Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

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 5

Transporting costs

Accepted Answer

A)  are usually more than the value added by shipping, but the products are shipped anyway as there is no choice. 
B)  do not vary much as a percentage of the final price of products, since big items are shipped by inexpensive means and small items are shipped by more expensive approaches. 
C)  usually do not add much to the final cost of products which are already valuable relative to their size and weight. 
D)  usually are not large enough to limit the target market that a marketing manager can serve. 
E)  None of the above is true. 
A)  are usually more than the value added by shipping, but the products are shipped anyway as there is no choice. 
B)  do not vary much as a percentage of the final price of products, since big items are shipped by inexpensive means and small items are shipped by more expensive approaches. 
C)  usually do not add much to the final cost of products which are already valuable relative to their size and weight. 
D)  usually are not large enough to limit the target market that a marketing manager can serve. 
E)  None of the above is true.

Question 6

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 7

A train carries truck trailers long distances. The trailers are then offloaded, attached to truck tractors, and the tractor-trailer combinations are driven to their final destination. This practice is known as:

Accepted Answer

A)  Containerization. 
B)  Piggyback service. 
C)  Freight forwarding. 
D)  Long hauling. 
E)  None of the above. 
A)  Containerization. 
B)  Piggyback service. 
C)  Freight forwarding. 
D)  Long hauling. 
E)  None of the above.

Question 8

The transporting cost as a percentage of selling price is highest for:

Accepted Answer

A)  Factory machinery. 
B)  Electronic equipment. 
C)  Cabbage. 
D)  Manufactured food. 
E)  Sand and gravel. 
A)  Factory machinery. 
B)  Electronic equipment. 
C)  Cabbage. 
D)  Manufactured food. 
E)  Sand and gravel.

Question 9

Physical distribution

Accepted Answer

A)  should not require tradeoffs for managers. 
B)  means that consumers get products for low prices. 
C)  includes transportation of products, but logistics does not. 
D)  is invisible to most consumers in the United States. 
E)  All of the above are true. 
A)  should not require tradeoffs for managers. 
B)  means that consumers get products for low prices. 
C)  includes transportation of products, but logistics does not. 
D)  is invisible to most consumers in the United States. 
E)  All of the above are true.

Question 10

What is the best way to ship Spring tulips from Amsterdam, Netherlands, to Rome, Italy?

Accepted Answer

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

Question 11

Storing:

Accepted Answer

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 the above. 
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 the above.

Question 12

More freight is carried more miles _____ than any other mode of transportation.

Accepted Answer

A)  by railroads 
B)  by air 
C)  by pipeline 
D)  by trucks 
E)  over water 
A)  by railroads 
B)  by air 
C)  by pipeline 
D)  by trucks 
E)  over water

Question 13

Considering weight, which one of the following transporting modes usually has the LOWEST cost?

Accepted Answer

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

Question 14

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 15

Which of the following statements about the transporting function is TRUE?

Accepted Answer

A)  Among transportation modes, an advantage of air transport is its ability to handle a variety of goods. 
B)  Because transportation costs are less than 1 percent of costs for most products, marketing managers do not need to consider them when making strategy decisions. 
C)  Pipelines are generally one of the fastest modes of transportation. 
D)  In most countries, government plays little role in transportation. 
E)  Transporting costs can be a large part of the total cost for heavy products that are low in value. 
A)  Among transportation modes, an advantage of air transport is its ability to handle a variety of goods. 
B)  Because transportation costs are less than 1 percent of costs for most products, marketing managers do not need to consider them when making strategy decisions. 
C)  Pipelines are generally one of the fastest modes of transportation. 
D)  In most countries, government plays little role in transportation. 
E)  Transporting costs can be a large part of the total cost for heavy products that are low in value.

Question 16

Which of the following is true about public warehouses?

Accepted Answer

A)  They are leased by companies for their own use. 
B)  They are designed to speed the flow of goods. 
C)  They are very expensive. 
D)  They are useful for manufacturers that must maintain stock in many locations, including foreign countries. 
E)  They are used by firms who must regularly store large volumes of goods. 
A)  They are leased by companies for their own use. 
B)  They are designed to speed the flow of goods. 
C)  They are very expensive. 
D)  They are useful for manufacturers that must maintain stock in many locations, including foreign countries. 
E)  They are used by firms who must regularly store large volumes of goods.

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

Use this information for questions 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:   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 Tools is considering building a new private warehouse for its tools. Which of the following are benefits of private warehouses?

Accepted Answer

A)  Low unit storing cost, if volume is high. 
B)  Very flexible if storage needs expand or contract in the future. 
C)  Low fixed investment. 
D)  All of these are benefits of private warehouses. 
A)  Low unit storing cost, if volume is high. 
B)  Very flexible if storage needs expand or contract in the future. 
C)  Low fixed investment. 
D)  All of these are benefits of private warehouses.

Question 19

The "total cost approach" to physical distribution management involves evaluating all the costs of alternative physical distribution systems, including transporting, storing, and handling costs.

Accepted Answer

A) True 
 B)False

Question 20

The slowest transportation is typically by

Accepted Answer

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

Exam 12: Distribution Customer Service and Logistics

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

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

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

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

Transporting costs

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?

A train carries truck trailers long distances. The trailers are then offloaded, attached to truck tractors, and the tractor-trailer combinations are driven to their final destination. This practice is known as:

The transporting cost as a percentage of selling price is highest for:

Physical distribution

What is the best way to ship Spring tulips from Amsterdam, Netherlands, to Rome, Italy?

Storing:

More freight is carried more miles _____ than any other mode of transportation.

Considering weight, which one of the following transporting modes usually has the LOWEST cost?

The right physical distribution system should be based primarily on

Which of the following statements about the transporting function is TRUE?

Which of the following is true about public warehouses?

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

The "total cost approach" to physical distribution management involves evaluating all the costs of alternative physical distribution systems, including transporting, storing, and handling costs.

The slowest transportation is typically by

Marketings Value to Consumers, Firms, and Society

Marketing Strategy Planning

Evaluating Opportunities in the Changing Marketing Environment

Focusing Marketing Strategy With Segmentation and Positioning

Demographic Dimensions of Global Consumer Markets

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

Implementing and Controlling Marketing Plans: Evolution and Revolution

Managing Marketings Link With Other Functional Areas

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

Economics Fundamentals

Marketing Arithmetic

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