Question 1

Just-in-time (JIT) delivery:

Accepted Answer

JIT delivery requires that a supplier be able to respond to the customer's production schedule, making it necessary for the supplier to have efficient inventory and logistics operations to deliver products immediately as the customer needs them.

Question 2

Honda requires its brake suppliers to deliver parts to its production plants three hours before the parts are scheduled to be installed in a new car. This is an example of what logistics activity?

Accepted Answer

The requirement for brake suppliers to deliver parts three hours before installation in a new car is consistent with the just-in-time (JIT) logistics approach, which emphasizes the delivery of materials and goods just in time for their use in the production process. This helps to minimize inventory costs and waste, while maximizing efficiency and responsiveness to customer demand. EDI (electronic data interchange) involves the electronic exchange of business documents between trading partners, while piggyback and containerization are transportation and packaging methods, respectively. PD concept is not a commonly used term in logistics.

Question 3

Which of the following statements about the transporting function is TRUE?

Accepted Answer

The statement that "transporting costs can be a large part of the total cost for heavy products that are low in value" is true. This is because transportation costs are typically based on weight and distance, so heavy products will incur higher transportation costs even if their value is low. Therefore, marketing managers need to consider transportation costs when making strategy decisions for heavy, low-value products. Options A, B, C, and D are false statements.

Question 4

Which of the following is NOT true about the supply chain for Ford Motor Company?

Accepted Answer

The statement "The supply chain does not include production plants where Ford cars are built" is not true. Production plants are a crucial part of Ford's supply chain as they are where the company's products are made.

Question 5

Electronic data interchange (EDI):

Accepted Answer

All of the above statements are true about electronic data interchange (EDI). It is a standardized format for sharing information between computer systems that improves information flow between buyers and suppliers. It allows customers to transmit orders directly to a supplier's computer, and it also replaces many of the paper documents previously used for purchase orders and shipping reports.

Question 6

Transporting cost as a percentage of selling price is lowest for:

Accepted Answer

The answer of Transporting cost as a percentage of selling...

Question 7

A _____ is the complete set of firms, facilities, and logistics activities that are involved in procuring materials, transforming them into intermediate or finished products, and distributing them to customers.

Accepted Answer

A supply chain includes all entities involved in the process of getting raw materials and transforming them into finished goods and delivering them to the customers. A physical distribution group may be a part of the supply chain, but it only refers to the activities involved in delivering the finished product to the customer. Logistics partnership and just-in-time group are specific terms and not the complete definition of a supply chain.

Question 8

Transporting costs

Accepted Answer

Transporting costs usually do not add much to the final cost of products that are valuable relative to their size and weight, as these products have a high value-to-weight ratio, making shipping costs a smaller percentage of the final price.

Question 9

Which of the following statements about supply chains is FALSE?

Accepted Answer

This statement is false because many firms are now using electronic data interchange (EDI) and other information-sharing systems to collaborate with suppliers, distributors, and other partners in their supply chain. Therefore, computers are already having a significant impact on managing supply chains.

Question 10

A supply chain:

Accepted Answer

A supply chain involves coordinating activities among different firms in order to procure materials and deliver products to customers. This coordination is complex and requires expertise, which is why many firms seek help from outside experts. Option A is incorrect because a channel of distribution involves all the entities that a product passes through on its way to the end user, including intermediaries. Option B is incorrect because effective supply chain management requires collaboration among all firms involved, not just the manufacturer at the beginning of the chain. Option D is incorrect because a supply chain can only be effective if it takes into account customer needs, and this is typically a key consideration. Option E is incorrect because a channel of distribution involves more than just direct relationships between producers.

Question 11

Most ethical issues in the area of physical distribution are concerned with:

Accepted Answer

The answer of Most ethical issues in the area of...

Question 12

A supply chain:

Accepted Answer

The definition of a supply chain includes all the activities involved in procuring materials, transforming them into products, and distributing them to customers. This involves multiple firms and manufacturers, as well as the coordination of different processes and logistics. Choice A is incorrect as a supply chain can involve both goods and services. Choice B is incorrect as a supply chain may involve multiple manufacturers. Choice D is incorrect as a supply chain is often more complex and difficult to coordinate than a channel of distribution.

Question 13

Good marketing strategy planners know that:

Accepted Answer

All of the statements are true. Marketing strategy planners need to consider the impact of transportation costs on pricing, target markets, and distribution strategies. For some products, the cost of transportation may be a significant factor, particularly if they are bulky or low-value items. However, transportation is essential for modern urban life and mass distribution, and for some high-value products, shipping costs may represent a relatively small percentage of the final selling price.

Question 14

Regarding a "chain of supply":

Accepted Answer

Choice A is partially correct but not a comprehensive statement. Supply chain management requires collaboration and coordination among all the firms in the chain of supply to meet the needs of the end customer. 
Choice B is incorrect as logistics functions are often shared among the firms in the supply chain to optimize efficiency and cost-effectiveness. 
Choice C is correct as firms may choose to outsource their logistics planning and implementation to third-party logistics providers (3PLs) who specialize in supply chain management. Therefore, the correct choices are A and C, making E the best answer.

Question 15

Transportation helps to

Accepted Answer

Transportation makes products available when and where they're needed, which helps achieve economies of scale in production and makes exchange easier. Therefore, all of the above options are correct.

Question 16

Which of the following statements about electronic data interchange is FALSE?

Accepted Answer

EDI has spread to international markets and is commonly used in global trade.

Question 17

When a supplier's computer automatically processes an online order from a customer, schedules production activities for the order, and then sets up delivery of the finished product to the customer, what approach is being used?

Accepted Answer

This approach is known as Electronic Data Interchange (EDI), which allows for the automatic processing of orders and related business transactions between suppliers and customers.

Question 18

Electronic data interchange:

Accepted Answer

Electronic data interchange (EDI) puts information in a standardized format, which makes it easier for businesses to communicate and exchange data. This includes inventory information, which becomes more accessible as a result. EDI is also commonly used both domestically and internationally, making it a valuable tool for businesses operating in different markets. Therefore, all of the given options are correct.

Question 19

Which of the following products would have the lowest transporting costs as a percentage of the selling price?

Accepted Answer

The answer of Which of the following products would have...

Question 20

Which of the following statements about just-in-time delivery is FALSE?

Accepted Answer

Just-in-time delivery may reduce storing and handling costs for some channel members, such as the manufacturer, but it may increase these costs for others, such as the distributor or retailer who may need to hold smaller and more frequent deliveries. Therefore, the statement that just-in-time reduces storing and handling costs for everyone in the channel is false.

Quiz 12: Distribution Customer Service and Logistics

Just-in-time (JIT) delivery:

Honda requires its brake suppliers to deliver parts to its production plants three hours before the parts are scheduled to be installed in a new car. This is an example of what logistics activity?

Which of the following statements about the transporting function is TRUE?

Which of the following is NOT true about the supply chain for Ford Motor Company?

Electronic data interchange (EDI) :

Transporting cost as a percentage of selling price is lowest for:

A _____ is the complete set of firms, facilities, and logistics activities that are involved in procuring materials, transforming them into intermediate or finished products, and distributing them to customers.

Transporting costs

Which of the following statements about supply chains is FALSE?

A supply chain:

Most ethical issues in the area of physical distribution are concerned with:

A supply chain:

Good marketing strategy planners know that:

Regarding a "chain of supply":

Transportation helps to

Which of the following statements about electronic data interchange is FALSE?

When a supplier's computer automatically processes an online order from a customer, schedules production activities for the order, and then sets up delivery of the finished product to the customer, what approach is being used?

Electronic data interchange:

Which of the following products would have the lowest transporting costs as a percentage of the selling price?

Which of the following statements about just-in-time delivery is FALSE?