Question 1

Transportation helps to

Accepted Answer

A)  make products available when they're needed. 
B)  achieve economies of scale in production. 
C)  make products available where they're needed. 
D)  make exchange easier. 
E)  all of these alternatives are correct. 
A)  make products available when they're needed. 
B)  achieve economies of scale in production. 
C)  make products available where they're needed. 
D)  make exchange easier. 
E)  all of these alternatives are correct. E

Question 2

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  False

Question 3

Compared to other modes of transportation,water transportation is medium in its dependability in meeting schedules and high in its ability to handle many varieties of goods.

Accepted Answer

A) True 
 B)False  True

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

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: $\begin{array}{c}
\text{Main feature of system:} && \text{Total Cost} && \text{Distribution Service Level}\
\text{1. Airfreight} && \$ 1,000,000 && \text{95  percent}\
\text{2. Inland waterways} && \$ 300,000 && 60  \text{percent}\
\text{3. Trucks} && \$ 500,000 && 70  \text{pereent}\
\text{4. Rail and regional} && \$ 650,00 && 80  \text{percent}\
\text{warehouses} && &&
\end{array}$ 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.
To help in managing excess inventory,United Tools would most likely use

Accepted Answer

A)  a private warehouse. 
B)  a public warehouse. 
C)  piggyback mode. 
D)  a distribution center. 
E)  all of these would help in managing excess inventory. 
A)  a private warehouse. 
B)  a public warehouse. 
C)  piggyback mode. 
D)  a distribution center. 
E)  all of these would help in managing excess inventory.

Question 6

Which of the following transportation modes is considered best at handling a variety of goods?

Accepted Answer

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

Question 7

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 8

The best way to ship computer parts from St.Louis,Missouri,to Columbus,Ohio,when the parts need to be at a factory in Columbus within three days is to use:

Accepted Answer

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

Question 9

What is the likely advantage of transportation of goods by trucks?

Accepted Answer

A)  Trucks are best at moving long quantities of goods for long distances. 
B)  Trucks are a very low cost mode of transportation. 
C)  Trucks have valuable benefits like less spoilage, theft, and damage. 
D)  Trucks can provide fast delivery. 
E)  Trucks do not compete for high-value items. 
A)  Trucks are best at moving long quantities of goods for long distances. 
B)  Trucks are a very low cost mode of transportation. 
C)  Trucks have valuable benefits like less spoilage, theft, and damage. 
D)  Trucks can provide fast delivery. 
E)  Trucks do not compete for high-value items.

Question 10

Which of the following is true regarding JIT systems?

Accepted Answer

A)  JIT systems do not have backup inventory. 
B)  JIT usually entails less frequent deliveries. 
C)  JIT requires manufacturers to add new warehouses. 
D)  JIT requires suppliers to respond to very short order lead times and the customer's production schedule. 
E)  JIT requires manufacturers to locate their facilities next to important customers. 
A)  JIT systems do not have backup inventory. 
B)  JIT usually entails less frequent deliveries. 
C)  JIT requires manufacturers to add new warehouses. 
D)  JIT requires suppliers to respond to very short order lead times and the customer's production schedule. 
E)  JIT requires manufacturers to locate their facilities next to important customers.

Question 11

The complete set of firms,facilities and logistics activities that are involved in procuring materials,transforming them into intermediate or finished products,and distributing them to customers is called the ________.

Accepted Answer

A)  supply chain 
B)  physical distribution group 
C)  logistics partnership 
D)  just-in time team 
E)  Strategic logistics partnership 
A)  supply chain 
B)  physical distribution group 
C)  logistics partnership 
D)  just-in time team 
E)  Strategic logistics partnership

Question 12

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 13

The transporting function adds value by:

Accepted Answer

A)  making products available where they're needed. 
B)  making JIT the best approach. 
C)  making products available when they're needed. 
D)  making products available when AND where they're needed. 
E)  making the storage function obsolete. 
A)  making products available where they're needed. 
B)  making JIT the best approach. 
C)  making products available when they're needed. 
D)  making products available when AND where they're needed. 
E)  making the storage function obsolete.

Question 14

The PD concept seeks to maximize the profit for a given customer service level.

Accepted Answer

A) True 
 B)False

Question 15

Physical distribution customer service level means all of the following EXCEPT:

Accepted Answer

A)  Honda wants enough bumpers to build cars that day. 
B)  A vacationer wants Avis to have his rental car clean and ready when he arrives at the rental car counter. 
C)  Sears' shirts are priced at a fair value. 
D)  McDonald's has enough large cups so that customers can buy the larger size drinks which are on sale. 
E)  Safeway's loaves of bread are in stock-and not crushed-when customers want them. 
A)  Honda wants enough bumpers to build cars that day. 
B)  A vacationer wants Avis to have his rental car clean and ready when he arrives at the rental car counter. 
C)  Sears' shirts are priced at a fair value. 
D)  McDonald's has enough large cups so that customers can buy the larger size drinks which are on sale. 
E)  Safeway's loaves of bread are in stock-and not crushed-when customers want them.

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

When a firm skips the distribution center concept and ships products directly from the manufacturing site to retail stores,the products may move more quickly but at a higher cost.

Accepted Answer

A) True 
 B)False

Question 18

Logistics,or physical distribution,is related to the ________ part of the marketing mix.

Accepted Answer

A)  possession 
B)  place 
C)  production 
D)  promotion 
E)  product 
A)  possession 
B)  place 
C)  production 
D)  promotion 
E)  product

Question 19

Identify the true statement regarding the choice of storing facilities.

Accepted Answer

A)  Public warehouses are storing facilities owned or leased by companies for their own use. 
B)  Private warehouses are most useful when a company does not have a regular need for space. 
C)  Public warehouses are independent storing facilities and provide a full range of services. 
D)  Private warehouses are specially designed to speed the flow of goods. 
E)  Public warehouses are used when a large volume of goods must be stored regularly. 
A)  Public warehouses are storing facilities owned or leased by companies for their own use. 
B)  Private warehouses are most useful when a company does not have a regular need for space. 
C)  Public warehouses are independent storing facilities and provide a full range of services. 
D)  Private warehouses are specially designed to speed the flow of goods. 
E)  Public warehouses are used when a large volume of goods must be stored regularly.

Question 20

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.

Transportation helps to

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.

Compared to other modes of transportation,water transportation is medium in its dependability in meeting schedules and high in its ability to handle many varieties of goods.

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

Which of the following transportation modes is considered best at handling a variety of goods?

Shipping by air

The best way to ship computer parts from St.Louis,Missouri,to Columbus,Ohio,when the parts need to be at a factory in Columbus within three days is to use:

What is the likely advantage of transportation of goods by trucks?

Which of the following is true regarding JIT systems?

The complete set of firms,facilities and logistics activities that are involved in procuring materials,transforming them into intermediate or finished products,and distributing them to customers is called the ________.

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

The transporting function adds value by:

The PD concept seeks to maximize the profit for a given customer service level.

Physical distribution customer service level means all of the following EXCEPT:

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

When a firm skips the distribution center concept and ships products directly from the manufacturing site to retail stores,the products may move more quickly but at a higher cost.

Logistics,or physical distribution,is related to the ________ part of the marketing mix.

Identify the true statement regarding the choice of storing facilities.

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

Marketings Value to Consumers, Firms, and Society

Implementing and Controlling Marketing Plans: Evolution and Revolution

Marketing Strategy Planning

Managing Marketings Link With Other Functional Areas

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 and Sales Promotion

Publicity: Promotion Using Earned Media, Owned Media, and Social Media

Pricing Objectives and Policies

Price Setting in the Business World

Ethical Marketing in a Consumer-Oriented World: Appraisal and Challenges

Filters

Exam 13: Distribution Customer Service and Logistics

Transportation helps to

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.

Compared to other modes of transportation,water transportation is medium in its dependability in meeting schedules and high in its ability to handle many varieties of goods.

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

Which of the following transportation modes is considered best at handling a variety of goods?

Shipping by air

The best way to ship computer parts from St.Louis,Missouri,to Columbus,Ohio,when the parts need to be at a factory in Columbus within three days is to use:

What is the likely advantage of transportation of goods by trucks?

Which of the following is true regarding JIT systems?

The complete set of firms,facilities and logistics activities that are involved in procuring materials,transforming them into intermediate or finished products,and distributing them to customers is called the ________.

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

The transporting function adds value by:

The PD concept seeks to maximize the profit for a given customer service level.

Physical distribution customer service level means all of the following EXCEPT:

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

When a firm skips the distribution center concept and ships products directly from the manufacturing site to retail stores,the products may move more quickly but at a higher cost.

Logistics,or physical distribution,is related to the ________ part of the marketing mix.

Identify the true statement regarding the choice of storing facilities.

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

Marketings Value to Consumers, Firms, and Society

Implementing and Controlling Marketing Plans: Evolution and Revolution

Marketing Strategy Planning

Managing Marketings Link With Other Functional Areas

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 and Sales Promotion

Publicity: Promotion Using Earned Media, Owned Media, and Social Media

Pricing Objectives and Policies

Price Setting in the Business World

Ethical Marketing in a Consumer-Oriented World: Appraisal and Challenges

Filters