47.

An evaluation of whether a proposed logistics program meets the channel members service
standards requires that the channel manager:
a. Have a clear understanding of the objectives of the proposed logistics service
program.
b. Be an expert in the area of logistics.
c. Be intimately involved in the technical aspects of the design of the logistics
program.
d. Be able to develop and analyze a good survey.
e. Understand the service needs of channel members.

ANS: A (p. 383)

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48. Which of the following is not usually recommended as a broad-based appeal to be used for
convincing channel members of the value of a proposed logistics program?
a. A reduction in out-of-stock occurrences that the logistics program might foster
b. A reduction in channel member inventories that the logistics program might bring
about
c. The added manufacturer support that the logistics program might foster
d. The increase in the channel members sales that a good logistics program can
virtually guarantee
e. Identify the benefits to the customer and channel member

ANS: D (p. 384)

49. EDI systems can perform all of the following except:

a. Transfer orders and confirmations between the manufacturers and the channel
members computers.
b. Provide information on new products, price changes and promotional programs.
c. Issue bills of lading.
d. Issue invoices.
e. Send notices that the payment is late.

ANS: E (p. 385-386)

50. Just-in-time inventory systems:

a. Are useful in manufacturing but not in channels of distribution.
b. Can be successful without supplier cooperation.
c. Can reduce inventory costs substantially.
d. Were developed by the American automotive industry.
e. Increases warehousing costs.

ANS: C (p. 386)

51. The Great Physical Distribution Management Paradox rule indicates that for any given
distribution strategy that is carefully thought out, accepted, implemented, and maintained, it:
a. Results in a well designed logistics system.
b. Will be inappropriate in five years.
c. Will be an excellent system for the long term.
d. Will still not meet channel members needs or expectations.
e. Will not be able to improve efficiencies.

ANS: B (p. 387)

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52. According to the text, one of the most effective ways of monitoring the results experienced by
channel members in the use of a logistics program is:
a. To use the grapevine.
b. To rely solely on the sales force.
c. To conduct a survey of a sample of channel members.
d. To perform a sales analysis.
e. Analyze orders that are placed by channel members.

ANS: C (p. 380)

53. Research shows that conducting surveys to uncover channel members satisfaction with the
firms logistics system can be opening a Pandoras box because:
a. Once channel members begin reproaching the manufacturer, it is very difficult to
get them to stop.
b. Channel member satisfaction decreases if the manufacturer takes no action to
remedy reported deficiencies.
c. Logistics systems are too complex to be delved into with surveys.
d. Channels members do not answer and return surveys.
e. The answers reported on surveys do not reflect actual satisfaction levels.

ANS: B (p. 387)

54. The principle of having just enough inventory on hand to meet immediate production needs
with no reserve stock is called:
a. The no-inventory system.
b. Physical distribution quality system.
c. The onesie transaction system.
d. Just-in-time system.
e. No stock-out system.

ANS: D (p. 386)

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