IDIS 240 FINAL EXAM - COMPREHENSIVE STUDY GUIDE, MULTIPLE CHOICE
QUESTIONS WITH ANSWERS AND RATIONALES
Question 1
OEM stands for:
A) Original Equipment Manufacturer
B) Original Engine Maker
C) Operational Equipment Manager
D) Original Equipment Manager
Answer: A) Original Equipment Manufacturer
Rationale: OEM refers to companies that purchase components from distributors
to incorporate into their own finished products. Examples include Rolligon (oil field
equipment) purchasing components from local distributors.
---
Question 2
If you buy Allen-Bradley products in Houston, Texas you must purchase from
Reynolds Electric, this is an example of ____________ distribution.
A) Intensive
B) Selective
C) Exclusive
D) Direct
, Answer: C) Exclusive
Rationale: Exclusive distribution means only one distributor in a given territory is
authorized to sell a manufacturer's products. This gives the distributor protected
territory and the manufacturer more control over how their products are
represented.
---
Question 3
MRO stands for:
A) Maintenance, Repair, and Operations
B) Major Repair Operations
C) Manufacturing, Retail, and Operations
D) Maintenance, Replacement, and Ordering
Answer: A) Maintenance, Repair, and Operations
Rationale: MRO refers to products used to maintain, repair, and operate
facilities and equipment. These are typically consumable items that keep operations
running smoothly.
---
Question 4
3M products are sold through many distributors. This is an example of _______
distribution.
,A) Exclusive
B) Selective
C) Intensive
D) Direct
Answer: C) Intensive
Rationale: Intensive distribution means a manufacturer uses as many outlets as
possible to sell their products. This maximizes market coverage and product
availability for consumers.
---
Question 5
Bundling Products & Services refers to:
A) Marketing
B) Assortment
C) Packaging
D) Promotion
Answer: B) Assortment
Rationale: Assortment involves offering a variety of products and services
together to meet customer needs. Bundling products and services creates value by
providing convenience and comprehensive solutions.
, ---
Question 6
How long a customer is willing to wait is referred to as:
A) Purchase time
B) Lead time
C) Wait time
D) Delivery time
Answer: C) Wait time
Rationale: Wait time is the duration a customer is willing to wait for a product or
service. This is a critical service output that distributors must manage to meet
customer expectations.
---
Question 7
When the customer wants to place orders is referred to as:
A) Order time
B) Wait time
C) Purchase time
D) Delivery time
Answer: C) Purchase time
QUESTIONS WITH ANSWERS AND RATIONALES
Question 1
OEM stands for:
A) Original Equipment Manufacturer
B) Original Engine Maker
C) Operational Equipment Manager
D) Original Equipment Manager
Answer: A) Original Equipment Manufacturer
Rationale: OEM refers to companies that purchase components from distributors
to incorporate into their own finished products. Examples include Rolligon (oil field
equipment) purchasing components from local distributors.
---
Question 2
If you buy Allen-Bradley products in Houston, Texas you must purchase from
Reynolds Electric, this is an example of ____________ distribution.
A) Intensive
B) Selective
C) Exclusive
D) Direct
, Answer: C) Exclusive
Rationale: Exclusive distribution means only one distributor in a given territory is
authorized to sell a manufacturer's products. This gives the distributor protected
territory and the manufacturer more control over how their products are
represented.
---
Question 3
MRO stands for:
A) Maintenance, Repair, and Operations
B) Major Repair Operations
C) Manufacturing, Retail, and Operations
D) Maintenance, Replacement, and Ordering
Answer: A) Maintenance, Repair, and Operations
Rationale: MRO refers to products used to maintain, repair, and operate
facilities and equipment. These are typically consumable items that keep operations
running smoothly.
---
Question 4
3M products are sold through many distributors. This is an example of _______
distribution.
,A) Exclusive
B) Selective
C) Intensive
D) Direct
Answer: C) Intensive
Rationale: Intensive distribution means a manufacturer uses as many outlets as
possible to sell their products. This maximizes market coverage and product
availability for consumers.
---
Question 5
Bundling Products & Services refers to:
A) Marketing
B) Assortment
C) Packaging
D) Promotion
Answer: B) Assortment
Rationale: Assortment involves offering a variety of products and services
together to meet customer needs. Bundling products and services creates value by
providing convenience and comprehensive solutions.
, ---
Question 6
How long a customer is willing to wait is referred to as:
A) Purchase time
B) Lead time
C) Wait time
D) Delivery time
Answer: C) Wait time
Rationale: Wait time is the duration a customer is willing to wait for a product or
service. This is a critical service output that distributors must manage to meet
customer expectations.
---
Question 7
When the customer wants to place orders is referred to as:
A) Order time
B) Wait time
C) Purchase time
D) Delivery time
Answer: C) Purchase time
