module 10

Question 1

Define Supple chain?

Answer 1

A complex logistics network characterized by high levels of coordination and integration among its members.

Question 2

Define Supply Chain Management?

Answer 2

The process of managing the aspects of the supply chain.

Question 3

Define Value Network?

Answer 3

An overarching system of formal and informal relationships within which the firm participates to procure, transform, and enhance, and ultimately supply its offerings in final form within a market space.

Question 4

What are network organizations or Virtual organizations?

Answer 4

Organization that eliminates many in-house business functions and activities in favor of focusing only on those aspects for which it is best equipped to add value.

Question 5

Channel of distribution:

Answer 5

A system of interdependent relationships among a set of organizations that facilitates the exchange process.

Question 6

What are the different types of intermediaries?

Answer 6

Middleman
Merchant middleman
Agent
Manufactures’ agent
Distributor
Wholesaler
Jobber
Facilitating agent
retailer

Question 7

Direct channel

Answer 7

has no intermediaries and operates strictly from producer to end-user consumer of business user.

Question 8

Indirect channel

Answer 8

contains one or more intermediary levels, as represented by all the other examples within each exhibit.

Question 9

physical distribution functions:

Answer 9

Breaking bulk
Accumulating bulk and sorting
Reducing transactions
Transportation and storage

Question 10

Transcation and communication functions:

Answer 10

Selling, buying and marketing communications

Question 11

Facilitating functions

Answer 11

Financing
Market research
Risk-taking
Other services

Question 12

What is disintermediation?

Answer 12

The shortening or collapsing of marketing channels due to the elimination of one or more intermediaries.

Question 13

What is 3PL or Outsourcing?

Answer 13

Handing over one or more of its core internal functions, such as most or all of its supply chain activities, to other (third-party) companies that are experts in those areas allows the firm to better focus on its core business.

Question 14

What is a Vertical Marketing System (VMS)

Answer 14

Vertically aligned networks behaving and performing as a unified system.

Question 15

Contractual VMS:

Answer 15

The binding of otherwise independent entities in the vertical marketing system legally through contractual agreements.

Question 16

Corporate VMS:

Answer 16

The investment of a channel member in backward or forward vertical integration by buying controlling interests in other intermediaries.

Question 17

Administered VMS:

Answer 17

When the channel control of a vertical marketing system is determined by the size and power of one of its channel members.

Question 18

Identify all sources of power in Channels?

Answer 18

coercive
reward
legitimate: A channel member’s ability to influence other members based on contracts or other formal agreements.
referent
expert

Question 19

Expert power:

Answer 19

A channel member’s utilization of its unique competencies and knowledge to influence others in the channel.

Question 20

Referent power:

Answer 20

A channel member’s ability to influence other members based on respect, admiration, or reverence.

Question 21

Legitimate power:

Answer 21

A channel member’s ability to influence other members based on contracts or other formal agreements.

Question 22

What is Distribution Intensity?

Answer 22

The number of intermediaries involved in distributing the product.

Question 23

type of Distribution intensity

Answer 23

Low-cost, and convenience goods

Question 24

Outbound logistics:

Answer 24

The process of a product’s movement from production by the manufacturer to purchase by the end-user consumer.

Question 25

Inbound logistics:

Answer 25

The process of sourcing materials and knowledge inputs from external suppliers to the point at which production begins.

Question 26

Reverse logistics:

Answer 26

The process of moving goods back to the manufacturer or intermediary after purchase.

Question 27

What are key logistics aspects of supply chain management as identified in the Essential reading Textbook?

Answer 27

Order processing
Warehousing
Materials handling
Inventory management
Transportation

Question 28

Identify all the legal issues related to distribution

Answer 28

Exclusive dealing, exclusive territories and tying contracts