Question 1

A supply chain:

Accepted Answer

A)  focuses on making services available whereas a channel of distribution focuses on making goods available. 
B)  may involve many firms, but only one manufacturer. 
C)  includes all the activities involved in procuring materials, transforming them into products, and distributing them to customers. 
D)  is easier to coordinate than a channel of distribution. 
E)  None of these alternatives about a supply chain is correct. 
A)  focuses on making services available whereas a channel of distribution focuses on making goods available. 
B)  may involve many firms, but only one manufacturer. 
C)  includes all the activities involved in procuring materials, transforming them into products, and distributing them to customers. 
D)  is easier to coordinate than a channel of distribution. 
E)  None of these alternatives about a supply chain is correct.

Question 2

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.
When United Tools considers its total inventory cost, which of the following would NOT be included?

Accepted Answer

A)  Costs of damage to products while in inventory. 
B)  Costs of inventory becoming obsolete. 
C)  Cost of a storage facility. 
D)  Cost of capital invested in the inventory. 
E)  All of these should be included in total inventory cost. 
A)  Costs of damage to products while in inventory. 
B)  Costs of inventory becoming obsolete. 
C)  Cost of a storage facility. 
D)  Cost of capital invested in the inventory. 
E)  All of these should be included in total inventory cost.

Question 3

Maintaining the right level of inventory is easy now that there are tools to precisely forecast and model demand.

Accepted Answer

A) True 
 B)False

Question 4

Physical distribution differs from logistics in that

Accepted Answer

A)  logistics deals with storing and physical distribution does not. 
B)  logistics uses JIT to coordinate activities among firms and physical distribution does not. 
C)  logistics includes customer service decisions and physical distribution does not. 
D)  logistics includes transporting goods and physical distribution does not. 
E)  physical distribution is another common name for logistics. 
A)  logistics deals with storing and physical distribution does not. 
B)  logistics uses JIT to coordinate activities among firms and physical distribution does not. 
C)  logistics includes customer service decisions and physical distribution does not. 
D)  logistics includes transporting goods and physical distribution does not. 
E)  physical distribution is another common name for logistics.

Question 5

Using airfreight instead of some other mode of transporting may result in:

Accepted Answer

A)  lower packing costs. 
B)  lower total cost of distribution. 
C)  less damage in transit. 
D)  higher transporting costs. 
E)  All of these alternatives are correct. 
A)  lower packing costs. 
B)  lower total cost of distribution. 
C)  less damage in transit. 
D)  higher transporting costs. 
E)  All of these alternatives are correct.

Question 6

Which of the following statements concerning physical distribution trade-offs is NOT true?

Accepted Answer

A)  The trade-offs that must be made in the physical distribution area can be complicated. 
B)  The lowest-cost approach may not be the best as customer service level varies from one market to the other. 
C)  Many firms are trying to address trade-off complications with e-commerce. 
D)  Most physical distribution decisions involve trade-offs between costs, customer service level, and sales. 
E)  An efficient physical distribution system does not have to make trade-offs for customers. 
A)  The trade-offs that must be made in the physical distribution area can be complicated. 
B)  The lowest-cost approach may not be the best as customer service level varies from one market to the other. 
C)  Many firms are trying to address trade-off complications with e-commerce. 
D)  Most physical distribution decisions involve trade-offs between costs, customer service level, and sales. 
E)  An efficient physical distribution system does not have to make trade-offs for customers.

Question 7

The total cost approach involves evaluating each possible PD system and identifying all the transportation costs associated with each alternative.

Accepted Answer

A) True 
 B)False

Question 8

Transporting costs usually add relatively little to the cost of valuable products.

Accepted Answer

A) True 
 B)False

Question 9

A supply chain includes all the activities involved in procuring materials, transforming them into products, and distributing them to customers.

Accepted Answer

A) True 
 B)False

Question 10

Bar codes, UPC numbers, and RFID tags make it easy for computers to monitor inventory, order stock, and track shipping costs.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following statements about the transporting function is TRUE?

Accepted Answer

A)  Among transportation modes, an advantage of air transport is its ability to handle a variety of goods. 
B)  Because transportation costs are less than 1 percent of costs for most products, marketing managers do not need to consider them when making strategy decisions. 
C)  Pipelines are generally one of the fastest modes of transportation. 
D)  In most countries, government plays little role in transportation. 
E)  Transporting costs can be a large part of the total cost for heavy products that are low in value. 
A)  Among transportation modes, an advantage of air transport is its ability to handle a variety of goods. 
B)  Because transportation costs are less than 1 percent of costs for most products, marketing managers do not need to consider them when making strategy decisions. 
C)  Pipelines are generally one of the fastest modes of transportation. 
D)  In most countries, government plays little role in transportation. 
E)  Transporting costs can be a large part of the total cost for heavy products that are low in value.

Question 12

More freight is carried more miles _____ than any other mode of transportation.

Accepted Answer

A)  by railroads 
B)  by air 
C)  by pipeline 
D)  by trucks 
E)  over water 
A)  by railroads 
B)  by air 
C)  by pipeline 
D)  by trucks 
E)  over water

Question 13

Modern warehouses typically do NOT have:

Accepted Answer

A)  power-operated lift trucks. 
B)  electric hoists. 
C)  battery-operated motor scooters. 
D)  roller-skating order pickers. 
E)  freight elevators. 
A)  power-operated lift trucks. 
B)  electric hoists. 
C)  battery-operated motor scooters. 
D)  roller-skating order pickers. 
E)  freight elevators.

Question 14

A good marketing manager will try to:

Accepted Answer

A)  set the desired customer service level before trying to minimize physical distribution costs. 
B)  minimize the total cost of physical distribution. 
C)  maximize the level of customer service provided by his firm. 
D)  minimize storing time and costs. 
E)  provide customers with just-in-time delivery service. 
A)  set the desired customer service level before trying to minimize physical distribution costs. 
B)  minimize the total cost of physical distribution. 
C)  maximize the level of customer service provided by his firm. 
D)  minimize storing time and costs. 
E)  provide customers with just-in-time delivery service.

Question 15

When planning physical distribution, the marketing manager should:

Accepted Answer

A)  set the customer service level so that every customer can get the product exactly when he wants it. 
B)  minimize the cost of distribution for a given customer service level. 
C)  minimize the cost of transportation. 
D)  maximize the speed of delivery. 
E)  make use of a distribution center. 
A)  set the customer service level so that every customer can get the product exactly when he wants it. 
B)  minimize the cost of distribution for a given customer service level. 
C)  minimize the cost of transportation. 
D)  maximize the speed of delivery. 
E)  make use of a distribution center.

Question 16

A "supply chain" is the same thing as a "channel of distribution."

Accepted Answer

A) True 
 B)False

Question 17

The best way to ship a heavy product like iron ore from St. Louis, Missouri, to New Orleans, Louisiana, in the Spring season with no arrival deadline is to use:

Accepted Answer

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

Question 18

As a percentage of GDP, which of the following most likely characterizes logistic costs incurred in developing economies in Africa?

Accepted Answer

A)  Less than 9 percent 
B)  9 to 12 percent 
C)  Approximately 12 percent 
D)  Approximately 15 percent 
E)  25 to 30 percent 
A)  Less than 9 percent 
B)  9 to 12 percent 
C)  Approximately 12 percent 
D)  Approximately 15 percent 
E)  25 to 30 percent

Question 19

With the PD concept, firms decide what specific service level to provide their customers.

Accepted Answer

A) True 
 B)False

Question 20

Electronic data interchange (EDI):

Accepted Answer

A)  Puts information in a standardized format that can be shared between different computer systems. 
B)  Improves information flow between buyers and suppliers. 
C)  Allow customers to transmit orders directly to a supplier's computer. 
D)  Replaces many of the paper documents previously used for purchase orders and shipping reports. 
E)  All of these alternatives about EDI are correct. 
A)  Puts information in a standardized format that can be shared between different computer systems. 
B)  Improves information flow between buyers and suppliers. 
C)  Allow customers to transmit orders directly to a supplier's computer. 
D)  Replaces many of the paper documents previously used for purchase orders and shipping reports. 
E)  All of these alternatives about EDI are correct.

A supply chain:

Maintaining the right level of inventory is easy now that there are tools to precisely forecast and model demand.

Physical distribution differs from logistics in that

Using airfreight instead of some other mode of transporting may result in:

Which of the following statements concerning physical distribution trade-offs is NOT true?

The total cost approach involves evaluating each possible PD system and identifying all the transportation costs associated with each alternative.

Transporting costs usually add relatively little to the cost of valuable products.

A supply chain includes all the activities involved in procuring materials, transforming them into products, and distributing them to customers.

Bar codes, UPC numbers, and RFID tags make it easy for computers to monitor inventory, order stock, and track shipping costs.

Which of the following statements about the transporting function is TRUE?

More freight is carried more miles _____ than any other mode of transportation.

Modern warehouses typically do NOT have:

A good marketing manager will try to:

When planning physical distribution, the marketing manager should:

A "supply chain" is the same thing as a "channel of distribution."

The best way to ship a heavy product like iron ore from St. Louis, Missouri, to New Orleans, Louisiana, in the Spring season with no arrival deadline is to use:

As a percentage of GDP, which of the following most likely characterizes logistic costs incurred in developing economies in Africa?

With the PD concept, firms decide what specific service level to provide their customers.

Electronic data interchange (EDI):

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

A supply chain:

Maintaining the right level of inventory is easy now that there are tools to precisely forecast and model demand.

Physical distribution differs from logistics in that

Using airfreight instead of some other mode of transporting may result in:

Which of the following statements concerning physical distribution trade-offs is NOT true?

The total cost approach involves evaluating each possible PD system and identifying all the transportation costs associated with each alternative.

Transporting costs usually add relatively little to the cost of valuable products.

A supply chain includes all the activities involved in procuring materials, transforming them into products, and distributing them to customers.

Bar codes, UPC numbers, and RFID tags make it easy for computers to monitor inventory, order stock, and track shipping costs.

Which of the following statements about the transporting function is TRUE?

More freight is carried more miles _____ than any other mode of transportation.

Modern warehouses typically do NOT have:

A good marketing manager will try to:

When planning physical distribution, the marketing manager should:

A "supply chain" is the same thing as a "channel of distribution."

The best way to ship a heavy product like iron ore from St. Louis, Missouri, to New Orleans, Louisiana, in the Spring season with no arrival deadline is to use:

As a percentage of GDP, which of the following most likely characterizes logistic costs incurred in developing economies in Africa?

With the PD concept, firms decide what specific service level to provide their customers.

Electronic data interchange (EDI):

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