Question 1

Which of the following statements about inventory and storage is TRUE?

Accepted Answer

A)  A distribution center is used to avoid unnecessary storing costs. 
B)  Only government agencies can store products in public warehouses. 
C)  Decisions about inventory levels are usually not of concern to marketing managers-since inventory levels are best determined based on the amount of the product produced. 
D)  Achieving customer service goals makes a large inventory almost inevitable. 
E)  Minimizing storage costs will lead to lower total distribution costs. 
A)  A distribution center is used to avoid unnecessary storing costs. 
B)  Only government agencies can store products in public warehouses. 
C)  Decisions about inventory levels are usually not of concern to marketing managers-since inventory levels are best determined based on the amount of the product produced. 
D)  Achieving customer service goals makes a large inventory almost inevitable. 
E)  Minimizing storage costs will lead to lower total distribution costs. A

Question 2

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

Accepted Answer

A) True 
 B)False  True

Question 3

A channel of distribution is part of a supply chain.

Accepted Answer

A) True 
 B)False  True

Question 4

Each of the following is likely to be experienced by a supplier using a JIT system EXCEPT:

Accepted Answer

A)  facilities near its customers. 
B)  infrequent truck deliveries. 
C)  small truck deliveries. 
D)  e-commerce order systems. 
E)  short order lead times. 
A)  facilities near its customers. 
B)  infrequent truck deliveries. 
C)  small truck deliveries. 
D)  e-commerce order systems. 
E)  short order lead times.

Question 5

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 6

"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 these are included in Logistics. 
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 these are included in Logistics.

Question 7

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 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

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

Accepted Answer

A)  Waterways serve the most locations. 
B)  Airways offer the most expensive transporting mode. 
C)  Railways provide the lowest cost considering weight. 
D)  Trucks offer the fastest speed. 
E)  Pipelines in the U.S. are located mostly in the Northeast. 
A)  Waterways serve the most locations. 
B)  Airways offer the most expensive transporting mode. 
C)  Railways provide the lowest cost considering weight. 
D)  Trucks offer the fastest speed. 
E)  Pipelines in the U.S. are located mostly in the Northeast.

Question 10

Loading truck trailers on railcars for shipment closer to the trucks' destination points is called "piggyback service."

Accepted Answer

A) True 
 B)False

Question 11

Physical distribution

Accepted Answer

A)  should not require trade-offs for managers. 
B)  means that consumers get products for low prices. 
C)  includes transportation of products, but logistics does not. 
D)  is invisible to most consumers in the United States. 
E)  All of these alternatives are correct. 
A)  should not require trade-offs for managers. 
B)  means that consumers get products for low prices. 
C)  includes transportation of products, but logistics does not. 
D)  is invisible to most consumers in the United States. 
E)  All of these alternatives are correct.

Question 12

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 or adequate for current product line. 
C)  require no fixed investment but per unit storing costs are usually higher. 
D)  reduce managerial flexibility. 
E)  All of these alternatives are correct. 
A)  are not any more flexible because long-term leases are usually required. 
B)  may not always be conveniently available or adequate for current product line. 
C)  require no fixed investment but per unit storing costs are usually higher. 
D)  reduce managerial flexibility. 
E)  All of these alternatives are correct.

Question 13

Physical distribution decisions may impact

Accepted Answer

A)  location decisions. 
B)  target market selection. 
C)  price decisions. 
D)  channel of distribution decisions. 
E)  physical distribution decisions may impact all of these. 
A)  location decisions. 
B)  target market selection. 
C)  price decisions. 
D)  channel of distribution decisions. 
E)  physical distribution decisions may impact all of these.

Question 14

Information technology involves a trade-off because it cannot improve service levels and cut costs at the same time.

Accepted Answer

A) True 
 B)False

Question 15

A marketing manager should never increase the total cost of distribution-even if this would result in a better customer service level for his target market.

Accepted Answer

A) True 
 B)False

Question 16

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 17

Logistics costs

Accepted Answer

A)  are important to both firms and consumers. 
B)  don't vary from firm to firm. 
C)  are very similar across different countries. 
D)  total less than 10 percent of the cost of groceries. 
E)  have little impact on a macro marketing system. 
A)  are important to both firms and consumers. 
B)  don't vary from firm to firm. 
C)  are very similar across different countries. 
D)  total less than 10 percent of the cost of groceries. 
E)  have little impact on a macro marketing system.

Question 18

As a percentage of selling price, transportation costs would most likely be highest for which of the following?

Accepted Answer

A)  Ammonia 
B)  Canned soup 
C)  HD television 
D)  Pain medication 
E)  Pea gravel 
A)  Ammonia 
B)  Canned soup 
C)  HD television 
D)  Pain medication 
E)  Pea gravel

Question 19

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 20

The best way to ship computer parts from St. Louis, Missouri, to Columbus, Ohio, when the parts need to be at a factory in Columbus within three days is to use:

Accepted Answer

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

Which of the following statements about inventory and storage is TRUE?

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

A channel of distribution is part of a supply chain.

Each of the following is likely to be experienced by a supplier using a JIT system EXCEPT:

Compared to a warehouse, a DISTRIBUTION CENTER is:

"Logistics" is concerned with:

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

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

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

Loading truck trailers on railcars for shipment closer to the trucks' destination points is called "piggyback service."

Physical distribution

Compared to private warehouses, PUBLIC warehouses:

Physical distribution decisions may impact

Information technology involves a trade-off because it cannot improve service levels and cut costs at the same time.

A marketing manager should never increase the total cost of distribution-even if this would result in a better customer service level for his target market.

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

Logistics costs

As a percentage of selling price, transportation costs would most likely be highest for which of the following?

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

The best way to ship computer parts from St. Louis, Missouri, to Columbus, Ohio, when the parts need to be at a factory in Columbus within three days is to use:

Marketings Value to Consumers, Firms, and Society

Marketing Strategy Planning

Evaluating Opportunities in the Changing Marketing Environment

Focusing Marketing Strategy With Segmentation and Positioning

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

Promotionintroduction 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

Filters

Exam 11: Distribution Customer Service and Logistics

Which of the following statements about inventory and storage is TRUE?

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

A channel of distribution is part of a supply chain.

Each of the following is likely to be experienced by a supplier using a JIT system EXCEPT:

Compared to a warehouse, a DISTRIBUTION CENTER is:

"Logistics" is concerned with:

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

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

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

Loading truck trailers on railcars for shipment closer to the trucks' destination points is called "piggyback service."

Physical distribution

Compared to private warehouses, PUBLIC warehouses:

Physical distribution decisions may impact

Information technology involves a trade-off because it cannot improve service levels and cut costs at the same time.

A marketing manager should never increase the total cost of distribution-even if this would result in a better customer service level for his target market.

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

Logistics costs

As a percentage of selling price, transportation costs would most likely be highest for which of the following?

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

The best way to ship computer parts from St. Louis, Missouri, to Columbus, Ohio, when the parts need to be at a factory in Columbus within three days is to use:

Marketings Value to Consumers, Firms, and Society

Marketing Strategy Planning

Evaluating Opportunities in the Changing Marketing Environment

Focusing Marketing Strategy With Segmentation and Positioning

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

Promotionintroduction 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

Filters