Question 1

Most marketing functions can be shared in a channel, but the storing function is almost always handled by the producer.

Accepted Answer

A) True 
 B)False

Question 2

Retailers selling a new product that is in hot demand-like the latest DVD release or a best selling book-would be unlikely to incur higher costs for faster delivery.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following statements about physical distribution is False?

Accepted Answer

A)  Marketers should always try to maximize the customer service level provided regardless of cost. 
B)  Physical distribution activities are invisible to most consumers-unless something goes wrong. 
C)  There are trade-offs between costs, the customer service level desired, and sales. 
D)  Information technology can help marketers improve service and cut costs. 
E)  In countries with inefficient distribution systems, consumers can face shortages of products they need. 
A)  Marketers should always try to maximize the customer service level provided regardless of cost. 
B)  Physical distribution activities are invisible to most consumers-unless something goes wrong. 
C)  There are trade-offs between costs, the customer service level desired, and sales. 
D)  Information technology can help marketers improve service and cut costs. 
E)  In countries with inefficient distribution systems, consumers can face shortages of products they need.

Question 4

The right physical distribution system should be based primarily on

Accepted Answer

A)  the desired customer service level. 
B)  how customers store the product. 
C)  the physical characteristics of the product. 
D)  what is the lowest cost method of transportation for the product. 
E)  the inventory level that allows the smoothest production runs. 
A)  the desired customer service level. 
B)  how customers store the product. 
C)  the physical characteristics of the product. 
D)  what is the lowest cost method of transportation for the product. 
E)  the inventory level that allows the smoothest production runs.

Question 5

Good marketing strategy planners know that:

Accepted Answer

A)  transporting costs may limit a marketing manager's possible target markets. 
B)  the transporting costs for some bulky or low-value products may be greater than their manufacturing costs. 
C)  transporting is vital for mass distribution and modern urban life. 
D)  the cost of shipping some "high-value" products to users is less than 5 percent of their selling prices. 
E)  All of these alternatives are correct. 
A)  transporting costs may limit a marketing manager's possible target markets. 
B)  the transporting costs for some bulky or low-value products may be greater than their manufacturing costs. 
C)  transporting is vital for mass distribution and modern urban life. 
D)  the cost of shipping some "high-value" products to users is less than 5 percent of their selling prices. 
E)  All of these alternatives are correct.

Question 6

Higher physical distribution service levels is not a source of differentiation.

Accepted Answer

A) True 
 B)False

Question 7

There are big shifts in demand from season to season for the lawn mowers produced by GreenVision Co.-and its need for storage facilities also varies. GreenVision should think about using:

Accepted Answer

A)  piggyback service. 
B)  private warehousing facilities. 
C)  distribution centers. 
D)  public warehousing facilities. 
E)  None of these is a good answer. 
A)  piggyback service. 
B)  private warehousing facilities. 
C)  distribution centers. 
D)  public warehousing facilities. 
E)  None of these is a good answer.

Question 8

Transporting cost as a percentage of selling price is lowest for:

Accepted Answer

A)  Sand 
B)  Factory machinery 
C)  Pharmaceuticals 
D)  Chemicals 
E)  Cabbage 
A)  Sand 
B)  Factory machinery 
C)  Pharmaceuticals 
D)  Chemicals 
E)  Cabbage

Question 9

Regarding transporting by truck:

Accepted Answer

A)  Trucks are best for moving large quantities of goods long distances. 
B)  Trucks are a very low cost mode of transportation. 
C)  Trucks are not reliable in meeting delivery schedules. 
D)  Trucks tend to provide fast delivery. 
E)  None of these alternatives is correct. 
A)  Trucks are best for moving large quantities of goods long distances. 
B)  Trucks are a very low cost mode of transportation. 
C)  Trucks are not reliable in meeting delivery schedules. 
D)  Trucks tend to provide fast delivery. 
E)  None of these alternatives is correct.

Question 10

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 ships to the regional distribution centers of one of the retail hardware chains that it serves. The main advantage of the distribution centers for the retailer is likely to be that they

Accepted Answer

A)  can store a larger inventory than traditional warehouses. 
B)  eliminate the need for electronic communications between the distribution centers and the individual stores. 
C)  speed the flow of tools from the factory to the stores. 
D)  None of these is an advantage of distribution centers. 
A)  can store a larger inventory than traditional warehouses. 
B)  eliminate the need for electronic communications between the distribution centers and the individual stores. 
C)  speed the flow of tools from the factory to the stores. 
D)  None of these is an advantage of distribution centers.

Question 11

Which of the following is NOT true about the supply chain for Ford Motor Company?

Accepted Answer

A)  The supply chain includes the Ford dealers that sell its cars to consumers. 
B)  The supply chain does not include production plants where Ford cars are built. 
C)  The supply chain includes a tire supplier to Ford's production plants. 
D)  The supply chain includes a company that sells rubber to Ford's tire supplier. 
E)  The supply chain includes trucks that deliver cars to Ford dealers. 
A)  The supply chain includes the Ford dealers that sell its cars to consumers. 
B)  The supply chain does not include production plants where Ford cars are built. 
C)  The supply chain includes a tire supplier to Ford's production plants. 
D)  The supply chain includes a company that sells rubber to Ford's tire supplier. 
E)  The supply chain includes trucks that deliver cars to Ford dealers.

Question 12

Regarding railroads,

Accepted Answer

A)  full carload rates are lower than less-than-carload rates. 
B)  rail shipments usually move much faster than truck shipments. 
C)  they transport the same products in less-than-carload lots faster than full carload shipments. 
D)  they handle products only if they are shipped in full carload lots. 
E)  None of these alternatives is true. 
A)  full carload rates are lower than less-than-carload rates. 
B)  rail shipments usually move much faster than truck shipments. 
C)  they transport the same products in less-than-carload lots faster than full carload shipments. 
D)  they handle products only if they are shipped in full carload lots. 
E)  None of these alternatives is true.

Question 13

Which of the following does NOT contribute to total inventory cost?

Accepted Answer

A)  Costs of damage to products while in inventory. 
B)  Costs of risks such as theft and fire. 
C)  Costs of inventory becoming obsolete. 
D)  Increase in the value of goods. 
E)  Handling costs. 
A)  Costs of damage to products while in inventory. 
B)  Costs of risks such as theft and fire. 
C)  Costs of inventory becoming obsolete. 
D)  Increase in the value of goods. 
E)  Handling costs.

Question 14

Transporting choices in developing countries are usually fewer in number, but cost more.

Accepted Answer

A) True 
 B)False

Question 15

The physical distribution concept says (or implies) that:

Accepted Answer

A)  transporting, storing, and product-handling are unrelated activities for cost control. 
B)  the best distribution system is the lowest cost one. 
C)  a firm should seek to minimize the total cost of transporting, storing, and product-handling-for a given level of customer service. 
D)  if the transporting department minimizes its costs and the storing department minimizes its costs and the product-handling department minimizes its costs-then the total cost of physical distribution will be minimized. 
E)  None of these alternatives is correct. 
A)  transporting, storing, and product-handling are unrelated activities for cost control. 
B)  the best distribution system is the lowest cost one. 
C)  a firm should seek to minimize the total cost of transporting, storing, and product-handling-for a given level of customer service. 
D)  if the transporting department minimizes its costs and the storing department minimizes its costs and the product-handling department minimizes its costs-then the total cost of physical distribution will be minimized. 
E)  None of these alternatives is correct.

Question 16

About what percentage of the cost of hospital supplies in the U.S. are a result of logistics?

Accepted Answer

A)  15 percent 
B)  20 percent 
C)  25 percent 
D)  33 percent 
E)  40 percent 
A)  15 percent 
B)  20 percent 
C)  25 percent 
D)  33 percent 
E)  40 percent

Question 17

The challenges of coordinating logistics functions in a supply chain has led to less sharing of information over the Internet and at websites.

Accepted Answer

A) True 
 B)False

Question 18

Shipping by air

Accepted Answer

A)  is most useful for smaller, high-value items. 
B)  may reduce handling costs. 
C)  generally involves higher transportation costs than other modes of transportation. 
D)  offers greater delivery speed. 
E)  All of these alternatives are correct for shipping by air. 
A)  is most useful for smaller, high-value items. 
B)  may reduce handling costs. 
C)  generally involves higher transportation costs than other modes of transportation. 
D)  offers greater delivery speed. 
E)  All of these alternatives are correct for shipping by air.

Question 19

Inventory refers to

Accepted Answer

A)  the amount of goods being stored. 
B)  minimizing storage costs. 
C)  the amount of goods being sold. 
D)  the marketing function of holding goods. 
E)  the quality of goods being stored. 
A)  the amount of goods being stored. 
B)  minimizing storage costs. 
C)  the amount of goods being sold. 
D)  the marketing function of holding goods. 
E)  the quality of goods being stored.

Question 20

After evaluating all of its alternatives and the costs of each, Vegpro Kenya decided the most efficient way to quickly get its fresh vegetables from Nairobi to European cities was to use air freight. What approach did it use in making this decision?

Accepted Answer

A)  Diagonal 
B)  Total cost 
C)  Piggyback 
D)  EDI 
E)  Layered 
A)  Diagonal 
B)  Total cost 
C)  Piggyback 
D)  EDI 
E)  Layered

Most marketing functions can be shared in a channel, but the storing function is almost always handled by the producer.

Retailers selling a new product that is in hot demand-like the latest DVD release or a best selling book-would be unlikely to incur higher costs for faster delivery.

Which of the following statements about physical distribution is False?

The right physical distribution system should be based primarily on

Good marketing strategy planners know that:

Higher physical distribution service levels is not a source of differentiation.

There are big shifts in demand from season to season for the lawn mowers produced by GreenVision Co.-and its need for storage facilities also varies. GreenVision should think about using:

Transporting cost as a percentage of selling price is lowest for:

Regarding transporting by truck:

Which of the following is NOT true about the supply chain for Ford Motor Company?

Regarding railroads,

Which of the following does NOT contribute to total inventory cost?

Transporting choices in developing countries are usually fewer in number, but cost more.

The physical distribution concept says (or implies) that:

About what percentage of the cost of hospital supplies in the U.S. are a result of logistics?

The challenges of coordinating logistics functions in a supply chain has led to less sharing of information over the Internet and at websites.

Shipping by air

Inventory refers to

After evaluating all of its alternatives and the costs of each, Vegpro Kenya decided the most efficient way to quickly get its fresh vegetables from Nairobi to European cities was to use air freight. What approach did it use in making this decision?

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

Most marketing functions can be shared in a channel, but the storing function is almost always handled by the producer.

Retailers selling a new product that is in hot demand-like the latest DVD release or a best selling book-would be unlikely to incur higher costs for faster delivery.

Which of the following statements about physical distribution is False?

The right physical distribution system should be based primarily on

Good marketing strategy planners know that:

Higher physical distribution service levels is not a source of differentiation.

There are big shifts in demand from season to season for the lawn mowers produced by GreenVision Co.-and its need for storage facilities also varies. GreenVision should think about using:

Transporting cost as a percentage of selling price is lowest for:

Regarding transporting by truck:

Which of the following is NOT true about the supply chain for Ford Motor Company?

Regarding railroads,

Which of the following does NOT contribute to total inventory cost?

Transporting choices in developing countries are usually fewer in number, but cost more.

The physical distribution concept says (or implies) that:

About what percentage of the cost of hospital supplies in the U.S. are a result of logistics?

The challenges of coordinating logistics functions in a supply chain has led to less sharing of information over the Internet and at websites.

Shipping by air

Inventory refers to

After evaluating all of its alternatives and the costs of each, Vegpro Kenya decided the most efficient way to quickly get its fresh vegetables from Nairobi to European cities was to use air freight. What approach did it use in making this decision?

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