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| 1 | |
Which of the following is NOT an example of a service typically performed by a full-service wholesaler for its customers and producers? |
| | A) | risk taking |
| | B) | creating assortments |
| | C) | decision making |
| | D) | warehousing |
| | E) | management assistance |
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| 2 | |
An independent Floridian grocery store that carries food items commonly found in Ethiopian diets but not on U.S.-based grocery shelves would most likely use which type of agent wholesaling middleman? |
| | A) | truck jobber |
| | B) | import/export agent |
| | C) | drop shipper |
| | D) | broker |
| | E) | commission merchant |
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| 3 | |
Physical distribution is a synonym of: |
| | A) | logistics |
| | B) | contract sourcing |
| | C) | warehousing |
| | D) | order processing |
| | E) | inventory control |
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| 4 | |
Amazon.com recently took over the day-to-day running of Bertelsmann's online music store-CDNow. Amazon will take responsibility for order fulfillment. Amazon will have the role of: |
| | A) | online category manager |
| | B) | distribution captain |
| | C) | supply chain manager |
| | D) | distribution ombudsman |
| | E) | network manager |
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| 5 | |
Zara is a retail clothier that began in Spain and is gradually taking over the European clothing market. Unlike many retailers, the company has complete control of nearly every aspect of its business-from manufacturing the clothes to owning its own trucking company. One of the reasons for the success of the retail chain is its implementation of: |
| | A) | the total cost concept |
| | B) | the customer satisfaction matrix |
| | C) | supply chain management |
| | D) | production-oriented marketing concepts |
| | E) | the hierarchy of effects |
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| 6 | |
The total cost concept: |
| | A) | examines the separate costs of each distribution function and does not look at the big picture |
| | B) | cannot be used with supply chain management |
| | C) | creates optimal profit levels |
| | D) | can be used to explain why some manufacturers want to eliminate middlemen from their distribution channels |
| | E) | is accurately described by none of the above |
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| 7 | |
Amazon.com recently took over the day-to-day running of Bertelsmann's online music store-CDNow. Amazon will take responsibility for order fulfillment. This is an example of: |
| | A) | outsourcing |
| | B) | marketing mix outsourcing |
| | C) | functional logistics |
| | D) | direct sourcing |
| | E) | indirect sourcing |
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| 8 | |
Zara is a retail clothier that began in Spain and is gradually taking over the European clothing market. Unlike other clothiers, Zara makes over half of the clothing it sells in its store at its own factories located near its stores. Other similar businesses use contract manufacturing to make their private-label brands of clothing. These contract manufacturers are located in South America and Asia-far away from the retail operation. Zara has elected to: |
| | A) | eliminate seasonality in production cycles |
| | B) | select the lowest priced transportation |
| | C) | create time and place utility |
| | D) | ignore the total cost concept |
| | E) | eliminate warehousing |
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| 9 | |
The _____ is the volume at which the sum of the inventory-carrying costs and order-processing costs are at a minimum. |
| | A) | breakeven point |
| | B) | point of marginal contribution |
| | C) | 80/20 principal |
| | D) | economic order quantity |
| | E) | optimal distribution system capacity |
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| 10 | |
As part of its repositioning strategy, Goody's stores decided to use a retailing version of JIT to have less merchandise on the floor at one time to cut down store clutter. Goody's is planning on implementing a(n): |
| | A) | JIT II inventory system. |
| | B) | EOQ inventory control system. |
| | C) | EDI response system. |
| | D) | market-response system. |
| | E) | sales replenishment system. |
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| 11 | |
7-Eleven convenience stores plan to install technology in every store that would allow each store to order merchandise directly from suppliers and abandon a distribution system in which most of the ordering is done by its suppliers' route drivers. According to 7-Eleven's chief executive officer, "The joint use of information technology will allow the stores to take back purchasing responsibilities. Through the use of information technology, the corporation and the suppliers can better know what each individual store needs." According to this information, 7-Eleven is using: |
| | A) | just-in-time (JIT) |
| | B) | collaborative planning, forecasting, and replenishment (CPFR) |
| | C) | fulfillment centers |
| | D) | inventory management cooperatives |
| | E) | distribution centers |
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| 12 | |
Mary Kay Inc. has experienced tremendous growth recently-a 17 percent increase in sales from 2001 to 2002. It has five strategically located _____ that are over 100,000 square feet in size and handle on average 800,000 orders daily. |
| | A) | public warehouses |
| | B) | distribution centers |
| | C) | market warehouses |
| | D) | private warehouses |
| | E) | intermodal centers |
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| 13 | |
Zara is a retail clothier that began in Spain and is gradually taking over the European clothing market. Unlike other clothiers, Zara makes over half of the clothing it sells in its store at its own factories located near its stores. Its warehouses are a maze of tunnels, each equipped with a rail that hangs from its ceiling. Along the rails, cables carry merchandise similar to the way skiers are moved on ski lifts. At the factories, bunches of clothes on hangers or in suspended racks are latched onto the cable. Each bundle is supported by a metal tab that gives its "address." This is a description of the _____ subsystem used by Zara in its physical distribution system. |
| | A) | transportation |
| | B) | order processing |
| | C) | materials handling |
| | D) | time and place utilization |
| | E) | contract logistics |
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| 14 | |
The European Union is exploring the potential for increased usage of the Danube River, a river that flows through a major part of the continent. The river needs to be dredged in parts to make it passable. Investors in this plan dream about taking truck trailers on barges in Western Europe, carrying them down the river to sites in Eastern Europe where the truck trailers will be driven to their destinations. What method of intermodal shipping will be used if this plan succeeds? |
| | A) | piggyback service |
| | B) | one-stop shipping |
| | C) | freight forwarding |
| | D) | fishyback service |
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