Question 1

Temp-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, Temp-Tech will probably need to add a ____ to its distribution network.

Accepted Answer

A public warehouse would be a cost-effective solution for temporarily storing the large number of returned products during the recall process.

Question 2

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 3

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

Accepted Answer

Transportation of the AWT blades is likely to be the most expensive physical distribution function due to the size and weight of the product, as well as the specialized equipment and logistics required for shipping such large items.

Question 4

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 have the most flexible schedules and routes compared to other transportation modes, as they can travel on a variety of roads and highways, making it easy for Magnetic Springs to deliver their bottled water to a large number of destinations. Additionally, trucks can transport goods to both urban and remote areas, which can be especially useful for water delivery to areas without easy access to railroads or waterways.

Question 5

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

Private warehouses are owned and operated by the company for its own use, which is appropriate for ClearChem because of the need to maintain control over the storage and shipment of its volatile chemical products. Distribution centers and public warehouses are typically used for third-party logistics and storage, while megawarehouses and product storehouses are not common industry terms.

Question 6

Fernandez 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 Fernandez'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

Based on the description provided, the new facility being planned by Fernandez Wholesale Plumbing is a distribution center. It will receive shipments from multiple suppliers and will then distribute those products to customers in the region. This is the primary function of a distribution center.

Question 7

____ 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 goods from where they are produced or manufactured to where they are needed or sold, adding both time and place utility to the product. Warehousing, containerization, distribution, and materials handling are important steps in the logistics network, but they do not by themselves add time and place utility to a product.

Question 8

Assuming everything else is equal, the most cost-efficient way for ExxonMobil 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, which makes them the best choice for ExxonMobil to transport crude oil from remote oil drilling sites in central Alaska to shipping terminals on the Alaskan coast. Pipelines have lower transportation costs per unit of oil than other transportation methods such as tankers, railroads, or trucking. Additionally, pipelines have lower maintenance costs and a lower environmental impact than other forms of transportation.

Question 9

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 focus on packaging and loading efficiency suggests that the primary goal is to improve the way products are moved and transported within the supply chain, which falls under the umbrella of materials handling. While warehousing and inventory management could both be impacted by this initiative, the specific focus on packaging and loading suggests that the primary function being improved is materials handling. Cycle time and containerization may also be impacted, but they are not the primary function being improved in this scenario.

Question 10

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. It also aids in stabilizing prices and ensuring the availability of seasonal items by allowing for the storage of goods until they are in demand.

Question 11

A public warehouse is a

Accepted Answer

A public warehouse is a business that leases out storage space and related facilities to other firms. These firms can use the warehouse to store their products without having to invest in their own storage space.

Question 12

Brit is responsible for the freight transportation of products sold by Richland Tech, a producer of cooking oils sold to large institutions. Since Brit 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 offer the most flexible schedules and routes compared to other modes of freight transportation. They can easily adjust to different pickup and delivery times and navigate through a wide range of routes, from highways to local roads, making them ideal for door-to-door service.

Question 13

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 route is accessible by water, as is the case from Baton Rouge, Louisiana, to Cincinnati, Ohio, via the Mississippi River and its connecting waterways.

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 choice because it is the fastest mode of transportation and would allow for the quickest delivery of the new chip from New York City to the Pentagon.

Question 15

Which mode of transportation hauls more freight than any other?

Accepted Answer

Railroads haul more freight than any other mode of transportation. They are able to transport large quantities of goods over long distances efficiently and cost-effectively. In addition, they are able to handle a variety of different types of freight, from bulk commodities like coal and grain to finished goods like automobiles and consumer electronics.

Question 16

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

Accepted Answer

Piggyback, fishyback, and birdyback all refer to the use of containerization to increase efficiency in shipping. Piggyback involves transporting truck trailers on railway cars, fishyback involves transporting boats on railway cars, and birdyback involves transporting aircraft on railway cars. Containerization allows for easy and efficient movement of goods by standardizing container sizes and modes of transportation. Transit time, warehousing, packaging, and lot sizes may also affect shipping efficiency but are not directly related to these specific terms.

Question 17

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

Accepted Answer

Piggyback transportation involves loading containers onto railroad flatcars, and then using trucks to transport them to their final destination. Therefore, the best choice is E, railroads and trucks.

Question 18

Kalder 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, Kalder Inc. is relying more on the ____ mode of transportation despite its expense.

Accepted Answer

The airway mode of transportation is known for its speed and efficiency, making it a preferred choice for companies that rely on just-in-time inventory management. While it is more expensive than other modes of transportation, the benefits of quick delivery outweigh the costs for companies like Kalder Inc.

Question 19

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

Accepted Answer

A private warehouse is owned or leased by companies to store their own products, which fits the description of Morgan Steel Company's use of the warehouse.

Question 20

Brad 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 different modes of transportation in order to take advantage of their individual benefits is known as intermodal transportation. In this case, Brad is planning to use waterways and railroads to move the large order of vehicles, which is an example of intermodal transportation.

Quiz 13: Marketing Channels and Supply-Chain Management