IDIS 240 EXAM 1 VESTAL LATEST QUESTIONS & ANSWERS SOLVED 100% CORRECT!

OEM - Original Equipment Manufacturer - buys the product and "rebrands" to sell as their own with warranty MRO - Maintenance Repair Operation - people who fix something with a problem Contractor - Person who provides supplies or service under contract Breaking bulk - Shipping something in individual components 3PL - 3rd Party Logistics Provider - specializes in warehousing and transportation services that customize to customers based on market conditions RFID - Radio Frequency Identification Tags What is supply chain management? - A management system that coordinates and integrates all the activities performed by supply chain members into a seamless process, from the source to the point of consumption, resulting in enhanced customer and economic value. Why is a supply chain needed? - -inadequate finances for certain functions -product assortment -"contact efficiency" What are the 5 specific service outputs - -selling the product -inventory on hand -credit extending for customers -transportation to customer's location -servicing such as assembling productWhy do distributors have channel power? (3) - -they can economically provide the services needed to get the product to the consumer -they can anticipate future trends and future changes -servicing and providing aftermarket support What are the trends benefitting distributors? (4) - -information of trends is becoming more valuable -JIT inventory always needs to be ready -mass customization of products -reduction of vendors What are the types of distribution? (3) - -Exclusive - one Maserati dealer -Selective - few Rolex dealers -Intensive - many Coca-Cola dealers Define "product-based" and "customer-based" purchasing. - -Product-based - buy off what will make a profit; old-fashioned -Customer-based - buy based off what the customer needs Define receiving. - Must avoid error and be done in a timely manner Define "counter-sales", "inside sales", and "outside sales." - -Counter-sales - interaction with a counter and display -Inside-sales - no face to face interaction; difficult to sell -Outside-sales - going to the customers place of business When is a sale completed? - A sale is completed once the product is bought and utilized.Define "order filling." - Fulfilling an order once the ticket is printed; should be done in an efficient manner Define "buy-out." - When a distributor sells out of something, they must go to a local dealer and buy it and sell for a loss in order to keep future business What are responsibilities of the manufacturer? (3) - -producing quality products -creating markets -understand and protect the industrial channel What are the responsibilities of a sales representative? (2) - -sale in a certain area of assignment -skills of knowledge, negotiation, etc. What is an agent?` - -a sales representative that will represent multiple companies -usually do not store inventory "Contact costs" and "contact efficiency." - What are the differences in 1) "factory-owned distributorship" and 2) "non-factory-owned distributorship?" - 1) -started because of a lack of other channels -best way to get representation -must sell other products to be of full service 2) -more independent than manufacturer -full service with all the functions of a distributor What is an end user? - Does not resell the product in the present form Required Services fall into at least 1 of what 3 components of Distribution? - -Knowledge -Logistics