Question 1

The physical distribution customer service level concerns

Accepted Answer

A)  the costs to carry a product in inventory. 
B)  the length of time a product is stored in inventory. 
C)  the effort put in by channel members to meeting customer needs. 
D)  the location of distribution centers. 
E)  how rapidly and dependably a firm can deliver what customers want. 
A)  the costs to carry a product in inventory. 
B)  the length of time a product is stored in inventory. 
C)  the effort put in by channel members to meeting customer needs. 
D)  the location of distribution centers. 
E)  how rapidly and dependably a firm can deliver what customers want.

Question 2

Physical distribution differs from logistics in that

Accepted Answer

A)  logistics deals with storing and physical distribution does not. 
B)  logistics uses JIT to coordinate activities among firms and physical distribution does not. 
C)  logistics includes customer service decisions and physical distribution does not. 
D)  logistics includes transporting goods and physical distribution does not. 
E)  physical distribution is another common name for logistics. 
A)  logistics deals with storing and physical distribution does not. 
B)  logistics uses JIT to coordinate activities among firms and physical distribution does not. 
C)  logistics includes customer service decisions and physical distribution does not. 
D)  logistics includes transporting goods and physical distribution does not. 
E)  physical distribution is another common name for logistics.

Question 3

Public warehouses (compared to private warehouses) provide greater economy and flexibility when a firm does not have a regular need to store a large volume of goods, but they provide fewer services than a firm's own warehouse could.

Accepted Answer

A) True 
 B)False

Question 4

The best way to ship a large shipment of coal (which is a heavy and bulky good) from Pennsylvania to California at a relatively low cost would be to use:

Accepted Answer

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

Question 5

Whenever Product includes a physical good, Place requires logistics decisions.

Accepted Answer

A) True 
 B)False

Question 6

A marketing manager who wants to ship small quantities (1,500 pounds) of relatively high-value products short distances at an economical cost should use:

Accepted Answer

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

Question 7

Maintaining the right level of inventory is easy now that there are tools to precisely forecast and model demand.

Accepted Answer

A) True 
 B)False

Question 8

Products that require a high frequency of scheduled shipments would be least suited to travel by

Accepted Answer

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

Question 9

Which of the following statements about transporting by rail is True?

Accepted Answer

A)  Rail transportation is the slowest mode of transportation. 
B)  Rail transportation is the least expensive mode of transportation. 
C)  Rail transportation is good for long-distance transportation of heavy, bulky items. 
D)  Railroads are most efficient at handling less-than-carload (LCL) shipments. 
E)  All of these statements about transporting by rail are correct. 
A)  Rail transportation is the slowest mode of transportation. 
B)  Rail transportation is the least expensive mode of transportation. 
C)  Rail transportation is good for long-distance transportation of heavy, bulky items. 
D)  Railroads are most efficient at handling less-than-carload (LCL) shipments. 
E)  All of these statements about transporting by rail are correct.

Question 10

Which of the following statements concerning physical distribution trade-offs is NOT true?

Accepted Answer

A)  The trade-offs that must be made in the physical distribution area can be complicated. 
B)  The lowest-cost approach may not be the best as customer service level varies from one market to the other. 
C)  Many firms are trying to address trade-off complications with e-commerce. 
D)  Most physical distribution decisions involve trade-offs between costs, customer service level, and sales. 
E)  An efficient physical distribution system does not have to make trade-offs for customers. 
A)  The trade-offs that must be made in the physical distribution area can be complicated. 
B)  The lowest-cost approach may not be the best as customer service level varies from one market to the other. 
C)  Many firms are trying to address trade-off complications with e-commerce. 
D)  Most physical distribution decisions involve trade-offs between costs, customer service level, and sales. 
E)  An efficient physical distribution system does not have to make trade-offs for customers.

Question 11

Each of the following types of businesses could most likely be part of both the supply chain and the distribution channel for a cosmetics retailer EXCEPT:

Accepted Answer

A)  A warehouse that stores finished cosmetic products before shipping 
B)  A storage company that coordinates both storage and transport 
C)  A research and development firm focused on cosmetics testing 
D)  An air freight company that transports the cosmetic line overseas 
E)  A ground parcel service that ships wholesale orders to retail stores 
A)  A warehouse that stores finished cosmetic products before shipping 
B)  A storage company that coordinates both storage and transport 
C)  A research and development firm focused on cosmetics testing 
D)  An air freight company that transports the cosmetic line overseas 
E)  A ground parcel service that ships wholesale orders to retail stores

Question 12

Higher physical distribution service levels is not a source of differentiation.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is NOT true about the supply chain for Ford Motor Company?

Accepted Answer

A)  The supply chain includes the Ford dealers that sell its cars to consumers. 
B)  The supply chain does not include production plants where Ford cars are built. 
C)  The supply chain includes a tire supplier to Ford's production plants. 
D)  The supply chain includes a company that sells rubber to Ford's tire supplier. 
E)  The supply chain includes trucks that deliver cars to Ford dealers. 
A)  The supply chain includes the Ford dealers that sell its cars to consumers. 
B)  The supply chain does not include production plants where Ford cars are built. 
C)  The supply chain includes a tire supplier to Ford's production plants. 
D)  The supply chain includes a company that sells rubber to Ford's tire supplier. 
E)  The supply chain includes trucks that deliver cars to Ford dealers.

Question 14

A marketing manager might greatly improve his marketing mix by:

Accepted Answer

A)  shifting the storing job to a specialized storage facility. 
B)  adjusting the time products will be held by channel members. 
C)  encouraging final consumers to store some products for future consumption. 
D)  sharing the storage function (and costs) with intermediaries. 
E)  All of these would improve the marketing mix. 
A)  shifting the storing job to a specialized storage facility. 
B)  adjusting the time products will be held by channel members. 
C)  encouraging final consumers to store some products for future consumption. 
D)  sharing the storage function (and costs) with intermediaries. 
E)  All of these would improve the marketing mix.

Question 15

At least 75 percent of all U.S. freight moves, at least part of the way, by trucks.

Accepted Answer

A) True 
 B)False

Question 16

A merchant wholesaler is considering four physical distribution systems and estimates the total cost and customer service level for each as follows: $\begin{array}{l}
\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\text { TOTAL COST } \quad \text { CUSTOMER SERVICE LEVEL }\
\begin{array} { l r r } 
\text { Airfreight } &\quad\quad \$ 1,000,000 &\quad\quad 90 \% \
\text { Inland waterways } & 250,000 & 50 \% \
\text { Truck } & 300,000 & 60 \% \
\text { Rail and warehouse } & 425,000 & 70 \%
\end{array}
\end{array}$ The best alternative is:

Accepted Answer

A)  truck. 
B)  airfreight. 
C)  rail and warehouse. 
D)  inland waterways. 
E)  Cannot be determined without knowing how the target customers feel about the customer service level. 
A)  truck. 
B)  airfreight. 
C)  rail and warehouse. 
D)  inland waterways. 
E)  Cannot be determined without knowing how the target customers feel about the customer service level.

Question 17

Logistics costs vary little between developed economies like the U.S. and developing economies like Africa.

Accepted Answer

A) True 
 B)False

Question 18

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.
Which physical distribution system is best suited for Ralston Supply?

Accepted Answer

A)  Airfreight 
B)  Inland waterways 
C)  Truck 
D)  Rail and warehouse 
E)  Cannot be determined without more information 
A)  Airfreight 
B)  Inland waterways 
C)  Truck 
D)  Rail and warehouse 
E)  Cannot be determined without more information

Question 19

Storing allows producers and intermediaries to keep stocks at convenient locations, ready to meet customers' needs.

Accepted Answer

A) True 
 B)False

Question 20

Transporting by air:

Accepted Answer

A)  works well for heavy, bulky items. 
B)  is slower than transporting by truck. 
C)  may reduce the total cost of physical distribution. 
D)  has had no effect on international trade. 
E)  None of these alternatives is correct for transporting by air. 
A)  works well for heavy, bulky items. 
B)  is slower than transporting by truck. 
C)  may reduce the total cost of physical distribution. 
D)  has had no effect on international trade. 
E)  None of these alternatives is correct for transporting by air.

The physical distribution customer service level concerns

Physical distribution differs from logistics in that

Public warehouses (compared to private warehouses) provide greater economy and flexibility when a firm does not have a regular need to store a large volume of goods, but they provide fewer services than a firm's own warehouse could.

The best way to ship a large shipment of coal (which is a heavy and bulky good) from Pennsylvania to California at a relatively low cost would be to use:

Whenever Product includes a physical good, Place requires logistics decisions.

A marketing manager who wants to ship small quantities (1,500 pounds) of relatively high-value products short distances at an economical cost should use:

Maintaining the right level of inventory is easy now that there are tools to precisely forecast and model demand.

Products that require a high frequency of scheduled shipments would be least suited to travel by

Which of the following statements about transporting by rail is True?

Which of the following statements concerning physical distribution trade-offs is NOT true?

Each of the following types of businesses could most likely be part of both the supply chain and the distribution channel for a cosmetics retailer EXCEPT:

Higher physical distribution service levels is not a source of differentiation.

Which of the following is NOT true about the supply chain for Ford Motor Company?

A marketing manager might greatly improve his marketing mix by:

At least 75 percent of all U.S. freight moves, at least part of the way, by trucks.

Logistics costs vary little between developed economies like the U.S. and developing economies like Africa.

Storing allows producers and intermediaries to keep stocks at convenient locations, ready to meet customers' needs.

Transporting by air:

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 physical distribution customer service level concerns

Physical distribution differs from logistics in that

Public warehouses (compared to private warehouses) provide greater economy and flexibility when a firm does not have a regular need to store a large volume of goods, but they provide fewer services than a firm's own warehouse could.

The best way to ship a large shipment of coal (which is a heavy and bulky good) from Pennsylvania to California at a relatively low cost would be to use:

Whenever Product includes a physical good, Place requires logistics decisions.

A marketing manager who wants to ship small quantities (1,500 pounds) of relatively high-value products short distances at an economical cost should use:

Maintaining the right level of inventory is easy now that there are tools to precisely forecast and model demand.

Products that require a high frequency of scheduled shipments would be least suited to travel by

Which of the following statements about transporting by rail is True?

Which of the following statements concerning physical distribution trade-offs is NOT true?

Each of the following types of businesses could most likely be part of both the supply chain and the distribution channel for a cosmetics retailer EXCEPT:

Higher physical distribution service levels is not a source of differentiation.

Which of the following is NOT true about the supply chain for Ford Motor Company?

A marketing manager might greatly improve his marketing mix by:

At least 75 percent of all U.S. freight moves, at least part of the way, by trucks.

Logistics costs vary little between developed economies like the U.S. and developing economies like Africa.

Storing allows producers and intermediaries to keep stocks at convenient locations, ready to meet customers' needs.

Transporting by air:

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