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level: DISTRIBUTION SYSTEMS

Questions and Answers List

level questions: DISTRIBUTION SYSTEMS

Question	Answer
Channels	The Physical Distribution of products is the primary funtion served by what?
Transportation, inventory management, customer service functions	Distribution includes what three functions?
The Sorting Process	What includes accumulation, sorting, and assorting functions?
Is the process of assembling and pooling relatively small individual shipments so that they can be transported more economically.	What is Accumulation?
The process of separating goods by quality, color or size.	What is Sorting?
Typically performed at retail level. Process of acquiring a wide variety of merchandise to meet the diverse preferences of consumers.	What is Assorting?
Channel systems that move goods without intermediaries or middlemen.	What are Direct Channels?
Channels that use intermediaries.	What are Indirect Channels
The number of independent members at one level of distribution channel.	What Does Channel Width Refer to?
The number of levels used to creat ea distribution channel.	What does Channel Length refer to?
When a firm sells through every potential outlet to reach target market.	What is an Intensive Distribution Strategy?
A firm will sell through many, but not all, potential wholesalers and retailers.	What is Selective Distribution?
Limits the number of outlets employed to one or two within each market.	What is Exclusive Distribution?
Corporate, Contractual, Administered.	What are the three types of systems used to coordinate distribution functions within indirect channels?
One firm owns either all channel members or the firms at the next level in the channel. Control of operations stays within ownership.	What is Corporate Channel?
Specify performance terms for each independent channel member.	What is Contractual Channel?
Coordinate channel operations through a dominant channel member. The market power of hte dominant firm is sufficient to secure the other channel members.	What is Administered Channel?
The process of acquiring firms that operate at different channel levels.	What is Vertical Integration?
Process of acquiring firms that operate at hte same channel level.	What is Horizontal Integration?
Also called dual distribution exist when a firm develops two or more separate and distinct distribution channels.	What are Equal Channels?
Pushing though the channel uses promotional efforts to secure cooperation. Pulling generates customer demand for the product securing cooperation.	What is Pushing Vs Pulling Strategies?
Recognizes that minimizing costs and satisfying customer demands can represent conflicting objectives. Goal is to provide the highest customer service at lowest possible cost.	What is the Total-Cost Concept?
Recognizes that hte most effective strategy may be a compromise between two extremes.	What is the Distribution-Center Concept?
Type of warehouse planned in relation to a specific market.	Distribution Centers
Refers to cost-reducing actions in one distribution function that increase the overall cost of other distribution functions.	What is Suboptimization?
Avg length of time between the customer ordering and receiving it.	What is Order Leadtime?
The inventory level at which new orders need to be placed to avoid a stockout.	What is Reorder Point?
A shortage of product resulting from carrying too few in inventory.	What is Stockout?
The rate at which inventory is sold per time period.	Usage Rate?
The amount of extra inventory kept on hand to avoid stockouts.	What is Safety Stock?
The order size that minimizes the total cost of ordering and carrying investment.	What is Economic Order Quantity (EOQ)
Making products and materials available just as needed for production or resale.	What is Just in Time (JIT)?
Railroads, trucks, waterways, airways, pipelines.	What are the five transportation modes?
Freight transport companies that provide several shipment modes.	What are Megacarriers?
Two or more transportation modes used in combination.	What is Intermodal Transportation?
Specialized agencies that provide alternate forms of transportation coordination.	What are Freight Forwarders?