chapter 10

Question 1

Which of the following would be considered an upstream partner in a company’s supply chain?
A) a firm that resells a finished product and shares the net sales with the producer
B) a firm that provides technical expertise in the production of a product
C) a firm that markets a product to consumers through social media
D) a firm that buys products at wholesale cost from the company
E) a firm that exclusively markets a product to other businesses

Answer 1

B) a firm that provides technical expertise in the production of a product

Question 2

The authors suggest that the term “supply chain” may be too limited because it takes a “make-and-sell” view of the business. They believe the term ________ is more appropriate because it suggests a “sense-and-respond” view of the market.
A) “upstream chain”
B) “downstream chain”
C) “market chain”
D) “production chain”
E) “demand chain”

Answer 2

E) “demand chain”

Question 3

A ________ is made up of a company, its suppliers, distributors, and, ultimately, customers who “partner” with each other to improve the performance of the entire system.
A) manufacturing chain
B) distribution center
C) marketing intermediary
D) value delivery network
E) disintermediation system

Answer 3

D) value delivery network

Question 4

________ is a set of interdependent organizations that help make a product or service of a company available for use by consumers or business users.
A) A research and development channel
B) An upstream channel
C) A marketing channel
D) A raw materials supplier
E) A backward integration chain

Answer 4

C) A marketing channel

Question 5

Producers use marketing intermediaries because they ________.
A) create greater efficiency in making goods available to target markets
B) supply inexpensive raw materials for manufacturing products
C) provide technical expertise for faster production
D) monitor day-to-day activities during production
E) form a part of the company’s direct channel

Answer 5

A) create greater efficiency in making goods available to target markets

Question 6

Which of the following applies to a marketing intermediary who buys brand name toothpaste from 10 different manufacturers, consolidates offerings, and then resells the various brands to 500 supermarkets in Florida?
A) facilitate the production of products without direct customer feedback
B) help a company develop a direct channel selling system
C) buy small quantities of products from producers and break them down into narrow assortments for customers
D) increase the amount of work that must be done by producers and consumers
E) transform the assortments of products made by producers into the assortments wanted by consumers

Answer 6

E) transform the assortments of products made by producers into the assortments wanted by consumers

Question 7

Mary Kay Cosmetics and Amway sell their products through home and office sales parties, online websites, and social media. Both companies use a(n) ________ channel to distribute their offerings.
A) functional
B) indirect
C) direct
D) layered
E) behavioral

Answer 7

C) direct

Question 8

All the institutions in a channel are connected by several types of flows. When a retailer conveys to a wholesaler that a new line of hip-hop clothing is not selling, this is an example of ________.
A) payment flow
B) flow of ownership
C) physical flow
D) information flow
E) promotion flow

Answer 8

D) information flow

Question 9

In which of the following situations is a producer guaranteed full control over product sales?
A) a corporate marketing channel
B) a direct marketing channel
C) a contractual distribution channel
D) a horizontal marketing system
E) an administered marketing system

Answer 9

B) a direct marketing channel

Question 10

A firm that uses direct marketing would sell its products through ________.
A) one marketing intermediary
B) big box retailers
C) large wholesalers
D) multiple intermediaries
E) an online website

Answer 10

E) an online website

Question 11

Using ________, a company uses one or more levels of intermediaries to help bring its products to final buyers. Examples: most of the things you buy—everything from toothpaste to cameras to cars.
A) retailer marketing systems
B) indirect marketing channels
C) wholesaler marketing channels
D) direct marketing channels
E) social media

Answer 11

B) indirect marketing channels

Question 12

A(n) ________ is considered a marketing intermediary.
A) customer
B) producer
C) manufacturer
D) wholesaler
E) advertiser

Answer 12

D) wholesaler

Question 13

Kevin Pinker is a freelance computer programmer who writes computer algorithms for companies such as SoftStar and BlueHill. SoftStar and BlueHill use these algorithms to make specific programs based on online market research. These programs are then sold to the online retailer, Abundon, which then sells them to individual consumers and businesses. Which of the following is a marketing intermediary in this chain?
A) SoftStar
B) BlueHill
C) the consumer
D) Abundon
E) Kevin Pinker

Answer 13

D) Abundon

Question 14

The USA Cotton Growers Cooperative sells unfinished cotton to The Weaving Experts who refine the raw material for sale to The Sheet Factory. It’s then used in the manufacturing process of 300, 400, and 500 thread count bed sheet sets. The Sheet Factory distributes their products through a number of wholesalers, including Linen Traders. Linen Traders then resells the bed sheet sets to retailer Bedding Plus who markets the products to consumers. Which of the following represents a marketing intermediary transaction?
A) only Linen Traders
B) only Bedding Plus
C) only The Weaving Experts
D) Linen Traders selling to Bedding Plus
E) The Weaving Experts selling to Linen Traders

Answer 14

D) Linen Traders selling to Bedding Plus

Question 15

Which of these examples highlights a firm using a distribution system to gain a competitive advantage?
A) A small mom and pop store selling high-end clothing
B) Walmart asking suppliers for volume discounts
C) Enterprise Rent-A-Car setting up off-airport rental offices
D) Toyota managing a complex value delivery network for the Camry
E) Unilever making and selling Dove Beauty Bar soap

Answer 15

C) Enterprise Rent-A-Car setting up off-airport rental offices

Question 16

Which of these functions is NOT a key function that might be performed by a marketing channel member?
A) Promotion
B) Production
C) Financing
D) Matching
E) Information gathering

Answer 16

B) Production

Question 17

Which of the following is an example of a horizontal conflict in a distribution channel?
A) a Nike shoe dealer complaining that the shoes provided to the dealer are defective
B) a Ford car dealer complaining that another Ford dealer is underpricing the same models
C) a FedEx agent complaining that a DHL agent is cutting off his business
D) a Walmart executive complaining to a Pepsi executive for not replenishing stocks on time
E) a Gucci executive complaining to Gucci’s suppliers of delays in shipping consignments

Answer 17

B) a Ford car dealer complaining that another Ford dealer is underpricing the same models

Question 18

Vertical conflicts in distribution channels are conflicts that occur between ________.
A) same levels in the same channel
B) different levels of the same channel
C) same levels of different channels
D) different levels of different channels
E) retailers and customers

Answer 18

B) different levels of the same channel

Question 19

) Performance Inc. sells its newest athletic shoe styles to The Sneaker Store and distributes dated or slightly defective merchandise through Sports Discounters. Performance Inc.’s main competitor is Topnotch Manufacturers. Performance Inc. also markets its products through the company website. They decide to offer a short-term online promotion to encourage consumers to buy their newest athletic shoes, promoting a 20 percent discount off current retail prices. In such a distribution channel, which of the following would be considered a vertical conflict?
A) a conflict between Performance Inc. and The Sneaker Store
B) a conflict among Performance Inc., The Sneaker Store, and Sports Discounters
C) a conflict between The Sneaker Store and Sports Discounters
D) a conflict between Performance Inc. and Sports Discounters
E) a conflict between Performance Inc. and Topnotch Manufacturers

Answer 19

A) a conflict between Performance Inc. and The Sneaker Store

Question 20

Jupiter Steel is the chief provider of metals to Greystone Motors. Greystone Motors has two models of cars—one for commercial and regular consumers and another for professional car racing teams. Greystone Motors has designated dealers to sell its commercial cars to consumers, while racing cars are sold directly to the racing teams. In such a distribution channel, which of the following would be considered a horizontal conflict?
A) a conflict between Jupiter Steel and Greystone Motors
B) a conflict between Jupiter Steel and Greystone dealers
C) a conflict between two Greystone Motors car dealerships
D) a conflict between a Greystone Motors car dealership and a racing team
E) a conflict between Greystone Motors and its car dealerships

Answer 20

C) a conflict between two Greystone Motors car dealerships

Question 21

Which of the following is true of a conventional distribution channel?
A) It has each channel member acting as a separate business unit trying to maximize its own profits.
B) It consists of producers selling their products directly to customers without the use of intermediaries.
C) It has one channel member owning the other channel members.
D) It is a distribution channel where a producer is owner of all the other channel members.
E) It has all members of the channel working together as a single organization.

Answer 21

A) It has each channel member acting as a separate business unit trying to maximize its own profits.

Question 22

) A ________ consists of producers, wholesalers, and retailers acting as a unified system. The system can be dominated by any one of the interdependent members.
A) direct marketing system
B) horizontal distribution channel
C) lateral marketing system
D) conventional distribution channel
E) vertical marketing system

Answer 22

E) vertical marketing system

Question 23

Which of the following is true of a vertical marketing system?
A) It is formed when two or more companies at one level join together to follow a new marketing opportunity.
B) It is formed when a single firm sets up two or more marketing channels to reach one or more customer segments.
C) It does not give overall power to any one member in the channel.
D) It has each channel member acting as a separate business unit trying to maximize its own profits.
E) It has one channel member owning all the other channel members or has contracts with all other channel members.

Answer 23

E) It has one channel member owning all the other channel members or has contracts with all other channel members.

Question 24

Integrating the entire distribution chain—from its own design and manufacturing operations to distribution through its own managed stores—has turned Spanish clothing chain Zara into the world’s fastest-growing fast-fashion retailer. This is an example of a(n) ________ .
A) contractual VMS
B) corporate VMS
C) administered VMS
D) horizontal VMS
E) direct VMS

Answer 24

B) corporate VMS

Question 25

More than 80 percent of McDonald’s restaurants worldwide are owned and operated by franchisees. This illustrates a(n) ________ marketing system.
A) corporate vertical
B) horizontal
C) contractual VMS
D) administered VMS
E) direct

Answer 25

C) contractual VMS

Question 26

Which type of channel arrangement is a retailer like Home Depot likely to follow?
A) administered VMS
B) horizontal marketing system
C) contractual VMS
D) corporate vertical marketing system
E) direct marketing system

Answer 26

A) administered VMS

Question 27

) Rage, a leading motor vehicle manufacturer, introduces a new superbike model. It invites proposals from independent dealers who are willing to set up exclusive showrooms that only sell Rage’s superbikes. Chosen dealers will sell and service the superbikes, and Rage will oversee national advertising. This is most likely an example of a(n) ________.
A) administered VMS
B) horizontal manufacturing marketing system
C) manufacturer-sponsored retailer franchise system
D) manufacturer-sponsored wholesaler franchise system
E) direct marketing system

Answer 27

C) manufacturer-sponsored retailer franchise system

Question 28

35) Luccia’s is a restaurant based in Illinois that exclusively sells Italian food. Luccia’s sells the rights to its recipes to a British firm, Clover Trading, which then opens an outlet in London under the Luccia’s brand name. Which kind of channel arrangement does Luccia’s most likely have with Clover Trading?
A) a horizontal marketing system
B) a direct marketing system
C) an administered VMS
D) a contractual VMS
E) a corporate vertical marketing system

Answer 28

D) a contractual VMS

Question 29

In a(n) ________ marketing system, leadership over production and distribution is assumed through the size and power of one or a few dominant channel members.
A) direct
B) contractual VMS
C) horizontal
D) corporate vertical
E) administered VMS

Answer 29

E) administered VMS

Question 30

Sonic Shack, an audio equipment retailer, signs an agreement with PineWire, a renowned electronics company, to sell PineWire products. The deal requires Sonic Shack to provide PineWire products with superior displays, shelf space, and promotion compared to competing products. Sonic agrees to these terms as PineWire products command a huge share in the market. Which of the following types of channel arrangements do PineWire and Sonic Shack most likely have?
A) administered VMS
B) corporate vertical marketing system
C) indirect marketing system
D) wholesaler franchise system
E) horizontal marketing system

Answer 30

A) administered VMS

Question 31

A channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity is referred to as a(n) ________.
A) corporate vertical marketing system
B) contractual VMS
C) direct marketing system
D) horizontal marketing system
E) administered VMS

Answer 31

D) horizontal marketing system

Question 32

Changes in technology and the explosive growth of direct and online marketing are having a profound impact on the nature and design of marketing channels. One major trend is toward ________ insofar as product or service producers cut out intermediaries and go directly to final buyers or when radically new types of channel intermediaries displace traditional ones.
A) intermediation
B) disintermediation
C) vertical marketing systems
D) horizontal marketing systems
E) corporate vertical marketing systems

Answer 32

B) disintermediation

Question 33

Brandy’s, a national candy store chain, decides to open both a coffee house and ice cream shop within their stores to create a multi-faceted experience for shoppers. The company decides to enter into deals with two well-known retailers—The Beanery and Creamy Creations. As stipulated in their respective contracts, The Beanery and Creamy Creations cannot enter into the same type of agreement with any other candy retailers. All three companies will enjoy greater sales, and ultimately profits, from the arrangement. This is most likely an example of a(n) ________ marketing system.
A) direct
B) administered VMS
C) corporate vertical
D) contractual VMS
E) horizontal

Answer 33

E) horizontal

Question 34

Faber Motors manufactures three lines of cars: high-end security cars for government agencies, commercial cars for consumers and individuals, and professional racing cars. The high-end security cars are sold directly to government buyers by the company. The consumer cars are sold through dedicated dealers who only sell Faber’s lines at their outlets. For its professional racing cars, Faber collaborates with Radium Tires, an innovative and renowned tire manufacturer. Faber provides the engine and body, while Radium provides the tires and its expertise on the racing industry. Which term best describes Faber’s channel arrangements?
A) direct distribution system
B) horizontal marketing system
C) corporate vertical franchise system
D) multichannel distribution system
E) administered VMS

Answer 34

D) multichannel distribution system

Question 35

Victoria’s Closet, a manufacturer of bohemian-style clothing and accessories, sells its products through its online website, a catalogue, and specialty boutiques that target women. Which kind of channel arrangement does Victoria’s Closet employ to distribute its products?
A) horizontal marketing system
B) multichannel distribution system
C) administered VMS
D) contractual VMS
E) corporate vertical marketing system

Answer 35

B) multichannel distribution system

Question 36

For over 10 years, Erudite, a publishing and educational company that produces college textbooks, has been selling its books online through studysmart.com, a popular online retailer that sells textbooks published by different companies. Recently, Erudite stopped selling its books through studysmart.com and set up its own website to sell its books. This change in channel organization is called ________.
A) disintermediation
B) intensive distribution
C) brokering
D) franchising
E) selective distribution

Answer 36

A) disintermediation

Question 37

One recent trend in distribution, known as ________, is to cut out some marketing channel intermediaries and go directly to the buyer.
A) channel disruption
B) segmentation
C) distribution elimination
D) dealer substitution
E) business segmenting

Answer 37

A) channel disruption

Question 38

One example of ________ occurred when online music downloading almost eliminated traditional music-store retailers.
A) direct-to-consumer branding
B) channel delivery change
C) substitution
D) disintermediation
E) delivery mode change

Answer 38

D) disintermediation

Question 39

) Producers of convenience products and common raw materials typically seek ________ distribution—a strategy in which they stock their products in as many outlets as possible.
A) selective
B) exclusive
C) intensive
D) exponential
E) comprehensive

Answer 39

C) intensive

Question 40

) Which of the following is true of an intensive distribution strategy?
A) It gives sole rights to select dealers in a given area.
B) It strives to make products available where and when consumers want them.
C) Compared with other distribution strategies, it uses the least number of intermediaries to sell products.
D) Compared with other distribution strategies, it provides the best support for dealers of luxury products.
E) It discards traditional intermediaries and uses direct marketing to reach customers.

Answer 40

B) It strives to make products available where and when consumers want them.

Question 41

High-end luxury brands like Bentley for cars, Louis Vuitton for handbags, and Rolex for watches use ________ distribution, giving a limited number of dealers the sole right to sell products in a specified geographic territory.
A) inclusive
B) horizontal
C) intensive
D) exclusive
E) vertical

Answer 41

D) exclusive

Question 42

Selective distribution is a strategy in which ________.
A) more than one, but fewer than all, willing intermediaries are used by a seller
B) products are stocked in as many outlets as possible by a seller
C) products are not sold through intermediaries but directly to customers from producers
D) all willing intermediaries are given rights to sell a product
E) common household goods are preferred over luxury products by intermediaries

Answer 42

A) more than one, but fewer than all, willing intermediaries are used by a seller

Question 43

________ distribution typically allows manufacturers to develop good working relationships with intermediaries and expect a better-than-average selling effort. It also gives producers good market coverage with more control and less cost than intensive distribution.
A) Vertical
B) Selective
C) Horizontal
D) Comprehensive
E) Inclusive

Answer 43

B) Selective

Question 44

When a seller requires that only certain dealers carry its products, its strategy is known as ________.
A) horizontal conflict
B) intensive distribution
C) vertical distribution
D) disintermediation
E) exclusive distribution

Answer 44

E) exclusive distribution

Question 45

________ calls for analyzing customer needs, setting channel objectives, identifying major channel alternatives, and then evaluating those alternatives.
A) Identifying intermediaries
B) Marketing channel design
C) Creating a customer value delivery network
D) Understanding environmental factors
E) Evaluating the right intermediary

Answer 45

B) Marketing channel design

Question 46

A(n) ________ will tailor one firm’s product to the unique needs of its customers.
A) value-added reseller
B) intensive distributor
C) exclusive distributor
D) channel designer
E) direct reseller

Answer 46

A) value-added reseller

Question 47

When a firm compares channel delivery options using likely sales, costs, and profitability it is using ________ to evaluate different channel alternatives.
A) accounting criteria
B) adaptability criteria
C) economic criteria
D) control criteria
E) cost criteria

Answer 47

C) economic criteria

Question 48

Jericho Consumables Inc. attempts to stock its products in as many gas stations and convenience stores as possible. This practice is an example of ________.
A) channel focus
B) single distribution
C) selective distribution
D) intensive distribution
E) exclusive distribution

Answer 48

D) intensive distribution

Question 49

A firm should evaluate channel delivery alternatives using broad ________ criteria.
A) economic, control, and adaptability
B) economic, cost, and financial
C) financial, distribution, and adaptability
D) financial, accounting, and economic
E) cost, adaptability, and scalability

Answer 49

A) economic, control, and adaptability

Question 50

Which of the following is an advantage of exclusive dealing between a seller and a dealer?
A) The seller gains more shelf power compared to competitors’ products.
B) The seller can avoid using any intermediary and sell the product directly to customers.
C) Customers get more loyal and dependable outlets.
D) The seller’s distinctive position is reinforced through customer service and the dealer obtains steady support from the seller.
E) The dealer can freely choose what products to sell without any interference from the seller.

Answer 50

D) The seller’s distinctive position is reinforced through customer service and the dealer obtains steady support from the seller.

Question 51

________ is a practice whereby a producer agrees to sell a brand to a dealer only if the dealer agrees to sell some or all of the rest of the producer’s merchandise.
A) Horizontal price fixing
B) Horizontal integration
C) Full-line forcing
D) Direct marketing
E) Disintermediation

Answer 51

C) Full-line forcing

Question 52

Which of the following is true of an exclusive dealing arrangement between a producer and a dealer?
A) It prohibits the producer from selling outside the dealer’s territory.
B) It prevents the producer from using any other dealer to sell its products regardless of geographical area.
C) It gives the producer’s products more shelf power compared to a competitor’s products being sold by the dealer.
D) It can be considered illegal if it increases competition substantially.
E) It does not allow other producers to sell to that dealer.

Answer 52

E) It does not allow other producers to sell to that dealer.

Question 53

Many athletic stadiums enter into contractual agreements with national beverage companies and food franchises to distribute only their brand-name products at the respective venues. This is an example of ________.
A) horizontal price fixing
B) disintermediation
C) exclusive dealing
D) selective distribution
E) horizontal integration

Answer 53

C) exclusive dealing

Question 54

Bateman Gray Motors sells the cars it produces using dedicated dealers who only sell Bateman Gray’s products at their outlets. What kind of marketing strategy has Bateman Gray adopted with its car dealers?
A) direct marketing
B) exclusive dealing
C) disintermediation
D) horizontal integration
E) vertical integration

Answer 54

B) exclusive dealing

Question 55

________ are in place when a producer agrees not to sell its products to other dealers in a given area.
A) Exclusive territorial agreements
B) Regional distribution laws
C) Producer surplus agreements
D) Licensing agreements
E) Full-line forcing agreements

Answer 55

A) Exclusive territorial agreements

Question 56

________ involve selling only to dealers that agree to sell some or all of the producer’s product line.
A) Exclusive territorial agreements
B) Regional distribution laws
C) Producer surplus agreements
D) Licensing agreements
E) Full-line forcing agreements

Answer 56

E) Full-line forcing agreements

Question 57

Which of these software systems do firms use to manage client relationships?
A) PRM
B) CRM
C) SCM
D) CCM
E) PZM

Answer 57

B) CRM

Question 58

When the seller allows only certain outlets to carry its products, this strategy is called ________.
A) exclusive territorial agreements
B) full-line forcing
C) producer mandating
D) licensing agreements
E) exclusive distribution

Answer 58

E) exclusive distribution

Question 59

Gemini Products requires all of its distributors to carry the firm’s entire product line. This practice is known as ________.
A) exclusive territorial agreements
B) full-line forcing
C) producer mandating
D) licensing agreements
E) distributional exclusion

Answer 59

B) full-line forcing

Question 60

Moving products and materials from suppliers to the factory is known as ________ logistics.
A) outbound
B) reverse
C) inbound
D) downstream
E) inventory

Answer 60

C) inbound

Question 61

Outbound logistics refers to moving ________.
A) unwanted, excess products from resellers to producers
B) raw materials from suppliers to the factory
C) excess materials from the factory to suppliers
D) products from the factory to resellers and ultimately to customers
E) broken, damaged products from customers to producers

Answer 61

D) products from the factory to resellers and ultimately to customers

Question 62

When Toyota announces a product recall on its Camry model due to a faulty igniter, they are using ________ to coordinate with dealers and car owners.
A) reverse logistics
B) outbound logistics
C) inbound logistics
D) inventory logistics
E) disintermediation

Answer 62

A) reverse logistics

Question 63

) In a logistics system, minimizing distribution costs most likely involves ________.
A) flexible assortments
B) large shipping lots
C) rapid delivery
D) large inventories
E) liberal return policies

Answer 63

B) large shipping lots

Question 64

) Which of the following is true of logistics?
A) Companies can gain a powerful competitive advantage by using improved logistics to enhance customer service or lower prices.
B) The cost savings to a company and its customers due to improved logistics is typically nominal.
C) Less than 5 percent of an average product’s price is accounted for by shipping and transport.
D) The cost of logistics is considerably less than advertising.
E) Shaving off a small fraction of logistics costs has very little impact on savings.

Answer 64

A) Companies can gain a powerful competitive advantage by using improved logistics to enhance customer service or lower prices.

Question 65

Which of the following is a difference between storage warehouses and distribution centers?
A) Storage warehouses are used to store agricultural products, while distribution centers are used to store nonagricultural products.
B) Storage warehouses store goods for moderate to long periods, while distribution centers are used to move goods rather than just store them.
C) Storage warehouses are always owned by a producer, while distribution centers are rented.
D) Storage warehouses are more likely to use newer, computer-controlled systems, while distribution centers generally use outdated materials-handling methods.
E) Storage warehouses are exclusively used by government agencies, while distribution centers are exclusively used by private businesses.

Answer 65

B) Storage warehouses store goods for moderate to long periods, while distribution centers are used to move goods rather than just store them.

Question 66

) In a just-in-time logistics system, ________.
A) retailers carry small inventories of merchandise to last for only a few days
B) retailers store products for long periods to avoid an interruption in supply
C) producers supply products to resellers before customers place their orders
D) producers that are geographically far from their retailers use an express-delivery system
E) retailers incur high inventory-carrying and inventory-handling costs

Answer 66

A) retailers carry small inventories of merchandise to last for only a few days

Question 67

Which of the following is true of RFID or “smart tag” technology?
A) “Smart tag” technology eliminates the need for intermediaries and facilitates a direct marketing system.
B) “Smart tag” technology can de-automate the entire supply chain.
C) The use of “smart tag” technology makes it difficult to know where a product is located physically within the supply chain.
D) Retailers and suppliers using “smart technology” have higher risks of shoplifting and robbery.
E) RFID technology can be used to tell when it is time to reorder and can place orders automatically.

Answer 67

E) RFID technology can be used to tell when it is time to reorder and can place orders automatically.

Question 68

Which of the following is a cost-effective mode for shipping large amounts of bulk products–coal, sand, minerals, and forest products–over long distances?
A) air carriers
B) water carriers
C) pipelines
D) trucks
E) railroads

Answer 68

E) railroads

Question 69

Which of the following is efficient for short hauls of high-value merchandise and is highly flexible in its routing and time schedules?
A) water carriers
B) pipeline
C) trucks
D) air carriers
E) railroads

Answer 69

C) trucks

Question 70

Which mode of transportation is best for carrying perishable goods to distant markets?
A) railroads
B) water carriers
C) trucks
D) air carriers
E) pipelines

Answer 70

D) air carriers

Question 71

________ involves combining two or more systems of transportation to move products.
A) Vertical transportation
B) Disintermediation
C) Just-in-time management
D) Vertical integration
E) Multimodal transportation

Answer 71

E) multimodal transporatation

Question 72

Under ________, a customer shares real-time data on sales and current inventory levels with a supplier, and the supplier then takes full responsibility for managing inventories and deliveries.

Answer 72

B) vendor-managed inventory systems