Question 1

Just-in-time delivery systems typically shift more responsibility for PD activities to the customer rather than the supplier.

Accepted Answer

A) True 
 B)False

Question 2

Storing allows producers and intermediaries to keep stocks at convenient locations, ready to meet customers' needs.

Accepted Answer

A) True 
 B)False

Question 3

For short distances and higher-value products, trucks may charge higher rates, but provide slower service.

Accepted Answer

A) True 
 B)False

Question 4

The best transporting mode is the one that provides the required level of service at the lowest cost.

Accepted Answer

A) True 
 B)False

Question 5

Regarding a "chain of supply":

Accepted Answer

A)  All of the firms in the chain of supply should work together to meet the needs of the customer at the end of the chain. 
B)  Logistics functions are not shifted or shared among the firms in the chain of supply. 
C)  Firms sometimes outsource the whole job of planning and implementing their logistics systems. 
D)  All of the above. 
E)  A and C only. 
A)  All of the firms in the chain of supply should work together to meet the needs of the customer at the end of the chain. 
B)  Logistics functions are not shifted or shared among the firms in the chain of supply. 
C)  Firms sometimes outsource the whole job of planning and implementing their logistics systems. 
D)  All of the above. 
E)  A and C only.

Question 6

Which of the following products would have the lowest transporting costs as a percentage of the selling price?

Accepted Answer

A)  Electronic equipment. 
B)  Chemicals and plastics. 
C)  Pharmaceuticals. 
D)  Sand and gravel. 
E)  Manufactured food. 
A)  Electronic equipment. 
B)  Chemicals and plastics. 
C)  Pharmaceuticals. 
D)  Sand and gravel. 
E)  Manufactured food.

Question 7

Efforts to reduce the environmental efforts of transporting usually increase the firm's distribution costs.

Accepted Answer

A) True 
 B)False

Question 8

The "total cost approach" to physical distribution focuses exclusively on the total cost of transporting a product.

Accepted Answer

A) True 
 B)False

Question 9

A _____ is a special kind of warehouse designed to speed the flow of goods and avoid unnecessary storing costs.

Accepted Answer

A)  gateway for inventory 
B)  RFID warehouse 
C)  UPC storage facility 
D)  distribution center 
E)  shopping mall 
A)  gateway for inventory 
B)  RFID warehouse 
C)  UPC storage facility 
D)  distribution center 
E)  shopping mall

Question 10

Compared to private warehouses, PUBLIC warehouses:

Accepted Answer

A)  are not any more flexible because long-term leases are usually required. 
B)  may not always be conveniently available. 
C)  require no fixed investment but per unit storing costs are usually higher. 
D)  reduce managerial flexibility. 
E)  All of the above. 
A)  are not any more flexible because long-term leases are usually required. 
B)  may not always be conveniently available. 
C)  require no fixed investment but per unit storing costs are usually higher. 
D)  reduce managerial flexibility. 
E)  All of the above.

Question 11

A manufacturer having irregular need for regional storage of bicycles should use which one of the following?

Accepted Answer

A)  a private warehouse to be sure of adequate space. 
B)  public warehouses to provide flexibility and low unit cost. 
C)  a distribution center. 
D)  direct distribution. 
E)  railroads, because they are slow and the bicycles are being stored while they're on the train. 
A)  a private warehouse to be sure of adequate space. 
B)  public warehouses to provide flexibility and low unit cost. 
C)  a distribution center. 
D)  direct distribution. 
E)  railroads, because they are slow and the bicycles are being stored while they're on the train.

Question 12

Regarding alternative transporting modes, which of the following statements is TRUE?

Accepted Answer

A)  Waterways usually provide the lowest cost way of shipping heavy freight. 
B)  Airways are quickest. 
C)  Pipelines offer reliability in moving oil and natural gas. 
D)  Trucks serve the most locations. 
E)  All of the above are true. 
A)  Waterways usually provide the lowest cost way of shipping heavy freight. 
B)  Airways are quickest. 
C)  Pipelines offer reliability in moving oil and natural gas. 
D)  Trucks serve the most locations. 
E)  All of the above are true.

Question 13

The primary function of a ______________ is to speed the flow of products and avoid unnecessary storing costs.

Accepted Answer

A)  commodity warehouse 
B)  distribution center 
C)  merchant wholesaler 
D)  public warehouse 
E)  private warehouse 
A)  commodity warehouse 
B)  distribution center 
C)  merchant wholesaler 
D)  public warehouse 
E)  private warehouse

Question 14

Public warehouses (compared to private warehouses) provide greater economy and flexibility when a firm does not have a regular need to store a large volume of goods, but they provide fewer services than a firm's own warehouse could.

Accepted Answer

A) True 
 B)False

Question 15

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's shipments to international markets often rely on containerization. The likely reason for this is that

Accepted Answer

A)  the tools are shipped by airfreight. 
B)  it makes it easier to move shipments between different transportation modes. 
C)  containerization is very useful for small, frequent shipments. 
D)  containerization allows a firm to carry less inventory. 
E)  all of the above are benefits of containerization. 
A)  the tools are shipped by airfreight. 
B)  it makes it easier to move shipments between different transportation modes. 
C)  containerization is very useful for small, frequent shipments. 
D)  containerization allows a firm to carry less inventory. 
E)  all of the above are benefits of containerization.

Question 16

Regarding alternative transporting modes:

Accepted Answer

A)  trucks are good for speed, frequency, dependability, and number of locations served. 
B)  pipelines are slower and less dependable than water transport, but also less expensive and able to serve more locations. 
C)  airways are faster, cheaper, and more dependable than railways. 
D)  waterways are slow, costly, and unable to handle a variety of shipments. 
A)  trucks are good for speed, frequency, dependability, and number of locations served. 
B)  pipelines are slower and less dependable than water transport, but also less expensive and able to serve more locations. 
C)  airways are faster, cheaper, and more dependable than railways. 
D)  waterways are slow, costly, and unable to handle a variety of shipments.

Question 17

When planning physical distribution, the marketing manager should:

Accepted Answer

A)  set the customer service level so that every customer can get the product exactly when he wants it. 
B)  minimize the cost of distribution for a given customer service level. 
C)  minimize the cost of transportation. 
D)  maximize the speed of delivery. 
E)  make use of a distribution center. 
A)  set the customer service level so that every customer can get the product exactly when he wants it. 
B)  minimize the cost of distribution for a given customer service level. 
C)  minimize the cost of transportation. 
D)  maximize the speed of delivery. 
E)  make use of a distribution center.

Question 18

Storing of goods is necessary when

Accepted Answer

A)  there is more demand and no supply. 
B)  quality doesn't match demand. 
C)  production doesn't match consumption. 
D)  production doesn't match quality demanded. 
E)  products are produced in small batches. 
A)  there is more demand and no supply. 
B)  quality doesn't match demand. 
C)  production doesn't match consumption. 
D)  production doesn't match quality demanded. 
E)  products are produced in small batches.

Question 19

At least ________ percent of all freight shipped in the United States moves by trucks--at least part of the way--from producer to user.

Accepted Answer

A)  20 
B)  75 
C)  15 
D)  5 
E)  10 
A)  20 
B)  75 
C)  15 
D)  5 
E)  10

Question 20

Just-in-time delivery reduces storing and handling costs for business customers.

Accepted Answer

A) True 
 B)False

Exam 12: Distribution Customer Service and Logistics

Just-in-time delivery systems typically shift more responsibility for PD activities to the customer rather than the supplier.

Storing allows producers and intermediaries to keep stocks at convenient locations, ready to meet customers' needs.

For short distances and higher-value products, trucks may charge higher rates, but provide slower service.

The best transporting mode is the one that provides the required level of service at the lowest cost.

Regarding a "chain of supply":

Which of the following products would have the lowest transporting costs as a percentage of the selling price?

Efforts to reduce the environmental efforts of transporting usually increase the firm's distribution costs.

The "total cost approach" to physical distribution focuses exclusively on the total cost of transporting a product.

A _____ is a special kind of warehouse designed to speed the flow of goods and avoid unnecessary storing costs.

Compared to private warehouses, PUBLIC warehouses:

A manufacturer having irregular need for regional storage of bicycles should use which one of the following?

Regarding alternative transporting modes, which of the following statements is TRUE?

The primary function of a ______________ is to speed the flow of products and avoid unnecessary storing costs.

Public warehouses (compared to private warehouses) provide greater economy and flexibility when a firm does not have a regular need to store a large volume of goods, but they provide fewer services than a firm's own warehouse could.

Regarding alternative transporting modes:

When planning physical distribution, the marketing manager should:

Storing of goods is necessary when

At least ________ percent of all freight shipped in the United States moves by trucks--at least part of the way--from producer to user.

Just-in-time delivery reduces storing and handling costs for business customers.

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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