Question 1

About what percentage of GDP do the developed economies in the U.S. and Europe spend on logistics-related costs?

Accepted Answer

A)  1-2 percent 
B)  5-7 percent 
C)  9-15 percent 
D)  20-25 percent 
E)  30-35 percent 
A)  1-2 percent 
B)  5-7 percent 
C)  9-15 percent 
D)  20-25 percent 
E)  30-35 percent

Question 2

Compared to a public warehouse, a private warehouse

Accepted Answer

A)  requires no fixed investment. 
B)  has lower unit costs. 
C)  has less flexibility. 
D)  works better when large volumes of goods must be stored irregularly. 
E)  tends to have less managerial control. 
A)  requires no fixed investment. 
B)  has lower unit costs. 
C)  has less flexibility. 
D)  works better when large volumes of goods must be stored irregularly. 
E)  tends to have less managerial control.

Question 3

Compared to a warehouse, a DISTRIBUTION CENTER is:

Accepted Answer

A)  designed to provide more efficient use of storage space. 
B)  concerned with eliminating the need for bulk-breaking. 
C)  designed to eliminate all storage. 
D)  set up to speed the flow of products toward the consumer. 
E)  a storage facility used by several intermediaries--to share costs. 
A)  designed to provide more efficient use of storage space. 
B)  concerned with eliminating the need for bulk-breaking. 
C)  designed to eliminate all storage. 
D)  set up to speed the flow of products toward the consumer. 
E)  a storage facility used by several intermediaries--to share costs.

Question 4

Electronic data interchange (EDI):

Accepted Answer

A)  Puts information in a standardized format that can be shared between different computer systems. 
B)  Improves information flow between buyers and suppliers. 
C)  Allow customers to transmit orders directly to a supplier's computer. 
D)  Replaces many of the paper documents previously used for purchase orders and shipping reports. 
E)  All of the above. 
A)  Puts information in a standardized format that can be shared between different computer systems. 
B)  Improves information flow between buyers and suppliers. 
C)  Allow customers to transmit orders directly to a supplier's computer. 
D)  Replaces many of the paper documents previously used for purchase orders and shipping reports. 
E)  All of the above.

Question 5

Regarding airfreight, which of the following statements is NOT true?

Accepted Answer

A)  Airfreight may reduce the total cost of distribution. 
B)  Inventory costs usually increase, since only small quantities can be shipped at a time. 
C)  Very bulky items cannot be shipped economically. 
D)  Airfreight is opening up new markets for many perishable items. 
E)  There are usually fewer problems from theft and damage with airfreight. 
A)  Airfreight may reduce the total cost of distribution. 
B)  Inventory costs usually increase, since only small quantities can be shipped at a time. 
C)  Very bulky items cannot be shipped economically. 
D)  Airfreight is opening up new markets for many perishable items. 
E)  There are usually fewer problems from theft and damage with airfreight.

Question 6

The "physical distribution concept" is probably being used in a firm if:

Accepted Answer

A)  inventories are set based on just-in-time delivery policies. 
B)  the total cost of distribution is as low as possible. 
C)  storing costs have been minimized. 
D)  transporting, storing, and product-handling are seen as interrelated parts of one PD system. 
E)  transporting costs have been minimized. 
A)  inventories are set based on just-in-time delivery policies. 
B)  the total cost of distribution is as low as possible. 
C)  storing costs have been minimized. 
D)  transporting, storing, and product-handling are seen as interrelated parts of one PD system. 
E)  transporting costs have been minimized.

Question 7

Modern warehouses typically do NOT have:

Accepted Answer

A)  power-operated lift trucks. 
B)  electric hoists. 
C)  battery-operated motor scooters. 
D)  roller-skating order pickers. 
E)  freight elevators. 
A)  power-operated lift trucks. 
B)  electric hoists. 
C)  battery-operated motor scooters. 
D)  roller-skating order pickers. 
E)  freight elevators.

Question 8

Although ships and barges are slow, they are the lowest cost method of freight transporting, and are useful when speed is not critical.

Accepted Answer

A) True 
 B)False

Question 9

A supply chain:

Accepted Answer

A)  focuses on making services available whereas a channel of distribution focuses on making goods available. 
B)  may involve many firms, but only one manufacturer. 
C)  includes all the activities involved in procuring materials, transforming them into products, and distributing them to customers. 
D)  is easier to coordinate than a channel of distribution. 
E)  all of the above. 
A)  focuses on making services available whereas a channel of distribution focuses on making goods available. 
B)  may involve many firms, but only one manufacturer. 
C)  includes all the activities involved in procuring materials, transforming them into products, and distributing them to customers. 
D)  is easier to coordinate than a channel of distribution. 
E)  all of the above.

Question 10

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 11

Radio frequency identification tags can

Accepted Answer

A)  make it easy for computers to monitor inventory. 
B)  help computers to order needed stock. 
C)  track storing costs. 
D)  transmit details about carton contents. 
E)  all of the above. 
A)  make it easy for computers to monitor inventory. 
B)  help computers to order needed stock. 
C)  track storing costs. 
D)  transmit details about carton contents. 
E)  all of the above.

Question 12

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 13

Information technology helps physical distribution in what ways?

Accepted Answer

A)  It improves service levels, but doesn't coordinate activities. 
B)  While it cannot cut costs, it can coordinate activities. 
C)  It can cut costs and improve service levels. 
D)  It is overrated and generally fails to improve service levels and coordinate activities. 
E)  It improves service levels while raising costs. 
A)  It improves service levels, but doesn't coordinate activities. 
B)  While it cannot cut costs, it can coordinate activities. 
C)  It can cut costs and improve service levels. 
D)  It is overrated and generally fails to improve service levels and coordinate activities. 
E)  It improves service levels while raising costs.

Question 14

When both regrouping and storing are needed, a firm should add a distribution center.

Accepted Answer

A) True 
 B)False

Question 15

Piggyback service means

Accepted Answer

A)  loading truck trailers on railcars to increase flexibility. 
B)  linking truck trailers to save fuel. 
C)  providing door-to-door service in cities. 
D)  special handling of important farm equipment. 
E)  combining small shipments of many shippers into more economical quantities. 
A)  loading truck trailers on railcars to increase flexibility. 
B)  linking truck trailers to save fuel. 
C)  providing door-to-door service in cities. 
D)  special handling of important farm equipment. 
E)  combining small shipments of many shippers into more economical quantities.

Question 16

Which of the following statements about physical distribution is False?

Accepted Answer

A)  Marketers should always try to maximize the customer service level provided regardless of cost. 
B)  Physical distribution activities are invisible to most consumers-unless something goes wrong. 
C)  There are tradeoffs between costs, the customer service level desired, and sales. 
D)  Information technology can help marketers improve service and cut costs. 
E)  In countries with inefficient distribution systems, consumers can face shortages of products they need. 
A)  Marketers should always try to maximize the customer service level provided regardless of cost. 
B)  Physical distribution activities are invisible to most consumers-unless something goes wrong. 
C)  There are tradeoffs between costs, the customer service level desired, and sales. 
D)  Information technology can help marketers improve service and cut costs. 
E)  In countries with inefficient distribution systems, consumers can face shortages of products they need.

Question 17

About what percentage of GDP do the developing economies in Latin America and Africa spend on logistics-related costs?

Accepted Answer

A)  10 percent 
B)  20 percent 
C)  30 percent 
D)  40 percent 
E)  50 percent 
A)  10 percent 
B)  20 percent 
C)  30 percent 
D)  40 percent 
E)  50 percent

Question 18

The physical distribution customer service level is important because:

Accepted Answer

A)  it is a measure of how rapidly and dependably a firm delivers what its customers want. 
B)  it may result in lost sales if it is too low. 
C)  it may result in high costs (and thus lower profits) if it is too high. 
D)  All of the above. 
E)  None of the above. 
A)  it is a measure of how rapidly and dependably a firm delivers what its customers want. 
B)  it may result in lost sales if it is too low. 
C)  it may result in high costs (and thus lower profits) if it is too high. 
D)  All of the above. 
E)  None of the above.

Question 19

As a mode of transportation, railroad freight would be least suited for ____

Accepted Answer

A)  iron ore. 
B)  sand. 
C)  fresh fruit. 
D)  automobiles. 
E)  coal. 
A)  iron ore. 
B)  sand. 
C)  fresh fruit. 
D)  automobiles. 
E)  coal.

Question 20

About what percentage of the cost of health care supplies in the U.S. are a result of logistics?

Accepted Answer

A)  15 percent 
B)  20 percent 
C)  25 percent 
D)  33 percent 
E)  40 percent 
A)  15 percent 
B)  20 percent 
C)  25 percent 
D)  33 percent 
E)  40 percent

Exam 12: Distribution Customer Service and Logistics

About what percentage of GDP do the developed economies in the U.S. and Europe spend on logistics-related costs?

Compared to a public warehouse, a private warehouse

Compared to a warehouse, a DISTRIBUTION CENTER is:

Electronic data interchange (EDI):

Regarding airfreight, which of the following statements is NOT true?

The "physical distribution concept" is probably being used in a firm if:

Modern warehouses typically do NOT have:

Although ships and barges are slow, they are the lowest cost method of freight transporting, and are useful when speed is not critical.

A supply chain:

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

Radio frequency identification tags can

The physical distribution customer service level concerns

Information technology helps physical distribution in what ways?

When both regrouping and storing are needed, a firm should add a distribution center.

Piggyback service means

Which of the following statements about physical distribution is False?

About what percentage of GDP do the developing economies in Latin America and Africa spend on logistics-related costs?

The physical distribution customer service level is important because:

As a mode of transportation, railroad freight would be least suited for ____

About what percentage of the cost of health care supplies in the U.S. are a result of logistics?

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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