Question 1

The right physical distribution system should be based primarily on

Accepted Answer

A)  the desired customer service level. 
B)  how customers store the product. 
C)  the physical characteristics of the product. 
D)  what is the lowest cost method of transportation for the product. 
E)  the inventory level that allows the smoothest production runs. 
A)  the desired customer service level. 
B)  how customers store the product. 
C)  the physical characteristics of the product. 
D)  what is the lowest cost method of transportation for the product. 
E)  the inventory level that allows the smoothest production runs.

Question 2

Transporting cost as a percentage of selling price is lowest for:

Accepted Answer

A)  sand 
B)  factory machinery 
C)  pharmaceuticals 
D)  chemicals 
E)  cabbage 
A)  sand 
B)  factory machinery 
C)  pharmaceuticals 
D)  chemicals 
E)  cabbage

Question 3

For short distances and higher-value products, trucks may charge higher rates, but provide slower service.

Accepted Answer

A) True 
 B)False

Question 4

In spite of high cost, high value, low-weight goods like high-fashion clothing and parts for the electronic industry are often shipped long distances by ____

Accepted Answer

A)  rail. 
B)  water. 
C)  air. 
D)  pipeline. 
E)  truck. 
A)  rail. 
B)  water. 
C)  air. 
D)  pipeline. 
E)  truck.

Question 5

The challenges of coordinating logistics functions in a supply chain has led to less sharing of information over the Internet and at websites.

Accepted Answer

A) True 
 B)False

Question 6

Considering weight, the most expensive transporting mode is:

Accepted Answer

A)  pipelines. 
B)  railroads. 
C)  trucks. 
D)  inland waterways. 
E)  airfreight. 
A)  pipelines. 
B)  railroads. 
C)  trucks. 
D)  inland waterways. 
E)  airfreight.

Question 7

Airfreight

Accepted Answer

A)  has rates one third the rates of trucks. 
B)  efficiently delivers all types of goods. 
C)  serves many more locations than trucks. 
D)  can reduce the cost of preparing goods for distribution. 
E)  can help reduce inventory costs. 
A)  has rates one third the rates of trucks. 
B)  efficiently delivers all types of goods. 
C)  serves many more locations than trucks. 
D)  can reduce the cost of preparing goods for distribution. 
E)  can help reduce inventory costs.

Question 8

Which of the following is an example of a JIT system shifting responsibility for PD activities backward in a distribution channel?

Accepted Answer

A)  A paint supplier is highly efficient at controlling logistics costs. Products are distributed at a high customer service level. 
B)  An ice cream chain makes its own ice cream at each of its retail sites. Its customers are highly pleased with the product. 
C)  A wholesale appliance distributer is inefficient at controlling logistics costs. It develops a reputation for low customer service levels. 
D)  A book retailer is more efficient than its suppliers at controlling PD costs. Products are distributed at an acceptable customer service level. 
E)  An automotive parts supplier is less efficient than its retail customers at controlling logistics costs. Products are distributed at a high customer service level. 
A)  A paint supplier is highly efficient at controlling logistics costs. Products are distributed at a high customer service level. 
B)  An ice cream chain makes its own ice cream at each of its retail sites. Its customers are highly pleased with the product. 
C)  A wholesale appliance distributer is inefficient at controlling logistics costs. It develops a reputation for low customer service levels. 
D)  A book retailer is more efficient than its suppliers at controlling PD costs. Products are distributed at an acceptable customer service level. 
E)  An automotive parts supplier is less efficient than its retail customers at controlling logistics costs. Products are distributed at a high customer service level.

Question 9

_____ as a mode of transport serves a very limited number of locations but has a high dependability in meeting schedules.

Accepted Answer

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

Question 10

The physical distribution ________________________ is how rapidly and dependably a firm can deliver merchandise in demand through the appropriate channels.

Accepted Answer

A)  product service level 
B)  trade-offs service level 
C)  customer service level 
D)  standard service level 
E)  efficiency service level 
A)  product service level 
B)  trade-offs service level 
C)  customer service level 
D)  standard service level 
E)  efficiency service level

Question 11

When a supplier's computer automatically processes an online order from a customer, schedules production activities for the order, and then sets up delivery of the finished product to the customer, what approach is being used?

Accepted Answer

A)  Piggyback 
B)  EDI 
C)  Containerization 
D)  JIT 
E)  Contractual 
A)  Piggyback 
B)  EDI 
C)  Containerization 
D)  JIT 
E)  Contractual

Question 12

Regarding alternative transporting modes:

Accepted Answer

A)  trucks are good for speed, frequency, dependability, and number of locations served. 
B)  pipelines are slower and less dependable than water transport, but also less expensive and able to serve more locations. 
C)  airways are faster, cheaper, and more dependable than railways. 
D)  waterways are slow, costly, and unable to handle a variety of shipments. 
A)  trucks are good for speed, frequency, dependability, and number of locations served. 
B)  pipelines are slower and less dependable than water transport, but also less expensive and able to serve more locations. 
C)  airways are faster, cheaper, and more dependable than railways. 
D)  waterways are slow, costly, and unable to handle a variety of shipments.

Question 13

The best way to ship a heavy product like iron ore from St. Louis, Missouri, to New Orleans, Louisiana, in the Spring season with no arrival deadline is to use:

Accepted Answer

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

Question 14

A cheese processor having regular need for regional storage of a large quantity of cheese probably should use ______________ warehouses.

Accepted Answer

A)  public 
B)  private 
C)  general merchandise 
D)  commodity 
A)  public 
B)  private 
C)  general merchandise 
D)  commodity

Question 15

About what percentage of the cost of hospital supplies in the U.S. are a result of logistics?

Accepted Answer

A)  15 percent 
B)  20 percent 
C)  25 percent 
D)  33 percent 
E)  40 percent 
A)  15 percent 
B)  20 percent 
C)  25 percent 
D)  33 percent 
E)  40 percent

Question 16

Distribution centers:

Accepted Answer

A)  are designed to facilitate the flow of products through the channel. 
B)  are the same as public warehouses. 
C)  are not places where regrouping activities-such as bulk-breaking-are performed. 
D)  increase storing costs. 
E)  are designed to eliminate all storage. 
A)  are designed to facilitate the flow of products through the channel. 
B)  are the same as public warehouses. 
C)  are not places where regrouping activities-such as bulk-breaking-are performed. 
D)  increase storing costs. 
E)  are designed to eliminate all storage.

Question 17

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.
In designing the right physical distribution system, United Tools should primarily focus on:

Accepted Answer

A)  the inventory level that its current warehouse can support. 
B)  the lowest cost transportation method for each of its products. 
C)  where customers store their inventory. 
D)  the desired customer service level. 
E)  the physical characteristics of each product. 
A)  the inventory level that its current warehouse can support. 
B)  the lowest cost transportation method for each of its products. 
C)  where customers store their inventory. 
D)  the desired customer service level. 
E)  the physical characteristics of each product.

Question 18

In which of the following places would logistics costs be most likely to run between 9 and 15 percent of GDP?

Accepted Answer

A)  Uganda 
B)  Brazil 
C)  United Kingdom 
D)  Zimbabwe 
E)  Argentina 
A)  Uganda 
B)  Brazil 
C)  United Kingdom 
D)  Zimbabwe 
E)  Argentina

Question 19

There are big shifts in demand from season to season for the lawn mowers produced by GreenVision Co.- and its need for storage facilities also varies. GreenVision should think about using:

Accepted Answer

A)  piggyback service. 
B)  private warehousing facilities. 
C)  distribution centers. 
D)  public warehousing facilities. 
E)  None of these is a good answer. 
A)  piggyback service. 
B)  private warehousing facilities. 
C)  distribution centers. 
D)  public warehousing facilities. 
E)  None of these is a good answer.

Question 20

Transporting by water:

Accepted Answer

A)  is the fastest transporting mode. 
B)  is the least expensive transporting mode for heavy freight. 
C)  is only important for international transportation. 
D)  is especially useful for lightweight goods. 
E)  None of these alternatives is correct. 
A)  is the fastest transporting mode. 
B)  is the least expensive transporting mode for heavy freight. 
C)  is only important for international transportation. 
D)  is especially useful for lightweight goods. 
E)  None of these alternatives is correct.

The right physical distribution system should be based primarily on

Transporting cost as a percentage of selling price is lowest for:

For short distances and higher-value products, trucks may charge higher rates, but provide slower service.

In spite of high cost, high value, low-weight goods like high-fashion clothing and parts for the electronic industry are often shipped long distances by ____

The challenges of coordinating logistics functions in a supply chain has led to less sharing of information over the Internet and at websites.

Considering weight, the most expensive transporting mode is:

Airfreight

Which of the following is an example of a JIT system shifting responsibility for PD activities backward in a distribution channel?

_____ as a mode of transport serves a very limited number of locations but has a high dependability in meeting schedules.

The physical distribution ________________________ is how rapidly and dependably a firm can deliver merchandise in demand through the appropriate channels.

When a supplier's computer automatically processes an online order from a customer, schedules production activities for the order, and then sets up delivery of the finished product to the customer, what approach is being used?

Regarding alternative transporting modes:

The best way to ship a heavy product like iron ore from St. Louis, Missouri, to New Orleans, Louisiana, in the Spring season with no arrival deadline is to use:

A cheese processor having regular need for regional storage of a large quantity of cheese probably should use ______________ warehouses.

About what percentage of the cost of hospital supplies in the U.S. are a result of logistics?

Distribution centers:

In which of the following places would logistics costs be most likely to run between 9 and 15 percent of GDP?

There are big shifts in demand from season to season for the lawn mowers produced by GreenVision Co.- and its need for storage facilities also varies. GreenVision should think about using:

Transporting by water:

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 right physical distribution system should be based primarily on

Transporting cost as a percentage of selling price is lowest for:

For short distances and higher-value products, trucks may charge higher rates, but provide slower service.

In spite of high cost, high value, low-weight goods like high-fashion clothing and parts for the electronic industry are often shipped long distances by ____

The challenges of coordinating logistics functions in a supply chain has led to less sharing of information over the Internet and at websites.

Considering weight, the most expensive transporting mode is:

Airfreight

Which of the following is an example of a JIT system shifting responsibility for PD activities backward in a distribution channel?

_____ as a mode of transport serves a very limited number of locations but has a high dependability in meeting schedules.

The physical distribution ________________________ is how rapidly and dependably a firm can deliver merchandise in demand through the appropriate channels.

When a supplier's computer automatically processes an online order from a customer, schedules production activities for the order, and then sets up delivery of the finished product to the customer, what approach is being used?

Regarding alternative transporting modes:

The best way to ship a heavy product like iron ore from St. Louis, Missouri, to New Orleans, Louisiana, in the Spring season with no arrival deadline is to use:

A cheese processor having regular need for regional storage of a large quantity of cheese probably should use ______________ warehouses.

About what percentage of the cost of hospital supplies in the U.S. are a result of logistics?

Distribution centers:

In which of the following places would logistics costs be most likely to run between 9 and 15 percent of GDP?

There are big shifts in demand from season to season for the lawn mowers produced by GreenVision Co.- and its need for storage facilities also varies. GreenVision should think about using:

Transporting by water:

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