| Flap 1 | Flap 2 |
| primary channel function | the physical distribution of products |
| distribution modes | *transportation *inventory mgmt *cs functions |
| sorting process | *accumulation *sorting *assorting |
| accumulation | process of assembling & pooling relatively small shipments to be transported for less |
| sorting | process of separating goods by quality, color, or size |
| assorting | a wide variety of merchandise acquired to meet diverse consumer wants *at retail level |
| direct channels | moving goods from the producer to the final consumer without using "middlemen" |
| indirect channels | moving goods with the cooperation and assistance of middlemen |
| channel width | the number of independent members at one level of the distribution channel |
| channel length | the number of levels used to create a distribution channel |
| intensive dist' strategy | selling through every potential outlet that will reach target mkt |
| selective dist' strategy | selling through many but not all potential wholesalers & retailers |
| exclusive dist' strategy | limits the number of outlets employed in one or two intermediaries within each mkt |
| types of distribution coordination systems | *corporate *contractual *administered |
| corporate dist channel | owning all channel members or the firms at the next level in the channel |
| contractual | arrangements specify performance terms for each independent channel member |
| administered | channel operations coordinated thru a dominant channel member |
| vertical integration | acquiring firms that operate at different channel levels* may up ops control |
| horizontal integration | acquiring firms that operate at the same channel level* up mkt share, competitive strength |
| multiple channels | separate dist' channels to reach new mkts, up mkt coverage, or distribute new products |
| channel control | ability to influence the actions of other channel members |
| channel conflict | disagreements between members over practices & policies |
| horizontal conflicts | channel conflicts between firms at the same channel level |
| vertical conflicts | channel conflicts between firms at different channel levels |
| pushing | offering middlemen promos in return for their cooperation IE sales promos, personal selling, and ads |
| pulling | generates consumer demand for the product as a means of securing support w/in the channel. appro for new products |
| goals of physical distribution | cost control& customer service |
| total cost concept | idea that low costs and satisfied customers are conflicting goals |
| total cost concept goal | provide a level of cs at the lowest total costs |
| distribution center concept | cross between one central inventory site (high transport costs) and multi sites (less inventory control) |
| distribution centers | a type of warehouse planned in relation to specific markets |
| sub-optimization | cost reducing actions in one distribution function that increases the overall cost of others |
| cs standard | different buyers need different service levels |
| order processing | the receipt and transmission of sales order information: entry handling delivery |
| electronic data interchange (edi) | a single system of order processing, production, inventory planning and transport |
| materials handling | the physical handling of goods in both the warehouse & transport functions |
| unit loading | refers to the grouping of boxes on a pallet or skid |
| containerization | the process of consolidating many items into one container |
| warehousing | designing and operating facilities for receiving sorting storing moving goods |
| types of warehouses | *private & public *distribution cntrs *bonded storage |
| order leadtime | the average length of time between the customer plaing order and receiving it |
| reorder point | the inventory level at which new orders need to be rplaced to avoid a stockout |
| stockout | a shortage of product resultignfrom carrying too few in inventory |
| usage rate | the rate at which inventory is osd per time poeriod |
| safety stock | the amount of extra inventory kept on hand to avoid stockouts |
| economic order quantity (eoq) | the order size that minmizes the total cost of ordering and carrying inventory |
| just-in-time (jit) | making products an materials available just as needed for porduction or resale |
| transportation modes | the means of moving goods from one location to another |
| modes of transport | railroads trucks waterways airways pipelines |
| megacarriers | freight transport companies that provide several shipment modes |
| inter-modal transportation | two or more transport modes used in combination |
| freight forwarders | specialized agencies providing alternate forms of transport coordination |
