Exam 11: Distribution Customer Service and Logistics

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Transporting by air:

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Regarding a "chain of supply":

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In both a supply chain and a channel of distribution, the primary aim should be to create maximum value for the customer.

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All of the following are advantages of using trucks EXCEPT:

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Which of the following is true about public warehouses?

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_____ as a mode of transport serves a very limited number of locations but has a high dependability in meeting schedules.

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A marketing manager might greatly improve his marketing mix by:

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Under the physical distribution concept, each of the following is coordinated as one system EXCEPT:

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Which of the following is an example of a JIT system shifting responsibility for PD activities backward in a distribution channel?

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Low transporting cost is not the only criterion for selecting the best mode of transportation.

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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:

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Logistics focuses on the handling of goods along a channel of distribution but not within individual firms.

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Airfreight generally increases both transporting cost and the total cost of distribution because it tends to add to inventory costs, spoilage, theft, and damage.

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Transporting by water:

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Logistics decisions include all of the following except:

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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. One of United's biggest customer has placed a very large, heavy order. Its warehouse is in a location served by all transport modes, and the customer has directed United to ship the order by the mode with the lowest transport costs. In this situation, United will probably ship the tools by 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. One of United's biggest customer has placed a very large, heavy order. Its warehouse is in a location served by all transport modes, and the customer has directed United to ship the order by the mode with the lowest transport costs. In this situation, United will probably ship the tools by

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Alex has to transport iron ore from New Orleans to Memphis. Which mode of transport is he more likely to use?

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Distribution centers:

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A(n) _____ is a special kind of warehouse designed to speed the flow of goods and avoid unnecessary storing costs.

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Regarding alternative transporting modes:

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