Reference no: EM132234133
1. Which of the following is NOT a source of vertical conflict?
- When a manufacturer increases its distribution coverage in a geographic area.
- When a manufacturer believes a wholesaler or retailer is not devoting sufficient attention to its products.
- When different types of retailers sell the same brands.
- When channel members disagree on how profit margins are distributed among channel members.
2. Which of the following does the customer service concept imply?
- Firms should establish logistics costs and let customer service follow.
- Firms should set customer service levels and logistic costs simultaneously to achieve strategic goals.
- Firms should maximize customer service levels.
- Firms should minimize customer service levels.
3. Which is LEAST important in order to build a successful strategic relationship?
- common goals shared by the firms
- joint investment among the firms
- mutual trust among the firms
- open communications among the firms
4. What is the goal of integrated supply chain management?
- to harmonize all of the company’s logistics decisions
- to reduce conflict and increase cooperation among channel members
- to reduce costs
- to increase services with minimal cost through teamwork
5. Which of these is a disadvantage of an exclusive distribution system:
- Dealers are less likely to provide post-sale service.
- Dealers are unable to carry a complete line of stock.
- Manufacturers are less able to reduce credit losses.
- Sales may be lost because of inconvenient retail locations.
6. Which is wrong with regard to wholesalers:
- agents do not take title to goods but help their customers to sell their .
- facilitating agents generally perform specific distribution tasks, such as storage.
- merchants often negotiate price and set terms of sale.
- brokers generally handle a broad range of unrelated products.
7. Risk costs that are part of inventory costs are:
- opportunity costs resulting from tying up funds in inventory instead of using them in other more profitable investments.
- costs such as insurance and taxes that are present in many states.
- warehousing space and materials handling costs.
- costs due to possible loss, damage, pilferage, or obsolescence.