Question 1

Transporting by air:

Accepted Answer

A)  Works well for heavy, bulky items. 
B)  Is slower than transporting by truck. 
C)  May reduce the total cost of physical distribution. 
D)  Has had no effect on international trade. 
E)  None of these alternatives is correct for transporting by air. 
A)  Works well for heavy, bulky items. 
B)  Is slower than transporting by truck. 
C)  May reduce the total cost of physical distribution. 
D)  Has had no effect on international trade. 
E)  None of these alternatives is correct for transporting by air.

Question 2

Regarding a "chain of supply":

Accepted Answer

A)  All of the firms in the chain of supply should work together to meet the needs of the customer at the end of the chain. 
B)  Logistics functions are not shifted or shared among the firms in the chain of supply. 
C)  Firms never outsource the whole job of planning and implementing their logistics systems. 
D)  It always includes at least two channels of distribution. 
E)  None of these alternatives about "chain of supply" is correct. 
A)  All of the firms in the chain of supply should work together to meet the needs of the customer at the end of the chain. 
B)  Logistics functions are not shifted or shared among the firms in the chain of supply. 
C)  Firms never outsource the whole job of planning and implementing their logistics systems. 
D)  It always includes at least two channels of distribution. 
E)  None of these alternatives about "chain of supply" is correct.

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

All of the following are advantages of using trucks EXCEPT:

Accepted Answer

A)  flexibility. 
B)  fast delivery speed. 
C)  reliability in meeting delivery schedules. 
D)  handling a variety of goods. 
E)  serving a limited number of locations. 
A)  flexibility. 
B)  fast delivery speed. 
C)  reliability in meeting delivery schedules. 
D)  handling a variety of goods. 
E)  serving a limited number of locations.

Question 5

Which of the following is true about public warehouses?

Accepted Answer

A)  They are leased by companies for their own use. 
B)  They are designed to speed the flow of goods. 
C)  They are very expensive. 
D)  They are useful for manufacturers that must maintain stock in many locations, including foreign countries. 
E)  They are used by firms who must regularly store large volumes of goods. 
A)  They are leased by companies for their own use. 
B)  They are designed to speed the flow of goods. 
C)  They are very expensive. 
D)  They are useful for manufacturers that must maintain stock in many locations, including foreign countries. 
E)  They are used by firms who must regularly store large volumes of goods.

Question 6

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

Accepted Answer

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

Question 7

A marketing manager might greatly improve his marketing mix by:

Accepted Answer

A)  shifting the storing job to a specialized storage facility. 
B)  adjusting the time products will be held by channel members. 
C)  encouraging final consumers to store some products for future consumption. 
D)  sharing the storage function (and costs) with intermediaries. 
E)  All of these would improve the marketing mix. 
A)  shifting the storing job to a specialized storage facility. 
B)  adjusting the time products will be held by channel members. 
C)  encouraging final consumers to store some products for future consumption. 
D)  sharing the storage function (and costs) with intermediaries. 
E)  All of these would improve the marketing mix.

Question 8

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

Accepted Answer

A)  delivery of manufactured products to storage. 
B)  storage of products before final delivery. 
C)  delivery of products to their final destination. 
D)  design of products according to specifications. 
E)  handling of products during transportation. 
A)  delivery of manufactured products to storage. 
B)  storage of products before final delivery. 
C)  delivery of products to their final destination. 
D)  design of products according to specifications. 
E)  handling of products during transportation.

Question 9

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

Accepted Answer

A)  A paint supplier is highly efficient at controlling logistics costs. Products are distributed at a high customer service level. 
B)  An ice cream chain makes its own ice cream at each of its retail sites. Its customers are highly pleased with the product. 
C)  A wholesale appliance distributer is inefficient at controlling logistics costs. It develops a reputation for low customer service levels. 
D)  A book retailer is more efficient than its suppliers at controlling PD costs. Products are distributed at an acceptable customer service level. 
E)  An automotive parts supplier is less efficient than its retail customers at controlling logistics costs. Products are distributed at a high customer service level. 
A)  A paint supplier is highly efficient at controlling logistics costs. Products are distributed at a high customer service level. 
B)  An ice cream chain makes its own ice cream at each of its retail sites. Its customers are highly pleased with the product. 
C)  A wholesale appliance distributer is inefficient at controlling logistics costs. It develops a reputation for low customer service levels. 
D)  A book retailer is more efficient than its suppliers at controlling PD costs. Products are distributed at an acceptable customer service level. 
E)  An automotive parts supplier is less efficient than its retail customers at controlling logistics costs. Products are distributed at a high customer service level.

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

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:

Accepted Answer

A)  Containerization 
B)  Multilevel 
C)  Layered 
D)  Piggyback 
E)  Disjointed 
A)  Containerization 
B)  Multilevel 
C)  Layered 
D)  Piggyback 
E)  Disjointed

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

Transporting by water:

Accepted Answer

A)  Is the fastest transporting mode. 
B)  Is the least expensive transporting mode for heavy freight. 
C)  Is only important for international transportation. 
D)  Is especially useful for lightweight goods. 
E)  None of these alternatives is correct. 
A)  Is the fastest transporting mode. 
B)  Is the least expensive transporting mode for heavy freight. 
C)  Is only important for international transportation. 
D)  Is especially useful for lightweight goods. 
E)  None of these alternatives is correct.

Question 15

Logistics decisions include all of the following except:

Accepted Answer

A)  distribution service level. 
B)  transporting of goods. 
C)  handling of goods. 
D)  prices to charge for delivery. 
E)  storage of goods. 
A)  distribution service level. 
B)  transporting of goods. 
C)  handling of goods. 
D)  prices to charge for delivery. 
E)  storage of goods.

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.
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

Accepted Answer

A)  Airfreight. 
B)  Trucks. 
C)  Waterways. 
D)  Railroads. 
A)  Airfreight. 
B)  Trucks. 
C)  Waterways. 
D)  Railroads.

Question 17

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

Accepted Answer

A)  Airways 
B)  Truck 
C)  Railroad 
D)  Inland waterways 
E)  Monorail 
A)  Airways 
B)  Truck 
C)  Railroad 
D)  Inland waterways 
E)  Monorail

Question 18

Distribution centers:

Accepted Answer

A)  Are designed to facilitate the flow of products through the channel. 
B)  Are the same as public warehouses. 
C)  Are not places where regrouping activities-such as bulk-breaking-are performed. 
D)  Increase storing costs. 
E)  Are designed to eliminate all storage. 
A)  Are designed to facilitate the flow of products through the channel. 
B)  Are the same as public warehouses. 
C)  Are not places where regrouping activities-such as bulk-breaking-are performed. 
D)  Increase storing costs. 
E)  Are designed to eliminate all storage.

Question 19

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

Accepted Answer

A)  gateway for inventory 
B)  RFID warehouse 
C)  UPC storage facility 
D)  distribution center 
E)  shopping mall 
A)  gateway for inventory 
B)  RFID warehouse 
C)  UPC storage facility 
D)  distribution center 
E)  shopping mall

Question 20

Regarding alternative transporting modes:

Accepted Answer

A)  trucks are good for speed, frequency, dependability, and number of locations served. 
B)  pipelines are slower and less dependable than water transport, but also less expensive and able to serve more locations. 
C)  airways are faster, cheaper, and more dependable than railways. 
D)  waterways are slow, costly, and unable to handle a variety of shipments. 
A)  trucks are good for speed, frequency, dependability, and number of locations served. 
B)  pipelines are slower and less dependable than water transport, but also less expensive and able to serve more locations. 
C)  airways are faster, cheaper, and more dependable than railways. 
D)  waterways are slow, costly, and unable to handle a variety of shipments.

Transporting by air:

Regarding a "chain of supply":

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

All of the following are advantages of using trucks EXCEPT:

Which of the following is true about public warehouses?

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

A marketing manager might greatly improve his marketing mix by:

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

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

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

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

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

Transporting by water:

Logistics decisions include all of the following except:

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

Distribution centers:

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

Regarding alternative transporting modes:

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

Transporting by air:

Regarding a "chain of supply":

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

All of the following are advantages of using trucks EXCEPT:

Which of the following is true about public warehouses?

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

A marketing manager might greatly improve his marketing mix by:

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

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

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

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

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

Transporting by water:

Logistics decisions include all of the following except:

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

Distribution centers:

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

Regarding alternative transporting modes:

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