Question 1

Most physical distribution decisions involve trade-offs between costs, the customer service level, and sales.

Accepted Answer

A) True 
 B)False

Question 2

Considering weight, which one of the following transporting modes usually has the LOWEST cost?

Accepted Answer

A)  Waterways 
B)  Airways 
C)  Trucks 
D)  Railroads 
E)  Pipelines 
A)  Waterways 
B)  Airways 
C)  Trucks 
D)  Railroads 
E)  Pipelines

Question 3

Just-in-time (JIT) delivery:

Accepted Answer

A)  Increases physical distribution costs for business customers. 
B)  Requires that a supplier be able to respond to the customer's production schedule. 
C)  Usually does not require e-commerce order systems and computer networks. 
D)  Means that deliveries are larger and less frequent. 
E)  Shifts greater responsibility for physical distribution activities from the supplier to the business customer. 
A)  Increases physical distribution costs for business customers. 
B)  Requires that a supplier be able to respond to the customer's production schedule. 
C)  Usually does not require e-commerce order systems and computer networks. 
D)  Means that deliveries are larger and less frequent. 
E)  Shifts greater responsibility for physical distribution activities from the supplier to the business customer.

Question 4

Physical distribution customer service level means all of the following EXCEPT:

Accepted Answer

A)  Honda wants enough bumpers to build cars that day. 
B)  A vacationer wants Avis to have his rental car clean and ready when he arrives at the rental car counter. 
C)  Sears' shirts are priced at a fair value. 
D)  McDonald's has enough large cups so that customers can buy the larger size drinks which are on sale. 
E)  Safeway's loaves of bread are in stock-and not crushed-when customers want them. 
A)  Honda wants enough bumpers to build cars that day. 
B)  A vacationer wants Avis to have his rental car clean and ready when he arrives at the rental car counter. 
C)  Sears' shirts are priced at a fair value. 
D)  McDonald's has enough large cups so that customers can buy the larger size drinks which are on sale. 
E)  Safeway's loaves of bread are in stock-and not crushed-when customers want them.

Question 5

Why would Coca-Cola want to encourage its customers to store product in their homes?

Accepted Answer

A)  More of the product is used or consumed. 
B)  The sales price of the product decreases. 
C)  Shipping time to transport the product is reduced. 
D)  Manufacturing time to produce the product is reduced. 
E)  Shipping costs to transport the product are reduced. 
A)  More of the product is used or consumed. 
B)  The sales price of the product decreases. 
C)  Shipping time to transport the product is reduced. 
D)  Manufacturing time to produce the product is reduced. 
E)  Shipping costs to transport the product are reduced.

Question 6

Each of the following types of activities is likely to occur at a distribution center EXCEPT:

Accepted Answer

A)  moving products to loading docks 
B)  sorting of goods mid-shipment 
C)  placing products on transport vehicles 
D)  regrouping of products in transit 
E)  long-term storage of inventory before shipping 
A)  moving products to loading docks 
B)  sorting of goods mid-shipment 
C)  placing products on transport vehicles 
D)  regrouping of products in transit 
E)  long-term storage of inventory before shipping

Question 7

Which of the following transportation modes is "best" at handling a variety of goods?

Accepted Answer

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

Question 8

A tire manufacturer currently produces tires in small quantities as they are ordered. The company learns that it can reduce costs significantly by producing one type of tire at a time in large quantities and storing its unsold tires for later sale. Should the company switch to large quantity production?

Accepted Answer

A)  No, because this will prevent the company from providing tires as they are ordered. 
B)  No, because this will cause the company to incur unexpected transportation costs. 
C)  Only if the economies of scale in production are greater than the additional inventory carrying cost. 
D)  Yes, because this will allow the company to utilize JIT delivery systems. 
E)  Yes, because this will enable the company to improve its production speed per tire. 
A)  No, because this will prevent the company from providing tires as they are ordered. 
B)  No, because this will cause the company to incur unexpected transportation costs. 
C)  Only if the economies of scale in production are greater than the additional inventory carrying cost. 
D)  Yes, because this will allow the company to utilize JIT delivery systems. 
E)  Yes, because this will enable the company to improve its production speed per tire.

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

In countries where physical distribution systems are inefficient, consumers face shortages of the products they need.

Accepted Answer

A) True 
 B)False

Question 11

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 12

A train carries truck trailers long distances. The trailers are then offloaded, attached to truck tractors, and the tractor-trailer combinations are driven to their final destination. This practice is known as:

Accepted Answer

A)  Containerization. 
B)  Piggyback service. 
C)  Freight forwarding. 
D)  Long hauling. 
E)  None of these choices is correct. 
A)  Containerization. 
B)  Piggyback service. 
C)  Freight forwarding. 
D)  Long hauling. 
E)  None of these choices is correct.

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

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 15

For coordinating logistics activities among firms, which of the following statements is true?

Accepted Answer

A)  Wholesalers in the channel should coordinate storage activities. 
B)  Competitive firms usually share logistics coordination similarly. 
C)  Retailers in the channel should coordinate transportation activities. 
D)  Firms may share logistics coordination in multiple effective ways. 
E)  Retailers in the channel should coordinate all storage and transport. 
A)  Wholesalers in the channel should coordinate storage activities. 
B)  Competitive firms usually share logistics coordination similarly. 
C)  Retailers in the channel should coordinate transportation activities. 
D)  Firms may share logistics coordination in multiple effective ways. 
E)  Retailers in the channel should coordinate all storage and transport.

Question 16

JIT shifts greater responsibility for physical distribution activities forward in the channel.

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

Transport costs per pound for less-than-full carloads are less than for full loads.

Accepted Answer

A) True 
 B)False

Question 19

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 these alternatives is a good answer. 
A)  supply chain 
B)  physical distribution group 
C)  logistics partnership 
D)  just-in time group 
E)  None of these alternatives is a good answer.

Question 20

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 these alternatives are correct. 
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 these alternatives are correct.

Most physical distribution decisions involve trade-offs between costs, the customer service level, and sales.

Considering weight, which one of the following transporting modes usually has the LOWEST cost?

Just-in-time (JIT) delivery:

Physical distribution customer service level means all of the following EXCEPT:

Why would Coca-Cola want to encourage its customers to store product in their homes?

Each of the following types of activities is likely to occur at a distribution center EXCEPT:

Which of the following transportation modes is "best" at handling a variety of goods?

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

In countries where physical distribution systems are inefficient, consumers face shortages of the products they need.

Storing of goods is necessary when

A train carries truck trailers long distances. The trailers are then offloaded, attached to truck tractors, and the tractor-trailer combinations are driven to their final destination. This practice is known as:

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

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?

For coordinating logistics activities among firms, which of the following statements is true?

JIT shifts greater responsibility for physical distribution activities forward in the channel.

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:

Transport costs per pound for less-than-full carloads are less than for full loads.

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.

Transportation helps to

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

Most physical distribution decisions involve trade-offs between costs, the customer service level, and sales.

Considering weight, which one of the following transporting modes usually has the LOWEST cost?

Just-in-time (JIT) delivery:

Physical distribution customer service level means all of the following EXCEPT:

Why would Coca-Cola want to encourage its customers to store product in their homes?

Each of the following types of activities is likely to occur at a distribution center EXCEPT:

Which of the following transportation modes is "best" at handling a variety of goods?

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

In countries where physical distribution systems are inefficient, consumers face shortages of the products they need.

Storing of goods is necessary when

A train carries truck trailers long distances. The trailers are then offloaded, attached to truck tractors, and the tractor-trailer combinations are driven to their final destination. This practice is known as:

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

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?

For coordinating logistics activities among firms, which of the following statements is true?

JIT shifts greater responsibility for physical distribution activities forward in the channel.

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:

Transport costs per pound for less-than-full carloads are less than for full loads.

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.

Transportation helps to

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