Question 1

As a mode of transportation, railroad freight would be least suited for

Accepted Answer

A)  iron ore. 
B)  sand. 
C)  fresh fruit. 
D)  automobiles. 
E)  coal. 
A)  iron ore. 
B)  sand. 
C)  fresh fruit. 
D)  automobiles. 
E)  coal.

Question 2

Regarding a "chain of supply":

Accepted Answer

A)  All of the firms in the chain of supply should work together to meet the needs of the customer at the end of the chain. 
B)  Logistics functions are not shifted or shared among the firms in the chain of supply. 
C)  Firms never outsource the whole job of planning and implementing their logistics systems. 
D)  It always includes at least two channels of distribution. 
E)  None of these alternatives about "chain of supply" is correct. 
A)  All of the firms in the chain of supply should work together to meet the needs of the customer at the end of the chain. 
B)  Logistics functions are not shifted or shared among the firms in the chain of supply. 
C)  Firms never outsource the whole job of planning and implementing their logistics systems. 
D)  It always includes at least two channels of distribution. 
E)  None of these alternatives about "chain of supply" is correct.

Question 3

The "total cost approach" to physical distribution focuses exclusively on the total cost of transporting a product.

Accepted Answer

A) True 
 B)False

Question 4

The main function of a "distribution center" is to speed the flow of goods and avoid unnecessary storage.

Accepted Answer

A) True 
 B)False

Question 5

The "supply chain" concept refers to the idea that distribution can usually be reduced if the firm that is the "weakest link" in the channel of distribution is eliminated.

Accepted Answer

A) True 
 B)False

Question 6

Logistics focuses on the handling of goods along a channel of distribution but not within individual firms.

Accepted Answer

A) True 
 B)False

Question 7

The total cost approach involves evaluating each possible PD system and identifying all the transportation costs associated with each alternative.

Accepted Answer

A) True 
 B)False

Question 8

Chrysler manufactures cars in Detroit and loads them on truck trailers at the factory. Burlington Northern Santa Fe (BNSF) picks up the truck trailers, loads them on specially designed rail flatcars, and ships them to St. Louis. There they are delivered by truck to local dealers. This transportation process is:

Accepted Answer

A)  containerization. 
B)  multilevel. 
C)  layered. 
D)  piggyback. 
E)  disjointed. 
A)  containerization. 
B)  multilevel. 
C)  layered. 
D)  piggyback. 
E)  disjointed.

Question 9

Logistics decisions include all of the following except:

Accepted Answer

A)  distribution service level. 
B)  transporting of goods. 
C)  handling of goods. 
D)  prices to charge for delivery. 
E)  storage of goods. 
A)  distribution service level. 
B)  transporting of goods. 
C)  handling of goods. 
D)  prices to charge for delivery. 
E)  storage of goods.

Question 10

Electronic data interchange is important in business markets in the U.S., but it plays little role in international trade.

Accepted Answer

A) True 
 B)False

Question 11

Private warehouses (compared to public warehouses) are most appropriate when a firm has a regular need to store a large quantity of goods.

Accepted Answer

A) True 
 B)False

Question 12

Electronic data interchange (EDI):

Accepted Answer

A)  Puts information in a standardized format that can be shared between different computer systems. 
B)  Improves information flow between buyers and suppliers. 
C)  Allow customers to transmit orders directly to a supplier's computer. 
D)  Replaces many of the paper documents previously used for purchase orders and shipping reports. 
E)  All of these alternatives about EDI are correct. 
A)  Puts information in a standardized format that can be shared between different computer systems. 
B)  Improves information flow between buyers and suppliers. 
C)  Allow customers to transmit orders directly to a supplier's computer. 
D)  Replaces many of the paper documents previously used for purchase orders and shipping reports. 
E)  All of these alternatives about EDI are correct.

Question 13

Physical distribution decisions may impact

Accepted Answer

A)  location decisions. 
B)  target market selection. 
C)  price decisions. 
D)  channel of distribution decisions. 
E)  physical distribution decisions may impact all of these. 
A)  location decisions. 
B)  target market selection. 
C)  price decisions. 
D)  channel of distribution decisions. 
E)  physical distribution decisions may impact all of these.

Question 14

Transporting costs usually add relatively little to the cost of valuable products.

Accepted Answer

A) True 
 B)False

Question 15

A tire manufacturer currently produces tires in small quantities as they are ordered. The company learns that it can reduce costs significantly by producing one type of tire at a time in large quantities and storing its unsold tires for later sale. Should the company switch to large quantity production?

Accepted Answer

A)  No, because this will prevent the company from providing tires as they are ordered. 
B)  No, because this will cause the company to incur unexpected transportation costs. 
C)  Only if the economies of scale in production are greater than the additional inventory carrying cost. 
D)  Yes, because this will allow the company to utilize JIT delivery systems. 
E)  Yes, because this will enable the company to improve its production speed per tire. 
A)  No, because this will prevent the company from providing tires as they are ordered. 
B)  No, because this will cause the company to incur unexpected transportation costs. 
C)  Only if the economies of scale in production are greater than the additional inventory carrying cost. 
D)  Yes, because this will allow the company to utilize JIT delivery systems. 
E)  Yes, because this will enable the company to improve its production speed per tire.

Question 16

The physical distribution concept focuses on lower costs and better service to increase customer value.

Accepted Answer

A) True 
 B)False

Question 17

The physical distribution concept says (or implies) that:

Accepted Answer

A)  transporting, storing, and product-handling are unrelated activities for cost control. 
B)  the best distribution system is the lowest cost one. 
C)  a firm should seek to minimize the total cost of transporting, storing, and product-handling-for a given level of customer service. 
D)  if the transporting department minimizes its costs and the storing department minimizes its costs and the product-handling department minimizes its costs-then the total cost of physical distribution will be minimized. 
E)  None of these alternatives is correct. 
A)  transporting, storing, and product-handling are unrelated activities for cost control. 
B)  the best distribution system is the lowest cost one. 
C)  a firm should seek to minimize the total cost of transporting, storing, and product-handling-for a given level of customer service. 
D)  if the transporting department minimizes its costs and the storing department minimizes its costs and the product-handling department minimizes its costs-then the total cost of physical distribution will be minimized. 
E)  None of these alternatives is correct.

Question 18

The best transporting mode is the one that provides the required level of service at the lowest cost.

Accepted Answer

A) True 
 B)False

Question 19

Storing of goods is necessary when

Accepted Answer

A)  there is more demand and no supply. 
B)  quality doesn't match demand. 
C)  production doesn't match consumption. 
D)  production doesn't match quality demanded. 
E)  products are produced in small batches. 
A)  there is more demand and no supply. 
B)  quality doesn't match demand. 
C)  production doesn't match consumption. 
D)  production doesn't match quality demanded. 
E)  products are produced in small batches.

Question 20

How PD functions are shared will have the greatest effect on which of the other three Ps?

Accepted Answer

A)  Price decisions. 
B)  Promotion decisions. 
C)  Product decisions. 
D)  Positioning decisions. 
E)  People decisions. 
A)  Price decisions. 
B)  Promotion decisions. 
C)  Product decisions. 
D)  Positioning decisions. 
E)  People decisions.

As a mode of transportation, railroad freight would be least suited for

Regarding a "chain of supply":

The "total cost approach" to physical distribution focuses exclusively on the total cost of transporting a product.

The main function of a "distribution center" is to speed the flow of goods and avoid unnecessary storage.

The "supply chain" concept refers to the idea that distribution can usually be reduced if the firm that is the "weakest link" in the channel of distribution is eliminated.

Logistics focuses on the handling of goods along a channel of distribution but not within individual firms.

The total cost approach involves evaluating each possible PD system and identifying all the transportation costs associated with each alternative.

Logistics decisions include all of the following except:

Electronic data interchange is important in business markets in the U.S., but it plays little role in international trade.

Private warehouses (compared to public warehouses) are most appropriate when a firm has a regular need to store a large quantity of goods.

Electronic data interchange (EDI):

Physical distribution decisions may impact

Transporting costs usually add relatively little to the cost of valuable products.

The physical distribution concept focuses on lower costs and better service to increase customer value.

The physical distribution concept says (or implies) that:

The best transporting mode is the one that provides the required level of service at the lowest cost.

Storing of goods is necessary when

How PD functions are shared will have the greatest effect on which of the other three Ps?

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

As a mode of transportation, railroad freight would be least suited for

Regarding a "chain of supply":

The "total cost approach" to physical distribution focuses exclusively on the total cost of transporting a product.

The main function of a "distribution center" is to speed the flow of goods and avoid unnecessary storage.

The "supply chain" concept refers to the idea that distribution can usually be reduced if the firm that is the "weakest link" in the channel of distribution is eliminated.

Logistics focuses on the handling of goods along a channel of distribution but not within individual firms.

The total cost approach involves evaluating each possible PD system and identifying all the transportation costs associated with each alternative.

Logistics decisions include all of the following except:

Electronic data interchange is important in business markets in the U.S., but it plays little role in international trade.

Private warehouses (compared to public warehouses) are most appropriate when a firm has a regular need to store a large quantity of goods.

Electronic data interchange (EDI):

Physical distribution decisions may impact

Transporting costs usually add relatively little to the cost of valuable products.

The physical distribution concept focuses on lower costs and better service to increase customer value.

The physical distribution concept says (or implies) that:

The best transporting mode is the one that provides the required level of service at the lowest cost.

Storing of goods is necessary when

How PD functions are shared will have the greatest effect on which of the other three Ps?

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