MKT Exam 4 Study Guide (17, 18, 19, 20)

What is a marketing "channel"?

• A method of distributing products or services

• A type of television network

• A financial investment strategy

• A customer feedback tool

In a supply chain, what is the difference between a "downstream flow" and an "upstream flow" (or "reverse channel")?

• Downstream flow refers to the movement of goods from suppliers to consumers, while upstream flow refers to the movement of returns or information from consumers back to suppliers.

• Downstream flow refers to the movement of goods from consumers to suppliers, while upstream flow refers to the movement of goods from suppliers to consumers.

• Downstream flow and upstream flow both refer to the movement of goods from suppliers to consumers.

• Downstream flow refers to the movement of information from suppliers to consumers, while upstream flow refers to the movement of goods from consumers to suppliers.

Which distribution strategy is most appropriate for products that have a high replacement rate and are bought based on price cues?

• Intensive distribution

• Selective distribution

• Exclusive distribution

What is inventory management and the role of "safety stock"?

• Inventory management is the process of ordering, storing, and using a company's inventory. Safety stock acts as a buffer against unexpected demand.

• Inventory management is the process of selling products. Safety stock is the main inventory.

• Inventory management is the process of marketing products. Safety stock is the excess inventory.

• Inventory management is the process of shipping products. Safety stock is the leftover inventory.

List the costs of carrying too much inventory.

• Damage, Theft/pilferage, Obsolescence, Excess capital invested, Freight and storage

• Increased sales, Customer satisfaction, Reduced costs

• Improved supplier relations, Faster delivery times, Lower taxes

• Higher employee morale, Better brand image, Increased market share

A reorder point is a specific inventory level at which a new order is placed. What does it depend upon?

• Lead time and demand variability

• Supplier reliability

• Inventory carrying cost

• Production capacity

What is a reorder point?

• A point in time when a new order should be placed to replenish inventory

• The maximum inventory level that can be maintained

• The minimum quantity of an item that must be kept in stock

• A system for tracking inventory levels

List the factors that a reorder point depends on.

• Lead time and demand variability

• Supplier reliability and cost

• Inventory turnover and holding costs

• Production capacity and labor costs

What are the advantages of private warehouses?

• Cost-effectiveness and control over operations

• Limited flexibility and high initial investment

• Dependency on third-party logistics

• Increased risk of stockouts

What are the disadvantages of public warehouses?

• High cost and limited control

• Increased security and flexibility

• Improved efficiency and lower costs

• Enhanced customer satisfaction