| Question |
Answer |
| 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 |
Spanish 3
