Question 1

Just-in-time systems:

Accepted Answer

A)  usually reduce PD costs for business customers. 
B)  usually increase PD costs for suppliers. 
C)  usually shift less responsibility for PD to business customers. 
D)  shift more responsibility for PD to suppliers. 
E)  All of the above. 
A)  usually reduce PD costs for business customers. 
B)  usually increase PD costs for suppliers. 
C)  usually shift less responsibility for PD to business customers. 
D)  shift more responsibility for PD to suppliers. 
E)  All of the above.

Question 2

Which of the following statements about transporting by rail is True?

Accepted Answer

A)  Rail transportation is the slowest mode of transportation. 
B)  Rail transportation is the least expensive mode of transportation. 
C)  Rail transportation is good for long-distance transportation of heavy, bulky items. 
D)  Railroads are most efficient at handling less-than-carload (LCL) shipments. 
E)  All of the above. 
A)  Rail transportation is the slowest mode of transportation. 
B)  Rail transportation is the least expensive mode of transportation. 
C)  Rail transportation is good for long-distance transportation of heavy, bulky items. 
D)  Railroads are most efficient at handling less-than-carload (LCL) shipments. 
E)  All of the above.

Question 3

Fresh Farm Produce Co. has examined transportation costs and found that shipping its fruits and vegetables by rail to distant markets would cost them only $89,000, while airfreight would cost $250,000. Because the costs of the actual fruits and vegetables are the same for each transportation mode, Fresh Farm Produce should

Accepted Answer

A)  try to determine other physical distribution costs before deciding on whether to use airfreight. 
B)  immediately switch to rail to save money. 
C)  conduct marketing research to determine which fruits and vegetables customers want most. 
D)  immediately switch to airfreight because it is clearly a faster mode of transportation. 
E)  ship with airfreight and store the fruits and vegetables in warehouses. 
A)  try to determine other physical distribution costs before deciding on whether to use airfreight. 
B)  immediately switch to rail to save money. 
C)  conduct marketing research to determine which fruits and vegetables customers want most. 
D)  immediately switch to airfreight because it is clearly a faster mode of transportation. 
E)  ship with airfreight and store the fruits and vegetables in warehouses.

Question 4

Which of the following observations about the total cost approach is NOT true?

Accepted Answer

A)  Includes transportation costs. 
B)  Helps find the lowest total cost for the right service level. 
C)  Focuses on direct costs and doesn't consider the possible costs of lost sales. 
D)  Uses the tools of cost accounting and economics. 
E)  Involves evaluating each possible physical distribution system and identifying all of the costs of each alternative. 
A)  Includes transportation costs. 
B)  Helps find the lowest total cost for the right service level. 
C)  Focuses on direct costs and doesn't consider the possible costs of lost sales. 
D)  Uses the tools of cost accounting and economics. 
E)  Involves evaluating each possible physical distribution system and identifying all of the costs of each alternative.

Question 5

A marketing manager who wants to ship small quantities (1,500 pounds) of relatively high-value products short distances at an economical cost should use:

Accepted Answer

A)  inland waterways. 
B)  pipelines. 
C)  railroads. 
D)  trucks. 
E)  airways. 
A)  inland waterways. 
B)  pipelines. 
C)  railroads. 
D)  trucks. 
E)  airways.

Question 6

Maintaining the right level of inventory is easy now that there are tools to precisely forecast and model demand.

Accepted Answer

A) True 
 B)False

Question 7

Electronic data interchange:

Accepted Answer

A)  puts information in a standardized format. 
B)  makes inventory information more accessible. 
C)  is common in both domestic and international markets. 
D)  all of the above. 
E)  both A and B, but not C 
A)  puts information in a standardized format. 
B)  makes inventory information more accessible. 
C)  is common in both domestic and international markets. 
D)  all of the above. 
E)  both A and B, but not C

Question 8

Which of the following statements concerning physical distribution trade-offs is NOT true?

Accepted Answer

A)  The trade-offs that must be made in the physical distribution area can be complicated. 
B)  The lowest-cost approach may not be the best as customer service level varies from one market to the other. 
C)  Many firms are trying to address trade-off complications with e-commerce. 
D)  Most physical distribution decisions involve trade-offs between costs, customer service level, and sales. 
E)  An efficient physical distribution system does not have to make trade-offs for customers. 
A)  The trade-offs that must be made in the physical distribution area can be complicated. 
B)  The lowest-cost approach may not be the best as customer service level varies from one market to the other. 
C)  Many firms are trying to address trade-off complications with e-commerce. 
D)  Most physical distribution decisions involve trade-offs between costs, customer service level, and sales. 
E)  An efficient physical distribution system does not have to make trade-offs for customers.

Question 9

The ______________ concept says that all transporting, storing, and product-handling activities of a business and a channel system should be thought of as part of one system which should seek to minimize the cost of distribution for a given customer service level.

Accepted Answer

A)  PERT 
B)  product-market 
C)  distribution center 
D)  physical distribution 
E)  marketing 
A)  PERT 
B)  product-market 
C)  distribution center 
D)  physical distribution 
E)  marketing

Question 10

The PD concept seeks to maximize the profit for a given customer service level.

Accepted Answer

A) True 
 B)False

Question 11

A "distribution center" is a special kind of public warehouse designed specifically for storing perishable products.

Accepted Answer

A) True 
 B)False

Question 12

Storing:

Accepted Answer

A)  costs include the costs of damage, theft, and reduced value if products get out-of-date. 
B)  costs can be reduced in the channel if suppliers are reliable about meeting delivery schedules. 
C)  too few products is likely to reduce a firm's costs, sales, and profits. 
D)  decisions are more difficult to make when demand is irregular. 
E)  All of the above are true. 
A)  costs include the costs of damage, theft, and reduced value if products get out-of-date. 
B)  costs can be reduced in the channel if suppliers are reliable about meeting delivery schedules. 
C)  too few products is likely to reduce a firm's costs, sales, and profits. 
D)  decisions are more difficult to make when demand is irregular. 
E)  All of the above are true.

Question 13

Shipping by air

Accepted Answer

A)  is most useful for smaller, high-value items. 
B)  generally increases handling costs. 
C)  is generally the most economical transportation method. 
D)  all of the above. 
E)  none of the above. 
A)  is most useful for smaller, high-value items. 
B)  generally increases handling costs. 
C)  is generally the most economical transportation method. 
D)  all of the above. 
E)  none of the above.

Question 14

A _____ is the complete set of firms, facilities, and logistics activities that are involved in procuring materials, transforming them into intermediate or finished products, and distributing them to customers.

Accepted Answer

A)  supply chain 
B)  physical distribution group 
C)  logistics partnership 
D)  just-in time group 
E)  none of the above 
A)  supply chain 
B)  physical distribution group 
C)  logistics partnership 
D)  just-in time group 
E)  none of the above

Question 15

Better information flows make it easier to coordinate activities, improve efficiency, and add value for the customer.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following statements about supply chains is FALSE?

Accepted Answer

A)  A supply chain includes all the activities involved in procuring materials, transforming them into products, and distributing them to customers. 
B)  A supply chain includes one or more channels of distribution. 
C)  The primary aim of any firm in a supply chain is to contribute to customer value by minimizing its own distribution costs. 
D)  Few firms are willing to give "outsiders" access to information in their computer systems, so it is likely to be quite some time before computers have the impact on managing a supply chain that they have had in other areas of business. 
E)  None of the above is false. 
A)  A supply chain includes all the activities involved in procuring materials, transforming them into products, and distributing them to customers. 
B)  A supply chain includes one or more channels of distribution. 
C)  The primary aim of any firm in a supply chain is to contribute to customer value by minimizing its own distribution costs. 
D)  Few firms are willing to give "outsiders" access to information in their computer systems, so it is likely to be quite some time before computers have the impact on managing a supply chain that they have had in other areas of business. 
E)  None of the above is false.

Question 17

At least 75 percent of all U.S. freight moves, at least part of the way, by trucks.

Accepted Answer

A) True 
 B)False

Question 18

In both supply chains and channels of distribution, the primary aim should be for each firm to keep its own costs as low as possible.

Accepted Answer

A) True 
 B)False

Question 19

Chrysler manufactures cars in Detroit and loads them on truck trailers at the factory. Burlington Northern Santa Fe (BNSF) picks up the truck trailers, loads them on specially designed rail flatcars, and ships them to St. Louis. There they are delivered by truck to local dealers. This transportation process is:

Accepted Answer

A)  Containerization 
B)  Multilevel 
C)  Layered 
D)  Piggyback 
E)  Disjointed 
A)  Containerization 
B)  Multilevel 
C)  Layered 
D)  Piggyback 
E)  Disjointed

Question 20

Which of the following is NOT true about the supply chain for Ford Motor Company?

Accepted Answer

A)  The supply chain includes the Ford dealers that sell its cars to consumers. 
B)  The supply chain does not include production plants where Ford cars are built. 
C)  The supply chain includes a tire supplier to Ford's production plants. 
D)  The supply chain includes a company that sells rubber to Ford's tire supplier. 
E)  The supply chain includes trucks that deliver cars to Ford dealers. 
A)  The supply chain includes the Ford dealers that sell its cars to consumers. 
B)  The supply chain does not include production plants where Ford cars are built. 
C)  The supply chain includes a tire supplier to Ford's production plants. 
D)  The supply chain includes a company that sells rubber to Ford's tire supplier. 
E)  The supply chain includes trucks that deliver cars to Ford dealers.

Exam 12: Distribution Customer Service and Logistics

Just-in-time systems:

Which of the following statements about transporting by rail is True?

Which of the following observations about the total cost approach is NOT true?

A marketing manager who wants to ship small quantities (1,500 pounds) of relatively high-value products short distances at an economical cost should use:

Maintaining the right level of inventory is easy now that there are tools to precisely forecast and model demand.

Electronic data interchange:

Which of the following statements concerning physical distribution trade-offs is NOT true?

The ______________ concept says that all transporting, storing, and product-handling activities of a business and a channel system should be thought of as part of one system which should seek to minimize the cost of distribution for a given customer service level.

The PD concept seeks to maximize the profit for a given customer service level.

A "distribution center" is a special kind of public warehouse designed specifically for storing perishable products.

Storing:

Shipping by air

A _____ is the complete set of firms, facilities, and logistics activities that are involved in procuring materials, transforming them into intermediate or finished products, and distributing them to customers.

Better information flows make it easier to coordinate activities, improve efficiency, and add value for the customer.

Which of the following statements about supply chains is FALSE?

At least 75 percent of all U.S. freight moves, at least part of the way, by trucks.

In both supply chains and channels of distribution, the primary aim should be for each firm to keep its own costs as low as possible.

Which of the following is NOT true about the supply chain for Ford Motor Company?

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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