IDIS 240 VESTAL 2026/2027 TEST PAPER QUESTIONS
AND SOLUTIONS RATED A+
✔✔Buying Direct - ✔✔Procuring goods or services straight from the manufacturer or
supplier, and by-passing all intermediaries such as distributors, wholesalers, and
retailers.
✔✔Distributor - ✔✔A business that does not manufacture its own products, but
purchases and resells these products. Such a business usually maintains a finished
goods inventory, usually a wholesaler.
✔✔Wholesaler - ✔✔A type of business that buys goods in large amounts and resells
them to other businesses in smaller lots, or retailers.
✔✔Consignment - ✔✔selling it for me for a % of the profit
✔✔up-stream - ✔✔part of production process involves searching for and extracting raw
materials.
✔✔down-stream - ✔✔part of production process involves processing the materials
collected during the upstream stage into a finished product.
✔✔wait time logistics - ✔✔how long customer will wait
✔✔assortment logistics - ✔✔bundling products & services
✔✔breaking bulk logistics - ✔✔selling in small quantities
✔✔packaging logistics - ✔✔ensuring order for correctness & proper packaging for
shipment or delivery
✔✔purchase time logistics - ✔✔when the customer wants to place the order
✔✔reverse logistics - ✔✔A complete supply chain dedicated to the reverse flow of
products and materials for the purpose of returns, repair, remanufacture, and/or
recycling.
✔✔Contact Efficiency - ✔✔the efficiency gained in terms of a reduction in the number of
contacts required through the use of channel intermediaries
ex. the graph that uses distributors to get products from manufacturer to retailer or end
user
✔✔how to distributors expand their market places? - ✔✔distribute outside their
geographic area
, ✔✔major trends benefitting the distributor - ✔✔increasing value of info, move toward
mass customization, increased use of "just-in-time" inventory, reductions in # of vendors
✔✔successful distributors reduce cost by.. - ✔✔understanding the needs of the
manufacturer and becoming a true partner
✔✔the future of distribution - ✔✔continued channel consolidation and implementation
✔✔who benefits most from credit? - ✔✔the customer, credit usually comes at a cost to
the wholesaler or distributor due to higher investment costs etc.
✔✔PAID - ✔✔The Professional Association FOR Industrial Distribution
✔✔ Cash Flow - ✔✔Cash in bank > purchased inventory > sold inventory > accounts
receivable > cash in bank
✔✔List Price - ✔✔The retail price listed
✔✔selling price - ✔✔list price - trade discounts
✔✔Net price - ✔✔= selling price - allowable discounts (cash discounts)
Net Sale
✔✔Cost of Good Sold (COGS) - ✔✔= Cost of Merchandise + Freight from Manufacturer
✔✔Trade Discounts - ✔✔specify term of sale and change of price with how they see fit.
✔✔Cash Discounts - ✔✔given to encourage buyers to promote payment promptly.
✔✔Special Orders - ✔✔instructions given by the buyer on how to deliver or
manufacture the order.
✔✔Minimum Order vs. Freight Allowed - ✔✔Minimum order:
The minimum amount you can order from a manufacturer
Freight Allowed:
manufacture pays for the shipping and just adds to the cost.
✔✔Claims - ✔✔request for payment from the insurance company to cover financial
losses.
✔✔Returns - ✔✔goods returned to the business that sold them
AND SOLUTIONS RATED A+
✔✔Buying Direct - ✔✔Procuring goods or services straight from the manufacturer or
supplier, and by-passing all intermediaries such as distributors, wholesalers, and
retailers.
✔✔Distributor - ✔✔A business that does not manufacture its own products, but
purchases and resells these products. Such a business usually maintains a finished
goods inventory, usually a wholesaler.
✔✔Wholesaler - ✔✔A type of business that buys goods in large amounts and resells
them to other businesses in smaller lots, or retailers.
✔✔Consignment - ✔✔selling it for me for a % of the profit
✔✔up-stream - ✔✔part of production process involves searching for and extracting raw
materials.
✔✔down-stream - ✔✔part of production process involves processing the materials
collected during the upstream stage into a finished product.
✔✔wait time logistics - ✔✔how long customer will wait
✔✔assortment logistics - ✔✔bundling products & services
✔✔breaking bulk logistics - ✔✔selling in small quantities
✔✔packaging logistics - ✔✔ensuring order for correctness & proper packaging for
shipment or delivery
✔✔purchase time logistics - ✔✔when the customer wants to place the order
✔✔reverse logistics - ✔✔A complete supply chain dedicated to the reverse flow of
products and materials for the purpose of returns, repair, remanufacture, and/or
recycling.
✔✔Contact Efficiency - ✔✔the efficiency gained in terms of a reduction in the number of
contacts required through the use of channel intermediaries
ex. the graph that uses distributors to get products from manufacturer to retailer or end
user
✔✔how to distributors expand their market places? - ✔✔distribute outside their
geographic area
, ✔✔major trends benefitting the distributor - ✔✔increasing value of info, move toward
mass customization, increased use of "just-in-time" inventory, reductions in # of vendors
✔✔successful distributors reduce cost by.. - ✔✔understanding the needs of the
manufacturer and becoming a true partner
✔✔the future of distribution - ✔✔continued channel consolidation and implementation
✔✔who benefits most from credit? - ✔✔the customer, credit usually comes at a cost to
the wholesaler or distributor due to higher investment costs etc.
✔✔PAID - ✔✔The Professional Association FOR Industrial Distribution
✔✔ Cash Flow - ✔✔Cash in bank > purchased inventory > sold inventory > accounts
receivable > cash in bank
✔✔List Price - ✔✔The retail price listed
✔✔selling price - ✔✔list price - trade discounts
✔✔Net price - ✔✔= selling price - allowable discounts (cash discounts)
Net Sale
✔✔Cost of Good Sold (COGS) - ✔✔= Cost of Merchandise + Freight from Manufacturer
✔✔Trade Discounts - ✔✔specify term of sale and change of price with how they see fit.
✔✔Cash Discounts - ✔✔given to encourage buyers to promote payment promptly.
✔✔Special Orders - ✔✔instructions given by the buyer on how to deliver or
manufacture the order.
✔✔Minimum Order vs. Freight Allowed - ✔✔Minimum order:
The minimum amount you can order from a manufacturer
Freight Allowed:
manufacture pays for the shipping and just adds to the cost.
✔✔Claims - ✔✔request for payment from the insurance company to cover financial
losses.
✔✔Returns - ✔✔goods returned to the business that sold them
