Question 1

In countries where physical distribution systems are inefficient, consumers face shortages of the products they need.

Accepted Answer

A) True 
 B)False

Question 2

Loading truck trailers on railcars for shipment closer to the trucks' destination points is called "piggyback service."

Accepted Answer

A) True 
 B)False

Question 3

Information technology involves a trade-off because it cannot improve service levels and cut costs at the same time.

Accepted Answer

A) True 
 B)False

Question 4

Air express companies place many small packages into specially designed cylinders that conform to the interior dimensions of a cargo airplane. This practice protects the smaller packages and helps to reduce distribution costs. The air express companies are practicing:

Accepted Answer

A)  containerization. 
B)  piggybacking. 
C)  freight forwarding. 
D)  cylinderization. 
E)  None of these choices is correct. 
A)  containerization. 
B)  piggybacking. 
C)  freight forwarding. 
D)  cylinderization. 
E)  None of these choices is correct.

Question 5

Transporting choices in developing countries are usually fewer in number, but cost more.

Accepted Answer

A) True 
 B)False

Question 6

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.
As marketing manager, United's Terry Harter should realize that:

Accepted Answer

A)  transporting costs may limit her choice of target markets. 
B)  a supply chain can only consist of one distribution channel. 
C)  the lowest cost distribution system is the best alternative. 
D)  none of these alternatives is correct. 
A)  transporting costs may limit her choice of target markets. 
B)  a supply chain can only consist of one distribution channel. 
C)  the lowest cost distribution system is the best alternative. 
D)  none of these alternatives is correct.

Question 7

Good marketing strategy planners know that:

Accepted Answer

A)  transporting costs may limit a marketing manager's possible target markets. 
B)  the transporting costs for some bulky or low-value products may be greater than their manufacturing costs. 
C)  transporting is vital for mass distribution and modern urban life. 
D)  the cost of shipping some "high-value" products to users is less than 5 percent of their selling prices. 
E)  All of these alternatives are correct. 
A)  transporting costs may limit a marketing manager's possible target markets. 
B)  the transporting costs for some bulky or low-value products may be greater than their manufacturing costs. 
C)  transporting is vital for mass distribution and modern urban life. 
D)  the cost of shipping some "high-value" products to users is less than 5 percent of their selling prices. 
E)  All of these alternatives are correct.

Question 8

Shipping by air

Accepted Answer

A)  is most useful for smaller, high-value items. 
B)  generally increases handling costs. 
C)  is generally the most economical transportation method. 
D)  generally increases storing costs. 
E)  none of these alternatives is correct for shipping by air. 
A)  is most useful for smaller, high-value items. 
B)  generally increases handling costs. 
C)  is generally the most economical transportation method. 
D)  generally increases storing costs. 
E)  none of these alternatives is correct for shipping by air.

Question 9

Piggyback service means

Accepted Answer

A)  loading truck trailers on railcars to increase flexibility. 
B)  linking truck trailers to save fuel. 
C)  providing door-to-door service in cities. 
D)  special handling of important farm equipment. 
E)  combining small shipments of many shippers into more economical quantities. 
A)  loading truck trailers on railcars to increase flexibility. 
B)  linking truck trailers to save fuel. 
C)  providing door-to-door service in cities. 
D)  special handling of important farm equipment. 
E)  combining small shipments of many shippers into more economical quantities.

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's shipments to international markets often rely on containerization. The likely reason for this is that

Accepted Answer

A)  the tools are shipped by airfreight. 
B)  it makes it easier to move shipments between different transportation modes. 
C)  containerization is very useful for small, frequent shipments. 
D)  containerization allows a firm to carry less inventory. 
E)  all of these are benefits of containerization. 
A)  the tools are shipped by airfreight. 
B)  it makes it easier to move shipments between different transportation modes. 
C)  containerization is very useful for small, frequent shipments. 
D)  containerization allows a firm to carry less inventory. 
E)  all of these are benefits of containerization.

Question 11

Which of the following has played a role in increasing competition within the transportation industry in the U.S.?

Accepted Answer

A)  Increasing costs of PD overall 
B)  Increasing costs of product storage 
C)  Increasing costs of transportation 
D)  Decreasing governmental regulations 
E)  Decreasing role of technology 
A)  Increasing costs of PD overall 
B)  Increasing costs of product storage 
C)  Increasing costs of transportation 
D)  Decreasing governmental regulations 
E)  Decreasing role of technology

Question 12

Low transporting cost is not the only criterion for selecting the best mode of transportation.

Accepted Answer

A) True 
 B)False

Question 13

The term "supply chain" can be misleading because the chain typically involves only two firms: a vendor (selling firm) and a customer (buying firm).

Accepted Answer

A) True 
 B)False

Question 14

Most ethical issues in the area of physical distribution are concerned with:

Accepted Answer

A)  new-product development 
B)  product availability 
C)  location of retail stores 
D)  planned obsolescence of products 
E)  channel conflict 
A)  new-product development 
B)  product availability 
C)  location of retail stores 
D)  planned obsolescence of products 
E)  channel conflict

Question 15

Sysco is a good example of a company that uses technology to make its distribution centers more efficient.

Accepted Answer

A) True 
 B)False

Question 16

After evaluating all of its alternatives and the costs of each, Vegpro Kenya decided the most efficient way to quickly get its fresh vegetables from Nairobi to European cities was to use air freight. What approach did it use in making this decision?

Accepted Answer

A)  Diagonal 
B)  Total cost 
C)  Piggyback 
D)  EDI 
E)  Layered 
A)  Diagonal 
B)  Total cost 
C)  Piggyback 
D)  EDI 
E)  Layered

Question 17

When planning physical distribution, the marketing manager should:

Accepted Answer

A)  set the customer service level so that every customer can get the product exactly when he wants it. 
B)  minimize the cost of distribution for a given customer service level. 
C)  minimize the cost of transportation. 
D)  maximize the speed of delivery. 
E)  make use of a distribution center. 
A)  set the customer service level so that every customer can get the product exactly when he wants it. 
B)  minimize the cost of distribution for a given customer service level. 
C)  minimize the cost of transportation. 
D)  maximize the speed of delivery. 
E)  make use of a distribution center.

Question 18

It is usually most economical to ship bulky nonperishable items, such as coal and iron ore, by

Accepted Answer

A)  water. 
B)  pipeline. 
C)  truck. 
D)  air. 
E)  None of these is a good answer, since the cost of shipping a product usually does not vary from one mode to another. 
A)  water. 
B)  pipeline. 
C)  truck. 
D)  air. 
E)  None of these is a good answer, since the cost of shipping a product usually does not vary from one mode to another.

Question 19

Transport costs represent a significant part of the cost of products that are already valuable relative to their size and weight.

Accepted Answer

A) True 
 B)False

Question 20

A channel of distribution for a product involves more firms than a supply chain for the same product.

Accepted Answer

A) True 
 B)False

In countries where physical distribution systems are inefficient, consumers face shortages of the products they need.

Loading truck trailers on railcars for shipment closer to the trucks' destination points is called "piggyback service."

Information technology involves a trade-off because it cannot improve service levels and cut costs at the same time.

Air express companies place many small packages into specially designed cylinders that conform to the interior dimensions of a cargo airplane. This practice protects the smaller packages and helps to reduce distribution costs. The air express companies are practicing:

Transporting choices in developing countries are usually fewer in number, but cost more.

Good marketing strategy planners know that:

Shipping by air

Piggyback service means

Which of the following has played a role in increasing competition within the transportation industry in the U.S.?

Low transporting cost is not the only criterion for selecting the best mode of transportation.

The term "supply chain" can be misleading because the chain typically involves only two firms: a vendor (selling firm) and a customer (buying firm).

Most ethical issues in the area of physical distribution are concerned with:

Sysco is a good example of a company that uses technology to make its distribution centers more efficient.

After evaluating all of its alternatives and the costs of each, Vegpro Kenya decided the most efficient way to quickly get its fresh vegetables from Nairobi to European cities was to use air freight. What approach did it use in making this decision?

When planning physical distribution, the marketing manager should:

It is usually most economical to ship bulky nonperishable items, such as coal and iron ore, by

Transport costs represent a significant part of the cost of products that are already valuable relative to their size and weight.

A channel of distribution for a product involves more firms than a supply chain for the same product.

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

In countries where physical distribution systems are inefficient, consumers face shortages of the products they need.

Loading truck trailers on railcars for shipment closer to the trucks' destination points is called "piggyback service."

Information technology involves a trade-off because it cannot improve service levels and cut costs at the same time.

Air express companies place many small packages into specially designed cylinders that conform to the interior dimensions of a cargo airplane. This practice protects the smaller packages and helps to reduce distribution costs. The air express companies are practicing:

Transporting choices in developing countries are usually fewer in number, but cost more.

Good marketing strategy planners know that:

Shipping by air

Piggyback service means

Which of the following has played a role in increasing competition within the transportation industry in the U.S.?

Low transporting cost is not the only criterion for selecting the best mode of transportation.

The term "supply chain" can be misleading because the chain typically involves only two firms: a vendor (selling firm) and a customer (buying firm).

Most ethical issues in the area of physical distribution are concerned with:

Sysco is a good example of a company that uses technology to make its distribution centers more efficient.

After evaluating all of its alternatives and the costs of each, Vegpro Kenya decided the most efficient way to quickly get its fresh vegetables from Nairobi to European cities was to use air freight. What approach did it use in making this decision?

When planning physical distribution, the marketing manager should:

It is usually most economical to ship bulky nonperishable items, such as coal and iron ore, by

Transport costs represent a significant part of the cost of products that are already valuable relative to their size and weight.

A channel of distribution for a product involves more firms than a supply chain for the same product.

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