Question 1

Advance information on product availability affects physical distribution (PD) service levels.

Accepted Answer

A) True 
 B)False

Question 2

Alex has to transport iron ore from New Orleans to Memphis. Which mode of transport is he more likely to use?

Accepted Answer

A)  Airways 
B)  Truck 
C)  Railroad 
D)  Inland waterways 
E)  Monorail 
A)  Airways 
B)  Truck 
C)  Railroad 
D)  Inland waterways 
E)  Monorail

Question 3

Which of the following does NOT contribute to total inventory cost?

Accepted Answer

A)  Costs of damage to products while in inventory 
B)  Costs of risks such as theft and fire 
C)  Costs of inventory becoming obsolete 
D)  Increase in the value of goods 
E)  Handling costs 
A)  Costs of damage to products while in inventory 
B)  Costs of risks such as theft and fire 
C)  Costs of inventory becoming obsolete 
D)  Increase in the value of goods 
E)  Handling costs

Question 4

A(n) _____ is a special kind of warehouse designed to speed the flow of goods and avoid unnecessary storing costs.

Accepted Answer

A)  gateway for inventory 
B)  RFID warehouse 
C)  UPC storage facility 
D)  distribution center 
E)  shopping mall 
A)  gateway for inventory 
B)  RFID warehouse 
C)  UPC storage facility 
D)  distribution center 
E)  shopping mall

Question 5

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.
It appears that United Tools:

Accepted Answer

A)  is implementing the physical distribution concept. 
B)  works to provide just-in-time delivery to both of its wholesalers. 
C)  needs to buy its own fleet of trucks. 
D)  uses the distribution system with the lowest transportation cost. 
E)  all of these alternatives are logical. 
A)  is implementing the physical distribution concept. 
B)  works to provide just-in-time delivery to both of its wholesalers. 
C)  needs to buy its own fleet of trucks. 
D)  uses the distribution system with the lowest transportation cost. 
E)  all of these alternatives are logical.

Question 6

Why would Coca-Cola want to encourage its customers to store product in their homes?

Accepted Answer

A)  More of the product is used or consumed 
B)  The sales price of the product decreases 
C)  Shipping time to transport the product is reduced 
D)  Manufacturing time to produce the product is reduced 
E)  Shipping costs to transport the product are reduced 
A)  More of the product is used or consumed 
B)  The sales price of the product decreases 
C)  Shipping time to transport the product is reduced 
D)  Manufacturing time to produce the product is reduced 
E)  Shipping costs to transport the product are reduced

Question 7

As a percentage of GDP, which of the following most likely characterizes logistic costs incurred in developing economies in Africa?

Accepted Answer

A)  Less than 9 percent 
B)  9 to 12 percent 
C)  Approximately 12 percent 
D)  Approximately 15 percent 
E)  25 to 30 percent 
A)  Less than 9 percent 
B)  9 to 12 percent 
C)  Approximately 12 percent 
D)  Approximately 15 percent 
E)  25 to 30 percent

Question 8

A "supply chain" is the same thing as a "channel of distribution."

Accepted Answer

A) True 
 B)False

Question 9

Considering weight, which one of the following transporting modes usually has the LOWEST cost?

Accepted Answer

A)  Waterways 
B)  Airways 
C)  Trucks 
D)  Railroads 
E)  Pipelines 
A)  Waterways 
B)  Airways 
C)  Trucks 
D)  Railroads 
E)  Pipelines

Question 10

Regarding airfreight, which of the following statements is NOT true?

Accepted Answer

A)  Airfreight may reduce the total cost of distribution. 
B)  Inventory costs usually increase, since only small quantities can be shipped at a time. 
C)  Very bulky items cannot be shipped economically. 
D)  Airfreight is opening up new markets for many perishable items. 
E)  There are usually fewer problems from theft and damage with airfreight. 
A)  Airfreight may reduce the total cost of distribution. 
B)  Inventory costs usually increase, since only small quantities can be shipped at a time. 
C)  Very bulky items cannot be shipped economically. 
D)  Airfreight is opening up new markets for many perishable items. 
E)  There are usually fewer problems from theft and damage with airfreight.

Question 11

Just-in-time delivery systems typically shift more responsibility for PD activities to the customer rather than the supplier.

Accepted Answer

A) True 
 B)False

Question 12

Physical distribution is the part of marketing that is visible to most customers.

Accepted Answer

A) True 
 B)False

Question 13

Physical distribution customer service level means all of the following EXCEPT:

Accepted Answer

A)  Honda wants enough bumpers to build cars that day. 
B)  A vacationer wants Avis to have his rental car clean and ready when he arrives at the rental car counter. 
C)  Sears' shirts are priced at a fair value. 
D)  McDonald's has enough large cups so that customers can buy the larger size drinks which are on sale. 
E)  Safeway's loaves of bread are in stock-and not crushed-when customers want them. 
A)  Honda wants enough bumpers to build cars that day. 
B)  A vacationer wants Avis to have his rental car clean and ready when he arrives at the rental car counter. 
C)  Sears' shirts are priced at a fair value. 
D)  McDonald's has enough large cups so that customers can buy the larger size drinks which are on sale. 
E)  Safeway's loaves of bread are in stock-and not crushed-when customers want them.

Question 14

Storing:

Accepted Answer

A)  costs include the costs of damage, theft, and reduced value if products get out-of-date. 
B)  costs can be reduced in the channel if suppliers are reliable about meeting delivery schedules. 
C)  too few products is likely to reduce a firm's costs, sales, and profits. 
D)  decisions are more difficult to make when demand is irregular. 
E)  All of these alternatives about storing are true. 
A)  costs include the costs of damage, theft, and reduced value if products get out-of-date. 
B)  costs can be reduced in the channel if suppliers are reliable about meeting delivery schedules. 
C)  too few products is likely to reduce a firm's costs, sales, and profits. 
D)  decisions are more difficult to make when demand is irregular. 
E)  All of these alternatives about storing are true.

Advance information on product availability affects physical distribution (PD) service levels.

Alex has to transport iron ore from New Orleans to Memphis. Which mode of transport is he more likely to use?

Which of the following does NOT contribute to total inventory cost?

A(n) _____ is a special kind of warehouse designed to speed the flow of goods and avoid unnecessary storing costs.

Why would Coca-Cola want to encourage its customers to store product in their homes?

As a percentage of GDP, which of the following most likely characterizes logistic costs incurred in developing economies in Africa?

A "supply chain" is the same thing as a "channel of distribution."

Considering weight, which one of the following transporting modes usually has the LOWEST cost?

Regarding airfreight, which of the following statements is NOT true?

Just-in-time delivery systems typically shift more responsibility for PD activities to the customer rather than the supplier.

Physical distribution is the part of marketing that is visible to most customers.

Physical distribution customer service level means all of the following EXCEPT:

Storing:

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

Advance information on product availability affects physical distribution (PD) service levels.

Alex has to transport iron ore from New Orleans to Memphis. Which mode of transport is he more likely to use?

Which of the following does NOT contribute to total inventory cost?

A(n) _____ is a special kind of warehouse designed to speed the flow of goods and avoid unnecessary storing costs.

Why would Coca-Cola want to encourage its customers to store product in their homes?

As a percentage of GDP, which of the following most likely characterizes logistic costs incurred in developing economies in Africa?

A "supply chain" is the same thing as a "channel of distribution."

Considering weight, which one of the following transporting modes usually has the LOWEST cost?

Regarding airfreight, which of the following statements is NOT true?

Just-in-time delivery systems typically shift more responsibility for PD activities to the customer rather than the supplier.

Physical distribution is the part of marketing that is visible to most customers.

Physical distribution customer service level means all of the following EXCEPT:

Storing:

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