Question 1

One of the problems associated with materials handling is:

Accepted Answer

Materials handling can involve moving, storing, and transporting large quantities of items, which can lead to a high rate of loss and damage if proper procedures are not in place. This can result in financial losses for the company and can impact customer satisfaction if goods arrive in poor condition. Finding the right transportation modes, meeting government regulations, and locating a suitable facility are also important aspects of materials handling, but they do not necessarily pose the same level of problem as loss and damage.

Question 2

Third-party logistics providers are firms that perform most or all of the logistics functions that:

Accepted Answer

Third-party logistics providers perform most or all of the logistics functions that manufacturers, suppliers, and distributors would normally perform themselves, hence option A is the correct choice. Options B, C, and D are incorrect as they only mention one or two of the groups that normally perform logistics functions, but not all three.

Question 3

TB Figure 1
 
-The marketing dashboard above (TB Figure 1)shows that in 2006, the highest annual percentage change in sales was:

Accepted Answer

The answer of TB Figure 1
 
-The marketing dashboard above...

Question 4

Which of the following is an example of a storage cost that would be considered a part of inventory costs?

Accepted Answer

Warehousing space and materials handling costs are expenses related to storing and managing inventory, which is a major part of inventory costs. The other options are not directly related to storage costs. B is an opportunity cost, C is the cost of finished goods themselves, and D is a risk cost.

Question 5

Optimum Inc. works with manufacturers, suppliers, and distributors to manage their shipping and logistic needs. Optimum Inc. would likely be considered a(n):

Accepted Answer

Optimum Inc. is a third-party logistics provider as they are not a manufacturer or supplier themselves, but rather work with them to manage shipping and logistics.

Question 6

Moving goods over short distances into, within, and out of warehouses and manufacturing plants is called:

Accepted Answer

Materials handling involves the movement of goods within a warehouse or manufacturing plant, including tasks such as loading and unloading trucks, moving pallets of products, and transporting items from one area of the facility to another. Inventory expediting refers to the process of accelerating the movement of goods through the supply chain to ensure that they arrive at their destination on time, while production control involves planning and managing the production process to ensure that products are manufactured efficiently and meet quality standards. Intermodal transportation refers to the use of multiple modes of transportation to move goods from one location to another.

Question 7

The Montana Coal Company needs to move its coal to intermediaries on the East coast who in turn will sell it to end users. The best means of transportation for the company to employ under normal conditions is:

Accepted Answer

Railroads are the most efficient and cost-effective means of transporting large quantities of coal over long distances, such as from Montana to the East Coast. They have the capacity to handle the bulk and weight of coal shipments better than the other options listed.

Question 8

Which of the following statements about air carriers is true?

Accepted Answer

Air carriers are often chosen for transporting perishable items like flowers, clothing, and electronics parts due to their speed and efficiency in delivering goods over long distances in a short amount of time, which is crucial for maintaining the quality and value of these items.

Question 9

Coldwater Creek is a mail-order company. Because of its proficiency at filling orders, it has contracts to fill orders received by several e-commerce companies. Coldwater Creek is an example of a:

Accepted Answer

Coldwater Creek is a third-party logistics provider, which is a company that provides logistics services to other companies, such as order fulfillment and transportation management. They are also referred to as 3PL providers.

Question 10

TB Figure 1
 
-The marketing dashboard above (TB Figure 1)shows that in 2006, the highest annual percentage change in sales occurred in the _________channel.

Accepted Answer

The green bar with the highest percentage change (around 16%) is in the "Furniture Store Chains" category, indicating that this channel had the highest annual percentage change in sales in 2006.

Question 11

The two types of warehouses are:

Accepted Answer

Distribution centers and storage warehouses are the two main types of warehouses. Distribution centers are focused on efficiently receiving, processing, and distributing goods to various destinations, often with a focus on speed and turnover. Storage warehouses, on the other hand, are primarily used for storing goods over a longer period.

Question 12

TB Figure 1
 
-The marketing dashboard above (TB Figure 1)suggests

Accepted Answer

The answer of TB Figure 1
 
-The marketing dashboard above...

Question 13

Which of the following statements describes a major benefit of distribution centres?

Accepted Answer

Distribution centres focus on efficiency and the rapid movement of goods, aiming to minimize storage time and expedite the delivery process to meet customer demands quickly.

Question 14

All transportation modes can be evaluated using all of the following basic service criteria EXCEPT:

Accepted Answer

Tangibles refer to the physical evidence of a service, such as the cleanliness of a vehicle or the appearance of the staff, which might not be a primary criterion for evaluating all transportation modes, especially those focused on freight or non-passenger services. The other options (dependability, accessibility, and frequency) are fundamental criteria applicable to evaluating all transportation modes in terms of their reliability, ease of use, and service intervals, respectively.

Question 15

Which of the following is an example of a capital cost that would be considered a part of inventory costs?

Accepted Answer

The answer of Which of the following is an example...

Question 16

Which of the following statements about railroads is NOT true?

Accepted Answer

Railroads do not always exhibit complete pickup and delivery. They typically rely on trucking or other modes of transportation to handle the first and last mile of shipping.

Question 17

Which of the following statements is NOT a justification for carrying inventory?

Accepted Answer

Carrying inventory does not promote purchasing and transportation cost increases. In fact, carrying too much inventory can increase these costs due to additional storage and handling fees. The other options are valid justifications for carrying inventory. A) Inventory can protect against contingencies such as disruptions in supply or distribution due to strikes, natural disasters, or political unrest. C) Having inventory on hand can lead to better customer service by allowing for timely order fulfillment and reducing stockouts. D) Inventory can serve as a buffer against fluctuations in supply and demand by allowing the company to adjust production or sales accordingly.

Question 18

Which of the following is an example of an inventory service cost that would be considered a part of inventory costs?

Accepted Answer

Costs such as insurance and taxes are typically assessed on the value of inventory and are therefore considered part of inventory costs. Option A is an example of carrying costs, which are also related to inventory but not specifically inventory service costs. Option B refers to potential losses or damages to inventory, which are risks associated with holding inventory but again not specifically inventory service costs. Option C refers to the physical goods held in inventory and not the cost of services related to inventory management.

Question 19

The four key logistical functions in a supply chain include transportation, warehousing and materials handling, inventory management and:

Accepted Answer

Order processing, along with transportation, warehousing and materials handling, and inventory management, is a key logistical function in a supply chain. It involves the activities required to execute customer orders effectively and efficiently.

Question 20

A Costco warehouse holds items for the shortest time possible in order to have very efficient logistics systems. This warehouse is best described as a(n):

Accepted Answer

A distribution centre is a facility that is specifically designed to efficiently store and distribute goods. Costco's warehouse is designed to quickly move products in and out, making it a distribution centre. It is not a freight forwarder, as it does not handle the transportation of goods, nor is it an inventory expediting centre, as it does not expedite specific items. It is also not a storage warehouse, as its focus is not solely on storage but rather the movement of products.

Quiz 14: Managing Marketing Channels and Supply Chains