Question 1

How PD functions are shared will have the greatest effect on which of the other three Ps?

Accepted Answer

A)  Price decisions. 
B)  Promotion decisions. 
C)  Product decisions. 
D)  Positioning decisions. 
E)  People decisions. 
A)  Price decisions. 
B)  Promotion decisions. 
C)  Product decisions. 
D)  Positioning decisions. 
E)  People decisions.

Question 2

Tammy works in transportation for a company that manufactures tractors and other farm equipment in China for the U.S. market. Cost is her primary concern in getting products to farm states in the U.S. Midwest. Which mode(s) of transportation would you suggest?

Accepted Answer

A)  Water then truck. 
B)  Air then rail. 
C)  Air then truck. 
D)  Air only. 
E)  Water then rail. 
A)  Water then truck. 
B)  Air then rail. 
C)  Air then truck. 
D)  Air only. 
E)  Water then rail.

Question 3

The physical distribution concept focuses on lower costs and better service to increase customer value.

Accepted Answer

A) True 
 B)False

Question 4

Piggyback service means

Accepted Answer

A)  loading truck trailers on railcars to increase flexibility. 
B)  linking truck trailers to save fuel. 
C)  providing door-to-door service in cities. 
D)  special handling of important farm equipment. 
E)  combining small shipments of many shippers into more economical quantities. 
A)  loading truck trailers on railcars to increase flexibility. 
B)  linking truck trailers to save fuel. 
C)  providing door-to-door service in cities. 
D)  special handling of important farm equipment. 
E)  combining small shipments of many shippers into more economical quantities.

Question 5

The main function of a "distribution center" is to speed the flow of goods and avoid unnecessary storage.

Accepted Answer

A) True 
 B)False

Question 6

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.
It appears that United Tools:

Accepted Answer

A)  is implementing the physical distribution concept. 
B)  works to provide just-in-time delivery to both of its wholesalers. 
C)  needs to buy its own fleet of trucks. 
D)  uses the distribution system with the lowest transportation cost. 
E)  All of these alternatives are logical. 
A)  is implementing the physical distribution concept. 
B)  works to provide just-in-time delivery to both of its wholesalers. 
C)  needs to buy its own fleet of trucks. 
D)  uses the distribution system with the lowest transportation cost. 
E)  All of these alternatives are logical.

Question 7

Regarding alternative transporting modes, which of the following statements is TRUE?

Accepted Answer

A)  Waterways usually provide the lowest cost way of shipping heavy freight. 
B)  Airways are quickest. 
C)  Pipelines offer reliability in moving oil and natural gas. 
D)  Trucks serve the most locations. 
E)  All of these statements are TRUE. 
A)  Waterways usually provide the lowest cost way of shipping heavy freight. 
B)  Airways are quickest. 
C)  Pipelines offer reliability in moving oil and natural gas. 
D)  Trucks serve the most locations. 
E)  All of these statements are TRUE.

Question 8

A manufacturer that transports products to retail outlets directly instead of using a distribution center is most likely to encounter which of the following?

Accepted Answer

A)  Equivalent delivery speed at lower cost 
B)  Faster delivery speed at higher cost 
C)  Slower delivery speed at equivalent cost 
D)  Faster delivery speed at equivalent cost 
E)  Slower delivery speed at lower cost 
A)  Equivalent delivery speed at lower cost 
B)  Faster delivery speed at higher cost 
C)  Slower delivery speed at equivalent cost 
D)  Faster delivery speed at equivalent cost 
E)  Slower delivery speed at lower cost

Question 9

The best way to ship a large shipment of coal (which is a heavy and bulky good) from Pennsylvania to California at a relatively low cost would be to use:

Accepted Answer

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

Question 10

For which of the following goods would air be the least useful mode of transportation?

Accepted Answer

A)  High-fashion clothing. 
B)  Oil. 
C)  Flower and bulbs from Holland. 
D)  Emergency delivery of repair parts. 
E)  Parts for the electronic industry. 
A)  High-fashion clothing. 
B)  Oil. 
C)  Flower and bulbs from Holland. 
D)  Emergency delivery of repair parts. 
E)  Parts for the electronic industry.

Question 11

The physical distribution concept is based on the idea that selecting the lowest cost transporting alternative and the lowest cost storing alternative will result in the lowest total distribution cost.

Accepted Answer

A) True 
 B)False

Question 12

It is usually most economical to ship bulky nonperishable items, such as coal and iron ore, by

Accepted Answer

A)  water. 
B)  pipeline. 
C)  truck. 
D)  air. 
E)  None of these is a good answer, since the cost of shipping a product usually does not vary from one mode to another. 
A)  water. 
B)  pipeline. 
C)  truck. 
D)  air. 
E)  None of these is a good answer, since the cost of shipping a product usually does not vary from one mode to another.

Question 13

Which of the following statements about supply chains is FALSE?

Accepted Answer

A)  A supply chain includes all the activities involved in procuring materials, transforming them into products, and distributing them to customers. 
B)  A supply chain includes one or more channels of distribution. 
C)  The primary aim of any firm in a supply chain is to contribute to customer value by minimizing its own distribution costs. 
D)  Few firms are willing to give "outsiders" access to information in their computer systems, so it is likely to be quite some time before computers have the impact on managing a supply chain that they have had in other areas of business. 
E)  None of these statements about supply chains is FALSE. 
A)  A supply chain includes all the activities involved in procuring materials, transforming them into products, and distributing them to customers. 
B)  A supply chain includes one or more channels of distribution. 
C)  The primary aim of any firm in a supply chain is to contribute to customer value by minimizing its own distribution costs. 
D)  Few firms are willing to give "outsiders" access to information in their computer systems, so it is likely to be quite some time before computers have the impact on managing a supply chain that they have had in other areas of business. 
E)  None of these statements about supply chains is FALSE.

Question 14

Containerization:

Accepted Answer

A)  is widely used by railroads, but has not caught on with other modes. 
B)  makes it easier to load and unload products, but it increases the risk of damage. 
C)  has increased competition between railroads and water shippers since both offer this service. 
D)  is commonly used for international shipments from Japan. 
E)  None of these alternatives is true. 
A)  is widely used by railroads, but has not caught on with other modes. 
B)  makes it easier to load and unload products, but it increases the risk of damage. 
C)  has increased competition between railroads and water shippers since both offer this service. 
D)  is commonly used for international shipments from Japan. 
E)  None of these alternatives is true.

Question 15

A channel of distribution for a product involves more firms than a supply chain for the same product.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following observations about the total cost approach is NOT true?

Accepted Answer

A)  Includes transportation costs. 
B)  Helps find the lowest total cost for the right service level. 
C)  Focuses on direct costs and doesn't consider the possible costs of lost sales. 
D)  Uses the tools of cost accounting and economics. 
E)  Involves evaluating each possible physical distribution system and identifying all of the costs of each alternative. 
A)  Includes transportation costs. 
B)  Helps find the lowest total cost for the right service level. 
C)  Focuses on direct costs and doesn't consider the possible costs of lost sales. 
D)  Uses the tools of cost accounting and economics. 
E)  Involves evaluating each possible physical distribution system and identifying all of the costs of each alternative.

Question 17

Transport costs represent a significant part of the cost of products that are already valuable relative to their size and weight.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following statements about electronic data interchange is FALSE?

Accepted Answer

A)  Inventory information is automatically updated. 
B)  EDI has not yet spread to international markets. 
C)  A customer transmits its order information directly to the supplier's computer. 
D)  EDI is very common in the United States. 
E)  EDI puts information into a standardized format. 
A)  Inventory information is automatically updated. 
B)  EDI has not yet spread to international markets. 
C)  A customer transmits its order information directly to the supplier's computer. 
D)  EDI is very common in the United States. 
E)  EDI puts information into a standardized format.

Question 19

The "total cost approach" to physical distribution management:

Accepted Answer

A)  seeks to eliminate the storing function. 
B)  seeks to minimize the cost of transportation. 
C)  might suggest a high-cost transporting mode if storing costs could be reduced enough to lower total distribution costs. 
D)  ignores inventory carrying costs. 
E)  All of these alternatives for the "total cost approach" are correct. 
A)  seeks to eliminate the storing function. 
B)  seeks to minimize the cost of transportation. 
C)  might suggest a high-cost transporting mode if storing costs could be reduced enough to lower total distribution costs. 
D)  ignores inventory carrying costs. 
E)  All of these alternatives for the "total cost approach" are correct.

Question 20

Trucks

Accepted Answer

A)  are best at moving large quantities of goods for longer distances. 
B)  are the most expensive of any of the modes. 
C)  are very slow compared to railroads, and this makes it hard to compete effectively. 
D)  compete aggressively with other modes for high-value shipments. 
E)  None of these alternatives is correct. 
A)  are best at moving large quantities of goods for longer distances. 
B)  are the most expensive of any of the modes. 
C)  are very slow compared to railroads, and this makes it hard to compete effectively. 
D)  compete aggressively with other modes for high-value shipments. 
E)  None of these alternatives is correct.

How PD functions are shared will have the greatest effect on which of the other three Ps?

Tammy works in transportation for a company that manufactures tractors and other farm equipment in China for the U.S. market. Cost is her primary concern in getting products to farm states in the U.S. Midwest. Which mode(s) of transportation would you suggest?

The physical distribution concept focuses on lower costs and better service to increase customer value.

Piggyback service means

The main function of a "distribution center" is to speed the flow of goods and avoid unnecessary storage.

Regarding alternative transporting modes, which of the following statements is TRUE?

A manufacturer that transports products to retail outlets directly instead of using a distribution center is most likely to encounter which of the following?

The best way to ship a large shipment of coal (which is a heavy and bulky good) from Pennsylvania to California at a relatively low cost would be to use:

For which of the following goods would air be the least useful mode of transportation?

The physical distribution concept is based on the idea that selecting the lowest cost transporting alternative and the lowest cost storing alternative will result in the lowest total distribution cost.

It is usually most economical to ship bulky nonperishable items, such as coal and iron ore, by

Which of the following statements about supply chains is FALSE?

Containerization:

A channel of distribution for a product involves more firms than a supply chain for the same product.

Which of the following observations about the total cost approach is NOT true?

Transport costs represent a significant part of the cost of products that are already valuable relative to their size and weight.

Which of the following statements about electronic data interchange is FALSE?

The "total cost approach" to physical distribution management:

Trucks

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

How PD functions are shared will have the greatest effect on which of the other three Ps?

Tammy works in transportation for a company that manufactures tractors and other farm equipment in China for the U.S. market. Cost is her primary concern in getting products to farm states in the U.S. Midwest. Which mode(s) of transportation would you suggest?

The physical distribution concept focuses on lower costs and better service to increase customer value.

Piggyback service means

The main function of a "distribution center" is to speed the flow of goods and avoid unnecessary storage.

Regarding alternative transporting modes, which of the following statements is TRUE?

A manufacturer that transports products to retail outlets directly instead of using a distribution center is most likely to encounter which of the following?

The best way to ship a large shipment of coal (which is a heavy and bulky good) from Pennsylvania to California at a relatively low cost would be to use:

For which of the following goods would air be the least useful mode of transportation?

The physical distribution concept is based on the idea that selecting the lowest cost transporting alternative and the lowest cost storing alternative will result in the lowest total distribution cost.

It is usually most economical to ship bulky nonperishable items, such as coal and iron ore, by

Which of the following statements about supply chains is FALSE?

Containerization:

A channel of distribution for a product involves more firms than a supply chain for the same product.

Which of the following observations about the total cost approach is NOT true?

Transport costs represent a significant part of the cost of products that are already valuable relative to their size and weight.

Which of the following statements about electronic data interchange is FALSE?

The "total cost approach" to physical distribution management:

Trucks

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