Which of the Following Is an Example of a JIT

question 89

Multiple Choice

Which of the following is an example of a JIT system shifting responsibility for PD activities backward in a distribution channel?

• A) A paint supplier is highly efficient at controlling logistics costs. Products are distributed at a high customer service level.
• B) An ice cream chain makes its own ice cream at each of its retail sites. Its customers are highly pleased with the product.
• C) A wholesale appliance distributer is inefficient at controlling logistics costs. It develops a reputation for low customer service levels.
• D) A book retailer is more efficient than its suppliers at controlling PD costs. Products are distributed at an acceptable customer service level.
• E) An automotive parts supplier is less efficient than its retail customers at controlling logistics costs. Products are distributed at a high customer service level.

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Definitions:

Magnet Pricing

A strategy used by retailers to attract customers by advertising very low prices on a few items with the expectation that once customers are in the store, they will purchase additional items.

Price War

Successive price cutting by competitors to increase or maintain their unit sales or market share.

Market Share

The proportion of total sales in a market captured by a particular brand, product, or company, usually expressed as a percentage of total sales in the industry.

Promotional Allowances

Cash payments or an extra amount of “free goods” awarded sellers in the marketing channel for undertaking certain advertising or selling activities to promote a product.