Q&A Hero

Q: In the context of a supply chain, customer service refers toA. adhering to the belief that the customer is always right.B. satisfying the customers' needs no matter what the price.C. accepting full liability if a product fails to meet a customer's expectations.D. the ability of logistics management to satisfy users in terms of time, dependability, communication, and convenience.E. the ability of logistics management to satisfy users in terms of product, price, promotion, and place.

Q: Figure 12-1 A variety of terms are used for marketing intermediaries. According to Figure 12-1 above, Box A represents a(n) __________. A. retailer B. middleman C. wholesaler D. distributor E. agent or broker

Q: For logistics, the customer service concept suggests that firms should A. automate interactions with customers. B. maximize customer service levels. C. minimize customer service levels. D. minimize total logistics costs and let customer service follow. E. satisfy users in terms of time, dependability, communication, and convenience.

Q: Automakers such as Chrysler, Ford, and General Motors utilize a __________ network to sell cars to consumers. A. dealer B. broker C. supplier D. agent E. wholesaler

Q: Which of the following best describes the goal for a firm's inventory and transportation costs? A. focus more on minimizing required inventory costs B. focus more on minimizing required transportation costs C. minimize the sum of inventory and transportation costs D. maximize the difference between required inventory and transportation costs E. set a level of transportation costs and minimize the required inventory costs

Q: An even more imprecise term than distributor, __________ can mean the same as retailer, wholesaler and more. A. broker B. buying committee C. agent D. dealer E. supplier

Q: Which of the following is an element of total logistics cost? A. new product development B. inventory C. advertising D. personal selling E. market research

Q: An imprecise terms for intermediaries who perform a variety of functions, including selling, maintaining inventories, extending credit, and so on, are referred to as __________. A. agents B. brokers C. retailers D. wholesalers E. distributors

Q: Figure 12-9 Figure 12-9 above indicates that supply chain managers must balance total logistics cost factors against customer service factors. The four customer service factors (W, X, Y, and Z) include all of the following EXCEPT: A. communication. B. dependability. C. convenience. D. return products handling. E. time.

Q: A distributor refers to A. an imprecise term for intermediaries who perform a variety of distribution functions, including selling, maintaining inventories, extending credit, and so on. B. an intermediary who sells only to manufacturers. C. an intermediary who takes possession of a product, alters it in some way, and then sells it to the ultimate consumer. D. an intermediary who sells only to consumers. E. an intermediary who sells only to other intermediaries.

Q: Figure 12-9 Figure 12-9 above indicates that supply chain managers must balance total logistics cost factors against customer service factors. The six total logistics cost factors (A, B, C, D, E, and F) include all of the following EXCEPT: A. order processing. B. materials handling and warehousing. C. time. D. inventory. E. transportation.

Q: Your best friend just bought a longboard at BC Surf & Sport. In terms of the marketing channel, BC Surf & Sport is a(n) __________. A. ultimate consumer B. manufacturer C. wholesaler D. retailer E. distributor

Q: Total logistics costs refer to A. the design, installation, and maintenance of in-store displays, cabinets, and free standing promotional materials for retail outlets. B. expenses associated with activities performed by brokers and agents to bring buyers and sellers together. C. expenditures associated with the clerical or bookkeeping side of the procurement process, which include purchase, design, and maintenance of the EDI system. D. expenses associated with product adaptations that are made by the manufacturer in response to the needs of a channel member closest to the consumer. E. expenses associated with transportation, materials handling and warehousing, inventory, stockouts, order processing, and return products handling.

Q: A retailer refers to A. an intermediary who sells only to other intermediaries. B. any intermediary between a manufacturer and industrial markets. C. an intermediary who sells to other distributors. D. an intermediary who takes possession of a product, alters it in some way, and then sells it to the ultimate consumer. E. an intermediary who sells to consumers.

Q: Expenses associated with transportation, materials handling and warehousing, inventory, stockouts (being out of inventory), order processing, and return products handling are referred to as __________. A. supplier service cost B. manufacturing cost C. total logistics cost D. social responsibility cost E. total supply chain cost

Q: An intermediary who sells to consumers is referred to as a(n) __________. A. agent B. broker C. retailer D. wholesaler E. distributor

Q: Establishments primarily engaged in selling grain and small farm products to retail feed stores would be classified as A. retailers. B. brokers. C. ultimate consumers. D. wholesalers. E. agents.

Q: Which of the following statements regarding supply chains is most accurate? A. The most common form of supply chain is the collaborative-response efficiency strategy. B. For an effective supply chain, key decisions should be made by a third-party logistics provider. C. The longer the supply chain, the greater the economies of scale and the better the profit margin. D. Supply chains should consider the needs of suppliers, provided those needs are consistent with marketing strategies. E. Supply chain managers often need to make trade-offs between efficiency and responsiveness.

Q: An intermediary who sells to other intermediaries, usually to retailers in consumer markets, is referred to as a(n) __________. A. broker B. agent C. retailer D. distributor E. wholesaler

Q: Which of the following statements regarding supply chains is most accurate? A. The best supply chain is the one that is consistent with the needs of the customer segment being served and complements a company's marketing strategy. B. The most common form of supply chain is the collaborative-response efficiency strategy. C. For an effective supply chain, key decisions should be made by a third-party logistics provider. D. The longer the supply chain, the greater the economies of scale and the better the profit margin. E. Supply chains should consider the needs of suppliers, provided those needs are consistent with marketing strategies.

Q: A wholesaler refers to A. independent firms or individuals whose principal function is to bring buyers and sellers together. B. any intermediary who takes ownership of a manufacturer's products or services and then finds multiple buyers for those products or services. C. an intermediary who sells to other intermediaries, usually to retailers in consumer markets. D. an intermediary who sells to consumers. E. a manufacturing matchmaker who actively seeks out potential consumers and brings them to retailers.

Q: Which of the following statements regarding supply chains is most accurate? A. The most common form of supply chain is the collaborative-response efficiency strategy. B. For an effective supply chain, key decisions should be made by a third-party logistics provider. C. There is no one best supply chain for every company. D. The longer the supply chain, the greater the economies of scale and the better the profit margins. E. Supply chains should consider the needs of suppliers, provided those needs are consistent with marketing strategies.

Q: Several artists in Charleston, South Carolina, show and sell their work in an art gallery downtown. The gallery is owned by an art lover who does not buy the paintings but displays those from other artists. She only collects a percentage on each piece sold. In terms of the marketing channel, the gallery is a(n) __________. A. ultimate consumer B. manufacturer C. wholesaler D. agent E. dealer

Q: Cross-docking is most closely related to __________. A. efficient supply chains B. intermodal transportation C. responsive supply chains D. reverse logistics E. exclusive distribution

Q: An agent refers to A. any intermediary with legal authority to act on behalf of the manufacturer. B. independent firms or individuals whose principal function is to transport goods. C. any intermediary who takes ownership of a manufacturer's goods or services and then finds multiple buyers for them. D. a manufacturer's paid representative and acting voice in initial sales transactions. E. a manufacturing "matchmaker" who actively seeks out potential consumers and brings them to retailers.

Q: Cross-docking refers toA. organizing the cost-effective flow of raw materials, in-process inventory, finished goods, and information from point of origin to point of consumption to satisfy customer requirements.B. the practice of storing finished goods in the same trucks from which they will be dispensed and sold to consumers.C. using large cargo containers that will be loaded to trucks and then to barges or ships that sail from port to port and then unloaded back to trucks for final transport and delivery.D. a practice that involves unloading products from suppliers, sorting products for individual stores, and quickly reloading products onto trucks for a particular store.E. the practice of transporting retail goods from a centralized warehouse to the loading docks of regionally located satellite warehouses.

Q: Any intermediary with legal authority to act on behalf of the manufacturer is referred to as a(n) __________. A. dealer B. agent C. retailer D. wholesaler E. distributor

Q: The practice that involves unloading products from suppliers, sorting products for individual stores, and quickly reloading products on trucks that will deliver the products to specific stores is referred to as __________. A. just-in-time (JIT) delivery B. intermodal distribution C. immediate response system (ERS) D. piggy-backing E. cross-docking

Q: Jeff Tabrizi is the owner of Tabrizi Oriental Rugs located in Toronto, Canada. He shops the world over, handpicks, and orders beautiful, authentic handmade rugs. He has them shipped to Canada, where he sells them through his brick-and-mortar stores and his www.tabrizi.com website. In terms of the marketing channel, Jeff is acting as a(n) __________. A. consumer B. agent C. wholesaler D. brokerage firm E. middleman

Q: Which statement regarding efficient supply chains is most accurate? A. Efficient supply chains use common platforms and common components across several products. B. Efficient supply chains rely on large geographically dispersed inventory warehouses. C. Efficient supply chains traditionally use expensive, but faster, modes of transportation. D. Efficient supply chains may utilize cross-docking. E. Efficient supply chains emphasize economies of scale by increasing the variety of system configurations offered.

Q: Any intermediary between a manufacturer and end-user markets is referred to as a A. retailer. B. middleman. C. wholesaler. D. broker. E. distributor.

Q: Which statement regarding efficient supply chains is most accurate? A. Efficient supply chains often operate with relatively low inventory levels. B. Efficient supply chains use common platforms and common components across several products. C. Efficient supply chains rely on maintaining large geographically dispersed inventory warehouses. D. Efficient supply chains traditionally use expensive, but faster, modes of transportation. E. Efficient supply chains emphasize economies of scale by increasing the variety of system configurations offered.

Q: A middleman refers to A. a person or firm whose sole responsibility is bringing a buyer to the last link in the distribution chain. B. a person or firm whose sole responsibility is to find distributors for a manufacturer's products. C. any intermediary between a manufacturer and end-user markets. D. a person or firm that takes possession of a product and in some way alters it before passing it on to ultimate consumers. E. an intermediary who sells to ultimate consumers.

Q: Walmart's marketing strategy is to be a reliable, lower-price retailer for a wide variety of mass consumption consumer goods. This strategy favors a(n) __________ designed to deliver products to consumers at the lowest possible cost. A. integrated supply chain B. global supply chain C. efficient supply chain D. responsive supply chain E. customer service supply chain

Q: Jay stops at the shopping mall to purchase a new pair of jeans from the Diesel store. He is the ultimate consumer in a pipeline from the producer through intermediaries, including the clothing store. This pipeline is known as a A. marketing tunnel. B. consumer market. C. marketing channel. D. transactional conduit. E. distribution matrix.

Q: Walmart made a conscious decision to use a(n) __________ supply chain in order to best meet the needs of its consumers. A. integrated B. responsive C. harmonized D. efficient E. multi-tiered

Q: A __________ can be compared to a pipeline through which water flows - making possible the flow of products from a producer, through intermediaries, to a buyer. A. marketing chain B. marketing hierarchy C. marketing agent D. marketing channel E. marketing network

Q: Which statement regarding responsive supply chains is most accurate? A. Responsive supply chains use slower modes of transportation but faster order processing. B. Responsive supply chains often rely on more expensive express transportation. C. Responsive supply chains always use the least expensive mode of transportation possible. D. Responsive supply chains rely on large inventory warehouses. E. Responsive supply chains achieve economies of scale by having all inventory stored and sorted at a central location.

Q: You probably own several pairs of shoes. Further, it is likely you purchased those shoes at retail stores located in a shopping mall and not directly from the manufacturer. In fact, most products are brought to you from a series of other individuals or firms known as a __________. A. marketing network B. distribution hierarchy C. marketing chain D. distribution matrix E. marketing channel

Q: Which statement regarding responsive supply chains is most accurate? A. Responsive supply chains use slower modes of transportation but faster order processing. B. Responsive supply chains always use the least expensive mode of transportation possible. C. Responsive supply chains rely on large inventory warehouses. D. Responsive supply chains achieve economies of scale by having all inventory stored and sorted at a central location. E. Responsive supply chains rely heavily on information technology.

Q: Individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users are referred to as a A. marketing channel. B. parallel distribution. C. retailer. D. wholesaler. E. distributor.

Q: Because its customers desire rapid delivery and a wide variety of customizable products, Dell made a conscious decision to use a(n) __________ supply chain to meet these requirements. A. integrated B. efficient C. harmonized D. responsive E. multi-tiered

Q: When Callaway Golf opened its online store, it wanted to be sensitive to its retail channel. It did this byA. offering its retail partners greater trade allowances.B. offering its retail partners Callaway stock options.C. creating a platform with original content that helps consumers, whichever channel they use.D. offered incentives for retailers if they encouraged their store customers to shop online.E. discounted merchandise in retail outlets but not online.

Q: Dell has adopted a(n) __________ supply chain strategy to better serve its customers. A. responsive B. reactionary C. efficient D. proficient E. economical

Q: Callaway Golf markets its products through on- and off-course golf retailers and sporting goods retailers, and also has its own online store, which makes it a full-fledged A. cross channel marketer. B. multichannel marketer. C. industrial marketer. D. direct marketer. E. remarketer.

Q: IBM was the first to build a(n) __________ that would handle raw material procurement, manufacturing, logistics, customer support, order entry, and customer fulfillment across all of IBM. A. integrated supply chain B. extranet computer system C. customer service department D. intranet supply network system E. global procurement network

Q: IBM is one of the world's great business success stories because of its ability to reinvent itself to satisfy shifting customer needs in a(n) __________ global marketplace. A. stagnant B. dynamic C. inert D. lethargic E. apathetic

Q: The goals to be achieved by a firm's marketing strategy determine whether its supply chain needs to be more __________ in meeting customer requirements. A. cost effective B. broadly expanded C. responsive or efficient D. centrally located E. geographically distributed

Q: Often companies must choose between a responsive supply chain and an efficient supply chain. This decision is based on __________. A. the specific needs of customer segments B. monetary considerations C. supplier alternatives D. the business mission E. a lack of an appropriate channel captain

Q: What is the first step in choosing the right supply chain? A. understand the supply chain B. develop a list of qualified channel members C. enumerate logistics specifications D. compare multiple-channel alternatives E. understand the customer

Q: The three steps used in choosing a supply chain include: (1) understand the customer; (2) understand the supply chain; and (3) __________. A. understand the environment B. harmonize the supply chain with the marketing strategy C. understand the marketing mix D. understand the logistics E. understand the company's goals

Q: The choice of a supply chain involves three steps: (1) understand the customer; (2) __________; and (3) harmonize the supply chain with the marketing strategy. A. understand the environment B. consider the legal consequences C. understand the supply chain D. understand the marketing strategy E. understand the company's goals

Q: The choice of a supply chain follows from a clearly defined marketing strategy and involves three steps: (1) __________; (2) understand the supply chain; and (3) harmonize the supply chain with the marketing strategy. A. understand the environment B. consider the legal consequences of partnering C. understand the marketing strategy D. understand the customer E. understand the company's goals

Q: Supply chain and logistics managers play a large part in the manufacture of automobiles. It is estimated that logistics costs account for __________ percent of the retail price you pay for a new car. A. 1 to 2 B. 4 to 5 C. 8 to 10 D. 12 to 15 E. 25 to 30

Q: In the automobile industry, the supply chain manager is responsible for translating __________ into actual orders and arranging for delivery dates. A. marketing goals B. customer requirements C. marketing information D. production requirements E. company goals

Q: In the automobile industry, the __________ manager is responsible for translating customer requirements into actual orders and arranging for delivery dates. A. marketing B. information technology C. intermodal D. supply chain E. financial

Q: An important feature of customer-driven supply chain management is its application of __________ that allows companies to share and operate systems for order processing, transportation scheduling, and inventory and facility management. A. wholesaler cooperatives B. mathematical and statistical models C. sophisticated information technology D. continuous inventory management E. standardized distribution protocols

Q: Supply chain management refers to A. the integration and organization of information and logistic activities across firms for the purpose of creating and delivering products that provide value to ultimate consumers. B. organizing the cost-effective flow of raw materials, in-process inventory, finished goods, and information from point-of-origin to point-of-consumption to satisfy customer requirements. C. the integration and organization of information and logistical activities that actively bring consumers together with sellers through the express use of agents and brokers. D. an inventory management system that is designed to reduce the retailer's lead time for receiving merchandise, which then lowers a retailer's inventory investment, improves customer service levels, and reduces logistic expenses. E. a highly organized system that facilitates minute-to-minute communication between all members of a supply chain and ensures the producer is aware of any changes in delivery or demand for a product or service.

Q: A __________ is essentially a sequence of linked suppliers and customers in which every customer is, in turn, a supplier to another customer until a finished product reaches the ultimate consumer or industrial user. A. logistical flow B. demand chain C. supplier-customer alliance D. supply chain E. supply pipeline

Q: Which of the following statements best describes how a supply chain differs from a marketing channel? A. Communication is more important in the marketing channel than in the supply chain. B. The marketing channel places more emphasis on cost-effectiveness than the supply chain. C. A marketing channel includes suppliers that provide raw material inputs to a manufacturer. D. A supply network moves materials from producer to consumer while a marketing channel moves materials from the supplier to the producer. E. A supply chain includes suppliers; marketing channels do not.

Q: A supply chain refers to A. the various firms involved in performing the activities required to create and deliver a product or service to ultimate consumers or industrial users. B. an inventory management system where the supplier determines the product amount and assortment a retailer needs and automatically delivers the appropriate items. C. mathematical formulas and calculations used in determining product volume and demand in order to generate the greatest revenue at the lowest cost. D. activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost. E. a specialized intermediary in the distribution chain responsible for the coordination of all production schedules.

Q: The various firms involved in performing the activities required to create and deliver a product or service to ultimate consumers or industrial users is referred to as A. strategic distribution. B. distribution management. C. a supply chain. D. value chain optimization. E. logistics.

Q: A firm needs to drive down logistics costs as long as it can deliver expected __________. A. balance sheet results B. customer service C. low levels of expenses D. product-market synergies E. target market goals

Q: The word "cost-effective" as it relates to the definition of logistics management implies that A. while it is important to drive down logistics costs, all channel members must equally benefit financially or the chain will not function effectively. B. speed of delivery must be measured against increased savings. C. while it is important to drive down logistics costs, customer buying requirements must be a part of the equation. D. the need for multiple carriers always results in lower profit margins and therefore should be avoided. E. the choice of intermediaries should be made on their ability to perform their tasks efficiently even if additional costs must be passed on to the consumer.

Q: The word "flow" as it relates to the definition of logistics management refers to decisions needed to move A. raw materials to the producer. B. semi-finished materials to a merchant wholesaler. C. finished products to the distributor. D. finished products directly from the producer to the retailer. E. a product from the source of raw materials to consumption.

Q: Logistics management refers toA. the practice of organizing the cost-effective flow of raw materials, in-process inventory, finished goods, and related information from point of origin to point of consumption to satisfy customer requirements.B. the integration and organization of information and logistics activities across firms in a supply chain for the purpose of creating and delivering products and services that provide value to ultimate consumers.C. the integration and organization of information and logistical activities that actively brings consumers together with sellers through the express use of agents and brokers.D. systems that are designed to reduce a retailer's lead time for receiving merchandise, which then lowers a retailer's inventory investment, improves customer service levels, and reduces logistics expense.E. proprietary computer and telecommunication technologies to exchange electronic invoices, payments, and information among suppliers, manufacturers, wholesalers, and retailers.

Q: The practice of organizing the cost-effective flow of raw materials, in-process inventory, finished goods, and related information from point of origin to point of consumption to satisfy customer requirements is referred to as __________. A. the inventory management process B. logistics management C. production management D. manufacturer distribution logistics E. supply-chain management

Q: A few years ago, Benetton delivered new styles to its worldwide stores once a month. Today, it replenishes its racks once a week. Getting the fashions to its retailers more quickly means that effectively using logistics has increased Benetton's market share by providing A. larger lots of available inventory for its retailers. B. time and place utility for its customers. C. increased steps in the value proposition creation process. D. technological advances leading to greater customer information. E. increased customer traffic.

Q: Reductions in delivery times in both the marketplace and the supply chain have earned firms such as Toyota and Xerox a reputation as "time-based competitors." For Toyota and Xerox, logistics A. increases their customers' inventory levels. B. increases the number of steps in their manufacturing processes. C. includes the role of Toyota and Xerox as channel captains. D. creates time and place utility for their customers. E. does not influence their suppliers' supply chains.

Q: Johnson Controls can receive an order for automobile seats from Ford and deliver the order four hours later, beginning with raw materials and ending with delivery of the finished seats to Ford. As used by Johnson Controls, logistics A. creates utilities for Ford. B. provides Ford with a cost-effective dual distribution system. C. increases the number of steps in the value proposition creation process. D. includes the role of Johnson controls as a channel captain. E. does not influence Ford's supply chain.

Q: Logistics is most closely related to which element of the marketing mix? A. product B. place C. production D. promotion E. price

Q: Logistics refers to A. an inventory management system where the supplier determines the product amount and assortment a retailer needs and automatically delivers the appropriate items. B. mathematical formulas and calculations used in determining product volume and demand in order to generate the greatest revenue at the lowest cost. C. the sequence of firms that performs activities required to create and deliver a product or service to ultimate consumers or industrial users. D. activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost. E. a specialized intermediary in the distribution chain responsible for the coordination of all production schedules.

Q: Those activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost are referred to as A. strategic distribution. B. distribution management. C. tactical marketing planning. D. value chain optimization. E. logistics.

Q: A marketing channel relies on __________ to make products available to consumers and industrial users. A. logistics B. strategic distribution C. strategic marketing planning D. supply chains E. value chain optimization

Q: Sports Port, a motorcycle and fishing boat retailer located in a small northern Minnesota town, was the world's largest dealer for Crestliner fishing boats. In order to meet the demand of his many customers, the owner of Sports Port works with a wide variety of channel members, ranging from the manufacturer of the boats to trucking firms, other retailers, and even detailers (firms that clean, polish, and wax boats). Such a diverse channel of distribution often resulted in channel conflict. However, due to his strong consumer following, the owner of Sports Port had the power to resolve disputes between channel members. The owner of Sports Port serves as the __________ in the channel of distribution. A. wholesaler B. producer C. channel spokesperson D. channel captain E. channel arbitrator

Q: Bombardier is the leading marketer of corporate jets. Its brand name is well known and respected in the corporate jet market. The aircraft company relies on outside suppliers for design support and to share development costs and market risks, but Bombardier is considered the leader in determining design and marketing of its planes. For its newest plane, Bombardier has about 30 prime suppliers, with about 10 of those having been involved since the initial design phase. Bombardier is an example of a __________. A. product champion B. channel general C. channel director D. channel coordinator E. channel captain

Q: Neiman-Marcus is a retailer with whom many small manufacturers would like to be associated. Distribution with Neiman-Marcus will increase the prestige of a smaller brand. The source of Neiman-Marcus's power is its A. economic influence. B. expertise. C. sought-after identification with a particular channel member. D. legitimate rights through contracts. E. longevity as an upscale retailer.

Q: American Hospital Supply helps its customers (hospitals) manage inventory and streamline order processing for hundreds of medical supplies. The source of American Hospital Supply's power is its A. economic influence. B. expertise. C. identification with a particular channel member. D. legitimate rights through contracts. E. governmental contracts.

Q: Walmart is a channel captain because of its strong image, number of outlets, and purchasing volume. The source of Walmart's power is its A. economic influence. B. expertise. C. identification with a particular channel member. D. legitimate rights through contracts. E. political connections.

Q: A firm becomes a channel captain because it is the channel member with the ability to influence the behavior of other members. Influence can take four forms, one of which is A. stakeholder position. B. familial ties to other channel members. C. longevity in the industry. D. identification with a particular channel member. E. geographic proximity to the manufacturing plant.