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ADM 2320 Lecture Notes - Lecture 8: Logistics, Direct Market, Management System

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16 Mar 2016

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University of Ottawa

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Document Summary

Distribuion channel: the insituions that transfer the ownership of and move goods from the point of producion to the point of consumpion. The terms distribuion channel and supply chain are virtually the same and oten used interchangeably. Wholesalers: those irms engaged in buying, taking itle to, oten storing, and physically handling goods in large quaniies, and then reselling the goods to retailers or industrial or business users. Logisics management: the integraion of two or more aciviies for the purpose of planning, implemening, and controlling the eicient low of raw materials, in-process inventory, and inished goods from the point of origin to the point of consumpion. One important role played by intermediaries is to reduce the number of marketplace contacts, resuling in more eicient systems. Every company must develop a distribuion strategy for how it will sell goods to consumers. Direct distribuion channels allow manufactures to deal directly with consumers. A direct transfer of products from the manufacturer to the consumer.

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Related Questions

A channel of distribution:

A) is any series of firms or individuals who participate in the flow of goods and services from producer to consumer or final user.
B) is only needed when products must be stored.
C) must include one or more intermediaries.
D) is only needed when products are sold indirectly.

Which of the following statements about Place decisions is True?

A) Product classes are not related to Place objectives.
B) The product life cycle is not related to Place objectives.
C) Place decisions are short-term decisions that are easy to change.
D) Different market segments may require separate Place arrangements.

Direct _____ involves personal sales contact between a representative of the company and an individual consumer.

A) marketing
B) selling
C) distribution
D) servicing

A manufacturer prefers to produce and ship in large quantities to take advantage of economies of scale. Final consumers often want to purchase in small quantities. This difference between the producer and consumer is a:

A) Discrepancy of assortment.
B) Discrepancy of quantity.
C) Regrouping activity.
D) Discrepancy adjustment

Which of the following best illustrates adjusting "discrepancies of assortment?"

A) General Motors makes Hummer for one product-market and Chevrolet for another product-market.
B) A hardware store sells all the hardware items wanted by most people.
C) Over 310 million U.S. consumers are served by around 330,000 manufacturers.
D) RCA sold more than 2,000,000 TVs last year

Small farmers in the mountains of Peru pick coffee beans by hand, obtaining only a bucket a day. Then they sell them to buyers who put the beans in large bags to be shipped to processors. This regrouping activity is called:

A) Assorting
B) Wholesaling
C) Bulk-breaking
D) Accumulating

Costco is a warehouse store that sells groceries, household items, and business products. Purchase quantities tend to be larger than in traditional stores that serve final consumers. For example, soft drinks are only sold in 24-can cases, not in 6-packs. Coffee is sold in 3-pound cans instead of one-pound foil packs. Which regrouping activity is Costco shifting to the consumer?

A) Accumulating.
B) Adjusting discrepancies.
C) Assorting.
D) Bulk-breaking.

_____ means separating products into grades and qualities desired by different target markets.A) B) C) D)

A) Bulk-breaking
B) Sorting
C) Accumulating
D) Assorting

A wine producer wants a supermarket manager to display its wines in a desirable end-of-aisle location, but the supermarket manager refuses to give that valuable real estate to this producer. This is an example of __________ conflict.

A) contractual
B) vertical
C) corporate
D) horizontal

10.

A local TV retailer hires knowledgeable salespeople to explain the differences among its models to customers, but a nearby discount store with very few sales staff sells the same TVs at a lower price. This is an example of __________ conflict.

A) horizontal
B) traditional
C) vertical
D) contractual

11.

Yukon Sportswear, a manufacturer of textile products, bought out the wholesaler that had been handling its distribution in Canada. This is an example of:

A) dual distribution.
B) reverse distribution.
C) a contractual channel system.
D) vertical integration.

12.

______________ means selling a product through only one wholesaler or retailer in a particular geographic area.

A) Exclusive distribution
B) Direct distribution
C) Intensive distribution
D) Multichannel distribution

13.

_____ means selling the right to use some process, trademark, patent, or other right for a fee or royalty.

A) Licensing
B) Management contracting
C) Joint venturing
D) Exporting

14.

Logistics, or physical distribution, is the ________________ part of the marketing mix.

A) Place
B) Production
C) Promotion
D) Product

15.

Physical distribution customer service level means all of the following EXCEPT:

A) Honda wants enough bumpers to build cars that day.
B) A vacationer wants Avis to have his rental car clean and ready when he arrives at the rental car counter.
C) Sears' shirts are priced at a fair value.
D) McDonald's has enough large cups so that customers can buy the larger size drinks which are on sale.

16.

The right physical distribution system should be based primarily on

A) the desired customer service level.
B) how customers store the product.
C) the physical characteristics of the product.
D) what is the lowest cost method of transportation for the product.

17.

The "total cost approach" to physical distribution management:

A) seeks to eliminate the storing function.
B) seeks to minimize the cost of transportation.
C) might suggest a high-cost transporting mode if storing costs could be reduced enough to lower total distribution costs.
D) ignores inventory carrying costs.

18.

Just-in-time (JIT) delivery:

A) Increases physical distribution costs for business customers.
B) Requires that a supplier be able to respond to the customer's production schedule.
C) Usually does not require e-commerce order systems and computer networks.
D) Means that deliveries are larger and less frequent.

19.

A _____ is the complete set of firms, facilities, and logistics activities that are involved in procuring materials, transforming them into intermediate or finished products, and distributing them to customers.

A) supply chain
B) physical distribution group
C) logistics partnership
D) just-in time group

20.

Which of the following products would have the lowest transporting costs as a percentage of the selling price?

A) Electronic equipment.
B) Chemicals and plastics.
C) Pharmaceuticals.
D) Sand and gravel.

21.

Which of the following statements about transporting by rail is True?

A) Rail transportation is the slowest mode of transportation.
B) Rail transportation is the least expensive mode of transportation.
C) Rail transportation is good for long-distance transportation of heavy, bulky items.
D) Railroads are most efficient at handling less-than-carload (LCL) shipments

22.

Regarding transporting by truck:

A) Trucks are best for moving large quantities of goods long distances.
B) Trucks are a very low cost mode of transportation.
C) Trucks are not reliable in meeting delivery schedules.
D) Trucks tend to provide fast delivery.

23.

Products that require a high frequency of scheduled shipments would be least suited to travel by

A) truck.
B) rail.
C) air.
D) water.

24.

In spite of high cost, high value, low-weight goods like high-fashion clothing and parts for the electronic industry are often shipped long distances by ____

A) rail.
B) water.
C) air.
D) pipeline.

25.

Air express companies place many small packages into specially designed cylinders that conform to the interior dimensions of a cargo airplane. This practice protects the smaller packages and helps to reduce distribution costs. The air express companies are practicing:

A) Containerization.
B) Piggybacking.
C) Freight forwarding.
D) Cylinderization.

26.

The railroad service which picks up truck trailers at a producer's location, loads them onto rail flatcars, hauls them close to the customer, and then delivers them to the buyer's door is:

A) truck service.
B) fast freight.
C) trailer service.
D) piggyback service.

27.

Inventory refers to

A) the amount of goods being stored.
B) minimizing storage costs.
C) the amount of goods being sold.
D) the marketing function of holding goods.

28.

When the manager of a local electronics store decides to offer its customers a gift-wrapping service for the holidays, this is a decision about:

A) Product
B) Place
C) Promotion
D) Price

29.

When the manager of a RadioShack electronics store decides to accept American Express credit cards from its customers, this is a decision about:

A) Product
B) Place
C) Promotion
D) Price

30.

Limited-line storesA) B) C) D)

A) specialize in certain lines of related products rather than a wide assortment.
B) carry anything they can sell in reasonable volume.
C) are a type of unconventional general store.
D) are larger stores that are organized into many separate departments and offer many product lines.

31.

Specialty shops generally:

A) want to be known for the distinctiveness of their product assortment and the special services they offer.
B) sell homogeneous shopping products.
C) are very good at speeding turnover.
D) carry complete lines--like department stores.

32.

The ____________ says that retailers should offer low prices to get faster turnover and greater sales volumes by appealing to larger markets.

A) Wheel of retailing theory
B) Production concept
C) Mass-merchandising concept
D) Sales concept

33.

A retail store that averages about $17 million in sales annually and specializes in groceries--with self-service and large assortments is a:

A) mass-merchandiser.
B) specialty shop.
C) convenience food store.
D) supermarket.

34.

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