Question 1

Memphis is 360 miles from Chattanooga, TN. The product cost for an item is $10 per cwt., and the transportation cost per mile per cwt. if $0.20. What is the laid- down cost per cwt.?

Accepted Answer

LDC = $10 + $0.20 X 360) = $82 per cwt.

Question 2

The more________ the item, the greater the weight that can be carried in a given vehicle.

Accepted Answer

A)   perishable
B)   dense
C)   packaged
D)   valuable B

Question 3

Discuss some of the variables that determine the specific way in which materials move.

Accepted Answer

Variables include: the channels of distribution that the firm is using, the types of markets served, the characteristics of the product, and the type of transportation available to move the material.

Question 4

________are devices that move material horizontally or vertically between two fixed points in a fixed route.

Accepted Answer

A)   Industrial trucks
B)   Cranes
C)   Hoists
D)   Conveyors

Question 5

Distribution centers improve customer service by providing place utility.

Accepted Answer

A) True 
 B)False

Question 6

A company normally ships to a customer by rail at a cost of $500 per load. The transit time is 14 days. The goods can be shipped by truck for $700 per load and a transit time of 4 days. If transit inventory cost is $35 per day, what does it cost to ship each way?

Accepted Answer

The answer of A company normally ships to a customer...

Question 7

Packaging is a pure cost that must be offset by the increased physical distribution inefficiency that the package provides.

Accepted Answer

A) True 
 B)False

Question 8

Discuss the total- cost concept.

Accepted Answer

The answer of Discuss the total- cost concept....

Question 9

As distribution centers are added:

Accepted Answer

A)   the cost of truckload shipments increase
B)   the cost of truckload shipments decrease
C)   the total cost of transportation increases
D)   the costs of LTL shipments to customers increase

Question 10

The average inventory carried depends on the order quantity and the safety stock.

Accepted Answer

A) True 
 B)False

Question 11

Materials handling is the long- distance movement that takes place in or around a building such as a plant or distribution center DC).

Accepted Answer

A) True 
 B)False

Question 12

Shipping patterns depend on:

Accepted Answer

A)   the customer order size
B)   the number of customers
C)   the geographic distribution of the customers
D)   all of the above

Question 13

The service levels decrease as the number of distribution centers increased.

Accepted Answer

A) True 
 B)False

Question 14

For a particular commodity, the line- haul cost is $2.50 per mile. FOr a trip of 500 miles and a shipment of 600 cwt., what is the cost of shipping per cwt.? If the shipment is increased to 1,000 cwt., what is the savings in cost per cwt.?

Accepted Answer

The answer of For a particular commodity, the line- haul...

Question 15

A company ships dog houses fully assembled to luxury dog hotels. The average line- haul cost per shipment is $12.50 per mile and the truck carries 100 assembled large dog houses. The company decided to ship the houses unassembled and figures it can ship 500 in a truck. Calculate the line- haul cost per assembled and unassembled dog house. If the average trip is 300 miles, calculate the potential savings per dog house.

Accepted Answer

The answer of A company ships dog houses fully assembled...

Question 16

________is the consolidation of several units into large units so there is less handling.

Accepted Answer

A)   Utilization
B)   Palletizing
C)   Packaging
D)   Centralization

Question 17

While transportation consolidation is concerned with reduction of transportation costs, product mixing deals with the grouping of different items into an order and the economies that warehouses can provide in doing this.

Accepted Answer

A) True 
 B)False

Question 18

Cranes and hoists move materially horizontally but not vertically, to any point within their area of operation.

Accepted Answer

A) True 
 B)False

Question 19

Operating costs ________as the number of distribution centers________ .

Accepted Answer

A)   increase, increase
B)   decrease, increase
C)   increase, decrease
D)   stay the same, increase

Question 20

Materials handling costs depend upon the number of units handled.

Accepted Answer

A) True 
 B)False

Exam 13: Physical Distribution

Memphis is 360 miles from Chattanooga, TN. The product cost for an item is $10 per cwt., and the transportation cost per mile per cwt. if $0.20. What is the laid- down cost per cwt.?

The more________ the item, the greater the weight that can be carried in a given vehicle.

Discuss some of the variables that determine the specific way in which materials move.

________are devices that move material horizontally or vertically between two fixed points in a fixed route.

Distribution centers improve customer service by providing place utility.

A company normally ships to a customer by rail at a cost of $500 per load. The transit time is 14 days. The goods can be shipped by truck for $700 per load and a transit time of 4 days. If transit inventory cost is $35 per day, what does it cost to ship each way?

Packaging is a pure cost that must be offset by the increased physical distribution inefficiency that the package provides.

Discuss the total- cost concept.

As distribution centers are added:

The average inventory carried depends on the order quantity and the safety stock.

Materials handling is the long- distance movement that takes place in or around a building such as a plant or distribution center DC).

Shipping patterns depend on:

The service levels decrease as the number of distribution centers increased.

For a particular commodity, the line- haul cost is $2.50 per mile. FOr a trip of 500 miles and a shipment of 600 cwt., what is the cost of shipping per cwt.? If the shipment is increased to 1,000 cwt., what is the savings in cost per cwt.?

________is the consolidation of several units into large units so there is less handling.

While transportation consolidation is concerned with reduction of transportation costs, product mixing deals with the grouping of different items into an order and the economies that warehouses can provide in doing this.

Cranes and hoists move materially horizontally but not vertically, to any point within their area of operation.

Operating costs as the number of distribution centers .

Materials handling costs depend upon the number of units handled.