Deck 1: An Overview of Logistics

Question 1

___________ utility refers to the value or usefulness that comes from a customer being able to take possession of a product.
a.Time
b.Place
c.Form
d.Possession

Answer 1

Possession

Question 2

The movement and storage of materials into a firm refers to ___________.
a.physical distribution
b.materials management
c.supply chain management
d.materials handling

Answer 2

materials management

Question 3

Which concept refers to the storage of finished product and movement to the customer?
a.supply chain management
b.business logistics
c.physical distribution
d.materials management

Answer 3

physical distribution

Question 4

The four basic components of the marketing mix include all of the following except:
a.price.
b.production.
c.place.
d.promotion.

Question 5

Landed costs refer to:
a.the costs of a product shipped via surface transport.
b.the costs of a product that is quoted cash on delivery (COD).
c.the costs of a prepaid shipment.
d.a price that includes both the cost of the product plus transportation to the buyer.

Question 6

___________ refers to the removal of intermediaries between producer and consumer.
a.Direct channel
b.Market demassification
c.Consolidation
d.Disintermediation

Question 7

Logistics managers use the ___________ approach to coordinate materials management and physical distribution in a cost-efficient manner.
a.total cost
b.supply chain
c.balanced
d.intrafunctional logistics

Question 8

The ___________ approach indicates that a company's objectives can be realized by recognizing the mutual interdependence of major functional areas.
a.systems
b.supply chain
c.physical distribution
d.materials management

Question 9

A cost trade-off is a situation where:
a.all costs react according to their individual degrees of inflation in the economy.
b.all costs are reflected as a percentage variation from standard costs.
c.some costs increase and some costs decrease.
d.some costs are eliminated by efficient management controls.

Question 10

Widespread reductions in economic regulation of U.S.transportation carriers occurred in ___________.
a.the 1960s and 1970s
b.the 1970s and 1980s
c.the 1980s and 1990s
d.only the 1990s

Question 11

___________ refers to being out of an item at the same time there is demand for it.
a.Postponement
b.Tailored logistics
c.Stockout
d.Supplier indifference

Question 12

___________ refers to the delay of value-added activities such as assembly,production,and packaging to the latest possible time.
a.Building block
b.Lean manufacturing
c.Deferral
d.Postponement

Question 13

An example of ___________ involves ordering something online and then picking it up at a bricks-and-mortar store.
a.supply chain management
b.finance
c.omnichannel retailing
d.big-box retailing

Question 14

Logistics clearly contributes to ___________ and ___________ utility.
a.time; place
b.form; time
c.place; form
d.possession; time

Question 15

Approximately ___________ percent of U.S.families with children reports that both parents work.
a.70
b.60
c.50
d.40

Question 16

World trade has grown at an average annual rate of approximately ___________ percent since 1990.
a.6
b.5
c.4
d.3

Question 17

___________ are stores with large amounts of both floor space and product for sale.
a.Mass merchandisers
b.Power retailers
c.Big-box retailers
d.Do-it-yourself (DIY)retailers

Question 18

The ___________ concept suggests that the customer desires a product offering that is highly tailored to the customer's exact preferences.
a.market demassification
b.relationship marketing
c.customized customer
d.niche marketing

Question 19

The ___________ department often measures inventory in terms of its cost or value in dollars whereas ___________ tends to measure inventory in terms of units.
a.marketing; logistics
b.finance; production
c.marketing; production
d.finance; logistics

Question 20

A common interface between production and logistics involves:
a.the types of materials handling equipment.
b.the length of production runs.
c.the use of plastic versus wood pallets.
d.the mode of transportation.

Question 21

___________ is bringing together similar stocks from different sources.
a.Accumulating
b.Assorting
c.Auditing
d.Allocating

Question 22

Logistics clearly contributes to time and form utility.

Question 23

Reductions in economic regulation allowed individual transportation companies flexibility in pricing and service.

Question 24

The ownership channel consists of all parties except:
a.customers.
b.manufacturers.
c.wholesalers.
d.retailers.

Question 25

The current definition of logistics,as promulgated by the Council of Supply Chain Management Professionals (CSCMP),suggests that logistics is part of supply chain management.

Question 26

Which channel covers the movement of title to the goods?
a.promotions
b.logistics
c.finance
d.ownership

Question 27

The purpose of logistics is to maximize customer service.

Question 28

In mass logistics,groups of customers with similar logistical needs and wants are provided with logistics services appropriate to those wants and needs.

Question 29

Humanitarian logistics represents an emerging application of logistics to not-for-profit organizations.

Question 30

Channel intermediaries:
a.assume temporary ownership of the goods.
b.tend to lack focus.
c.fill niches.
d.tend to disappear as the market becomes organized.

Question 31

Which of the following is not part of the marketing channel?
a.logistics channel
b.negotiations channel
c.management channel
d.finance channel

Question 32

The costliest logistics activity in many firms is ___________.
a.industrial packaging
b.transportation management
c.order management
d.warehousing management

Question 33

Absolute and relative logistics costs in relation to gross domestic product (GDP)vary from country to country.

Question 34

The four general types of economic utility are production,possession,time,and place.

Question 35

Market demassification suggests that the customer desires a product offering that is highly tailored to his exact preference.

Question 36

Enticing customers with the promise of a low-priced product,only to find that it is unavailable,but having a higher-priced substitute product readily available refers to ___________.
a.loss-leader marketing
b.unfair trade practices
c.bait-and-switch tactics
d.price lining

Question 37

Brokers are intermediaries that are commonly associated with the ___________ channel.
a.promotions
b.finance
c.ownership
d.negotiation

Question 38

Disintermediation refers to the removal of intermediaries between producer and consumer.

Question 39

___________ refers to breaking a homogeneous supply into smaller lots.
a.Sorting out
b.Allocating
c.Accumulating
d.Assorting

Question 40

Logistics is only concerned with forward flows-that is,those directed toward the point of consumption.

Question 41

Interfunctional logistics attempts to coordinate materials management and physical distribution in a cost-efficient manner that supports an organization's customer service objectives.

Question 42

Logistics has played a minor role in the growth of global trade.

Question 43

Superior logistics is an essential component of corporate strategies for many big-box retailers.

Question 44

Postponement is the delay of value-added activities such as assembly,production,and packaging to the latest possible time.

Question 45

Landed costs refer to the price of a product at its source.

Question 46

The systems approach indicates that a company's objectives can be realized by recognizing the mutual interdependence of the major functional areas of a firm.

Question 47

Logistical decisions tend not to be impacted by marketers' growing emphasis on offering sustainable products.

Question 48

Logistics offers many companies an important route for creating marketing superiority.

Question 49

The ownership channel is the one where buy and sell agreements are reached.

Question 50

Long production runs sometimes result in excessive inventory of products with limited demand for them.

Question 51

A stock-keeping unit (SKU)refers to a line item of inventory offered for sale by a company.

Question 52

The most significant contribution that the logistics channel makes to the overall channel process is the sorting function.

Question 53

The financing channel handles a company's credit and payment for goods.

Question 54

Dual distribution refers to an alliance that allows customers to purchase products from two or more name-brand retailers at one store location.

Question 55

The key to the total cost approach is that all relevant cost items are considered simultaneously when making a decision.

Question 56

Many promotional decisions,such as pricing campaigns that lower the price of certain items,require close coordination between marketing and logistics.

Question 57

Stockouts refer to a situation in which a company is out of an item at the same time that there is demand for that item.

Question 58

The finance department tends to measure inventory in terms of units whereas logistics tends to measure inventory in terms of its cost or value.

Question 59

Physical distribution is synonymous with materials management.

Question 60

There is no link between the promotions and logistics channels.

Question 61

The sorting function takes place between retailers and the consumer.

Question 62

Intermediaries assume ownership of goods while those goods are in the marketing channel.

Question 63

Demand forecasting is not considered to be a logistics-related activity.

Question 64

Packaging can have both a marketing and logistical dimension.

Question 65

The sorting function has four steps.

Question 66

Warehousing represents the costliest logistics activity in many organizations.

Question 67

A broker is a type of intermediary often associated with the negotiations channel.

Question 68

The job market for logisticians and supply chain managers continues to be strong at the undergraduate,but not the MBA,level.

Question 69

A commonly used logistical intermediary is the freight forwarder.