Quiz: Chapter 2 – Flashcards

Materials handling is concerned with A. inventory levels. B. breaking bulk. C. scheduling trade-offs. D. short-distance movement.

Logistics is the process of anticipating customer needs and wants; acquiring the capital, materials, people, technologies, and information necessary to meet those needs and wants; optimizing the goods- or service-producing network to fulfill customer requests; and utilizing the network to fulfill customer requests in a timely manner. This is a A. definition from an inventory perspecitve. B. general definition. C. definition offered by the Society of Logsitics Engineers. D. definition provided by the Council of Logistics Management.

The inverse relationship that exists between the cost of lost sales and inventory costs is the inventory effect. A. True B. False

The utility created through the basic marketing activities is known as place utility. A. True B. False

Transportation is the physical movement or flow of goods. A. True B. False

The value that is added to goods through a manufacturing or assembly process is A. form utility. B. place utility. C. time utility. D. prossession utlity.