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.