver it.

E) Truck jobbers have a small warehouse from which they stock their trucks for
distribution to retailers.

Score: 0/1

4.

Cross-docking and inventory management are examples of what concept?

Student Response Value Correct Answer Feedback

A. The distinction between a channel of distribution and actual physical


distribution of a product 0%
B. Logistics 100% Student Response

C. Transaction Marketing 0%

D. Channel Dynamics 0%

E. Relationship Marketing 0%

General Feedback: Lecture page 94: Logistics focuses on getting the right amount
of the right product to the right place at the right time at the lowest possible cost.
The emphasis of logistics is on distribution, getting the product from point of origin
to point of consumption. Cross-docking allows for the quick and efficient method of
sorting goods coming from the manufacturer to the retailer. Cross-docking
essentially involves two docks, an arrival dock and a departure dock. Goods coming
from the manufacturer enter the plant at the arrival dock and are then sorted and
prepared to exit on the departure dock. Thus, cross-docking serves an important
logistical function since it allows goods to flow quickly and efficiently from the
manufacturer to the retailer. Inventory management requires coordination between
suppliers and vendors in order to maintain optimal levels of inventory. This an
example of logistics since inventory management focuses on the movement of
products in a cost effective manner throughout the supply chain.

Score: 0/1

5.

_____ refers to the linkage of computers among suppliers, manufacturers, and


resellers to transmit documents such as electronic purchase orders, invoices, and
information.

Student Response Value Correct Answer Feedback

A. Strategic information alliance 0%

B. Reciprocal data exchange 0%

C. Integrated information system 0%

D. Integrated sales management system 0%

E. Electronic data interchange 100% Student Response

General Feedback: Text page 421: EDI’s are used to transmit and manage
information in a supply chain. This is achieved through the linking of computers and
the continuous flow of information throughout the supply chain. An electronic data
interchange combines proprietary computer and telecommunication technologies to
exchange electronic invoices, payments, and information among suppliers,
manufacturers, and retailers.

Score: 0/1

6.

A marketing expert described a _____ as looking like a butterfly. The manufacturer is


the body of the butterfly with many different suppliers accumulated on one side of
the body for the left wing and a large number of buyers collected on the other side
to form the right wing.

Student Response Value Correct Answer Feedback

A. materials handling facility 0%

B. market 0%

C. retailer cooperative 0%

D. logistical flow 0%

E. supply chain 100% Student Response

General Feedback: Text page 416: The supply chain is the sequence of firms that
perform activities required to create and deliver a good or service to consumer or
industrial users. Thus, manufacturers receive materials from the “left wing”, and
transform them into products to be sold to the “right wing”.

Score: 0/1

7.

Mike is driving over to his girlfriend's apartment and decides to buy some gum. He
could stop in a gas station, go to any grocery store, go to any discount store, or
even buy some out of a vending machine. The reason Mike has so many options to
buy gum is because chewing gum companies strive for _____ channel coverage.

Student Response Value Correct Answer Feedback


A. Indirect 0%

B. Intensive 100% Student Response

C. Selective 0%

D. Direct 0%

E. Direct 0%

General Feedback: Lecture page 90

A) Indirect channel coverage is not one of the three 3 degrees of channel coverage.

B) Intensive distribution is when a firm tries to place its products and services in as
many outlets as possible. Firms using this want their product to be in every place a
consumer could conceivably get it, which is what gum companies want.

C) Selective channel coverage is in between exclusive and intrusive distribution. A


firm selects a few retail outlets in a specific geographical area to carry its products.

D) Direct is not one of the degrees of channel coverage.

E) Exclusive distribution is the extreme opposite of intensive distribution because


only one retail outlet in a specified geographical area carries the firm’s product.

Score: 0/1

8.

Rob stops at the supermarket to purchase a package of Oreos and other groceries.
He is the ultimate consumer in a pipeline from the producer through intermediaries
including the grocery store. This pipeline is actually a:

Student Response Value Correct Answer Feedback

A. logistical function 0%

B. transactional function 0%

C. consumer market 0%

D. marketing intermediary 0%

E. marketing channel 100% Student Response

General Feedback: Text page 390


A) Logistical functions are provided by intermediaries. They include the assorting,
storing, sorting, and transporting that are functions of the marketing channel
performed by the intermediaries.

B) Transactional functions are also performed by intermediaries. This includes the


buying, selling, and risk taking functions that intermediaries provide.

C) A market refers to the people with both the desire and the ability to buy a
specific product. Consumer markets may be the ultimate consumers or the end of
the marketing channel.

D) A marketing intermediary is a middleman. Intermediaries can be part of a


marketing channel or pipeline but the entire pipeline is called a channel.

E) A marketing channel consists of individuals and firms involved in the process of


making a product or service available for use or consumption by consumers or
industrial users.

Score: 0/1

9.

Larry's parents decide to buy him a car as a graduation present, so Larry places an
order through Jeep.com for a customized Jeep Wrangler. The information that he
specifies is transferred electronically to DaimlerChrysler, the manufacturer of Jeeps.
The order is then sent electronically from DaimlerChrysler to its suppliers so they
can send the necessary parts exactly when needed to assemble Larry's Jeep
Wrangler. Larry's Jeep is manufactured and sent to the local dealer for Larry to pick
up. The entire process, from order to delivery, took only ten days. This process is an
example of _____ made possible by _____.

Student Response Value Correct Answer Feedback

A. warehousing and materials handling; continuous flow of goods 0%

B. order processing; cross-docking 0%

C. customization; back-order shipping 0%

D. transportation; vendor-managed inventory 0%

E. "just-in-time" inventory management; electronic data interchange 100%


Student Response
General Feedback: Lecture page 94

A) Warehousing deals with keeping and maintaining a finished product. In this


example, the finished Jeep is never in a warehouse. Once it is manufactured it is
shipped directly to the dealer.

B) Sending the order electronically is an example of order processing but that is just
part of the entire inventory process. Also, cross-docking is a materials handling
process that has nothing to do with orders.

C) A backorder is created when an item is out of stock. Back-order shipping is a


made up term that does not really make sense.

D) Vendor managed inventory is an inventory-management system whereby the


supplier determines the product amount and assortment a customer (such as a
retailer) needs and automatically delivers the appropriate items. This is not the case
in this question because Larry’s parents place an order to DaimlerChrysler for the
customized Jeep they want.

E) Just-in-time inventory management is an inventory supply system that operates


with very low inventories and requires fast, on-time delivery. The emergence of
electronic data interchange (EDI) has facilitated order processing. DaimlerChrysler
use EDI with Jeep.com to make order processing more efficient.

Score: 0/1

10.

Within the context of a supply chain, _____ is the ability of a logistics system to
satisfy users in terms of time, dependability, communications, and convenience.

Student Response Value Correct Answer Feedback

A. distribution management 0%

B. customer service 100% Student Response

C. stockout creation 0%

D. lead time 0%

E. replenishment 0%

General Feedback: Text page 423

A) Distribution management is too vague of a term to fit in this answer.


B) In the context of a supply chain this is the definition of customer service.

C) Stockouts occur when firms run out of inventory. Firms would not want to create a
stockout.

D) Lead time is the lag from ordering an item until it is received and ready for use or
sale.

E) Replenishment refers to restocking inventory. When a stockout occurs inventory


needs to be replenished.

Score: 0/1

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