MKT 304 Ch11 Flashcards
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Logistics" is concerned with: A.reducing spatial separations between producers and consumers. B.transporting, storing, and handling of physical goods along channel systems. C.transporting, storing, and handling of physical goods within individual firms. D.physical distribution. E.All of the above.
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E, All of the above
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Logistics, or physical distribution, is the ________________ part of the marketing mix. A.Possession B.Placement C.Production D.Promotion E.Producuction
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B, Placement
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Logistics decisions include all of the following except: A.distribution service level. B.transporting of goods. C.handling of goods. D.prices to charge for delivery. E.storage of goods.
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D, prices to charge for delivery
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Physical distribution differs from logistics in that 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.
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E, physical distribution is another common name for logistics
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Logistics costs A.are important to both firms and consumers. B.don't vary from firm to firm. C.are very similar across different countries. D.total less than 10 percent of the cost of groceries. E.have little impact on a macro marketing system.
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A, are important to both firms and consumers
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Physical distribution decisions may impact A.location decisions. B.target market selection. C.price decisions. D.channel of distribution decisions. E.all of the above.
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E, all of above
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The physical distribution customer service level concerns A.the costs to carry a product in inventory. B.the length of time a product is stored in inventory. C.the effort put in by channel members to meeting customer needs. D.the location of distribution centers. E.how rapidly and dependably a firm can deliver what customers want
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E.how rapidly and dependably a firm can deliver what customers want
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Physical distribution customer service level means all of the following EXCEPT: 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
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c, sear's shirts are priced at fair value
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The physical distribution ________________________ is how rapidly anddependably a firm can deliver merchandise in demand through the appropriate channels. A.Product service level B.Tradeoff service level C.Customer service level D.Standard service level E.Efficiency service level
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c, customer service level
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The physical distribution customer service level is important because: A.it is a measure of how rapidly and dependably a firm delivers what its customers want. B.it may result in lost sales if it is too low. C.it may result in high costs (and thus lower profits) if it is too high. D.All of the above. E.None of the above.
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D, All of the above
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Physical distribution A.should not require tradeoffs for managers. B.means that consumers get products for low prices. C.includes transportation of products, but logistics does not. D.is invisible to most consumers in the United States. E.All of the above are true.
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D.is invisible to most consumers in the United States.
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Most physical distribution decisions involve trade-offs between A.the total cost of physical distribution and consumer service levels only. B.transportation costs and inventory carrying costs only. C.costs, consumer service levels, and sales. D.sales and consumer service levels only. E.availability and speed of delivery only.
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C.costs, consumer service levels, and sales.
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Which of the following statements about physical distribution is False? 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.
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A.Marketers should always try to maximize the customer service level provided regardless of cost.
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Which of the following statements concerning physical distribution trade-offs is NOT true? 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.
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E.An efficient physical distribution system does not have to make trade-offs for customers.
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When planning physical distribution, the marketing manager should: 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
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B.minimize the cost of distribution for a given customer service level.
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The right physical distribution system should be based primarily on 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
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A.the desired customer service level.
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Information technology helps physical distribution in what ways? A.It improves service levels, but doesn't coordinate activities. B.While it cannot cut costs, it can coordinate activities. C.It can cut costs and improve service levels. D.It is overrated and generally fails to improve service levels and coordinate activities. E.It improves service levels while raising costs
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C .It can cut costs and improve service levels.
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The ______________ concept says that all transporting, storing, and product-handling activities of a business and a channel system should be thought of as part of one system which should seek to minimize the cost of distribution for a given customer service level. A.PERT B.product-market C.distribution center D.physical distribution E.marketing
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D, physical distribution
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In a firm that fully implements the physical distribution concept: A.Physical distribution activities are dealt with as separate, unrelated activities, not ascoordinated parts of a single system. B.The firm seeks to minimize the cost of distribution for a given customer service level. C.Increasing the level of service provided is not related to customer perceptions of value. D.Physical distribution is never a source of competitive advantage. E.None of the above.
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B.The firm seeks to minimize the cost of distribution for a given customer service level.
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According to the "physical distribution concept": A.transporting, storing, and product-handling are independent activities. B.all transporting, storing, and product-handling activities of a business and a whole channel system should be coordinated as part of one system. C.inventories should be based on production requirements. D.the production department should be responsible for warehousing and shipping. E.the lowest-cost distribution system is the best alternative
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B.all transporting, storing, and product-handling activities of a business and a whole channel system should be coordinated as part of one system.
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A merchant wholesaler is considering four physical distribution systems andestimates the total cost and customer service level for each as follows:The best alternative is: A.truck. B.airfreight. C.rail and warehouse. D.inland waterways. E.Cannot be determined without knowing how the target customers feel about the customerservice level.
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E.Cannot be determined without knowing how the target customers feel about the customer service level.
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Which of the following observations about the total cost approach is NOT true? 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 thecosts of each alternative.
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C.Focuses on direct costs and doesn't consider the possible costs of lost sales.
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Fresh Farm Produce Co. has examined transportation costs and found that shippingits fruits and vegetables by rail to distant markets would cost them only $89,000, whileairfreight would cost $250,000. Because the costs of the actual fruits and vegetables are the same for each transportation mode, Fresh Farm Produce should A.try to determine other physical distribution costs before deciding on whether to use airfreight. B.immediately switch to rail to save money. C.conduct marketing research to determine which fruits and vegetables customers want most. D.immediately switch to airfreight because it is clearly a faster mode of transportation. E.ship with airfreight and store the fruits and vegetables in warehouses
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A.try to determine other physical distribution costs before deciding on whether to use airfreight.
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The "total cost approach" to physical distribution management: 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 the above.
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C. might suggest a high-cost transporting mode if storing costs could be reduced enough to lower total distribution costs.
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After evaluating all of its alternatives and the costs of each, Vegpro Kenyadecided the most efficient way to quickly get its fresh vegetables from Nairobi to Europeancities was to use air freight. What approach did it use in making this decision? A.Diagonal B.Total cost C.Piggyback D.EDI E.Layered
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B, Total Cost
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Physical distribution decisions interact with which other marketing mix decisions? A.Price decisions. B.Promotion decisions. C.Product decisions. D.All of the above. E.None of the above.
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D, all
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Just-in-time systems: A.usually reduce PD costs for business customers. B.usually increase PD costs for suppliers. C.usually shift less responsibility for PD to business customers. D.shift more responsibility for PD to suppliers. E.All of the above.
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E.all
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Just-in-time (JIT) delivery A.is always the best approach. B.reduces customers' physical distribution costs. C.increases storing and handling costs. D.shifts responsibility for physical distribution activities forward in the channel. E.requires customers to have high quality standards in physical distribution activity
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B, reduces customer's physical distribution costs
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Which of the following is true regarding JIT systems? A.JIT systems do not have backup inventory. B.JIT usually entails less frequent deliveries. C.JIT requires manufacturers to add new warehouses. D.JIT requires suppliers to respond to very short order lead times and the customer's production schedule. E.Manufacturers must locate their facilities next to important customers in order to practiceJI
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D.JIT requires suppliers to respond to very short order lead times and the customer's production schedule,
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Just-in-time (JIT) delivery: A.Increases physical distribution costs for business customers. B.Requires that a supplier be able to respond to the customer's production schedule. C.Usually does not require e-commerce order systems and computer networks. D.Means that deliveries are larger and less frequent. E.Shifts greater responsibility for physical distribution activities from the supplier to thebusiness customer.
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B.Requires that a supplier be able to respond to the customer's production schedule.
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Which of the following statements about just-in-time delivery is FALSE? A.Just-in-time shifts greater responsibility for physical distribution backward in the channel. B.Just-in-time reduces storing and handling costs for everyone in the channel. C.Just-in-time increases the coordination needed among channel members. D.Just-in-time reduces storing and handling costs for business customers. E.None of the above are false
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B.Just-in-time reduces storing and handling costs for everyone in the channel.
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Honda requires its brake suppliers to deliver parts to its production plants threehours before the parts are scheduled to be installed in a new car. This is an example of what logistics activity? A.EDI B.PD concept C.Piggyback D.Containerization E.JIT
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E, JIT
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A supply chain: 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.all of the above
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C.includes all the activities involved in procuring materials, transforming them into products,and distributing them to customers.
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A _____ is the complete set of firms, facilities, and logistics activities that areinvolved in procuring materials, transforming them into intermediate or finished products, anddistributing them to customers. A.supply chain B.physical distribution group C.logistics partnership D.just-in time group E.none of the above
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A.supply chain
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Which of the following is NOT true about the supply chain for Ford Moto Company? 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
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B.The supply chain does not include production plants where Ford cars are built.
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A supply chain: 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, and this 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, but a channel of distribution mayinvolve intermediaries
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C.requires skill in coordinating activities among different firms, and this has prompted many firms to seek help from outside experts.
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Which of the following 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 the above is false
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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.
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Regarding a "chain of supply": A.All of the firms in the chain of supply should work together to meet the needs of the customer at the end of the chain. B.Logistics functions are not shifted or shared among the firms in the chain of supply. C.Firms sometimes outsource the whole job of planning and implementing their logistic systems. D.All of the above. E.A and C only
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E, A and C
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Electronic data interchange (EDI): 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 the above.
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E, all
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When a supplier's computer automatically processes an online order from a customer, schedules production activities for the order, and then sets up delivery of the finished product to the customer, what approach is being used? A.Piggyback B.EDI C.Containerization D.JIT E.Contractual
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b, EDI
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Which of the following statements about electronic data interchange is FALSE? 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.
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B.EDI has not yet spread to international markets.
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Most ethical issues in the area of physical distribution are concerned with: A.New-product development. B.Product availability. C.Location of retail stores. D.Planned obsolescence of products. E.Channel conflic
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B.Product availability.
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The transporting function adds value by: A.making products available where they're needed. B.helping achieve economies of scale in production. C.making products available when they're needed. D.Both A and C. E.All of the above
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E, all of the above
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Which of the following statements about the transporting function is TRUE? 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 invalue
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E.Transporting costs can be a large part of the total cost for heavy products that are low invalue
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Good marketing strategy planners know that: 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 the above are true.
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E.All of the above are true.
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Transporting costs A.are usually more than the value added by shipping, but the products are shipped anyway as there is no choice. B.do not vary much as a percentage of the final price of products, since big items are shipped expensive approaches. C.usually do not add much to the final cost of products which are already valuable relative to their size and weight. D.usually are not large enough to limit the target market that a marketing manager can serve. E.None of the above is true.
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C.usually do not add much to the final cost of products which are already valuable relative to their size and weight.
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Which of the following products would have the lowest transporting costs as apercentage of the selling price?A.Electronic equipment. B.Chemicals and plastics. C.Pharmaceuticals. D.Sand and gravel. E.Manufactured food
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c, Pharmaceuticals
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Transporting cost as a percentage of selling price is lowest for: A.Sand B, Factory machine C.Pharmaceuticals D.Chemicals E.Cabbage
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C.Pharmaceuticals
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he transporting cost as a percentage of selling price is highest for: A.Factory machinery. B.Electronic equipment. C.Cabbage. D.Manufactured food. E.Sand and gravel
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E, sand and gravel
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More freight is carried more miles _____ than any other mode of transportation. A.by railroads B.by air C.by pipeline D.by trucks E.over wate
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A, by railroad
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Which of the following statements about transporting by rail is True? A.Rail transportation is the slowest mode of transportation. B.Rail transportation is the least expensive mode of transportation. C.Rail transportation is good for long-distance transportation of heavy, bulky items. D.Railroads are most efficient at handling less-than-carload (LCL) shipments. E.All of the above.
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C.Rail transportation is good for long-distance transportation of heavy, bulky items.
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Regarding railroads, 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.All of the above are true.
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A.full carload rates are lower than less-than-carload rates.
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As a mode of transportation, railroad freight would be least suited for ____ A.iron ore. B.sand. C.fresh fruit. D.automobiles. E.coal.
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c, fresh fruit
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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: A.Rail B.Water C.Truck D.Air E.Pipeline
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A, Rail
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Regarding transporting by truck: 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.All of the above.
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D.Trucks tend to provide fast delivery.
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Trucks 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.All of the above are true
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D.compete aggressively with other modes for high-value shipments.
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All of the following are advantages of using trucks EXCEPT: A.flexibility. B.fast delivery speed. C.reliability in meeting delivery schedules. D.handling a variety of goods. E.serving a limited number of locations.
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E.serving a limited number of locations.
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Regarding alternative transporting modes: A.trucks are good for speed, frequency, dependability, and number of locations served. B.pipelines are slower and less dependable than water transport, but also less expensive and able to serve more locations. C.airways are faster, cheaper, and more dependable than railways. D.waterways are slow, costly, and unable to handle a variety of shipments
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A.trucks are good for speed, frequency, dependability, and number of locations served.
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At least ________ percent of all freight shipped in the United States moves bytrucks--at least part of the way--from producer to user. A.20 B.75 C.15 D.5 E.10
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B. 75
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Berry Bros. wants to ship a somewhat bulky, high-valued commodity a shortdistance--and it is seeking low-cost and extremely fast service. Berry should use: A.airfreight. B.railroads. C.inland waterways. D.trucks. E.None of the above
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D, truck
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A marketing manager who wants to ship small quantities (1,500 pounds) of relatively high-value products short distances at an economical cost should use: A.inland waterways. B.pipelines. C.railroads. D.trucks. E.airways.
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D, Truck
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The best way to ship computer parts from St. Louis, Missouri, to Columbus, Ohio,when the parts need to be at a factory in Columbus within three days is to use: A.Pipeline B.Rail C.Truck D.Air E.Water
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C, Truck
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Which of the following transportation modes is "best" at handling a variety of goods? A.Truck B.Rail C.Water D.Air E.Pipelin
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C, Water
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It is usually most economical to ship bulky nonperishable items, such as coal andiron ore, by A.water. B.pipeline. C.truck. D.air. E.None of the above is a good answer, since the cost of shipping a product usually does notvary from one mode to another
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A, water
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The slowest transportation is typically by A.rail. B.water. C.truck. D.air
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B, water
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Products that require a high frequency of scheduled shipments would be least suited to travel by A.truck. B.rail. C.air. D.water. E.pipeline.
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Water
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Tammy works in transportation for a company that manufactures tractors and otherfarm equipment in China for the U.S. market. Cost is her primary concern in getting productsto farm states in the U.S. Midwest. Which mode(s) of transportation would you suggest? A.Water then truck. B.Air then rail. C.Air then truck. D.Air only. E.Water then rail
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A, water then truck
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Alex has to transport iron ore from New Orleans to Memphis. Which mode of transport is he more likely to use? A.Airways B.Truck C.Railroad D.Inland waterways E.Monorai
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D, inland waterway
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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: A.Air B.Truck C.Pipeline D.Rail E.Water
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E, Water
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____ as a mode of transport serves a very limited number of locations but has a high dependability in meeting schedules. A.Trucks B.Railroads C.Waterways D.Airfreight E.Pipelines
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E, pipelines
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For which of the following goods would air be the least useful mode of transportation? A.High-fashion clothing. B.Oil. C.Flower and bulbs from Holland. D.Emergency delivery of repair parts. E.Parts for the electronic industry
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B, oil
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Considering weight, the most expensive transporting mode is: A.pipelines. B.railroads. C.trucks. D.inland waterways. E.airfreight
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E, airfreight
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Shipping by air A.is most useful for smaller, high-value items. B.generally increases handling costs. C.is generally the most economical transportation method. D.all of the above. E.none of the above
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A.is most useful for smaller, high-value items.
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In spite of high cost, high value, low-weight goods like high-fashion clothing andparts for the electronic industry are often shipped long distances by ____ A.rail. B.water. C.air. D.pipeline. E.truck
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C, air
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Transporting by air: A.Works well for heavy, bulky items. B.Is slower than transporting by truck. C.May reduce the total cost of physical distribution. D.Has had no effect on international trade. E.None of the above
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C.May reduce the total cost of physical distribution.
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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.All of the above are true. E.None of the above is true
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D.All of the above are true.
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Regarding airfreight, which of the following statements is NOT true? A.Airfreight may reduce the total cost of distribution. B.Inventory costs usually increase, since only small quantities can be shipped at a time. C.Very bulky items cannot be shipped economically. D.Airfreight is opening up new markets for many perishable items. E.There are usually fewer problems from theft and damage with airfreight
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B.Inventory costs usually increase, since only small quantities can be shipped at a time.
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Using airfreight instead of some other mode of transporting may result in: A.lower packing costs. B.lower total cost of distribution. C.less damage in transit. D.higher transporting costs. E.All of the above
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E.All of the above
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Airfreight A.has rates one third the rates of trucks. B.efficiently delivers all types of goods. C.serves many more locations than trucks. D.can reduce the cost of preparing goods for distribution. E.can help reduce inventory costs
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E.can help reduce inventory costs
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Regarding transportation modes, which of the following statements is NOT true? A.The majority of the pipelines in the U.S. are in the Southwest. B.Airfreight costs about the same as trucks for long distances, not counting the cost of transporting to and from the airport. C.Water transportation is the slowest shipping mode. D.Most cities in the United States are less than 200 miles from a major petroleum pipeline
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B.Airfreight costs about the same as trucks for long distances, not counting the cost of transporting to and from the airport.
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Regarding alternative transporting modes, which of the following statements is TRUE? A.Waterways serve the most locations. B.Airways offer the most expensive transporting mode. C.Railways provide the lowest cost considering weight. D.Trucks offer the fastest speed. E.Pipelines in the U.S. are located mostly in the Northeast.
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B.Airways offer the most expensive transporting mode.
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Jackie works in transportation for a company that ships expensive, high quality fish all across the United States. The perishable nature of her product, the value of freshness, andthe high prices she charges would lead you to recommend which transportation mode? A.Airfreight B.Trucks C.Railroads D.Inland waterways E.Piggyback truck
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A, Airfreight
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What is the best way to ship Spring tulips from Amsterdam, Netherlands, to Rome,Italy? A.Water B.Truck C.Air D.Rail E.Pipeline
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C, Air
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Regarding alternative transporting modes, which of the following statements is 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 the above are true.
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E, All of the above are true
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Containerization: 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 the above is true.
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D.is commonly used for international shipments from Japan.
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Air express companies place many small packages into specially designed cylinders that conform to the interior dimensions of a cargo airplane. This practice protects the smaller packages and helps to reduce distribution costs. The air express companies are practicing: A.Containerization. B.Piggybacking. C.Freight forwarding. D.Cylinderization. E.None of the above.
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a, Containerization
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When Sony manufactures and packages DVD players in Japan, stores them in large 8'x8'x20' "boxes," and then ships these boxes to Los Angeles by boat, this is an example of: A.Containerization B.Truck C.Pipeline D.Rail E.Piggyback
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A.Containerization
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A major benefit of _____ is that it protects the products and simplifies handling during shipping. A.fast freight B.truck service C.containerization D.airfreight E.piggyback
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C.containerization
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Piggyback service means 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
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A.loading truck trailers on railcars to increase flexibility.
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The railroad service which picks up truck trailers at a producer's location, loads them onto rail flatcars, hauls them close to the customer, and then delivers them to the buyer's door is: A.truck service. B.fast freight. C.trailer service. D.piggyback service. E.pool car service
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D.piggyback service.
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Chrysler manufactures cars in Detroit and loads them on truck trailers at thefactory. Burlington Northern Santa Fe (BNSF) picks up the truck trailers, loads them onspecially designed rail flatcars, and ships them to St. Louis. There they are delivered by truckto local dealers. This transportation process is: A.Containerization B.Multilevel C.Layered D.Piggyback E.Disjointed
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D.Piggyback
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Storing: A.must be provided by all channel members. B.is necessary when production does not match consumption. C.is related to Place--but not to Price. D.makes goods available where they're needed. E.All of the above
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B.is necessary when production does not match consumption.
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Inventory refers to 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.
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A.the amount of goods being stored.
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Storing: A.is related to Place--but has no effect on Price. B.is necessary because production does not always match consumption C.must be performed by all members of a channel system. D.decreases the value of products. E.All of the above are true statements.
answer
B.is necessary because production does not always match consumption
question
Storing of goods is necessary when A.there is more demand and no supply. B.quality doesn't match demand. C.production doesn't match consumption. D.production doesn't match quality demanded. E.products are produced in small batches
answer
C.production doesn't match consumption.
question
Which of the following statements is NOT TRUE? A.Storing is a marketing function. B.Storing allows producers and intermediaries to keep stocks at convenient locations. C.Storing allows the producer to achieve economies of scale in production. D.Storing is necessary when production of goods doesn't match consumption. E.Storing can increase the value of goods, but does not involve costs.
answer
E.Storing can increase the value of goods, but does not involve costs.
question
A marketing manager might greatly improve his marketing mix by: A.shifting the storing job to a specialized storage facility. B.adjusting the time products will be held by channel members. C.encouraging final consumers to store some products for future consumption. D.sharing the storage function (and costs) with intermediaries. E.All of the above
answer
E, all of the above
question
Storing: A.costs include the costs of damage, theft, and reduced value if products get out-of-date. B.costs can be reduced in the channel if suppliers are reliable about meeting delivery schedules. C.too few products is likely to reduce a firm's costs, sales, and profits. D.decisions are more difficult to make when demand is irregular. E.All of the above are true
answer
E, all of the above
question
Which of the following does NOT contribute to total inventory cost? 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 cost
answer
D.Increase in the value of goods
question
Compared to public warehouses, PRIVATE warehouses: A.may have low unit costs if the volume is high. B.are better if space will only be needed infrequently. C.offer low fixed investments .D.increase managerial flexibility. E.All of the above.
answer
A.may have low unit costs if the volume is high.
question
Compared to a public warehouse, a private warehouse A.requires no fixed investment. B.has lower unit costs. C.has less flexibility. D.works better when large volumes of goods must be stored irregularly. E.tends to have less managerial control
answer
C, has less flexibility
question
cheese processor having regular need for regional storage of a large quantity of cheese probably should use ______________ warehouses. A.public B.private C.general merchandise D.commodity
answer
B, private
question
Which of the following is true about public warehouses? A.They are leased by companies for their own use. B.They are designed to speed the flow of goods. C.They are very expensive. D.They are useful for manufacturers that must maintain stock in many locations, including foreign countries. E.They are used by firms who must regularly store large volumes of goods
answer
D.They are useful for manufacturers that must maintain stock in many locations, including foreign countries.
question
Regarding the storing function: A.Public warehouses are storing facilities owned or leased by companies for their own use. B.Private warehouses are most useful when a company does not have a regular need for space. C.Public warehouses are independent storing facilities and provide a full range of services. D.All of the above. E.None of the above
answer
C.Public warehouses are independent storing facilities and provide a full range of services.
question
Public warehouses: A.generally do not provide all the services that could be obtained in a company's own branch warehouse. B.are not usually responsible for the risk of damage in the warehouse. C.provide flexibility because the user pays only for the space used. D.are not very useful to manufacturers who must maintain stocks in many locations,including foreign countries. E.All of the above
answer
C.provide flexibility because the user pays only for the space used.
question
Compared to private warehouses, PUBLIC warehouses: A.are not any more flexible because long-term leases are usually required. B.may not always be conveniently available. C.require no fixed investment but per unit storing costs are usually higher. D.reduce managerial flexibility. E.All of the above.
answer
B.may not always be conveniently available.
question
A manufacturer having irregular need for regional storage of bicycles should use which one of the following? A.a private warehouse to be sure of adequate space. B.public warehouses to provide flexibility and low unit cost. C.a distribution center. D.direct distribution. E.railroads, because they are slow and the bicycles are being stored while they're on the train
answer
B.public warehouses to provide flexibility and low unit cost
question
There are big shifts in demand from season to season for the lawn mowersproduced by GreenVision Co.--and its need for storage facilities also varies. GreenVisionshould think about using: A.piggyback service. B.private warehousing facilities. C.distribution centers. D.public warehousing facilities. E.None of the above is a good answer
answer
D.public warehousing facilities.
question
Modern warehouses typically do NOT have: A.power-operated lift trucks. B.electric hoists. C.battery-operated motor scooters. D.roller-skating order pickers .E.freight elevators.
answer
E, Freight elevators
question
Radio frequency identification tags can A.make it easy for computers to monitor inventory. B.help computers to order needed stock. C.track storing costs. D.transmit details about carton contents. E.all of the above.
answer
E, all of the above
question
The primary function of a ______________ is to speed the flow of products and avoid unnecessary storing costs. A.commodity warehouse B.distribution center C.merchant wholesaler D.public warehouse E.private warehouse
answer
B, distribution center
question
A distribution center is designed to: A.stockpile goods for long periods and avoid rising prices. B.buy low and sell high. C.reduce inventory turnover. D.speed the flow of goods and avoid unnecessary storing. E.all of the above
answer
D.speed the flow of goods and avoid unnecessary storing.
question
Compared to a warehouse, a DISTRIBUTION CENTER is: A.designed to provide more efficient use of storage space. B.concerned with eliminating the need for bulk-breaking. C.designed to eliminate all storage. D.set up to speed the flow of products toward the consumer. E.a storage facility used by several intermediaries--to share costs
answer
D.set up to speed the flow of products toward the consumer
question
A _____ is a special kind of warehouse designed to speed the flow of goods and avoid unnecessary storing costs. A.gateway for inventory B.RFID warehouse C.UPC storage facility D.distribution center E.shopping mall
answer
D.distribution center
question
Distribution centers: A.Are designed to facilitate the flow of products through the channel. B.Are the same as public warehouses. C.Are not places where regrouping activities—such as bulk- breaking—are performed. D.Increase storing costs. E.All of the above.
answer
A.Are designed to facilitate the flow of products through the channel.
question
Which of the following statements about inventory and storage is TRUE? A.A distribution center is used to avoid unnecessary storing costs. B.Only government agencies can store products in public warehouses. C.Decisions about inventory levels are usually not of concern to marketing managers--since inventory levels are best determined based on the amount of the product produced. D.Achieving customer service goals makes a large inventory almost inevitable. E.Minimizing storage costs will lead to lower total distribution costs.
answer
A. A distribution center is used to avoid unnecessary storing costs.
question
United's shipments to international markets often rely on containerization. Thelikely reason for this is that A.the tools are shipped by airfreight. B.it makes it easier to move shipments between different transportation modes. C.containerization is very useful for small, frequent shipments. D.containerization allows a firm to carry less inventory. E.all of the above are benefits of containerizatio
answer
B.it makes it easier to move shipments between different transportation modes.
question
In designing the right physical distribution system, United Tools should primarily focus on: A.the inventory level that its current warehouse can support. B.the lowest cost transportation method for each of its products. C.where customers store their inventory. D.the desired customer service level. E.the physical characteristics of each product
answer
D.the desired customer service level.
question
Which physical distribution system is best suited for Ralston Supply? A.Airfreight. B.Inland waterways. C.Truck. D.Rail and warehouse. E.Cannot be determined without more information
answer
A, Airfreight
