After Listening to All of the Challenges and Issues, Rhea

question 33

Multiple Choice

After listening to all of the challenges and issues, Rhea said she wanted to propose a more sweeping change. "Mark has already suggested doing some of the retailer's job for them. I say go even further-let's just do away with all of the intermediaries. We can perform all of their functions ourselves," she said. She went on to explain that, "Since we won't have to deal with intermediaries, my suggestion is bound to simplify the distribution process and cut costs dramatically." What do you think of Rhea's suggestion?

• A) It is truly radical because it calls for the elimination of the entire supply chain.
• B) It is an example of an administered and contractual distribution system.
• C) It should be viewed with some skepticism, because it ignores the fact that intermediaries usually create enough value to justify their inclusion in the distribution process.
• D) It is not really very radical, since most manufacturing firms in recent years have used this approach to bring about dramatic reductions in their costs of distribution.

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Definitions:

Short-Term Memory

The part of the memory system that is responsible for holding a small amount of information in an active, readily available state for a short period of time.

General Slowing

A decrease in the speed of cognitive processes and physical movements, often associated with aging or certain neurological conditions.

Neural Speed

The rate at which nerve impulses travel along neurons, critical for all aspects of brain function including reflexes, perception, and cognition.

Mental Functions

Cognitive, emotional, and behavioral activities that involve processing, understanding, and responding to internal and external environmental stimuli.