Distribution & Logistics Management V2

Distribution & Logistics Management V2

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Assignment A (Answer any 3 questions)

  1. Define Sales Management. What are the objectives of Sales management?
  2. Explain the AIDAS Theory of Selling with the help of suitable examples.
  3. What is the purpose of a Sales Organization? What are the steps you will take for setting up of a Sales Organization?   Explain with the help of suitable example.
  4. What are the different sources of Sales Force Recruits? Illustrate with the help of suitable examples.
  5. Write short notes on:
  6. Requirements of a Good Sales Compensation Plan
  7. Quantitative Performance Standard
  8. The emergence of global retailing
  9. Planning Sales Training Programs


  1. Explain Merchandise Planning and Control with the help of suitable examples.
  2. What is wholesaling? Explain the different marketing functions performed by wholesaler-distributors for manufacturers with the help of suitable examples.
  3. Describe Physical Distribution Concept. What is Physical Distribution Cycle?   Give your answer with the help of suitable examples.

Case Study


Andrew Pharmaceutical Limited was engaged in formulations and some bulk drugs and had its factory and head office in Bangalore. The company has grown at thirty per cent for the last three years and had a turnover of Rs. 26 c(ores last year. The company employed 25 managerial and 150 non-managerial staff at their factory located at Bangalore. A, sales force oI 65 sales representatives was managed by 16 district sales managers, further reporting to five regional managers of regional offices located in Delhi, Mumbai, Calcutta, Hyderabad and Indore.

However, a sudden rise in the number of sales force created problems regarding monitoring, coordination and administration of sales representatives, stockists and dealers. A need was felt to revamp the system as the marketing director was unable to handle the overall marketing function. It was felt that the general management cadre must be introduced to take charge so that the marketing director will be free to concentrate on the strategic and development activities.

A high level meeting of directors discussed the issues and a decision was taken to introduce general manager-marketing, and personnel department was asked to initiate the process and one Mr. Ravi Saxena was chosen for the new position. Mr. Ravi Saxena had a decade of managerial experience in marketing and product development though his direct sales experience was negligible. However his planning and execution skills were good and thus he was considered the best option for developing systems of market information, dealer and representative relations etc. His profile, as briefed io him by Marketing Director, Chandra Mohan, included management of sales and distribution and product development. Ravi made a six monthly plan and started the work and initiated an extensive communication with dealers, stockists and representatives for an effective market information system.  Within six month’s time, however, things began to worsen at the marketing department. The interaction between Marketing Director and Mr. Ravi Saxena was minimum and often ended in confrontations. Mr. Ravi Saxena had in the past six months tried unsuccessfully to change some policies and systems related to payments and training dealers and sales representatives.  Every time he proposed any such change, it was rejected by Chandra on the plea that the systems had worked well in the past and hence no change is required. On the other hand Mr. Ravi Saxena felt that he cannot be held responsible for results, when he has no power or authority to improve the system. As a result of such a conflict Mr. Ravi Saxena began

to withdraw from making plans, meetings were conducted with customary interaction amongst two seniors and thus created an environment of confusion and uncertainty for managers and representatives. M r. Ravi Saxena gradually became more defensive as the initial work done on market information system also suffered. In spite of lack of support from Mr. Chandra, Mr. Ravi Saxena made significant improvements in the area of training for sales staff and product development. The product launches, promotion and literature improved considerably in quality and the regular training improved the motivation of sales staff all around the five regions. The regional managers and sales people, very subtly began to appreciate his efforts and he enjoyed a good rapport with his people.

Mr. Chandra Mohan, however, was convinced that delays in decisions and inadequate control of sales force were becoming major issues and blamed Mr. Ravi Saxena for this, but he decided not to communicate with Mr. Chandra. As the time passed, their ‘relations worsened.

A regional manager created some troubles in the meantime. Mr. Ravi Saxena insisted that some action against the manager will put forth the company’s stand but Chandra didn’t care. As a result everything went out of control, the coordination collapsed and fake medicines were recovered from a stockist in a police raid. Later, an enquiry revealed that the regional manager in connivance with a rival company had done some activities which led to the fake medicines racket.

The company suffered a loss of name and its credibility in the market. The Managing Director, Subhash Jain was anguished and ordered sacking of the regional manager and also demanded explanation on how things went this far.

Q1: What are the major issues in this case?

Q2: What reasons led to a conflict between Mr. Ravi Saxena and the Marketing Director Mr. Chandra Mohan? Did these conflicts arise due to unclear policies of the company?

Q3: How can the conflict in these two positions be minimized? Give your recommendations.



Question: 1

….. is not a part of order winners?

A: price

B: quality

C: delivery lead time

D: layout of the factory

Question: 2

……… Is not the element of quality concept?

A: Quality of service

B: quality of people

C: Quality of process

D: storage of materials

Question: 3

A company’s channel decisions directly affect every………..

A: marketing decision

B: channel member

C: customer choices

D: employee in the channel

Question: 4

A proprietary items is manufactured / supplied by ……..

A: a manufacturer with in the country

B: many manufactures

C: only one manufacturer

D: a high quality manufacturer

Question: 5

Benchmarking does not helps in

A:  Identify the key criteria important to a particular market sector

B: Evaluate importance of each factor

C: Score the companies and sector as a whole to identify the performance gap

D: Defining the shape of the product

Question: 6

Benchmarking does not helps us

A: To know our competitors better

B: Become proactive

C: Improve performance

D: In identification of source of supply

Question: 7

Cash purchasing is usually done for:

A: High value items

B: Items of high consumption during the year.

C: Small value items

D: Proprietary items

Question: 8

Comparative statement is necessary for selecting a vendor

A: Correct

B: Partially correct

C: Correct to a great extent

D: Incorrect

Question: 9

Customer is the destination point in a supply chain

A: Correct

B: Partially correct

C: Correct to a great extent

D: Incorrect

Question: 10

Deming’s 4 step cycle for improvement is: …………

A: Plan, Do, Check, Act

B: Schedule, Do, Act, Check

C: Do, Act, Check, Monitor

D: Plan, control, act, sustain

Question: 11

Distribution channel is not related to:

A: Retailers

B: Wholesalers

C: Manufacturers

D: Recruitment agency

Question: 12

Which is not a part of delivery scheme?

A: direct shipment

B: pool point shipping

C: cross docking

D: fabricating

Question: 13

Distribution channel is not required for…

A: Plant and machinery

B: Spare parts

C: Consumables

D: Strategy announcement

Question: 14

Distributor is the destination point in a supply chain

A: Correct

B: Partially correct

C: Correct to a great extent

D: Incorrect

Question: 15

EDI stands for:

A: Intensive distribution information

B: Electronic Distribution Interchange

C: Electronic Data Interchange

D: Electric Data Interchange

Question: 16

Integration of processes through the supply chain to share valuable information does not include …..

A: demand signals

B: product development cost

C: inventory

D: potential collaboration

Question: 17

Five phases of benchmarking methodology may be scheduled as

A:  Planning-analysis-integration-action-maturity

B:  Planning-integration analysis-action-maturity

C: Planning-integration-action-analysis-maturity

D:  Planning-analysis-action-integration-maturity

Question: 18

For economic transportation of materials use …….

A: rail services

B: truck service

C: air transport

D: inter-modal transportation method

Question: 19

What is the limitation of e-purchasing?

A: Lower transaction cost

B: leveraging of prices

C: quality check of the item not possible before delivery.

D: Facilitates supplier selection.

Question: 20

In pull strategy, the flow of demand is …..

A: Customer to channel members

B: Producer to customer

C: Retailer to customers

D: Wholesaler to customer

Question: 21

In push strategy, flow of promotion is not linked to ………….

A: Personal selling to channel members

B: Advertising directing to customers

C: Direct marketing to consumers

D: Customer approaching the producer

Question: 22

Intermediaries transform the assortment of products made by producers into the assortment of products wanted by ……..

A: distributers

B: channel members

C: consumers

D: manufacturers

Question: 23


A: Just In Time

B: Joint Indian Tournment

C: Joint International Teretory

D: Japanese International Team

Question: 24

JIT brings reduction in ……..

A: machinery

B: tools

C: inventory

D: inspection

Question: 25

Large quantity orders are placed for ….

A: Standard items

B: Non-standard items

C: Items where technology changes very fast

D: High value items

Question: 26

Logistics Management is not concerned with ……….

A: Making drawings

B: transportation of materials from supplier to firm

C: storage of materials in warehouse

D: transforming the purchased materials into finished goods

Question: 27

Manufacturer is the destination point in a supply chain

A: Correct

B: Partially correct

C: Correct to a great extent

D: Incorrect

Question: 28

MIS stands for …..

A: Management Information System

B: Master in Science

C: Master Information System

D: Materials in Stores

Question: 29

Mode of transportation of material depends upon ……..

A: manpower employed

B: type of machine in the plant

C: production plans

D: types of material

Question: 30

Negotiations are important in purchasing a costly equipment

A: Correct

B: Partially correct

C: Correct to a great extent

D: Incorrect

Question: 31

Negotiations between buyer and supplier does not include the ……

A: Technical specifications

B: brand name of various bought out items

C: Commercial terms and conditions

D: R&D projects undergoing

Question: 32

Negotiations between buyer and supplier does not include the ……

A: Price quoted by the vendor

B: discounts

C: delivery schedule

D: design secretes of the product

Question: 33

Ordering standard items takes less time

A: incorrect

B: incorrect to a great extent

C: incorrect to some extent

D: correct

Question: 34

Procurement time is low in the procurement of ………….

A: Standard items

B: Non-standard items

C: Items of perishable nature

D: Items involving security risks

Question: 35

Products that sell for a very small period of time but generate huge sales volume within a short period are called:

A: Seasonal merchandise

B: Fashion merchandise

C: Fad merchandise

D: Staple merchandise

Question: 36

Purchase and operations management are closely linked.

A: Correct

B: Correct to a great extent

C: Correct to some extent

D: Incorrect

Question: 37

Purchase order is an agreement between purchaser and supplier for purchase of an item

A: Correct

B: Partially correct

C: Correct to a great extent

D: Incorrect

Question: 38

Purchase requisition is the first step for evaluation of suppliers

A: Correct

B: Partially correct

C: Correct to a great extent

D: Incorrect

Question: 39

Purchasing department does not handle:

A: order writing

B: evaluating the performance of the suppliers.

C: Planning the quantity to purchase

D: stock taking

Question: 40

Purchasing is necessary for ……

A: inventory costing

B: production planning

C: to arrange the items in time

D: finalize the system arrangement


Contact www.kimsharma.co.in for best and lowest cost solution or
Email: solvedstudymaterial@gmail.com
Call: +91 82907-72200 (Call/WhatsApp) or +91 88003-52777 (WhatsApp Only)


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