Question 1

All of the following are advantages of using trucks EXCEPT:

Accepted Answer

A)  flexibility. 
B)  fast delivery speed. 
C)  reliability in meeting delivery schedules. 
D)  handling a variety of goods. 
E)  serving a limited number of locations. 
A)  flexibility. 
B)  fast delivery speed. 
C)  reliability in meeting delivery schedules. 
D)  handling a variety of goods. 
E)  serving a limited number of locations.

Question 2

A major benefit of _____ is that it protects the products and simplifies handling during shipping.

Accepted Answer

A)  fast freight 
B)  truck service 
C)  containerization 
D)  airfreight 
E)  piggyback 
A)  fast freight 
B)  truck service 
C)  containerization 
D)  airfreight 
E)  piggyback

Question 3

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 the above. 
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 the above.

Question 4

A cheese processor having regular need for regional storage of a large quantity of cheese probably should use ______________ warehouses.

Accepted Answer

A)  public 
B)  private 
C)  general merchandise 
D)  commodity 
A)  public 
B)  private 
C)  general merchandise 
D)  commodity

Question 5

A "supply chain" is the same thing as a "channel of distribution."

Accepted Answer

A) True 
 B)False

Question 6

A good marketing manager will try to:

Accepted Answer

A)  set the desired customer service level before trying to minimize physical distribution costs. 
B)  minimize the total cost of physical distribution. 
C)  maximize the level of customer service provided by his firm. 
D)  minimize storing time and costs. 
E)  provide customers with just-in-time delivery service. 
A)  set the desired customer service level before trying to minimize physical distribution costs. 
B)  minimize the total cost of physical distribution. 
C)  maximize the level of customer service provided by his firm. 
D)  minimize storing time and costs. 
E)  provide customers with just-in-time delivery service.

Question 7

Which of the following statements best reflects a marketing-oriented approach to physical distribution?

Accepted Answer

A)  "We should create a position of inventory manager and give that person authority to coordinate all physical distribution activities to minimize the firm's total inventory costs." 
B)  "We should aim to keep our customers fully satisfied 100 percent of the time as this will increase our sales and give us a competitive advantage." 
C)  "We should replace our warehouses with distribution centers to speed the flow of products and eliminate all storage." 
D)  "We should choose the physical distribution alternative that will minimize the total cost of achieving the level of customer service our target market requires." 
E)  All are equally "marketing-oriented." 
A)  "We should create a position of inventory manager and give that person authority to coordinate all physical distribution activities to minimize the firm's total inventory costs." 
B)  "We should aim to keep our customers fully satisfied 100 percent of the time as this will increase our sales and give us a competitive advantage." 
C)  "We should replace our warehouses with distribution centers to speed the flow of products and eliminate all storage." 
D)  "We should choose the physical distribution alternative that will minimize the total cost of achieving the level of customer service our target market requires." 
E)  All are equally "marketing-oriented."

Question 8

A firm may spend 50 percent or more of its total marketing dollars on PD activities.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following statements about electronic data interchange is FALSE?

Accepted Answer

A)  Inventory information is automatically updated. 
B)  EDI has not yet spread to international markets. 
C)  A customer transmits its order information directly to the supplier's computer. 
D)  EDI is very common in the United States. 
E)  EDI puts information into a standardized format. 
A)  Inventory information is automatically updated. 
B)  EDI has not yet spread to international markets. 
C)  A customer transmits its order information directly to the supplier's computer. 
D)  EDI is very common in the United States. 
E)  EDI puts information into a standardized format.

Question 10

The physical distribution concept focuses on lower costs and better service to increase customer value.

Accepted Answer

A) True 
 B)False

Question 11

Most marketing functions can be shared in a channel, but the storing function is almost always handled by the producer.

Accepted Answer

A) True 
 B)False

Question 12

Transporting by water:

Accepted Answer

A)  Is the fastest transporting mode. 
B)  Is the least expensive transporting mode for heavy freight. 
C)  Is only important for international transportation. 
D)  Is especially useful for lightweight goods. 
E)  All of the above. 
A)  Is the fastest transporting mode. 
B)  Is the least expensive transporting mode for heavy freight. 
C)  Is only important for international transportation. 
D)  Is especially useful for lightweight goods. 
E)  All of the above.

Question 13

There are big shifts in demand from season to season for the lawn mowers produced by GreenVision Co.--and its need for storage facilities also varies. GreenVision should think about using:

Accepted Answer

A)  piggyback service. 
B)  private warehousing facilities. 
C)  distribution centers. 
D)  public warehousing facilities. 
E)  None of the above is a good answer. 
A)  piggyback service. 
B)  private warehousing facilities. 
C)  distribution centers. 
D)  public warehousing facilities. 
E)  None of the above is a good answer.

Question 14

Bar codes, UPC numbers, and RFID tags make it easy for computers to monitor inventory, order stock, and track shipping costs.

Accepted Answer

A) True 
 B)False

Question 15

Logistics focuses on the handling of goods along a channel of distribution but not within individual firms.

Accepted Answer

A) True 
 B)False

Question 16

Inventory refers to

Accepted Answer

A)  the amount of goods being stored. 
B)  minimizing storage costs. 
C)  the amount of goods being sold. 
D)  the marketing function of holding goods. 
E)  the quality of goods being stored. 
A)  the amount of goods being stored. 
B)  minimizing storage costs. 
C)  the amount of goods being sold. 
D)  the marketing function of holding goods. 
E)  the quality of goods being stored.

Question 17

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.
-In designing the right physical distribution system, United Tools should primarily focus on:

Accepted Answer

A)  the inventory level that its current warehouse can support. 
B)  the lowest cost transportation method for each of its products. 
C)  where customers store their inventory. 
D)  the desired customer service level. 
E)  the physical characteristics of each product. 
A)  the inventory level that its current warehouse can support. 
B)  the lowest cost transportation method for each of its products. 
C)  where customers store their inventory. 
D)  the desired customer service level. 
E)  the physical characteristics of each product.

Question 18

"Logistics" is concerned with:

Accepted Answer

A)  reducing spatial separations between producers and consumers. 
B)  transporting, storing, and handling of physical goods along channel systems. 
C)  transporting, storing, and handling of physical goods within individual firms. 
D)  physical distribution. 
E)  All of the above. 
A)  reducing spatial separations between producers and consumers. 
B)  transporting, storing, and handling of physical goods along channel systems. 
C)  transporting, storing, and handling of physical goods within individual firms. 
D)  physical distribution. 
E)  All of the above.

Question 19

The physical distribution concept seeks to minimize the cost of distribution for a given customer service level.

Accepted Answer

A) True 
 B)False

Question 20

A marketing manager might greatly improve his marketing mix by:

Accepted Answer

A)  shifting the storing job to a specialized storage facility. 
B)  adjusting the time products will be held by channel members. 
C)  encouraging final consumers to store some products for future consumption. 
D)  sharing the storage function (and costs) with intermediaries. 
E)  All of the above. 
A)  shifting the storing job to a specialized storage facility. 
B)  adjusting the time products will be held by channel members. 
C)  encouraging final consumers to store some products for future consumption. 
D)  sharing the storage function (and costs) with intermediaries. 
E)  All of the above.

Exam 12: Distribution Customer Service and Logistics

All of the following are advantages of using trucks EXCEPT:

A major benefit of _____ is that it protects the products and simplifies handling during shipping.

Transportation helps to

A cheese processor having regular need for regional storage of a large quantity of cheese probably should use ______________ warehouses.

A "supply chain" is the same thing as a "channel of distribution."

A good marketing manager will try to:

Which of the following statements best reflects a marketing-oriented approach to physical distribution?

A firm may spend 50 percent or more of its total marketing dollars on PD activities.

Which of the following statements about electronic data interchange is FALSE?

The physical distribution concept focuses on lower costs and better service to increase customer value.

Most marketing functions can be shared in a channel, but the storing function is almost always handled by the producer.

Transporting by water:

There are big shifts in demand from season to season for the lawn mowers produced by GreenVision Co.--and its need for storage facilities also varies. GreenVision should think about using:

Bar codes, UPC numbers, and RFID tags make it easy for computers to monitor inventory, order stock, and track shipping costs.

Logistics focuses on the handling of goods along a channel of distribution but not within individual firms.

Inventory refers to

"Logistics" is concerned with:

The physical distribution concept seeks to minimize the cost of distribution for a given customer service level.

A marketing manager might greatly improve his marketing mix 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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