Logistics and Distribution Quiz

A distribution channel where a company sells its products directly to consumers, without using any intermediaries.

A type of transportation that combines two or more modes (e.g., truck, train, ship) to take advantage of their strengths for a single shipment.

A carrier that provides transportation services on a specific route between two points, usually under a contract with a shipper. They negotiate rates with each customer instead of having fixed public rates.

A system where inventory levels are constantly monitored and updated in real-time. This allows businesses to know exactly what stock they have available at any moment.

A method of buying where a large organization, like a national chain, purchases goods in bulk from suppliers. This centralizes buying decisions and usually results in lower prices and a consistent brand image.

A practice used by manufacturers where they allow buyers to delay payment for goods beyond the standard terms. This is often used to incentivize buyers to purchase new goods.

A process where manufacturers and purchasing agents agree on a future shipping date for merchandise, even though the goods may not be immediately available. This can be helpful for planning and managing inventory.

A system where businesses meticulously track each item in inventory. This requires ongoing record-keeping and can be more complex than physical inventory systems.

UPC codes eliminate the need for manual or electric price tagging machines in retail settings.

A method of inventory management that visually tracks stock levels and sales trends.

The profit of a company is equivalent to the return generated on its investments.

The exchange of goods or services for mutually agreed-upon goods or services instead of money.

Businesses can stand out from competitors with similar products by making their products more accessible and convenient for customers.

Price discrimination is illegal, meaning retailers cannot be punished for unfair pricing practices.

The practice of setting low prices for certain items to attract customers and encourage them to buy other, higher-priced items.

Discounts are offered to employees as a benefit, not to justify lower wages.

A distribution method where a manufacturer sells its products solely through its own company-owned retail stores.

An individual who represents a manufacturer and sells their products to wholesalers or retailers in a specific territory.

A distribution strategy where a manufacturer sells its products through a combination of direct and indirect channels to reach different customer segments.

An individual who manages and replenishes a manufacturer's products on shelves at retail stores. They take care of inventory, order placement, and merchandising.

The process of selecting the most effective transportation mode for a shipment based on factors like cost, speed, and product type.

A warehouse specifically designed for efficiently sorting, moving, and distributing products to different locations. It helps optimize storage and delivery processes.

A purchasing situation where a buyer regularly orders staple goods from a familiar vendor without any major changes or negotiations.

The starting point for all other sales projection figures in a merchandise plan, representing the amount of inventory at the beginning of a planning period.

The ratio calculated by dividing the beginning-of-month (BOM) stock inventory by the total sales for the same period. It indicates how many times a retailer can sell its entire stock within a month.

The difference between the recorded sales of products and the physical inventory count. It indicates a potential discrepancy in inventory records, often due to shrinkage or stock loss.

A method of checking merchandise shipments where only a small sample of the items is inspected. It's suitable for large shipments with similar items and when quick checking is essential.

The law of diminishing marginal utility states that as a person consumes more of a good or service, the additional satisfaction they get from each additional unit decreases. For example, the first slice of pizza might be really satisfying, but the satisfaction from each additional slice diminishes.

Price wars are when companies in the same industry compete by lowering their prices, often to attract customers or increase market share. This can be bad for businesses if it leads to lower profits or even losses.

A firm's market share refers to the percentage of total sales volume generated by that firm within a specific market. For instance, if a company sells 20% of all the smartphones in the market, it has a 20% market share.

The Sherman Antitrust Act is a federal law that prohibits monopolies and other anti-competitive business practices, including price fixing. Price fixing occurs when companies agree to set prices in unison, which can harm consumers by eliminating competition.

Psychological pricing is a strategy where companies use prices to influence consumers' perceptions of value and desirability. Common techniques include odd-even pricing (e.g., $9.99 instead of $10) and everyday low pricing, which aims to offer consistently low prices.

A type of merchant intermediary that distributes goods directly to consumers without traditional retail outlets. Examples include vending machines and delivery services.

A distribution strategy where a manufacturer chooses a limited number of retailers in a specific geographic area to sell their products. This helps control brand image and build stronger relationships with selected retailers.

The value added to a product by making it available at a convenient location for consumers.

An intermediary who acts as a go-between for buyers and sellers. They help connect parties and facilitate transactions, earning a commission for their services.

The use of the internet and digital technology to sell goods and services. It includes online stores, e-commerce platforms, and digital marketplaces.

A type of agent who represents multiple manufacturers and helps them sell their products. They often have expertise in specific industries and can provide merchandising and sales support.

The process of planning how a product will be physically moved and transferred from the manufacturer to the consumer. This involves decisions about transportation, warehousing, and inventory management.

Moving unsold merchandise to a warehouse to prepare for a new season.

Expenses related to storing, ordering, and managing inventory.

A detailed list of all the items a stationery store keeps in stock.

A process of tracking and managing inventory levels.

The value consumers place on a product based on their anticipated satisfaction.

Pricing a product based on the market leader's prices.

A percentage added to the cost of a product to determine the selling price.

The price at which a product is offered for sale to customers.

A discount offered for placing an order before a specific date.

A table that helps determine the relationship between markup percentages based on cost and retail price.

The total cost of running a business, including expenses like wages, rent, and loan interest.

The demand for a product is inelastic when price changes have little impact on how much people buy. For example, if people need a specific medicine urgently, they'll likely buy it regardless of the price.

Offering different prices for the same product to different customers in similar situations. This is often illegal and unethical.

Pricing a product based on its cost of production plus a desired profit margin. The company determines the selling price based on how much it costs to make the product.

Pricing a product based on its demand in the market. Higher demand can lead to higher prices.

Offering discounts by selling products in multiple units, like "3 for $15". This encourages customers to buy more.

Lowering prices to attract a large number of customers quickly, especially when entering a new market.

Setting prices based on competitors' prices, rather than cost or demand. This is common in highly competitive markets.

A type of store specializing in crafts and materials for creating art, hobbies, and DIY projects. It sells to both individuals and businesses.

The Atlantic Ocean, the Indian Ocean, the Nile River, and the Rio Grande.

A pipeline is a dedicated system of pipes used to transport oil and natural gas over long distances.

Air transportation is the fastest way to move goods, but it is also the most expensive option.

The US Postal Service offers parcel post for packages weighing between 1 and 70 pounds.

Transportation is the marketing function of moving goods from a seller to a buyer, making products accessible.

Shipping goods within a state, such as from Dallas to Houston, is called intrastate shipping.

Private companies are companies that own and operate their transportation equipment, such as trucking companies.

Inventory refers to the raw materials, work-in-progress goods, and finished products that a company holds for sale or use in production.

The BOM (beginning of month) stock figure for April is equivalent to the EOM (end of month) stock figure for March.

Factories with poor working conditions, low wages, and unsafe environments are often called sweatshops.

A retail buyer is responsible for purchasing merchandise for a retail store, selecting products to attract customers.

Sato plans to purchase $9,500 worth of merchandise. OTB stands for 'on the books,' meaning the planned amount available for purchasing more stock.

Jovanna is looking for Lightly Lively shampoo, but the store doesn't have it. She received a slip confirming that the store did not have her requested item.

Internal shipping involves moving goods between different locations within a company's own network, often using company-owned vehicles.