Question 1

Garcia Wholesale Plumbing has seen its sales in the Southeast triple in the past two years. Materials handling director Barb Peterson announces plans to the board for an Atlanta facility that will combine shipments received from Garcia's 25 suppliers for nearly immediate shipment to plumbing stores and contractors in the region. This new facility would be best classified as which of the following?

Accepted Answer

The new facility proposed by Barb Peterson for Garcia Wholesale Plumbing would combine shipments from multiple suppliers and ship them out immediately to customers in the region. This facility would function as a distribution center, which is designed to efficiently store, sort, and distribute goods from multiple suppliers to multiple destinations.

Question 2

Subway sells its food items through company-owned stores and through franchises. Subway uses ____ as a channel strategy.

Accepted Answer

Subway uses dual distribution as a channel strategy, by selling its food items through both company-owned stores and franchises. This allows Subway to reach a wider range of customers through different channels, while also maintaining control over some aspects of the distribution process.

Question 3

Which mode of transportation hauls more freight than any other?

Accepted Answer

According to the U.S. Department of Transportation, in 2019, railroads hauled the largest amount of freight in terms of ton-miles (the distance a ton of freight is transported) at 1.7 trillion ton-miles, followed by trucks at 1.5 trillion ton-miles, waterways at 570 billion ton-miles, pipelines at 413 billion ton-miles, and airways at 14 billion ton-miles. Therefore, A) Railroads is the correct answer as it hauls more freight in terms of ton-miles than any other mode of transportation.

Question 4

____ adds time and place utility to a product by moving it from where it is made to where it is purchased and used.

Accepted Answer

Transportation is the process of moving products from their place of production to their point of consumption, adding both time and place utility to the product. Warehousing, containerization, distribution, and materials handling are all important components of the transportation process, but transportation itself is what physically moves the product from one location to another.

Question 5

Madison is responsible for the freight transportation of products sold by Richland Tech, a producer of cooking oils sold to large institutions. Since Madison needs to schedule freight transportation with the mode that provides the most flexible schedules and routes, which of the following should she use?

Accepted Answer

Trucks provide the most flexible schedules and routes compared to other modes, making them the best choice for freight transportation when flexibility is a priority. Waterways have fixed schedules and routes, pipelines are limited to specific products and destinations, railroads have fixed schedules and limited routes, and warehousing is not a mode of transportation.

Question 6

Using a freight forwarder usually

Accepted Answer

The answer of Using a freight forwarder usually
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Question 7

What two modes of transportation are used when containers are shipped by piggyback?

Accepted Answer

Piggyback shipping refers to the transportation of containers on railway flatcars (railroads) and then shifting the container onto a truck chassis (trucks) for the last mile delivery. Therefore, the best choice for transportation when containers are shipped by piggyback is railroads and trucks.

Question 8

Logistics Plus is an organization that consolidates shipments from several industrial firms into more efficient lot sizes so that they can be more efficiently transported. What type of transportation company is Logistics Plus?

Accepted Answer

The answer of Logistics Plus is an organization that consolidates...

Question 9

Piggyback , fishyback , and birdyback are terms usually associated with gaining efficiency in shipping through

Accepted Answer

Piggyback, fishyback, and birdyback are all transport modes that involve containerization. Piggyback refers to the transportation of containers on a specialized rail car that is designed to carry both the container and the tractor that will haul it to its final destination. Fishyback refers to the transportation of containers on specialized ships that have the ability to carry both containers and conventional cargo in their holds. Birdyback refers to the transportation of containers on specialized planes that have the ability to carry both containers and passengers. All three modes offer increased efficiency in transportation through the use of standardized containers for ease of movement and handling.

Question 10

Luke is a transportation coordinator for Volkswagen of North America. In order to move a large order of vehicles from a plant in Germany to Chicago, he is planning to use both waterways and railroads. The combining and coordinating of these two modes of transportation in order to take advantage of benefits offered by each of the different types of carriers is called

Accepted Answer

The combining and coordinating of waterways and railroads is an example of intermodal transportation, which refers to the use of multiple modes of transportation in a coordinated manner to move goods from origin to destination. This can offer cost savings, greater capacity, and faster transit times compared to using a single mode of transportation.

Question 11

A public warehouse is a

Accepted Answer

A public warehouse is a business that leases storage space and related facilities for distribution to other firms. They typically provide storage, handling, and transportation services to a wide range of customers on a short-term or long-term basis. This allows businesses to store their products in a cost-effective way without investing in their own warehouse space.

Question 12

WTA is a manufacturer of very large blades used in energy-reducing wind turbines. What is most likely the most expensive physical distribution function associated with the WTA product?

Accepted Answer

Transportation of the product is likely the most expensive physical distribution function as the large blades would require specialized transportation and handling, possibly including oversized or overweight permits for transportation on roads or even air transport.

Question 13

Dual distribution is characterized as

Accepted Answer

Dual distribution refers to the distribution of a single manufacturer's product through two or more different channel structures. It allows the manufacturer to reach multiple target markets through different distribution channels, such as retail stores and online marketplaces. While it can be beneficial for the manufacturer, it can also lead to channel conflicts and cannibalization of sales.

Question 14

If a microchip in a computer at the Pentagon failed, which method of transportation would be most appropriate to use to replace the chip immediately if one could get the new chip only from New York City?

Accepted Answer

Airway transportation would be the most appropriate as it is the fastest and would allow for the quickest replacement of the microchip.

Question 15

Freight transportation companies that offer several different shipment methods are called

Accepted Answer

The answer of Freight transportation companies that offer several different...

Question 16

Magnetic Springs wants to ship its bottled water with the most flexible schedules and routes of all transportation modes. Magnetic Springs should use ____ as its transportation mode.

Accepted Answer

Trucks offer the most flexibility in terms of scheduling and routing, as they can travel on almost any type of road and can easily make stops as needed. Railroads, waterways, and pipelines often have fixed routes and schedules, while airways can be expensive and may have limitations on the amount of cargo that can be transported. Therefore, trucks would be the best choice for Magnetic Springs to ensure flexible shipping of their bottled water.

Question 17

Kolder Inc. is using a new just-in-time inventory management system that requires ordering smaller quantities of parts more frequently. The success of its business depends significantly on receiving these parts very quickly, so like many other companies using just-in-time, Kolder Inc. is relying more on the ____ mode of transportation despite its expense.

Accepted Answer

Airway transportation is the best choice for Kolder Inc. because it is the fastest mode of transportation and can ensure the parts are received quickly, which is essential for their just-in-time inventory management system. Despite its expense, it is necessary for the success of their business. The other transportation modes listed may not be as fast or reliable for Kolder Inc.'s needs.

Question 18

In which of the following situations is dual distribution likely to be determined illegal?

Accepted Answer

Dual distribution may be considered illegal if a manufacturer uses its company-owned outlets to dominate independent retailers that carry its products, giving them an unfair advantage. This is a violation of antitrust laws that promote fair competition in the market.

Question 19

The Diamond Salt Company needs to transport 20 tons of salt from Baton Rouge, Louisiana, to Cincinnati, Ohio. Which of the following methods would be the cheapest for transporting this cargo?

Accepted Answer

Waterways are generally the most cost-effective method for transporting large, heavy cargo over long distances, especially when the origin and destination are accessible by navigable rivers, as is the case with Baton Rouge and Cincinnati.

Question 20

Assuming everything else equal, the most cost-efficient way for British Petroleum to transport crude oil from remote oil drilling sites in central Alaska to shipping terminals on the Alaskan coast would be

Accepted Answer

Pipelines are the most cost-efficient way to transport crude oil from remote sites to shipping terminals as they have low operating and maintenance costs, have a high capacity for transporting large volumes, and are less susceptible to weather conditions or accidents compared to other modes of transportation.

Quiz 13: Marketing Channels and Supply-Chain Management