A) must be provided by all channel members. B) is necessary when production does not match consumption. C) is related to Place-but not to Price. D) makes goods available where they're needed. E) All of these alternatives are correct. A) must be provided by all channel members. B) is necessary when production does not match consumption. C) is related to Place-but not to Price. D) makes goods available where they're needed. E) All of these alternatives are correct.

A) is widely used by railroads, but has not caught on with other modes. B) makes it easier to load and unload products, but it increases the risk of damage. C) has increased competition between railroads and water shippers since both offer this service. D) is commonly used for international shipments from Japan. E) None of these alternatives is true. A) is widely used by railroads, but has not caught on with other modes. B) makes it easier to load and unload products, but it increases the risk of damage. C) has increased competition between railroads and water shippers since both offer this service. D) is commonly used for international shipments from Japan. E) None of these alternatives is true.

A) are best at moving large quantities of goods for longer distances. B) are the most expensive of any of the modes. C) are very slow compared to railroads, and this makes it hard to compete effectively. D) compete aggressively with other modes for high-value shipments. E) None of these alternatives is correct. A) are best at moving large quantities of goods for longer distances. B) are the most expensive of any of the modes. C) are very slow compared to railroads, and this makes it hard to compete effectively. D) compete aggressively with other modes for high-value shipments. E) None of these alternatives is correct.

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. One of United's biggest customer has placed a very large, heavy order. Its warehouse is in a location served by all transport modes, and the customer has directed United to ship the order by the mode with the lowest transport costs. In this situation, United will probably ship the tools by

A) airfreight. B) trucks. C) waterways. D) railroads. A) airfreight. B) trucks. C) waterways. D) railroads.

A) are important to both firms and consumers. B) don't vary from firm to firm. C) are very similar across different countries. D) total less than 10 percent of the cost of groceries. E) have little impact on a macro marketing system. A) are important to both firms and consumers. B) don't vary from firm to firm. C) are very similar across different countries. D) total less than 10 percent of the cost of groceries. E) have little impact on a macro marketing system.