Question 1

Logistics decisions include all of the following except:

Accepted Answer

A)  distribution service level. 
B)  transporting of goods. 
C)  handling of goods. 
D)  prices to charge for delivery. 
E)  storage of goods. 
A)  distribution service level. 
B)  transporting of goods. 
C)  handling of goods. 
D)  prices to charge for delivery. 
E)  storage of goods.

Question 2

Which of the following statements about just-in-time delivery is FALSE?

Accepted Answer

A)  Just-in-time shifts greater responsibility for physical distribution backward in the channel. 
B)  Just-in-time reduces storing and handling costs for everyone in the channel. 
C)  Just-in-time increases the coordination needed among channel members. 
D)  Just-in-time reduces storing and handling costs for business customers. 
E)  None of the above are false. 
A)  Just-in-time shifts greater responsibility for physical distribution backward in the channel. 
B)  Just-in-time reduces storing and handling costs for everyone in the channel. 
C)  Just-in-time increases the coordination needed among channel members. 
D)  Just-in-time reduces storing and handling costs for business customers. 
E)  None of the above are false.

Question 3

The railroad service which picks up truck trailers at a producer's location, loads them onto rail flatcars, hauls them close to the customer, and then delivers them to the buyer's door is:

Accepted Answer

A)  truck service. 
B)  fast freight. 
C)  trailer service. 
D)  piggyback service. 
E)  pool car service. 
A)  truck service. 
B)  fast freight. 
C)  trailer service. 
D)  piggyback service. 
E)  pool car service.

Question 4

Heavy, bulky goods requiring long distance movement are usually carried by railroads.

Accepted Answer

A) True 
 B)False

Question 5

Regarding transportation modes, which of the following statements is NOT true?

Accepted Answer

A)  The majority of the pipelines in the U.S. are in the Southwest. 
B)  Airfreight costs about the same as trucks for long distances, not counting the cost of transporting to and from the airport. 
C)  Water transportation is the slowest shipping mode. 
D)  Most cities in the United States are less than 200 miles from a major petroleum pipeline. 
A)  The majority of the pipelines in the U.S. are in the Southwest. 
B)  Airfreight costs about the same as trucks for long distances, not counting the cost of transporting to and from the airport. 
C)  Water transportation is the slowest shipping mode. 
D)  Most cities in the United States are less than 200 miles from a major petroleum pipeline.

Question 6

The main function of a "distribution center" is to speed the flow of goods and avoid unnecessary storage.

Accepted Answer

A) True 
 B)False

Question 7

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.
-Which physical distribution system should Harter choose for Ricotta Tool Co.?

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 8

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)  Manufacturers must locate their facilities next to important customers in order to practice JIT. 
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)  Manufacturers must locate their facilities next to important customers in order to practice JIT.

Question 9

Logistics, or physical distribution, is the ________________ part of the marketing mix.

Accepted Answer

A)  Possession 
B)  Placement 
C)  Production 
D)  Promotion 
E)  Product 
A)  Possession 
B)  Placement 
C)  Production 
D)  Promotion 
E)  Product

Question 10

Using airfreight instead of some other mode of transporting may result in:

Accepted Answer

A)  lower packing costs. 
B)  lower total cost of distribution. 
C)  less damage in transit. 
D)  higher transporting costs. 
E)  All of the above. 
A)  lower packing costs. 
B)  lower total cost of distribution. 
C)  less damage in transit. 
D)  higher transporting costs. 
E)  All of the above.

Question 11

Logistics costs

Accepted Answer

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.

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

Most physical distribution decisions involve trade-offs between costs, the customer service level, and sales.

Accepted Answer

A) True 
 B)False

Question 14

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 15

For many physical goods, firms spend half or more of their total marketing dollars on physical distribution activities.

Accepted Answer

A) True 
 B)False

Question 16

Compared to public warehouses, PRIVATE warehouses:

Accepted Answer

A)  may have low unit costs if the volume is high. 
B)  are better if space will only be needed infrequently. 
C)  offer low fixed investments. 
D)  increase managerial flexibility. 
E)  All of the above. 
A)  may have low unit costs if the volume is high. 
B)  are better if space will only be needed infrequently. 
C)  offer low fixed investments. 
D)  increase managerial flexibility. 
E)  All of the above.

Question 17

A supply chain includes all the activities involved in procuring materials, transforming them into products, and distributing them to customers.

Accepted Answer

A) True 
 B)False

Question 18

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)  All of the above. 
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)  All of the above.

Question 19

The physical distribution concept is based on the idea that selecting the lowest cost transporting alternative and the lowest cost storing alternative will result in the lowest total distribution cost.

Accepted Answer

A) True 
 B)False

Question 20

Transport costs per pound for less-than-full carloads are less than for full loads.

Accepted Answer

A) True 
 B)False

Exam 12: Distribution Customer Service and Logistics

Logistics decisions include all of the following except:

Which of the following statements about just-in-time delivery is FALSE?

The railroad service which picks up truck trailers at a producer's location, loads them onto rail flatcars, hauls them close to the customer, and then delivers them to the buyer's door is:

Heavy, bulky goods requiring long distance movement are usually carried by railroads.

Regarding transportation modes, which of the following statements is NOT true?

The main function of a "distribution center" is to speed the flow of goods and avoid unnecessary storage.

Which of the following is true regarding JIT systems?

Logistics, or physical distribution, is the ________________ part of the marketing mix.

Using airfreight instead of some other mode of transporting may result in:

Logistics costs

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

Most physical distribution decisions involve trade-offs between costs, the customer service level, and sales.

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:

For many physical goods, firms spend half or more of their total marketing dollars on physical distribution activities.

Compared to public warehouses, PRIVATE warehouses:

A supply chain includes all the activities involved in procuring materials, transforming them into products, and distributing them to customers.

Distribution centers:

The physical distribution concept is based on the idea that selecting the lowest cost transporting alternative and the lowest cost storing alternative will result in the lowest total distribution cost.

Transport costs per pound for less-than-full carloads are less than for full loads.

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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