Question 1

Johnson Controls hires a consultant to assess its materials handling procedures. The consultant recommends the implementation of ____ if they want easier movement of items between internal destinations in the warehouse.

Accepted Answer

The answer of Johnson Controls hires a consultant to assess...

Question 2

Morgan Steel Company leases a warehouse in Jacksonville, Alabama to serve Deep South markets that were large enough and stable enough to make a long-term commitment to fixed facilities. This is a

Accepted Answer

The answer of Morgan Steel Company leases a warehouse in...

Question 3

Managers and consultants at Colgate-Palmolive are meeting to discuss better ways to package its products to reduce damage and make loading more efficient. The primary function they are trying to improve is

Accepted Answer

The discussion of packaging products to reduce damage and improve loading efficiency is directly related to materials handling, as it involves the physical movement and storage of materials within a facility.

Question 4

Kawasaki places several motorcycles in "pods" in order to load them efficiently using forklifts. This system of materials handling is called

Accepted Answer

Unit loading is the system in which a large quantity of goods are loaded as a single unit to achieve efficient materials handling. In this case, Kawasaki is placing multiple motorcycles in "pods" which are loaded as a single unit using forklifts. Therefore, the correct answer is D) unit loading.

Question 5

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

The fastest mode of transportation is airway, which is why it is often relied upon for just-in-time inventory systems. While it is more expensive than other modes of transportation, the success of the business depends significantly on receiving parts quickly. Therefore, Kolder Inc. is most likely relying more on airway transportation.

Question 6

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

Question 7

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. It is not a large centralized warehouse, a company that provides complete logistical services, a company-operated facility or a warehouse used for personal storage.

Question 8

Fansteel manufactures parts used in jet engines, which it sells to companies such as Boeing. When shipping products to Boeing, Fansteel seals the parts in 8' × 8' × 40' boxes for shipping to decrease loss and damage. This method of materials handling is

Accepted Answer

Containerization involves packing goods in standardized containers for efficient transportation and handling. In this case, Fansteel is sealing the parts in 8' × 8' × 40' boxes, which are examples of standardized containers. Unit loading and unitized shipping refer to the use of pallets or other devices to consolidate multiple items into a single unit for transportation. Freight forwarding involves the organization and shipment of goods on behalf of other companies. Bonded packaging specifically refers to packaging used in international trade that is subject to customs regulations.

Question 9

Air-Tech management learns that last month's production run of heaters at its Newark plant is defective and announces a recall of the specific models produced. To handle the large number of products it expects to receive for replacement of the defective thermostats, Air-Tech will probably need to add a ____ to its distribution network.

Accepted Answer

The answer of Air-Tech management learns that last month's production...

Question 10

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 method to replace the microchip immediately as it is faster than other options, such as waterway, truck, or railroad. A government vehicle may not be the quickest mode of transportation, and it may not even be available at the time.

Question 11

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 are the most flexible transportation mode as they can pick up and deliver at any location, including remote areas. They can also operate on various schedules and routes, unlike railroads or waterways which have fixed schedules and routes. Pipelines are not suitable for shipping bottled water, and airways can be expensive and not as flexible as trucks.

Question 12

What function of physical distribution enables companies to compensate for dissimilar production and consumption rates and stabilize prices and availability of seasonal items?

Accepted Answer

Warehousing allows companies to store products until they are needed, which helps to balance out the differences in production and consumption rates. This function is crucial for managing seasonal items, ensuring that they are available when demand is high and helping to stabilize their prices by allowing for storage during off-peak times.

Question 13

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

Accepted Answer

Waterways are the cheapest method to transport bulky and heavy goods like salt over long distances. Additionally, Baton Rouge and Cincinnati are connected by major waterways such as the Mississippi River, making it an efficient and cost-effective mode of transportation. Pipelines are more commonly used for transporting liquids such as oil or gas, while trucks and airways are expensive for long-distance transportation. Railroads can be a viable option, but they may not always offer the most cost-effective solution compared to waterways.

Question 14

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 very large blades require specialized transportation and handling equipment, as well as potentially higher transportation costs due to their size and weight.

Question 15

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 of transportation. They can reach almost any location and can offer multiple delivery options such as same-day delivery or next-day delivery. Warehousing may provide storage facilities for the products, but it does not provide transportation. Waterways, pipelines, and railroads have fixed routes and schedules, which may not be flexible enough for Madison's needs.

Question 16

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 that Garcia Wholesale Plumbing is planning to build in Atlanta is specifically designed for handling and distributing shipments to plumbing stores and contractors in the region. As it will be a central hub for consolidating shipments from multiple suppliers, it can be classified as a distribution center.

Question 17

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 over long distances, such as from remote oil drilling sites in central Alaska to shipping terminals on the Alaskan coast. Pipelines have lower operating costs and higher capacity than other modes of transportation.

Question 18

Which mode of transportation hauls more freight than any other?

Accepted Answer

Railroads haul more freight than any other mode of transportation. They are efficient and cost-effective for transporting large quantities of goods over long distances. In the US alone, railroads move around 40% of the freight in the country.

Question 19

Which of the following physical distribution functions involves design and operation of facilities for storing goods?

Accepted Answer

Warehousing involves the design and operation of facilities for storing goods.

Question 20

ClearChem is a producer of chemicals used in car detailing and painting. Because of the volatility of their chemical products when exposed to dirt and heat, ClearChem operates its own facilities for storing and shipping its products. ClearChem's facilities are most likely known as

Accepted Answer

ClearChem operates its own facilities for storing and shipping its products, which suggests that they have their own private warehouses.

Quiz 15: Marketing Channels and Supply Chain Management