Question 1

Public warehouses:

Accepted Answer

A)  generally do not provide all the services that could be obtained in a company's own branch warehouse. 
B)  are not usually responsible for the risk of damage in the warehouse. 
C)  provide flexibility because the user pays only for the space used. 
D)  are not very useful to manufacturers who must maintain stocks in many locations, including foreign countries. 
E)  All of these alternatives are correct for public warehouses. 
A)  generally do not provide all the services that could be obtained in a company's own branch warehouse. 
B)  are not usually responsible for the risk of damage in the warehouse. 
C)  provide flexibility because the user pays only for the space used. 
D)  are not very useful to manufacturers who must maintain stocks in many locations, including foreign countries. 
E)  All of these alternatives are correct for public warehouses.

Question 2

Information technology helps physical distribution in what ways?

Accepted Answer

A)  It improves service levels, but doesn't coordinate activities. 
B)  While it cannot cut costs, it can coordinate activities. 
C)  It can cut costs and improve service levels. 
D)  It is overrated and generally fails to improve service levels and coordinate activities. 
E)  It improves service levels while raising costs. 
A)  It improves service levels, but doesn't coordinate activities. 
B)  While it cannot cut costs, it can coordinate activities. 
C)  It can cut costs and improve service levels. 
D)  It is overrated and generally fails to improve service levels and coordinate activities. 
E)  It improves service levels while raising costs.

Question 3

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 these 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 these are benefits of containerization.

Question 4

The "total cost approach" to physical distribution management involves evaluating all the costs of alternative physical distribution systems, including transporting, storing, and handling costs.

Accepted Answer

A) True 
 B)False

Question 5

Physical distribution is the part of marketing that is visible to most customers.

Accepted Answer

A) True 
 B)False

Question 6

Radio frequency identification tags can

Accepted Answer

A)  make it easy for computers to monitor inventory. 
B)  help computers to order needed stock. 
C)  track storing costs. 
D)  transmit details about carton contents. 
E)  All of these alternatives are correct for RFID tags. 
A)  make it easy for computers to monitor inventory. 
B)  help computers to order needed stock. 
C)  track storing costs. 
D)  transmit details about carton contents. 
E)  All of these alternatives are correct for RFID tags.

Question 7

Logistics, or physical distribution, is the ________________ part of the marketing mix.

Accepted Answer

A)  Possession 
B)  Placement 
C)  Production 
D)  Promotion 
E)  Product 
A)  Possession 
B)  Placement 
C)  Production 
D)  Promotion 
E)  Product

Question 8

The physical distribution customer service level concerns

Accepted Answer

A)  the costs to carry a product in inventory. 
B)  the length of time a product is stored in inventory. 
C)  the effort put in by channel members to meeting customer needs. 
D)  the location of distribution centers. 
E)  how rapidly and dependably a firm can deliver what customers want. 
A)  the costs to carry a product in inventory. 
B)  the length of time a product is stored in inventory. 
C)  the effort put in by channel members to meeting customer needs. 
D)  the location of distribution centers. 
E)  how rapidly and dependably a firm can deliver what customers want.

Question 9

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 10

EDI was developed in response to which of the following problems?

Accepted Answer

A)  Firms using different transportation modes 
B)  International telecommunication difficulties 
C)  Differences in order fulfillment processes 
D)  Computer system differences among firms 
E)  Differences in product output and quality levels 
A)  Firms using different transportation modes 
B)  International telecommunication difficulties 
C)  Differences in order fulfillment processes 
D)  Computer system differences among firms 
E)  Differences in product output and quality levels

Question 11

Which of the following is true regarding JIT systems?

Accepted Answer

A)  JIT systems do not have backup inventory. 
B)  JIT usually entails less frequent deliveries. 
C)  JIT requires manufacturers to add new warehouses. 
D)  JIT requires suppliers to respond to very short order lead times and the customer's production schedule. 
E)  Manufacturers must locate their facilities next to important customers in order to practice JIT. 
A)  JIT systems do not have backup inventory. 
B)  JIT usually entails less frequent deliveries. 
C)  JIT requires manufacturers to add new warehouses. 
D)  JIT requires suppliers to respond to very short order lead times and the customer's production schedule. 
E)  Manufacturers must locate their facilities next to important customers in order to practice JIT.

Question 12

Every firm should try to use the just-in-time approach to physical distribution.

Accepted Answer

A) True 
 B)False

Question 13

Regarding the storing function:

Accepted Answer

A)  Public warehouses are storing facilities owned or leased by companies for their own use. 
B)  Private warehouses are most useful when a company does not have a regular need for space. 
C)  Public warehouses are independent storing facilities and provide a full range of services. 
D)  Private warehouses are designed to speed the flow of goods. 
E)  None of these alternatives is correct. 
A)  Public warehouses are storing facilities owned or leased by companies for their own use. 
B)  Private warehouses are most useful when a company does not have a regular need for space. 
C)  Public warehouses are independent storing facilities and provide a full range of services. 
D)  Private warehouses are designed to speed the flow of goods. 
E)  None of these alternatives is correct.

Question 14

Compared to a public warehouse, a private warehouse

Accepted Answer

A)  requires no fixed investment. 
B)  has lower unit costs. 
C)  has less flexibility. 
D)  works better when large volumes of goods must be stored irregularly. 
E)  tends to have less managerial control. 
A)  requires no fixed investment. 
B)  has lower unit costs. 
C)  has less flexibility. 
D)  works better when large volumes of goods must be stored irregularly. 
E)  tends to have less managerial control.

Question 15

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 16

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.
Which physical distribution system should Harter choose for Ricotta Tool Co.?

Accepted Answer

A)  Airfreight. 
B)  Inland waterways. 
C)  Truck. 
D)  Rail and warehouse. 
E)  Cannot be determined without more information. 
A)  Airfreight. 
B)  Inland waterways. 
C)  Truck. 
D)  Rail and warehouse. 
E)  Cannot be determined without more information.

Question 17

Advance information on product availability affects physical distribution (PD) service levels.

Accepted Answer

A) True 
 B)False

Question 18

Goods that might become separated or damaged during transport can benefit from containerization in shipping.

Accepted Answer

A) True 
 B)False

Question 19

An elite fashion manufacturer distributes apparel products in retail outlets worldwide. The company chooses to forego coordinating physical distribution functions with other firms in the distribution channel. Which of the following is most likely to occur as a result?

Accepted Answer

A)  A competitive advantage for the manufacturing firm 
B)  Lower product delivery costs 
C)  Greater harmony across the supply chain 
D)  Significant gains in global market share 
E)  Discord concerning issues of physical distribution 
A)  A competitive advantage for the manufacturing firm 
B)  Lower product delivery costs 
C)  Greater harmony across the supply chain 
D)  Significant gains in global market share 
E)  Discord concerning issues of physical distribution

Question 20

Compared to public warehouses, PRIVATE warehouses:

Accepted Answer

A)  may have low unit costs if the volume is high. 
B)  are better if space will only be needed infrequently. 
C)  offer low fixed investments. 
D)  increase managerial flexibility. 
E)  All of these alternatives are correct. 
A)  may have low unit costs if the volume is high. 
B)  are better if space will only be needed infrequently. 
C)  offer low fixed investments. 
D)  increase managerial flexibility. 
E)  All of these alternatives are correct.

Public warehouses:

Information technology helps physical distribution in what ways?

The "total cost approach" to physical distribution management involves evaluating all the costs of alternative physical distribution systems, including transporting, storing, and handling costs.

Physical distribution is the part of marketing that is visible to most customers.

Radio frequency identification tags can

Logistics, or physical distribution, is the ________________ part of the marketing mix.

The physical distribution customer service level concerns

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

EDI was developed in response to which of the following problems?

Which of the following is true regarding JIT systems?

Every firm should try to use the just-in-time approach to physical distribution.

Regarding the storing function:

Compared to a public warehouse, a private warehouse

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

Advance information on product availability affects physical distribution (PD) service levels.

Goods that might become separated or damaged during transport can benefit from containerization in shipping.

An elite fashion manufacturer distributes apparel products in retail outlets worldwide. The company chooses to forego coordinating physical distribution functions with other firms in the distribution channel. Which of the following is most likely to occur as a result?

Compared to public warehouses, PRIVATE warehouses:

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

Public warehouses:

Information technology helps physical distribution in what ways?

The "total cost approach" to physical distribution management involves evaluating all the costs of alternative physical distribution systems, including transporting, storing, and handling costs.

Physical distribution is the part of marketing that is visible to most customers.

Radio frequency identification tags can

Logistics, or physical distribution, is the ________________ part of the marketing mix.

The physical distribution customer service level concerns

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

EDI was developed in response to which of the following problems?

Which of the following is true regarding JIT systems?

Every firm should try to use the just-in-time approach to physical distribution.

Regarding the storing function:

Compared to a public warehouse, a private warehouse

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

Advance information on product availability affects physical distribution (PD) service levels.

Goods that might become separated or damaged during transport can benefit from containerization in shipping.

An elite fashion manufacturer distributes apparel products in retail outlets worldwide. The company chooses to forego coordinating physical distribution functions with other firms in the distribution channel. Which of the following is most likely to occur as a result?

Compared to public warehouses, PRIVATE warehouses:

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