Question 1

The challenges of coordinating logistics functions in a supply chain has led to less sharing of information over the Internet and at Web sites.

Accepted Answer

A) True 
 B)False

Question 2

The physical distribution ________________________ is how rapidly and dependably a firm can deliver merchandise in demand through the appropriate channels.

Accepted Answer

A)  Product service level 
B)  Tradeoff service level 
C)  Customer service level 
D)  Standard service level 
E)  Efficiency service level 
A)  Product service level 
B)  Tradeoff service level 
C)  Customer service level 
D)  Standard service level 
E)  Efficiency service level

Question 3

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.
-As marketing manager, United's Terry Harter should realize that:

Accepted Answer

A)  transporting costs may limit her choice of target markets. 
B)  a supply chain can only consist of one distribution channel. 
C)  the lowest cost distribution system is the best alternative. 
D)  all of the above. 
A)  transporting costs may limit her choice of target markets. 
B)  a supply chain can only consist of one distribution channel. 
C)  the lowest cost distribution system is the best alternative. 
D)  all of the above.

Question 4

Physical distribution differs from logistics in that

Accepted Answer

A)  logistics deals with storing and physical distribution does not. 
B)  logistics uses JIT to coordinate activities among firms and physical distribution does not. 
C)  logistics includes customer service decisions and physical distribution does not. 
D)  logistics includes transporting goods and physical distribution does not. 
E)  physical distribution is another common name for logistics. 
A)  logistics deals with storing and physical distribution does not. 
B)  logistics uses JIT to coordinate activities among firms and physical distribution does not. 
C)  logistics includes customer service decisions and physical distribution does not. 
D)  logistics includes transporting goods and physical distribution does not. 
E)  physical distribution is another common name for logistics.

Question 5

Goods that might become separated or damaged during transport can benefit from containerization in shipping.

Accepted Answer

A) True 
 B)False

Question 6

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 is best suited for Ralston Supply?

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 7

Transport costs represent a significant part of the cost of products that are already valuable relative to their size and weight.

Accepted Answer

A) True 
 B)False

Question 8

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 9

A distribution center is a special kind of warehouse designed to perform regrouping activities.

Accepted Answer

A) True 
 B)False

Question 10

Honda requires its brake suppliers to deliver parts to its production plants three hours before the parts are scheduled to be installed in a new car. This is an example of what logistics activity?

Accepted Answer

A)  EDI 
B)  PD concept 
C)  Piggyback 
D)  Containerization 
E)  JIT 
A)  EDI 
B)  PD concept 
C)  Piggyback 
D)  Containerization 
E)  JIT

Question 11

The "total cost approach" to physical distribution management:

Accepted Answer

A)  seeks to eliminate the storing function. 
B)  seeks to minimize the cost of transportation. 
C)  might suggest a high-cost transporting mode if storing costs could be reduced enough to lower total distribution costs. 
D)  ignores inventory carrying costs. 
E)  All of the above. 
A)  seeks to eliminate the storing function. 
B)  seeks to minimize the cost of transportation. 
C)  might suggest a high-cost transporting mode if storing costs could be reduced enough to lower total distribution costs. 
D)  ignores inventory carrying costs. 
E)  All of the above.

Question 12

Physical distribution decisions may impact

Accepted Answer

A)  location decisions. 
B)  target market selection. 
C)  price decisions. 
D)  channel of distribution decisions. 
E)  all of the above. 
A)  location decisions. 
B)  target market selection. 
C)  price decisions. 
D)  channel of distribution decisions. 
E)  all of the above.

Question 13

The total cost approach involves evaluating each possible PD system and identifying all the transportation costs associated with each alternative.

Accepted Answer

A) True 
 B)False

Question 14

The best way to ship a large shipment of coal (which is a heavy and bulky good) from Pennsylvania to California at a relatively low cost would be to use:

Accepted Answer

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

Question 15

Advance information on product availability affects physical distribution (PD) service levels.

Accepted Answer

A) True 
 B)False

Question 16

The term "supply chain" can be misleading because the chain typically involves only two firms: a vendor (selling firm) and a customer (buying firm).

Accepted Answer

A) True 
 B)False

Question 17

When Sony manufactures and packages DVD players in Japan, stores them in large 8'x8'x20' "boxes," and then ships these boxes to Los Angeles by boat, this is an example of:

Accepted Answer

A)  Containerization 
B)  Truck 
C)  Pipeline 
D)  Rail 
E)  Piggyback 
A)  Containerization 
B)  Truck 
C)  Pipeline 
D)  Rail 
E)  Piggyback

Question 18

Public warehouses:

Accepted Answer

A)  generally do not provide all the services that could be obtained in a company's own branch warehouse. 
B)  are not usually responsible for the risk of damage in the warehouse. 
C)  provide flexibility because the user pays only for the space used. 
D)  are not very useful to manufacturers who must maintain stocks in many locations, including foreign countries. 
E)  All of the above. 
A)  generally do not provide all the services that could be obtained in a company's own branch warehouse. 
B)  are not usually responsible for the risk of damage in the warehouse. 
C)  provide flexibility because the user pays only for the space used. 
D)  are not very useful to manufacturers who must maintain stocks in many locations, including foreign countries. 
E)  All of the above.

Question 19

Regarding transporting by truck:

Accepted Answer

A)  Trucks are best for moving large quantities of goods long distances. 
B)  Trucks are a very low cost mode of transportation. 
C)  Trucks are not reliable in meeting delivery schedules. 
D)  Trucks tend to provide fast delivery. 
E)  All of the above. 
A)  Trucks are best for moving large quantities of goods long distances. 
B)  Trucks are a very low cost mode of transportation. 
C)  Trucks are not reliable in meeting delivery schedules. 
D)  Trucks tend to provide fast delivery. 
E)  All of the above.

Question 20

Which of the following statements is NOT TRUE?

Accepted Answer

A)  Storing is a marketing function. 
B)  Storing allows producers and intermediaries to keep stocks at convenient locations. 
C)  Storing allows the producer to achieve economies of scale in production. 
D)  Storing is necessary when production of goods doesn't match consumption. 
E)  Storing can increase the value of goods, but does not involve costs. 
A)  Storing is a marketing function. 
B)  Storing allows producers and intermediaries to keep stocks at convenient locations. 
C)  Storing allows the producer to achieve economies of scale in production. 
D)  Storing is necessary when production of goods doesn't match consumption. 
E)  Storing can increase the value of goods, but does not involve costs.

Exam 12: Distribution Customer Service and Logistics

The challenges of coordinating logistics functions in a supply chain has led to less sharing of information over the Internet and at Web sites.

The physical distribution ________________________ is how rapidly and dependably a firm can deliver merchandise in demand through the appropriate channels.

Physical distribution differs from logistics in that

Goods that might become separated or damaged during transport can benefit from containerization in shipping.

Transport costs represent a significant part of the cost of products that are already valuable relative to their size and weight.

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

A distribution center is a special kind of warehouse designed to perform regrouping activities.

Honda requires its brake suppliers to deliver parts to its production plants three hours before the parts are scheduled to be installed in a new car. This is an example of what logistics activity?

The "total cost approach" to physical distribution management:

Physical distribution decisions may impact

The total cost approach involves evaluating each possible PD system and identifying all the transportation costs associated with each alternative.

The best way to ship a large shipment of coal (which is a heavy and bulky good) from Pennsylvania to California at a relatively low cost would be to use:

Advance information on product availability affects physical distribution (PD) service levels.

The term "supply chain" can be misleading because the chain typically involves only two firms: a vendor (selling firm) and a customer (buying firm).

When Sony manufactures and packages DVD players in Japan, stores them in large 8'x8'x20' "boxes," and then ships these boxes to Los Angeles by boat, this is an example of:

Public warehouses:

Regarding transporting by truck:

Which of the following statements is NOT TRUE?

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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