Question 1

In which of the following places would logistics costs be most likely to run between 9 and 15 percent of GDP?

Accepted Answer

A)  Uganda 
B)  Brazil 
C)  United Kingdom 
D)  Zimbabwe 
E)  Argentina 
A)  Uganda 
B)  Brazil 
C)  United Kingdom 
D)  Zimbabwe 
E)  Argentina

Question 2

A channel of distribution is part of a broader network of relationships called a supply chain.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

The transporting cost as a percentage of selling price is highest for:

Accepted Answer

A)  Factory machinery. 
B)  Electronic equipment. 
C)  Cabbage. 
D)  Manufactured food. 
E)  Sand and gravel. 
A)  Factory machinery. 
B)  Electronic equipment. 
C)  Cabbage. 
D)  Manufactured food. 
E)  Sand and gravel.

Question 5

Just-in-time (JIT) delivery

Accepted Answer

A)  is always the best approach. 
B)  reduces customers' physical distribution costs. 
C)  increases storing and handling costs. 
D)  shifts responsibility for physical distribution activities forward in the channel. 
E)  requires customers to have high quality standards in physical distribution activity. 
A)  is always the best approach. 
B)  reduces customers' physical distribution costs. 
C)  increases storing and handling costs. 
D)  shifts responsibility for physical distribution activities forward in the channel. 
E)  requires customers to have high quality standards in physical distribution activity.

Question 6

A footwear company specializing in the production of ballet shoes normally produces shoes only in women's and girl's sizes. The company is hired by several customers to produce shoes in men's and boy's sizes. Which of the following should the manufacturer consider in order to achieve economies of scale in shoe production?

Accepted Answer

A)  The amount of shoe production cost compared to the typical costs incurred in shipping 
B)  The level of effort required to retool the company's manufacturing plant to produce only men's shoes 
C)  The cost of producing one size shoe at a time in large quantities and storing them for future sales 
D)  The amount of shoe storage cost compared to the typical costs incurred in shipping 
E)  The cost associated with efforts to increase customers that might also place orders for men's shoes 
A)  The amount of shoe production cost compared to the typical costs incurred in shipping 
B)  The level of effort required to retool the company's manufacturing plant to produce only men's shoes 
C)  The cost of producing one size shoe at a time in large quantities and storing them for future sales 
D)  The amount of shoe storage cost compared to the typical costs incurred in shipping 
E)  The cost associated with efforts to increase customers that might also place orders for men's shoes

Question 7

The physical distribution ________________________ is how rapidly and dependably a firm can deliver merchandise in demand through the appropriate channels.

Accepted Answer

A)  product service level 
B)  trade-offs service level 
C)  customer service level 
D)  standard service level 
E)  efficiency service level 
A)  product service level 
B)  trade-offs service level 
C)  customer service level 
D)  standard service level 
E)  efficiency service level

Question 8

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.
In designing the right physical distribution system, United Tools should primarily focus on:

Accepted Answer

A)  the inventory level that its current warehouse can support. 
B)  the lowest cost transportation method for each of its products. 
C)  where customers store their inventory. 
D)  the desired customer service level. 
E)  the physical characteristics of each product. 
A)  the inventory level that its current warehouse can support. 
B)  the lowest cost transportation method for each of its products. 
C)  where customers store their inventory. 
D)  the desired customer service level. 
E)  the physical characteristics of each product.

Question 9

For many physical goods, firms spend half or more of their total marketing dollars on physical distribution activities.

Accepted Answer

A) True 
 B)False

Question 10

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 11

The transporting function adds value by:

Accepted Answer

A)  making products available where they're needed. 
B)  making JIT the best approach. 
C)  making products available when they're needed. 
D)  making products available when AND where they're needed. 
E)  making the storage function obsolete. 
A)  making products available where they're needed. 
B)  making JIT the best approach. 
C)  making products available when they're needed. 
D)  making products available when AND where they're needed. 
E)  making the storage function obsolete.

Question 12

Which of the following has played a role in increasing competition within the transportation industry in the U.S.?

Accepted Answer

A)  Increasing costs of PD overall 
B)  Increasing costs of product storage 
C)  Increasing costs of transportation 
D)  Decreasing governmental regulations 
E)  Decreasing role of technology 
A)  Increasing costs of PD overall 
B)  Increasing costs of product storage 
C)  Increasing costs of transportation 
D)  Decreasing governmental regulations 
E)  Decreasing role of technology

Question 13

In which of the following orders are activities most likely to be performed on goods arriving at a distribution center?

Accepted Answer

A)  Sort into groups, retrieve from groups, stack on pallets, load for shipping 
B)  Put in long-term storage, retrieve from groups, stack on pallets, load for shipping 
C)  Sort into groups, put in long-term storage, retrieve from groups, load for shipping 
D)  Load for shipping, sort into groups, retrieve from groups, stack on pallets 
E)  Sort into groups, stack on pallets, load for shipping, retrieve from groups 
A)  Sort into groups, retrieve from groups, stack on pallets, load for shipping 
B)  Put in long-term storage, retrieve from groups, stack on pallets, load for shipping 
C)  Sort into groups, put in long-term storage, retrieve from groups, load for shipping 
D)  Load for shipping, sort into groups, retrieve from groups, stack on pallets 
E)  Sort into groups, stack on pallets, load for shipping, retrieve from groups

Question 14

Products that require a high frequency of scheduled shipments would be least suited to travel by

Accepted Answer

A)  truck. 
B)  rail. 
C)  air. 
D)  water. 
E)  pipeline. 
A)  truck. 
B)  rail. 
C)  air. 
D)  water. 
E)  pipeline.

Question 15

Most physical distribution decisions involve trade-offs between

Accepted Answer

A)  the total cost of physical distribution and consumer service levels only. 
B)  transportation costs and inventory carrying costs only. 
C)  costs, consumer service levels, and sales. 
D)  sales and consumer service levels only. 
E)  availability and speed of delivery only. 
A)  the total cost of physical distribution and consumer service levels only. 
B)  transportation costs and inventory carrying costs only. 
C)  costs, consumer service levels, and sales. 
D)  sales and consumer service levels only. 
E)  availability and speed of delivery only.

Question 16

As a mode of transportation, railroad freight would be least suited for ____

Accepted Answer

A)  iron ore. 
B)  sand. 
C)  fresh fruit. 
D)  automobiles. 
E)  coal. 
A)  iron ore. 
B)  sand. 
C)  fresh fruit. 
D)  automobiles. 
E)  coal.

Question 17

A firm may spend 50 percent or more of its total marketing dollars on PD activities.

Accepted Answer

A) True 
 B)False

Question 18

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 19

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 Tools is considering building a new private warehouse for its tools. Which of the following are benefits of private warehouses?

Accepted Answer

A)  Low unit storing cost, if volume is high. 
B)  Very flexible if storage needs expand or contract in the future. 
C)  Low fixed investment. 
D)  All of these are benefits of private warehouses. 
A)  Low unit storing cost, if volume is high. 
B)  Very flexible if storage needs expand or contract in the future. 
C)  Low fixed investment. 
D)  All of these are benefits of private warehouses.

Question 20

A jewelry maker's suppliers of gold, platinum and silver, the warehouses that store its finished goods, and the trucks that deliver the product to retailers are all part of a:

Accepted Answer

A)  private warehouse system. 
B)  supply chain. 
C)  modal transportation hub. 
D)  distribution point. 
E)  public warehouse network. 
A)  private warehouse system. 
B)  supply chain. 
C)  modal transportation hub. 
D)  distribution point. 
E)  public warehouse network.

In which of the following places would logistics costs be most likely to run between 9 and 15 percent of GDP?

A channel of distribution is part of a broader network of relationships called a supply chain.

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

The transporting cost as a percentage of selling price is highest for:

Just-in-time (JIT) delivery

The physical distribution ________________________ is how rapidly and dependably a firm can deliver merchandise in demand through the appropriate channels.

For many physical goods, firms spend half or more of their total marketing dollars on physical distribution activities.

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

The transporting function adds value by:

Which of the following has played a role in increasing competition within the transportation industry in the U.S.?

In which of the following orders are activities most likely to be performed on goods arriving at a distribution center?

Products that require a high frequency of scheduled shipments would be least suited to travel by

Most physical distribution decisions involve trade-offs between

As a mode of transportation, railroad freight would be least suited for ____

A firm may spend 50 percent or more of its total marketing dollars on PD activities.

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.

A jewelry maker's suppliers of gold, platinum and silver, the warehouses that store its finished goods, and the trucks that deliver the product to retailers are all part of a:

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

In which of the following places would logistics costs be most likely to run between 9 and 15 percent of GDP?

A channel of distribution is part of a broader network of relationships called a supply chain.

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

The transporting cost as a percentage of selling price is highest for:

Just-in-time (JIT) delivery

The physical distribution ________________________ is how rapidly and dependably a firm can deliver merchandise in demand through the appropriate channels.

For many physical goods, firms spend half or more of their total marketing dollars on physical distribution activities.

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

The transporting function adds value by:

Which of the following has played a role in increasing competition within the transportation industry in the U.S.?

In which of the following orders are activities most likely to be performed on goods arriving at a distribution center?

Products that require a high frequency of scheduled shipments would be least suited to travel by

Most physical distribution decisions involve trade-offs between

As a mode of transportation, railroad freight would be least suited for ____

A firm may spend 50 percent or more of its total marketing dollars on PD activities.

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.

A jewelry maker's suppliers of gold, platinum and silver, the warehouses that store its finished goods, and the trucks that deliver the product to retailers are all part of a:

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