Question 1

A supply chain

Accepted Answer

A) is part of a broader network of relationships called a channel of distribution. 
B) is most effective when the objectives of the manufacturer at the beginning of the chain guide the activities of all other firms in the chain. 
C) requires skill in coordinating activities among different firms,which has prompted many firms to seek help from outside experts. 
D) focuses on procuring materials needed for production,so its main weakness is that it ignores customer needs. 
E) concerns only direct relationships between producers,while a channel of distribution may involve intermediaries.

Question 2

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 ________ transportation.

Accepted Answer

A) air 
B) truck 
C) pipeline 
D) rail 
E) water

Question 3

A ________ is the complete set of firms,facilities,and logistics activities that are involved in procuring materials,transforming them into intermediate or finished products,and distributing them to customers.

Accepted Answer

A) supply chain 
B) physical distribution group 
C) logistics partnership 
D) just-in time group 
E) None of these answers is correct.

Question 4

A footwear company specializing in the production of ballet shoes normally produces shoes for women.The company is hired by several customers to produce shoes for men.Which of the following should the manufacturer consider in order to achieve economies of scale in shoe production?

Accepted Answer

A) the amount of shoe production cost compared to the typical costs incurred in shipping 
B) the level of effort required to retool the company's manufacturing plant to produce only men's shoes 
C) the cost of producing one type of shoe at a time in large quantities and storing them for future sales 
D) the amount of shoe storage cost compared to the typical costs incurred in shipping 
E) the cost associated with efforts to increase customers that might also place orders for men's shoes

Question 5

Transporting cost as a percentage of selling price is lowest for

Accepted Answer

A) sand. 
B) factory machinery. 
C) pharmaceuticals. 
D) chemicals. 
E) cabbage.

Question 6

Compared to private warehouses,public warehouses

Accepted Answer

A) are not any more flexible,because long-term leases are usually required. 
B) may not always be conveniently available or adequate for the current product line. 
C) require no fixed investment,but per-unit storing costs are usually higher. 
D) reduce managerial flexibility. 
E) All these answers are correct.

Question 7

Which of the following best reflects the order in which activities are most likely to be performed on goods arriving at a distribution center?

Accepted Answer

A) sort into groups,retrieve from groups,stack on pallets,load for shipping 
B) put in long-term storage,retrieve from groups,stack on pallets,load for shipping 
C) sort into groups,put in long-term storage,retrieve from groups,load for shipping 
D) load for shipping,sort into groups,retrieve from groups,stack on pallets 
E) sort into groups,stack on pallets,load for shipping,retrieve from groups

Question 8

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 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 9

The mode of transport that serves a very limited number of locations but has a high dependability in meeting schedules is

Accepted Answer

A) truck. 
B) rail. 
C) water. 
D) air. 
E) pipeline.

Question 10

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 11

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.For its storage needs,GreenVision should think about using

Accepted Answer

A) airfreight. 
B) private warehousing facilities. 
C) distribution centers. 
D) public warehousing facilities. 
E) commodity warehousing facilities.

Question 12

Every firm should try to use the just-in-time approach to physical distribution.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following statements about the supply chain for Ford Motor Company is FALSE?

Accepted Answer

A) The supply chain includes the Ford dealers that sell its cars to consumers. 
B) The supply chain does not include the production plants where Ford cars are built. 
C) The supply chain includes a supplier of tires 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 14

Which of the following does NOT concern the physical distribution customer service level?

Accepted Answer

A) Honda wants enough bumpers to build cars that day. 
B) A vacationer wants Avis to have his rental car clean and ready when he arrives at the rental car counter. 
C) Sears' shirts are priced at a fair value. 
D) McDonald's has enough large cups so that customers can buy the larger size drinks which are on sale. 
E) Safeway's loaves of bread are in stock and not crushed when customers want them.

Question 15

Transport costs per pound for less-than-full carloads are less than for full loads.

Accepted Answer

A) True 
 B)False

Question 16

Use this information for questions that refer to the United Tools case. 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:
$\begin{array}{c}
\begin{array}{lll}
\
1.\
2.\
3.\
4.\
\
\end{array}
\begin{array}{lll}
\text{Main feature of system:}\
Airfreight\
Inland ~waterways\
Trucks\
Rail ~and ~regional\
warehouses\
\end{array}
\begin{array}{lll}
\begin{array}{rc}
\text { Total Cost}&\text {  Distribution Service Level }\
\$ 1,000,000 & 95 \text { percent } \
\$ 300,000 & 60 \text { percent } \
\$ 500,000 & 70 \text { percent } \
\$ 650,000 & 80 \text { percent }\
\
\end{array}
\end{array}
\end{array}$
 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 -leveleven if that means some products will occasionally be out of -stockif 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.
To help in managing excess inventory,United Tools would most likely use

Accepted Answer

A) a private warehouse. 
B) a public warehouse. 
C) the piggyback mode. 
D) a distribution center. 
E) All of these would help in managing excess inventory.

Question 17

The transporting cost as a percentage of selling price is highest for

Accepted Answer

A) factory machinery. 
B) electronic equipment. 
C) cabbage. 
D) manufactured food. 
E) sand and gravel.

Question 18

In the United States,there is little competition among transporting firms for shipping business because government regulations control most transporting rates,routes,and schedules.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following types of activities is/are likely to occur at a distribution center?

Accepted Answer

A) sorting of products and moving them to loading docks 
B) sorting of goods and short-term storing 
C) shipping goods directly from manufacturer site to retail stores 
D) tracking storing and shipping costs by computers 
E) long-term storage of inventory before shipping

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 11: Distribution Customer Service and Logistics

A supply chain

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 ________ transportation.

A ________ is the complete set of firms,facilities,and logistics activities that are involved in procuring materials,transforming them into intermediate or finished products,and distributing them to customers.

A footwear company specializing in the production of ballet shoes normally produces shoes for women.The company is hired by several customers to produce shoes for men.Which of the following should the manufacturer consider in order to achieve economies of scale in shoe production?

Transporting cost as a percentage of selling price is lowest for

Compared to private warehouses,public warehouses

Which of the following best reflects the order in which activities are most likely to be performed on goods arriving at a distribution center?

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

The mode of transport that serves a very limited number of locations but has a high dependability in meeting schedules is

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

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.For its storage needs,GreenVision should think about using

Every firm should try to use the just-in-time approach to physical distribution.

Which of the following statements about the supply chain for Ford Motor Company is FALSE?

Which of the following does NOT concern the physical distribution customer service level?

Transport costs per pound for less-than-full carloads are less than for full loads.

The transporting cost as a percentage of selling price is highest for

In the United States,there is little competition among transporting firms for shipping business because government regulations control most transporting rates,routes,and schedules.

Which of the following types of activities is/are likely to occur at a distribution center?

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