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Exam 12: Distribution and Supply Chain Management

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Question 41

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The objective of a vertical marketing system is channel control by one member of the channel of distribution.

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Question 42

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A manufacturer like Procter & Gamble that produces and markets a wide variety of consumer goods for household use is likely to use direct channels of distribution.

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Question 43

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A manufacturer in Toronto would solve the problem of the high costs of shipping small orders to individual customers in Calgary or Edmonton by using

When a customer orders a product that is unavailable for shipment it is called a stockout.

With the increasing adoption of electronic distribution technologies such as EDI and the Internet, the role of intermediaries is soon to be obsolete.

Describe the three degrees of market coverage that are discussed in your text. Provide an example of a product that would be appropriate for each degree and justify your choices.

Trucks are the most efficient mode of transporting bulky items over long distances.

How could a company like Dairy Queen use contractual VMS for a venue like Canada's Wonderland, a large amusement park?

A manufacturer owns and operates its own retail outlets (e.g., Imperial Oil owns Esso retailers) . This is an example of

Walmart electronically links its suppliers to inventory databases so that inventories can be managed down to the last possible unit. This system is called

The channel captain or leader of a distribution channel should be the

The addition of a(n) ________ is common in industries where products are sold through many types of retail outlets.

Which of the following is an example of horizontal conflict in distribution channels?

GM and Ford's increased usage of the Internet is an attempt to shorten traditionally long, indirect channels.

Home Hardware retailers organized themselves into a type of buying group to help provide them with leverage to reduce prices. Home Hardware is an example of a voluntary chain.

Consumers are increasingly purchasing cars over the Internet via online intermediaries such as Autobytel.com, Cars4U.com, and AutoTrader.ca. What is the biggest benefit to consumers from this sales channel?

A(n) ________ channel is one in which goods are moved from producer to consumer without the use of intermediaries.

Which of the following has the role of integrating and coordinating the objectives and policies of the members of the supply channel?

Consider the impact of Apple's iTunes music store on the music industry. Use this example to define and describe vertical conflict.

An intermediary offers producers the advantage of making goods and services available to target markets efficiently.