Section 7

Chapter (5)
Creating value through supply chain
management: channels of distribution,
logistics, and wholesaling
First _ MCQ Questions: -
1. ----- includes components external to the firm itself, and activities
needed to convert raw materials into goods and services and put it in
the hands of consumers.
a. Value chain
b. Supply chain
c. Channel of distribution
d. None of the above

2. A broad concept that spans all activities involved in designing,

producing, marketing, delivering and supporting any product.
a. Value chain
b. Supply chain
c. Channel and distribution
d. Disintermediation

3. The first step in the value chin is:

a. Operations
b. Outbound logistics
c. Services
d. Inbound logistics

4. The stage within a value chain that involves machining, packaging and
assembly is called:
a. Inbound logistics
b. Outbound Logistics
c. Operations
d. Marketing and sales

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5. Channel Intermediaries include :
a. Wholesalers
b. Retailers
c. Agents and brokers
d. All of the above

6. The functions of distribution channel include:

a. Making desired output available
b. Create efficiencies by reducing the number of transactions
c. Making the process of purchase easier
d. All of the above

7. One of the advantages of disintermediation is:

a. Fewer employees involved
b. No need to furnisher stores
c. Coordination is easier
d. All of the above

Second _ True & False Questions :-

1. The last part of the supply chain is the channel of distribution.

2. The management of flows among the firms in a supply chain to maximize
total profitability is called value chain management.
3. Business to business distribution facilitates the flow of goods from a
producer to an organizational customer.
4. Direct channel is the channel of distributions that include one or more
channel intermediaries, firms or individuals.
5. In breaking-bulk the wholesalers and retailers sell many quantities of
goods to many different customers.

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6. By using the internet, small firms with limits resources can enjoy the same
market opportunity of large companies.
7. One of the disadvantages of direct channels is the lack of control.
8. Direct channels are more common to consumer market than business to
business markets.
9. Short and direct channels are the best for inexpensive and standardized
goods.
10. If a product is fragile, a goal may be to develop a channel that minimizes
handling.
11. The need to worry about storage, transportation and other functions of
physical distribution is lower in the services sector.
12. Intensive distribution aims at maximizing market coverage by selling a
product through few wholesalers that will stock and sell the product.
13. Selective distribution are suitable for shopping products such as
appliances and electronics equipment.

Answers to the questions

Answers to the MCQ Questions

Question
1 2 3 4 5 6 7
number

ANSWER B A D C D D D

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 Answers to the True or False Questions
Question
ANSWER False Word Correction
number
1 T
2 F value chain Supply chain
3 T
4 F Direct Indirect
5 F many Only one or few
6 T
7 F Direct Indirect
8 F The whole statement Vice versa
9 F Short and direct Long and indirect
10 T
11 T
12 F few wholesalers many wholesalers
13 T