Question 1

Physical distribution decisions interact with which other marketing mix decisions?

Accepted Answer

A)  Price decisions 
B)  Promotion decisions 
C)  Product decisions 
D)  All of these marketing mix decisions interact with physical distribution decisions 
A)  Price decisions 
B)  Promotion decisions 
C)  Product decisions 
D)  All of these marketing mix decisions interact with physical distribution decisions

Question 2

Heavy, bulky goods requiring long distance movement are usually carried by railroads.

Accepted Answer

A) True 
 B)False

Question 3

Most physical distribution decisions involve trade-offs between

Accepted Answer

A)  the total cost of physical distribution and consumer service levels only. 
B)  transportation costs and inventory carrying costs only. 
C)  costs, consumer service levels, and sales. 
D)  sales and consumer service levels only. 
E)  availability and speed of delivery only. 
A)  the total cost of physical distribution and consumer service levels only. 
B)  transportation costs and inventory carrying costs only. 
C)  costs, consumer service levels, and sales. 
D)  sales and consumer service levels only. 
E)  availability and speed of delivery only.

Question 4

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

Accepted Answer

A)  Waterways usually provide the lowest cost way of shipping heavy freight. 
B)  Airways are quickest. 
C)  Pipelines offer reliability in moving oil and natural gas. 
D)  Trucks serve the most locations. 
E)  All of these statements are TRUE. 
A)  Waterways usually provide the lowest cost way of shipping heavy freight. 
B)  Airways are quickest. 
C)  Pipelines offer reliability in moving oil and natural gas. 
D)  Trucks serve the most locations. 
E)  All of these statements are TRUE.

Question 5

Every firm should try to use the just-in-time approach to physical distribution.

Accepted Answer

A) True 
 B)False

Question 6

Compared to public warehouses, PRIVATE warehouses:

Accepted Answer

A)  may have low unit costs if the volume is high. 
B)  are better if space will only be needed infrequently. 
C)  offer low fixed investments. 
D)  increase managerial flexibility. 
E)  All of these alternatives are correct. 
A)  may have low unit costs if the volume is high. 
B)  are better if space will only be needed infrequently. 
C)  offer low fixed investments. 
D)  increase managerial flexibility. 
E)  All of these alternatives are correct.

Question 7

The "total cost approach" to physical distribution management:

Accepted Answer

A)  seeks to eliminate the storing function. 
B)  seeks to minimize the cost of transportation. 
C)  might suggest a high-cost transporting mode if storing costs could be reduced enough to lower total distribution costs. 
D)  ignores inventory carrying costs. 
E)  All of these alternatives for the "total cost approach" are correct. 
A)  seeks to eliminate the storing function. 
B)  seeks to minimize the cost of transportation. 
C)  might suggest a high-cost transporting mode if storing costs could be reduced enough to lower total distribution costs. 
D)  ignores inventory carrying costs. 
E)  All of these alternatives for the "total cost approach" are correct.

Question 8

When both regrouping and storing are needed, a firm should add a distribution center.

Accepted Answer

A) True 
 B)False

Question 9

A channel of distribution is part of a supply chain.

Accepted Answer

A) True 
 B)False

Question 10

EDI was developed in response to which of the following problems?

Accepted Answer

A)  Firms using different transportation modes 
B)  International telecommunication difficulties 
C)  Differences in order fulfillment processes 
D)  Computer system differences among firms 
E)  Differences in product output and quality levels 
A)  Firms using different transportation modes 
B)  International telecommunication difficulties 
C)  Differences in order fulfillment processes 
D)  Computer system differences among firms 
E)  Differences in product output and quality levels

Question 11

A supply chain:

Accepted Answer

A)  is part of a broader network of relationships called a channel of distribution. 
B)  is most effective when the objectives of the manufacturer at the beginning of the chain guide the activities of all other firms in the chain. 
C)  requires skill in coordinating activities among different firms, and this has prompted many firms to seek help from outside experts. 
D)  focuses on procuring materials needed for production, so its main weakness is that it ignores customer needs. 
E)  concerns only direct relationships between producers, but a channel of distribution may involve intermediaries. 
A)  is part of a broader network of relationships called a channel of distribution. 
B)  is most effective when the objectives of the manufacturer at the beginning of the chain guide the activities of all other firms in the chain. 
C)  requires skill in coordinating activities among different firms, and this has prompted many firms to seek help from outside experts. 
D)  focuses on procuring materials needed for production, so its main weakness is that it ignores customer needs. 
E)  concerns only direct relationships between producers, but a channel of distribution may involve intermediaries.

Question 12

Better information flows make it easier to coordinate activities, improve efficiency, and add value for the customer.

Accepted Answer

A) True 
 B)False

Question 13

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.
To help in managing excess inventory, United Tools would most likely use:

Accepted Answer

A)  a private warehouse. 
B)  a public warehouse. 
C)  piggyback mode. 
D)  a distribution center. 
E)  all of these would help in managing excess inventory. 
A)  a private warehouse. 
B)  a public warehouse. 
C)  piggyback mode. 
D)  a distribution center. 
E)  all of these would help in managing excess inventory.

Question 14

In the U.S., trucks carry more freight over more miles than any other mode of transportation.

Accepted Answer

A) True 
 B)False

Question 15

For which of the following goods would air be the least useful mode of transportation?

Accepted Answer

A)  High-fashion clothing 
B)  Oil 
C)  Flower and bulbs from Holland 
D)  Emergency delivery of repair parts 
E)  Parts for the electronic industry 
A)  High-fashion clothing 
B)  Oil 
C)  Flower and bulbs from Holland 
D)  Emergency delivery of repair parts 
E)  Parts for the electronic industry

Question 16

"Logistics" is concerned with:

Accepted Answer

A)  reducing spatial separations between producers and consumers. 
B)  transporting, storing, and handling of physical goods along channel systems. 
C)  transporting, storing, and handling of physical goods within individual firms. 
D)  physical distribution. 
E)  All of these are included in Logistics. 
A)  reducing spatial separations between producers and consumers. 
B)  transporting, storing, and handling of physical goods along channel systems. 
C)  transporting, storing, and handling of physical goods within individual firms. 
D)  physical distribution. 
E)  All of these are included in Logistics.

Question 17

Each of the following types of activities is likely to occur at a distribution center EXCEPT:

Accepted Answer

A)  moving products to loading docks. 
B)  sorting of goods mid-shipment. 
C)  placing products on transport vehicles. 
D)  regrouping of products in transit. 
E)  long-term storage of inventory before shipping. 
A)  moving products to loading docks. 
B)  sorting of goods mid-shipment. 
C)  placing products on transport vehicles. 
D)  regrouping of products in transit. 
E)  long-term storage of inventory before shipping.

Question 18

All of the following are advantages of using trucks EXCEPT:

Accepted Answer

A)  flexibility. 
B)  fast delivery speed. 
C)  reliability in meeting delivery schedules. 
D)  handling a variety of goods. 
E)  serving a limited number of locations. 
A)  flexibility. 
B)  fast delivery speed. 
C)  reliability in meeting delivery schedules. 
D)  handling a variety of goods. 
E)  serving a limited number of locations.

Question 19

Using airfreight instead of some other mode of transporting may result in:

Accepted Answer

A)  lower packing costs. 
B)  lower total cost of distribution. 
C)  less damage in transit. 
D)  higher transporting costs. 
E)  All of these alternatives are correct. 
A)  lower packing costs. 
B)  lower total cost of distribution. 
C)  less damage in transit. 
D)  higher transporting costs. 
E)  All of these alternatives are correct.

Question 20

The physical distribution concept is based on the idea that selecting the lowest cost transporting alternative and the lowest cost storing alternative will result in the lowest total distribution cost.

Accepted Answer

A) True 
 B)False

Physical distribution decisions interact with which other marketing mix decisions?

Heavy, bulky goods requiring long distance movement are usually carried by railroads.

Most physical distribution decisions involve trade-offs between

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

Every firm should try to use the just-in-time approach to physical distribution.

Compared to public warehouses, PRIVATE warehouses:

The "total cost approach" to physical distribution management:

When both regrouping and storing are needed, a firm should add a distribution center.

A channel of distribution is part of a supply chain.

EDI was developed in response to which of the following problems?

A supply chain:

Better information flows make it easier to coordinate activities, improve efficiency, and add value for the customer.

In the U.S., trucks carry more freight over more miles than any other mode of transportation.

For which of the following goods would air be the least useful mode of transportation?

"Logistics" is concerned with:

Each of the following types of activities is likely to occur at a distribution center EXCEPT:

All of the following are advantages of using trucks EXCEPT:

Using airfreight instead of some other mode of transporting may result in:

The physical distribution concept is based on the idea that selecting the lowest cost transporting alternative and the lowest cost storing alternative will result in the lowest total distribution cost.

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

Physical distribution decisions interact with which other marketing mix decisions?

Heavy, bulky goods requiring long distance movement are usually carried by railroads.

Most physical distribution decisions involve trade-offs between

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

Every firm should try to use the just-in-time approach to physical distribution.

Compared to public warehouses, PRIVATE warehouses:

The "total cost approach" to physical distribution management:

When both regrouping and storing are needed, a firm should add a distribution center.

A channel of distribution is part of a supply chain.

EDI was developed in response to which of the following problems?

A supply chain:

Better information flows make it easier to coordinate activities, improve efficiency, and add value for the customer.

In the U.S., trucks carry more freight over more miles than any other mode of transportation.

For which of the following goods would air be the least useful mode of transportation?

"Logistics" is concerned with:

Each of the following types of activities is likely to occur at a distribution center EXCEPT:

All of the following are advantages of using trucks EXCEPT:

Using airfreight instead of some other mode of transporting may result in:

The physical distribution concept is based on the idea that selecting the lowest cost transporting alternative and the lowest cost storing alternative will result in the lowest total distribution cost.

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