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Question 1. Which term specifically refers to the physical location where a consumer can purchase a product? A) Shelf Space B) Point of Sale (POS) C) Assortment D) Throughput Answer: B Explanation: The Point of Sale (POS) is the exact location—store, kiosk, or online checkout— where a transaction occurs. Question 2. Numeric Distribution (ND) measures: A) The percentage of total category sales flowing through stocked stores. B) The percentage of stores that carry the product. C) The average number of SKUs per store. D) The in‑stock percentage of a product. Answer: B Explanation: ND is calculated as (stores carrying product ÷ total relevant stores) × 100, indicating breadth of availability. Question 3. Weighted Distribution (WD) differs from ND because it incorporates: A) Store count only. B) Sales volume of the category in stocked stores. C) Number of SKUs per store. D) Days of supply. Answer: B Explanation: WD weights stores by their category sales, reflecting quality of distribution.
Question 4. If a brand has ND = 80 % and WD = 40 %, what does this indicate? A) Presence in many low‑traffic stores. B) Presence in few high‑traffic stores. C) Equal distribution across all store sizes. D) High inventory turnover. Answer: A Explanation: High ND but low WD means the product is in many stores, but those stores contribute a smaller share of category sales. Question 5. Which distribution channel is characterized by selling directly to the end‑consumer without intermediaries? A) Third‑party retailer B) Distributor C) Direct‑to‑consumer e‑commerce D) Wholesaler Answer: C Explanation: Direct‑to‑consumer e‑commerce bypasses intermediaries, delivering products straight to customers. Question 6. In an omnichannel strategy, a retailer: A) Uses only a single sales channel. B) Integrates multiple channels to provide a seamless experience. C) Focuses solely on brick‑and‑mortar stores. D) Operates only through third‑party marketplaces. Answer: B Explanation: Omnichannel unifies physical, digital, and other channels for consistent consumer interaction.
Question 10. Days of Supply (DOS) is calculated by: A) (Average inventory ÷ Cost of Goods Sold) × 365 B) (Current inventory ÷ Average daily sales) C) (Total sales ÷ Number of stores) D) (Weighted Distribution ÷ Numeric Distribution) Answer: B Explanation: DOS estimates how many days current inventory will last based on average daily sales. Question 11. Which metric is most useful for assessing the efficiency of each distribution point? A) Sales per Point of Distribution (SPPD) B) Inventory Turnover C) Gross Margin Return on Inventory Investment (GMROII) D) Cost Per Unit Distributed Answer: A Explanation: SPPD measures average sales generated per numeric distribution point, indicating efficiency. Question 12. When WD > ND, the implication is: A) The brand is present in many small stores. B) The brand is present in fewer, high‑traffic stores. C) The brand has low sales velocity. D) The brand’s inventory turnover is high. Answer: B Explanation: Weighted distribution exceeding numeric distribution shows concentration in stores with larger category sales.
Question 13. “Share of Distribution (SOD)” is calculated as: A) (Brand’s ND ÷ Category ND) × 100 B) (Brand’s sales ÷ Category sales) × 100 C) (Brand’s WD ÷ Category WD) × 100 D) (Brand’s ND ÷ Brand’s WD) × 100 Answer: A Explanation: SOD compares the brand’s numeric distribution to the total category’s numeric distribution. Question 14. Which of the following best defines “throughput” in a distribution context? A) Number of SKUs per store. B) Volume of product moving through a channel over time. C) Percentage of shelf space allocated to a brand. D) Days of supply remaining. Answer: B Explanation: Throughput is the amount of product that passes through a distribution channel, reflecting flow efficiency. Question 15. A retailer’s “Gross Margin Return on Inventory Investment (GMROII)” is most likely to influence: A) The retailer’s decision to allocate shelf space. B) The brand’s Numeric Distribution. C) The brand’s Out‑of‑Stock rate. D) The brand’s Share of Market. Answer: A
Answer: B Explanation: Cross‑channel analysis requires assessing both presence (ND) and quality (WD) in each channel. Question 19. When evaluating “Cost Per Unit Distributed,” the most relevant cost component is: A) Promotional spend. B) Logistics and transportation expenses. C) Shelf‑space rental fees. D) In‑store merchandising labor. Answer: B Explanation: Cost per unit distributed focuses on the cost to move each unit through the supply chain, primarily logistics. Question 20. A brand that has a high “Share of Market (SOM)” but low “Share of Distribution (SOD)” is likely achieving its market share through: A) Superior shelf space. B) Exceptional sales velocity in existing stores. C) Extensive numeric distribution. D) High out‑of‑stock rates. Answer: B Explanation: High SOM with low SOD indicates the brand sells strongly where it is present, indicating high velocity. Question 21. Which of the following is a primary advantage of a multichannel distribution strategy? A) Reduced inventory complexity. B) Ability to reach diverse consumer segments.
C) Lower marketing spend. D) Simplified pricing decisions. Answer: B Explanation: Multichannel allows a brand to access different shopper groups across varied retail formats. Question 22. The “Distribution‑Velocity‑Share” framework helps diagnose: A) Only pricing issues. B) Whether market share changes are due to distribution or velocity. C) Inventory turnover problems. D) The effectiveness of trade promotions. Answer: B Explanation: This framework links distribution breadth, sales speed, and market share to pinpoint growth drivers. Question 23. Which metric would you examine to determine if a retailer is a “white‑space” opportunity for a brand? A) Weighted Distribution relative to competitor’s WD. B) Numeric Distribution relative to competitor’s ND. C) Inventory Turnover ratio. D) Days of Supply. Answer: B Explanation: A white‑space opportunity exists where a competitor’s ND is high but the brand’s ND is low, indicating untapped presence. Question 24. A retailer’s “Inventory Turnover” is calculated as: A) Cost of Goods Sold ÷ Average Inventory
Question 27. When a product’s “In‑Stock Percentage” falls below 90 %, the most immediate risk is: A) Decreased Weighted Distribution. B) Increased Days of Supply. C) Higher Out‑of‑Stock Rate. D) Lower Cost Per Unit Distributed. Answer: C Explanation: A low in‑stock percentage directly translates to a higher OOS rate, indicating frequent stockouts. Question 28. The metric “Share of Distribution (SOD) vs. Share of Market (SOM)” is used to: A) Compare inventory turnover across categories. B) Identify whether sales performance is driven by presence or velocity. C) Measure the cost efficiency of logistics. D) Determine the optimal pricing strategy. Answer: B Explanation: Comparing SOD and SOM reveals if market share stems from distribution breadth or higher sales velocity. Question 29. Which of the following scenarios would most likely increase Weighted Distribution without changing Numeric Distribution? A) Adding the product to more small‑format stores. B) Gaining shelf space in high‑traffic flagship stores. C) Reducing the number of SKUs per store. D) Increasing promotional discounts in existing stores. Answer: B
Explanation: Securing placement in larger, high‑sales stores raises the share of category sales (WD) while ND stays constant. Question 30. “Shelf Space” allocation directly impacts which distribution metric the most? A) Numeric Distribution B) Weighted Distribution C) Items per Store Carrying D) Days of Supply Answer: B Explanation: More shelf space in high‑sales locations increases the store’s contribution to category sales, boosting WD. Question 31. A brand wants to improve its “Sales per Point of Distribution (SPPD).” The most effective first step is: A) Increase the number of SKUs per store. B) Reduce the product’s price across all channels. C) Enhance placement and promotional visibility in existing stores. D) Expand into additional low‑traffic stores. Answer: C Explanation: Improving placement and promotions raises sales per existing distribution point, directly lifting SPPD. Question 32. Which of the following best defines “Assortment” in distribution terminology? A) The total number of stores carrying the product. B) The variety of SKUs a retailer offers from a brand. C) The percentage of shelf space allocated to a brand.
B) Inventory Turnover C) Weighted Distribution D) In‑Stock Percentage Answer: A Explanation: Trade Spend ROI calculates the sales generated per dollar of promotional investment. Question 36. A retailer’s “store clustering” analysis is most useful for: A) Determining the optimal number of SKUs per store. B) Identifying geographic or format‑based distribution gaps. C) Calculating Days of Supply. D) Measuring cost per unit distributed. Answer: B Explanation: Store clustering groups stores by size, format, or region to pinpoint where distribution can be improved. Question 37. Which of the following is a key driver of “Weighted Distribution” for a new product launch? A) Number of SKUs launched. B) Selecting pilot stores with high category sales. C) Reducing price below competitor levels. D) Maximizing shelf space in all stores. Answer: B Explanation: Launching in stores with high category sales quickly boosts WD, even if ND remains modest. Question 38. The “Category Share” metric is calculated as:
A) (Brand’s sales ÷ Total market sales) × 100 B) (Brand’s sales ÷ Category sales) × 100 C) (Brand’s ND ÷ Category ND) × 100 D) (Brand’s WD ÷ Category WD) × 100 Answer: B Explanation: Category share compares a brand’s sales to the total sales of the product category. Question 39. Which factor most directly influences a retailer’s decision to stock a high‑margin but low‑velocity product? A) Gross Margin Return on Inventory Investment (GMROII) B) Numeric Distribution C) Days of Supply D) Trade Spend ROI Answer: A Explanation: Retailers consider GMROII to assess whether a product’s margin compensates for slower turnover. Question 40. In the context of “cross‑channel” metrics, which combination provides the most comprehensive view of distribution performance? A) ND and In‑Stock Percentage only. B) WD, SPPD, and Trade Spend ROI across all channels. C) IPSC and Days of Supply only. D) Cost per Unit Distributed and Inventory Turnover only. Answer: B Explanation: Combining weighted distribution, sales efficiency, and promotional effectiveness across channels offers a full performance picture.
Explanation: Full ND with low WD shows presence in all stores, yet those stores contribute little to overall category sales. Question 44. “Cost Per Unit Distributed” can be reduced most effectively by: A) Increasing promotional spend. B) Optimizing logistics routes and consolidating shipments. C) Expanding into additional low‑volume stores. D) Raising the product price. Answer: B Explanation: Streamlining logistics lowers the cost of moving each unit through the distribution network. Question 45. Which of the following best explains a “white‑space” opportunity in a competitive benchmark analysis? A) A market where the brand has higher WD than the competitor. B) A segment where competitors have low ND but high velocity. C) A retailer format where the brand is absent while competitors have strong sales. D) A product line with high inventory turnover. Answer: C Explanation: White‑space refers to locations or formats where competitors are present and successful, but the brand is missing. Question 46. The “Inventory Turnover” ratio is most indicative of: A) Distribution breadth. B) Speed at which inventory is sold. C) Shelf‑space allocation. D) Cost per unit distributed.
Answer: B Explanation: Inventory turnover measures how many times inventory cycles through sales, reflecting speed of movement. Question 47. In a “distribution‑velocity‑share” analysis, a decline in market share accompanied by stable ND suggests the problem lies in: A) Distribution coverage. B) Sales velocity. C) Shelf‑space allocation. D) Cost per unit distributed. Answer: B Explanation: Stable ND indicates unchanged presence; a share loss points to reduced velocity. Question 48. Which metric would you prioritize to assess the success of a new product’s launch in high‑end supermarkets? A) Numeric Distribution in all store types. B) Weighted Distribution specifically in high‑end supermarkets. C) Items per Store Carrying across all retailers. D) Days of Supply in convenience stores. Answer: B Explanation: Focusing on WD in target high‑end supermarkets captures the quality of distribution where the launch matters most. Question 49. A “trade promotion” that increases sales but also raises the “Cost Per Unit Distributed” is likely to have what effect on “Trade Spend ROI”? A) Increase ROI. B) Decrease ROI.
A) Carries the product in many small stores. B) Stocks the product primarily in large, high‑sales stores. C) Has frequent stockouts. D) Offers a wide assortment of SKUs. Answer: B Explanation: High WD with low ND indicates presence in fewer, but high‑traffic stores. Question 53. Which of the following is the most direct way to increase “Weighted Distribution” without expanding the number of stores? A) Reduce the product price. B) Increase shelf space in existing high‑sales stores. C) Add new SKUs to the assortment. D) Launch a new e‑commerce platform. Answer: B Explanation: Expanding shelf space in high‑sales stores raises the portion of category sales captured, boosting WD. Question 54. A brand’s “Share of Distribution (SOD)” is calculated using which denominator? A) Total market sales. B) Total category sales. C) Total number of stores in the market. D) Total number of SKUs in the category. Answer: C Explanation: SOD compares the brand’s numeric distribution to the total number of relevant stores.
Question 55. Which metric best captures the “depth” of a brand’s presence within a retailer’s assortment? A) Numeric Distribution B) Weighted Distribution C) Items per Store Carrying (IPSC) D) Days of Supply Answer: C Explanation: IPSC measures the average number of SKUs a retailer carries from the brand, reflecting depth. Question 56. When assessing “cost efficiency” of a distribution network, the most relevant ratio is: A) Trade Spend ROI B) Cost Per Unit Distributed C) Inventory Turnover D) Share of Market Answer: B Explanation: Cost per unit distributed directly reflects the expense incurred to move each unit through the network. Question 57. A retailer’s “Gross Margin Return on Inventory Investment (GMROII)” is highest when: A) Margin is low but inventory turnover is high. B) Margin is high and inventory turnover is high. C) Margin is high but turnover is low. D) Margin is low and turnover is low. Answer: B
