The downside of poor forecasting includes all of the following except _____.
a. higher inventory volumes
b. poor customer service as inventory is misallocated across locations and products
c. higher inventory carrying charges
d. excessive safety stock levels
e. decreased customer service costs
Question 2Why does the selection of channel members pose a peculiar, paradoxical challenge for the franchisor?
a. Because franchisors want franchisees who are highly motivated but not entrepreneurial.
b. Because franchisors want franchisees who are self-motivated, entrepreneurial but willing to accept direction from the franchisor.
c. Because franchisors want franchisees who are extremely independent and creative.
d. Because franchisors want franchisees who are able and willing to modify the fran-chise model to adapt to local consumer demand.
e. Because franchisors want franchisees who can conduct business without direction.
Question 3____________________ stores offer a broad variety of goods and deep assortments.
Fill in the blank(s) with correct word
Question 4In the context of decisions based on gains and losses, consumers have a much stronger reaction to price decreases than to price increases.
Indicate whether the statement is true or false
Question 5Record integrity is the result of various activities and procedures designed to ensure that the amount of _____ is equal to the computerized record of _____.
a. MRP.kanban
b. DRP.MRP
c. ROH.POH
d. POH.ROH
e. None of the above.
Question 6Regarding the issue of control of franchisees by franchisors, which of the following is most accurate?
a. Firms selling heavy industrial machinery are most likely to use the franchise model to control product distribution.
b. The business franchise model is always an appropriate model to ensure a high degree of control, regardless of the industry.
c. Companies like Proctor & Gamble frequently use the franchise channel model for distribution of consumer goods.
d. Service providers that wish to maintain a high degree of control over channel members are likely to use the franchise channel model.
e. The desired degree of control of franchisees by franchisors is not relevant to the decision by franchisors to use the franchise channel model.
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