Question 1

The transporting function adds value by:

Accepted Answer

A)  making products available where they're needed. 
B)  making JIT the best approach. 
C)  making products available when they're needed. 
D)  making products available when AND where they're needed. 
E)  making the storage function obsolete. 
A)  making products available where they're needed. 
B)  making JIT the best approach. 
C)  making products available when they're needed. 
D)  making products available when AND where they're needed. 
E)  making the storage function obsolete. D

Question 2

With the PD concept, firms decide what specific service level to provide their customers.

Accepted Answer

A) True 
 B)False  True

Question 3

Public warehouses:

Accepted Answer

A)  generally do not provide all the services that could be obtained in a company's own branch warehouse. 
B)  are not usually responsible for the risk of damage in the warehouse. 
C)  provide flexibility because the user pays only for the space used. 
D)  are not very useful to manufacturers who must maintain stocks in many locations, including foreign countries. 
E)  All of these alternatives are correct for public warehouses. 
A)  generally do not provide all the services that could be obtained in a company's own branch warehouse. 
B)  are not usually responsible for the risk of damage in the warehouse. 
C)  provide flexibility because the user pays only for the space used. 
D)  are not very useful to manufacturers who must maintain stocks in many locations, including foreign countries. 
E)  All of these alternatives are correct for public warehouses. C

Question 4

Just-in-time (JIT) delivery

Accepted Answer

A)  is always the best approach. 
B)  reduces customers' physical distribution costs. 
C)  increases storing and handling costs. 
D)  shifts responsibility for physical distribution activities forward in the channel. 
E)  requires customers to have high quality standards in physical distribution activity. 
A)  is always the best approach. 
B)  reduces customers' physical distribution costs. 
C)  increases storing and handling costs. 
D)  shifts responsibility for physical distribution activities forward in the channel. 
E)  requires customers to have high quality standards in physical distribution activity.

Question 5

Honda requires its brake suppliers to deliver parts to its production plants three hours before the parts are scheduled to be installed in a new car. This is an example of which logistics activity?

Accepted Answer

A)  EDI 
B)  PD concept 
C)  Piggyback 
D)  Containerization 
E)  JIT 
A)  EDI 
B)  PD concept 
C)  Piggyback 
D)  Containerization 
E)  JIT

Question 6

In which of the following orders are activities most likely to be performed on goods arriving at a distribution center?

Accepted Answer

A)  Sort into groups, retrieve from groups, stack on pallets, load for shipping 
B)  Put in long-term storage, retrieve from groups, stack on pallets, load for shipping 
C)  Sort into groups, put in long-term storage, retrieve from groups, load for shipping 
D)  Load for shipping, sort into groups, retrieve from groups, stack on pallets 
E)  Sort into groups, stack on pallets, load for shipping, retrieve from groups 
A)  Sort into groups, retrieve from groups, stack on pallets, load for shipping 
B)  Put in long-term storage, retrieve from groups, stack on pallets, load for shipping 
C)  Sort into groups, put in long-term storage, retrieve from groups, load for shipping 
D)  Load for shipping, sort into groups, retrieve from groups, stack on pallets 
E)  Sort into groups, stack on pallets, load for shipping, retrieve from groups

Question 7

Regarding transportation modes, which of the following statements is NOT true?

Accepted Answer

A)  The majority of the pipelines in the U.S. are in the Southwest. 
B)  Airfreight costs about the same as trucks for long distances, not counting the cost of transporting to and from the airport. 
C)  Water transportation is the slowest shipping mode. 
D)  Most cities in the United States are less than 200 miles from a major petroleum pipeline. 
A)  The majority of the pipelines in the U.S. are in the Southwest. 
B)  Airfreight costs about the same as trucks for long distances, not counting the cost of transporting to and from the airport. 
C)  Water transportation is the slowest shipping mode. 
D)  Most cities in the United States are less than 200 miles from a major petroleum pipeline.

Question 8

Most marketing functions can be shared in a channel, but the storing function is almost always handled by the producer.

Accepted Answer

A) True 
 B)False

Question 9

Regarding alternative transporting modes, which of the following statements is TRUE?

Accepted Answer

A)  Waterways serve the most locations. 
B)  Airways offer the most expensive transporting mode. 
C)  Railways provide the lowest cost considering weight. 
D)  Trucks offer the fastest speed. 
E)  Pipelines in the U.S. are located mostly in the Northeast. 
A)  Waterways serve the most locations. 
B)  Airways offer the most expensive transporting mode. 
C)  Railways provide the lowest cost considering weight. 
D)  Trucks offer the fastest speed. 
E)  Pipelines in the U.S. are located mostly in the Northeast.

Question 10

Use this information for question that refer to the United Tools case. Terry Harter is marketing manager for United Tools and Mike O'Reilly is the firm's logistics manager. They work together to make decisions about how to get United's hand and power tools to its customers-a mix of manufacturing plants and final consumers (who buy United tools at a hardware store). United Tools does not own its own transport facilities and it works with wholesalers to reach its business customers.
Together, Harter and O'Reilly try to coordinate transporting, storing, and product handling activities to minimize cost while still achieving the customer service level their customers and intermediaries want. This usually requires that United keep an inventory of most of its products on hand, but demand for its products is fairly consistent over time so inventory is easy to manage.
Harter has identified four options for physical distribution systems she could use to reach two of her key wholesalers, Ralston Supply and Ricotta Tool Co. The total cost for each option-and the distribution service levels that can be achieved-are as follows: $\begin{array}{c}
\begin{array}{lll}
\mathbf { \text {Main feature of system:}}\
 \text {1. Airfreight}\
 \text {2. Inland waterways}\
 \text {3. Trucks}\
 \text {4. Rail and regional }\
\text {warehouses}
\end{array}
\begin{array}{r}
\text { Total Cost } \
\$ 1,000,000 \
\$ 300,000 \
\$ 500,000 \
\$ 650,000\
\
\end{array}
\begin{array}{c}
\text { Distribution Service Level}\
\text {  95 percent }\
\text { 60 percent }\
\text { 70 percent }\
\text { 80 percent}\
\
\end{array}

\end{array}$
 Ralston Supply expects a very high level (90 percent) of distribution customer service. Ricotta Tool Co. is willing to settle for a 70 percent customer service level, even if that means some products will occasionally be out of stock, if it gets products at a lower price.
For its large retail hardware customers (like Home Depot), United regularly ships smaller orders directly to individual stores or in some cases to the retail chain's warehouses. Cross-country shipments usually go by rail while regional shipments usually go by truck.
United ships to the regional distribution centers of one of the retail hardware chains that it serves. The main advantage of the distribution centers for the retailer is likely to be that they

Accepted Answer

A)  can store a larger inventory than traditional warehouses. 
B)  eliminate the need for electronic communications between the distribution centers and the individual stores. 
C)  speed the flow of tools from the factory to the stores. 
D)  none of these is an advantage of distribution centers. 
A)  can store a larger inventory than traditional warehouses. 
B)  eliminate the need for electronic communications between the distribution centers and the individual stores. 
C)  speed the flow of tools from the factory to the stores. 
D)  none of these is an advantage of distribution centers.

Question 11

Most physical distribution decisions involve trade-offs between costs, the customer service level, and sales.

Accepted Answer

A) True 
 B)False

Question 12

For many physical goods, firms spend half or more of their total marketing dollars on physical distribution activities.

Accepted Answer

A) True 
 B)False

Question 13

A channel of distribution is part of a broader network of relationships called a supply chain.

Accepted Answer

A) True 
 B)False

Question 14

Airfreight generally increases both transporting cost and the total cost of distribution because it tends to add to inventory costs, spoilage, theft, and damage.

Accepted Answer

A) True 
 B)False

Question 15

A supply chain:

Accepted Answer

A)  focuses on making services available whereas a channel of distribution focuses on making goods available. 
B)  may involve many firms, but only one manufacturer. 
C)  includes all the activities involved in procuring materials, transforming them into products, and distributing them to customers. 
D)  is easier to coordinate than a channel of distribution. 
E)  none of these alternatives about a supply chain is correct. 
A)  focuses on making services available whereas a channel of distribution focuses on making goods available. 
B)  may involve many firms, but only one manufacturer. 
C)  includes all the activities involved in procuring materials, transforming them into products, and distributing them to customers. 
D)  is easier to coordinate than a channel of distribution. 
E)  none of these alternatives about a supply chain is correct.

Question 16

Compared to a warehouse, a DISTRIBUTION CENTER is:

Accepted Answer

A)  designed to provide more efficient use of storage space. 
B)  concerned with eliminating the need for bulk-breaking. 
C)  designed to eliminate all storage. 
D)  set up to speed the flow of products toward the consumer. 
E)  a storage facility used by several intermediaries-to share costs. 
A)  designed to provide more efficient use of storage space. 
B)  concerned with eliminating the need for bulk-breaking. 
C)  designed to eliminate all storage. 
D)  set up to speed the flow of products toward the consumer. 
E)  a storage facility used by several intermediaries-to share costs.

Question 17

A footwear company specializing in the production of ballet shoes normally produces shoes only in women's and girl's sizes. The company is hired by several customers to produce shoes in men's and boy's sizes. Which of the following should the manufacturer consider in order to achieve economies of scale in shoe production?

Accepted Answer

A)  The amount of shoe production cost compared to the typical costs incurred in shipping 
B)  The level of effort required to retool the company's manufacturing plant to produce only men's shoes 
C)  The cost of producing one size shoe at a time in large quantities and storing them for future sales 
D)  The amount of shoe storage cost compared to the typical costs incurred in shipping 
E)  The cost associated with efforts to increase customers that might also place orders for men's shoes 
A)  The amount of shoe production cost compared to the typical costs incurred in shipping 
B)  The level of effort required to retool the company's manufacturing plant to produce only men's shoes 
C)  The cost of producing one size shoe at a time in large quantities and storing them for future sales 
D)  The amount of shoe storage cost compared to the typical costs incurred in shipping 
E)  The cost associated with efforts to increase customers that might also place orders for men's shoes

Question 18

Which of the following statements about the transporting function is TRUE?

Accepted Answer

A)  Among transportation modes, an advantage of air transport is its ability to handle a variety of goods. 
B)  Because transportation costs are less than 1 percent of costs for most products, marketing managers do not need to consider them when making strategy decisions. 
C)  Pipelines are generally one of the fastest modes of transportation. 
D)  In most countries, government plays little role in transportation. 
E)  Transporting costs can be a large part of the total cost for heavy products that are low in value. 
A)  Among transportation modes, an advantage of air transport is its ability to handle a variety of goods. 
B)  Because transportation costs are less than 1 percent of costs for most products, marketing managers do not need to consider them when making strategy decisions. 
C)  Pipelines are generally one of the fastest modes of transportation. 
D)  In most countries, government plays little role in transportation. 
E)  Transporting costs can be a large part of the total cost for heavy products that are low in value.

Question 19

Which of the following transportation modes is "best" at handling a variety of goods?

Accepted Answer

A)  Truck 
B)  Rail 
C)  Water 
D)  Air 
E)  Pipeline 
A)  Truck 
B)  Rail 
C)  Water 
D)  Air 
E)  Pipeline

Question 20

Tammy works in transportation for a company that manufactures tractors and other farm equipment in China for the U.S. market. Cost is her primary concern in getting products to farm states in the U.S. Midwest. Which mode(s) of transportation would you suggest?

Accepted Answer

A)  Water then truck. 
B)  Air then rail. 
C)  Air then truck. 
D)  Air only. 
E)  Water then rail. 
A)  Water then truck. 
B)  Air then rail. 
C)  Air then truck. 
D)  Air only. 
E)  Water then rail.

The transporting function adds value by:

With the PD concept, firms decide what specific service level to provide their customers.

Public warehouses:

Just-in-time (JIT) delivery

Honda requires its brake suppliers to deliver parts to its production plants three hours before the parts are scheduled to be installed in a new car. This is an example of which logistics activity?

In which of the following orders are activities most likely to be performed on goods arriving at a distribution center?

Regarding transportation modes, which of the following statements is NOT true?

Most marketing functions can be shared in a channel, but the storing function is almost always handled by the producer.

Regarding alternative transporting modes, which of the following statements is TRUE?

Most physical distribution decisions involve trade-offs between costs, the customer service level, and sales.

For many physical goods, firms spend half or more of their total marketing dollars on physical distribution activities.

A channel of distribution is part of a broader network of relationships called a supply chain.

Airfreight generally increases both transporting cost and the total cost of distribution because it tends to add to inventory costs, spoilage, theft, and damage.

A supply chain:

Compared to a warehouse, a DISTRIBUTION CENTER is:

Which of the following statements about the transporting function is TRUE?

Which of the following transportation modes is "best" at handling a variety of goods?

Tammy works in transportation for a company that manufactures tractors and other farm equipment in China for the U.S. market. Cost is her primary concern in getting products to farm states in the U.S. Midwest. Which mode(s) of transportation would you suggest?

Marketings Value to Consumers, Firms, and Society

Marketing Strategy Planning

Evaluating Opportunities in the Changing Market Environment

Focusing Marketing Strategy With Segmentation and Positioning

Final Consumers and Their Buying Behavior

Business and Organizational Customers and Their Buying Behavior

Improving Decisions With Marketing Information

Elements of Product Planning for Goods and Services

Product Management and New-Product Development

Place and Development of Channel Systems

Retailers, Wholesalers, and Their Strategy Planning

Promotion-Introduction to Integrated Marketing Communications

Personal Selling and Customer Service

Advertising, Publicity, and Sales Promotion

Pricing Objectives and Policies

Price Setting in the Business World

Ethical Marketing in a Consumer-Oriented World: Appraisal and Challe

Filters

Exam 11: Distribution Customer Service and Logistics

The transporting function adds value by:

With the PD concept, firms decide what specific service level to provide their customers.

Public warehouses:

Just-in-time (JIT) delivery

Honda requires its brake suppliers to deliver parts to its production plants three hours before the parts are scheduled to be installed in a new car. This is an example of which logistics activity?

In which of the following orders are activities most likely to be performed on goods arriving at a distribution center?

Regarding transportation modes, which of the following statements is NOT true?

Most marketing functions can be shared in a channel, but the storing function is almost always handled by the producer.

Regarding alternative transporting modes, which of the following statements is TRUE?

Most physical distribution decisions involve trade-offs between costs, the customer service level, and sales.

For many physical goods, firms spend half or more of their total marketing dollars on physical distribution activities.

A channel of distribution is part of a broader network of relationships called a supply chain.

Airfreight generally increases both transporting cost and the total cost of distribution because it tends to add to inventory costs, spoilage, theft, and damage.

A supply chain:

Compared to a warehouse, a DISTRIBUTION CENTER is:

Which of the following statements about the transporting function is TRUE?

Which of the following transportation modes is "best" at handling a variety of goods?

Tammy works in transportation for a company that manufactures tractors and other farm equipment in China for the U.S. market. Cost is her primary concern in getting products to farm states in the U.S. Midwest. Which mode(s) of transportation would you suggest?

Marketings Value to Consumers, Firms, and Society

Marketing Strategy Planning

Evaluating Opportunities in the Changing Market Environment

Focusing Marketing Strategy With Segmentation and Positioning

Final Consumers and Their Buying Behavior

Business and Organizational Customers and Their Buying Behavior

Improving Decisions With Marketing Information

Elements of Product Planning for Goods and Services

Product Management and New-Product Development

Place and Development of Channel Systems

Retailers, Wholesalers, and Their Strategy Planning

Promotion-Introduction to Integrated Marketing Communications

Personal Selling and Customer Service

Advertising, Publicity, and Sales Promotion

Pricing Objectives and Policies

Price Setting in the Business World

Ethical Marketing in a Consumer-Oriented World: Appraisal and Challe

Filters