chapter 16 managing retailing, wholesaling, and logistics flores

TOP 10 Learning Questions for

Chapter 16 Managing Retailing, Wholesaling, and Logistics

Winnette FloresDecember 16, 2010

www. winnetteflores.blogspot.com

1. Type of warehouse that employ advanced materials handling systems under the control of a central computer.

a. Automated warehouseb. Distribution warehousec. Storage warehoused. Modern warehouse

Every company must store finished goods until they are sold because production and consumption cycles rarely match.

Concept

AUTOMATED WAREHOUSE-Employ advance materials-handling systems under the control of central computer

DISTRIBUTION WAREHOUSE – Receive goods from

various company plants and suppliers

STORAGE WAREHOUSE-Store goods for moderate

to long periods of time

MODERN WAREHOUSE -There is no modern type

of warehouse

ConceptConcept Explanation

1. Type of warehouse that employ advanced materials handling systems under the control of a central computer.

a. Automated warehouseb. Distribution warehousec. Storage warehoused. Modern warehouse

2. These are carrying costs except:

a. Storage costb. Cost of capitalc. Taxes and insuranced. Set-up cost

Carrying Cost Processing Cost

Storage charges Set-up cost

Cost of capital Running cost

Taxes and insurance

Depreciation and obsolescence

Concept

Taxes and insurance

Set-up cost is an order processing costs for a manufacturer.

Taxes and insurance

2. These are carrying costs except:a. Storage costb. Cost of capitalc. Taxes and insuranced. Set-up cost

3. General Electric operates an information system that checks the customers’ credit standing upon receipt of an order and determines whether and where the items are in stock.

a. Order processingb. Warehousingc. Inventoryd. All of the above

Order Processing

Warehousing Inventory All of the Above

Order transmission, order entry and customer credit check

Assembly, packaging, and constructing promotional displays.

Having enough stock to fill all customer orders immediately.

Order-processing, warehousing and inventory.

Concept

Order Processing Warehousing Inventory All of the Above

Order transmission, order entry and customer credit

Assembly, packaging, and

constructing promotional

displays.

Concept Explanation

Most companies like General Electric are trying to shorten the order-to-payment cycle – that is, the elapsed time between an order’s receipt, delivery and payment.

Order Processing

Warehousing Inventory All of the Above

Order transmission, order entry and customer credit check

Assembly, packaging, and constructing promotional displays.

3. General Electric operates an information system that checks the customers’ credit standing upon receipt of an order and determines whether and where the items are in stock.

a. Order processingb. Warehousingc. Inventoryd. All of the above

4. Third-party suppliers that participate in designing or managing integrated-logistics systems.

1. FedEx Logistics Services2. Ryder Integrated Logistics3. Italy’s Benetton4. Walmart

a. 1 only b. 2 only c. Both 1 and 2 d. 3 only e. 4 only f. Both 2 and 3 g. Both 3 and 4 h. All 4

FedEx and Ryder

Italy’s Benetton and Walmart

- are both retailers.- are third-party suppliers that participate in materials management, material flow systems and physical distribution.

Concept

FedEx and Ryder

Italy’s Benetton and Walmart

- are both retailers.- are third-party suppliers that participate in materials management, material flow systems and physical distribution.

FedEx and Ryder participate in market logistics task that calls for integrated logistics system aided by information technology.

4. Third-party suppliers that participate in designing or managing integrated-logistics systems.

1. FedEx2. Ryder3. Volvo4. Coca-Cola

a. 1 only b. 2 only c. Both 1 and 2 d. 3 only e. 4 only f. Both 2 and 3 g. Both 3 and 4 h. All 4

5. The retailer’s product assortment must match the target market’s shopping expectations. A restaurant (small lunch counters) can offer a _____ and _____ assortment.

a. Broad; shallowb. Broad; deepc. Narrow; shallowd. Narrow; deep

Small lunch counter

Delicatessen Cafeteria Large restaurant

Offers narrow and shallow assortment

Offers narrow and deep

assortment

Offers broad and shallow assortment

Offers broad and deep

assortment

Concept

Small lunch counter

Delicatessen Cafeteria Large restaurant

Offers narrow and shallow assortment

Offers narrow and deep

assortment

Offers broad and shallow assortment

Offers broad and deep

assortment

The retailer must decide on product- assortment breadth and depth. A restaurant (small lunch counters) can offer a narrow and shallow assortment.

5. The retailer’s product assortment must match the target market’s shopping expectations. A restaurant (small lunch counters) can offer a _____ and _____ assortment.

a. Broad; shallowb. Broad; deepc. Narrow; shallowd. Narrow; deep

6. Wal-Mart and Tesco are discount chains that expands into product areas such as clothing, health, beauty and electrical appliances. What type of retail developments is this?

a. Growth of Giant Retailersb. Competition between Store-Based and Non-

Store based Retailingc. Growth of Intertype Competitiond. New Retail Forms and Combinations

Growth of Giant Retailers

Competition Between store-Based and Non-Store Based Retailing

Growth of Intertype Competition

New Retail Forms and Combinations

Giant retailers that are able to deliver good service and immense volumes of product at appealing prices to masses of consumers

Non-store based retailers have sales offers through direct-mail letters and catalogs, and over television, computers and telephones

Compete for the same consumers by carrying the same type of merchandise

Retailers that experiment the limited-time-only stores called pop-ups that let retailers promote brands

Concept

Growth of Giant Retailers

Competition Between store-Based and Non-Store Based Retailing

Growth of Intertype Competition

New Retail Forms and Combinations

Giant retailers that are able to deliver good service and immense volumes of product at appealing prices to masses of consumers

Non-store based retailers have sales offers through direct-mail letters and catalogs, and over television, computers and telephones

Compete for the same consumers by carrying the same type of merchandise

Retailers that experiment the limited-time-only stores called pop-ups that let retailers promote brands

Concept

Different type of stores – discount stores, catalog showrooms, department stores – specifically Wal-Mart and Tesco all compete for the same consumers by carrying the same type of merchandise

Concept Explanation

6. Wal-Mart and Tesco are discount chains that expands into product areas such as clothing, health, beauty and electrical appliances. What type of retail developments is this?

a. Growth of Giant Retailersb. Competition between Store-Based and Non-

Store based Retailingc. Growth of Intertype Competitiond. New Retail Forms and Combinations

7. Level of service where customers are willing to carry out their own locate-compare-select process to save money.

a. Full serviceb. Limited servicec. Self-selectiond. Self-service

Full Service Limited Service Self-Selection Self-service

- Customers who like to be waited on prefer this type of store

- Customers need more information and assistance.

- Customers find their own goods, although they can ask for assistance

- Many customers are willing to carry out their own locate-compare-select process to save money

Concept

Full Service Limited Service Self-Selection Self-service

- Customers who like to be waited on prefer this type of store

- Customers need more information and assistance.

- Customers find their own goods, although they can ask for assistance

- Many customers are willing to carry out their own locate-compare-select process to save money

Self-service – is the cornerstone of all discount operations.

7. Level of service where customers are willing to carry out their own locate-compare-select process to save money.

a. Full serviceb. Limited servicec. Self-selectiond. Self-service

8. Store that feature a narrow product assortment and high value added cultivate an exclusive image and operate on high margin and low volume.

a. Sunglass Hutb. Wal-Martc. Bloomingdalesd. Tiffany

Concept

Bloomingdale’s

Tiffany

Wal-Mart

Sunglass Hut

Narrow

High LowValue Added

Concept

Bloomingdale’s

Tiffany

Wal-Mart

Sunglass Hut

Narrow

High LowValue Added

Concept Explanation

Tiffany is the store that feature a narrow product assortment and high value added cultivate an exclusive image and operate on high margin and low volume

8. Store that feature a narrow product assortment and high value added cultivate an exclusive image and operate on high margin and low volume.

a. Sunglass Hutb. Wal-Martc. Bloomingdalesd. Tiffany

9. Direct selling is also called multilevel selling and network marketing. A company that direct-selling one to many is ___.

a. Avonb. Mary Kay Cosmeticsc. Electroluxd. Southwestern Company of Nashville

Concept

One-to-one selling One-to-many sellingAvon TupperwareElectrolux Mary Kay CosmeticsSouthwestern Company of Nashville

Mary Kay Cosmetics are sold one-to-many.

One-to-one selling One-to-many sellingAvon TupperwareElectrolux Mary Kay CosmeticsSouthwestern Company of Nashville

9. Direct selling is also called multilevel selling and network marketing. A company that direct-selling one to many is ___.

a. Avonb. Mary Kay Cosmeticsc. Electroluxd. Southwestern Company of Nashville

10. Wholesaling includes all the activities in selling goods or services to those who buy for resale or business use that includes manufacturers?

a. Trueb. Falsec. Sometimesd. Depends

Wholesalers are different from retailers in the following ways:

1. Wholesalers pay less attention to promotion, atmosphere and location.

2. Wholesale transactions are usually larger than retail transactions.

3. The government deals with wholesalers and retailers differently in terms of legal regulations and taxes.

Concept

Manufacturer is engaged primarily in production and not sell directly to retailers or final consumers.

10. Wholesaling includes all the activities in selling goods or services to those who buy for resale or business use?

a. Trueb. Falsec. Sometimesd. Depends

chapter 16 managing retailing, wholesaling, and logistics flores

concept www

insurance setup cost

order processing costs

order entry

order transmission

suppliers automated

integratedlogistics

ryder integrated logistics

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