OMP 105 / MMP 104:

Distribution and Logistics Management

Module Test I

I. True or False.

_____ 1. Intermediaries offer the firm more than it can achieve on its own because of their contacts, experience, specialization, and scale of operations

_____ 2. Efficiency is measured by analyzing whether the objectives set for the channels can be achieved

_____ 3. Equity is a measure of capability of a channel member to fulfill the resultant rapidly changing demand in technology or innovation

_____ 4. A customer-oriented channel is a channel which balances the channel costs and the expectations of the company from the channel.

_____ 5. Distribution channel exist to bridge the gaps that form because of the concentrated nature of manufacturing and the fragmented and distinct nature of consumption.

_____ 6. The distribution strategy is a component of the marketing strategy which is part of the business strategy.

_____ 7. The customers' requirements can be in a form of waiting time tolerated, lot size requirements, frequency of purchase.

_____ 8. Monitoring mechanisms may be in the form of report submitted regularly, inspection and visit by representatives, dealer meetings

_____ 9. Remuneration refers to the profit of channel members deserves in performing the activity

_____ 10. Cost of production includes transportation and storage costs, promotion cost, financing costs and transaction/processing costs.

II. Matching Type.

_____ 1. Involves the storage and transportation of goods

_____ 2. Flow that depicts the transition of ownership from one channel to another

_____ 3. Advertising, merchandise display, demonstration

_____ 4. Agreement on terms of trade

_____ 5. extending credit terms, discount for prompt payment, third party financing

_____ 6. warranties or after sales service, damage or spoilage allowance

_____ 7. Includes receiving and recording the purchase order, consolidating it and passing it on to the upstream

_____ 8. All activities of the channel that add value to the end-user.

_____ 9. Includes receiving payment, recording it, consolidating it and passing it on to the upstream

_____ 10. Is a set of activities associated with the creation and maintenance of a distribution channel

a. Channel flow

b. Channel management process

c. Financing flow

d. Risk taking flow

e. Negotiation flow

f. Promotion flow

g. Ownership flow