Deck 1: An Overview of Logistics

Question 1

The ____ concept suggests that the customer desires a product offering that is highly tailored to the customer's exact preferences.
a. market demassification
b. relationship marketing
c. customized customer
d. niche marketing

Answer 1

customized customer

Question 2

____ refers to the removal of intermediaries between producer and consumer.
a. direct channels
b. market demassification
c. consolidation
d. disintermediation

Answer 2

disintermediation

Question 3

Which of the following is not a reason for the increased importance of logistics?
a. growing power of manufacturers
b. reduction in economic regulation
c. globalization of trade
d. technological advances
e. all of the above are reasons

Answer 3

a. growing power of manufacturers

Question 4

Approximately ____ percent of US adult women are currently in the workforce.
a. 70
b. 60
c. 50
d. 40

Question 5

The ____ approach indicates that a company's objectives can be realized by recognizing the mutual interdependence of major functional areas.
a. supply chain
b. systems
c. interfunctionality
d. rhochrematics

Question 6

Every customer getting the same type and level of logistics service refers to ___________.
a. tailored logistics
b. mass logistics
c. effectiveness
d. efficiency

Question 7

"How well a company does what it says it's going to do" represents ___________.
a. efficiency
b. productivity
c. leading edge logistics
d. effectiveness

Question 8

The ____ department often measures inventory in terms of its cost or value in dollars, whereas ____ tends to measure inventory in terms of units.
a. marketing; logistics
b. finance; production
c. marketing; production
d. finance; logistics

Question 9

Logistics managers use the ____ approach to coordinate materials management and physical distribution in a cost-efficient manner.
a. total cost
b. supply chain
c. interfunctional logistics
d. intrafunctional logistics

Question 10

____ are stores with large amounts of both floor space and product for sale.
a. mass merchandisers
b. power retailers
c. big-box retailers
d. do-it-yourself (DIY) retailers

Question 11

Logistics clearly contributes to ___________ and ___________ utility.
a. time; place
b. form; time
c. place; form
d. possession; time
e. none of the above

Question 12

World trade grew at an average annual rate of approximately ____ percent between 1991 and 2011.
a. 5.5
b. 4.5
c. 3.5
d. 2.5

Question 13

Widespread reductions in economic regulation of US transportation carriers occurred in ____.
a. 1960s and 1970s
b. 1970s and 1980s
c. 1980s and 1990s
d. only the 1990s

Question 14

___________ utility refers to the value or usefulness that comes from a customer being able to take possession of a product.
a. Time
b. Place
c. Form
d. Possession

Question 15

What concept refers to "how well company resources are used to achieve what a company promises it can do?"
a. Efficiency
b. Productivity
c. Reengineering
d. Effectiveness

Question 16

All of the following are types of economic utility, except:
a. Time
b. Production
c. Place
d. Possession
e. All of the above are types of economic utility

Question 17

___________ utility refers to having products available where they are needed by customers.
a. Possession
b. Time
c. Place
d. Form

Question 18

Which concept refers to the storage of finished product and movement to the customer?
a. supply chain management
b. business logistics
c. physical distribution
d. materials management

Question 19

A cost trade-off is a situation where:
a. all costs react according to their individual degrees of inflation in the economy
b. all costs are reflected as a percentage variation from standard costs
c. some costs increase and some costs decrease
d. some costs are eliminated by efficient management controls

Question 20

The movement and storage of materials into a firm refers to:
a. physical distribution
b. materials management
c. supply chain management
d. materials handling

Question 21

____ refers to breaking a homogeneous supply into smaller lots.
a. sorting out
b. allocating
c. accumulating
d. assorting

Question 22

Absolute and relative logistics costs in relation to Gross Domestic Product vary from country to country.

Question 23

U.S. News & World Report suggests that logistics employment should increase by ____ percent through 2018.
a. 10
b. 15
c. 20
d. 25

Question 24

Landed costs refer to:
a. the costs of a product shipped via surface transport
b. the costs of a product that is quoted cash on delivery (COD)
c. the costs of a prepaid shipment
d. a price that includes both the cost of the product plus transportation to the buyer

Question 25

A common interface between production and logistics involves:
a. the types of material handling equipment
b. the length of production runs
c. the use of plastic versus wood pallets
d. the mode of transportation

Question 26

The most costly logistics activity in many firms is ____
a. industrial packaging
b. transportation management
c. order management
d. warehousing management

Question 27

The four general types of economic utility are production, possession, time, and place.

Question 28

Which channel covers the movement of title to the goods?
a. promotions
b. logistics
c. finance
d. ownership

Question 29

____ refers to being out of an item at the same time there is demand for it.
a. intensive distribution
b. tailored logistics
c. stockout
d. supplier indifference

Question 30

Co-branding allows customers to purchase products from two or more name-brand retailers at one store location. Which of the following statements about co-branding is false?
a. they offer potential customers convenience by satisfying needs at one place
b. they boost brand awareness
c. they create relatively few logistical challenges
d. they increase customer spending per transaction
e. all of the above are true

Question 31

____ is bringing together similar stocks from different sources.
a. accumulating
b. assorting
c. auditing
d. allocating

Question 32

The current definition of logistics, as promulgated by the Council of Supply Chain Management Professionals, suggests that logistics is part of the supply chain process.

Question 33

Logistics clearly contributes to time and form utility.

Question 34

Channel intermediaries:
a. assume temporary ownership of the goods
b. tend to lack focus
c. fill niches
d. tend to disappear as the market becomes organized

Question 35

Logistics is only concerned with forward flows, that is, those directed towards the point of consumption.

Question 36

The ownership channel consists of all parties except:
a. customers
b. manufacturers
c. wholesalers
d. retailers

Question 37

The four basic components of the marketing mix include all of the following except:
a. price
b. production
c. place
d. promotion

Question 38

Brokers are intermediaries that are commonly associated with the ____ channel.
a. promotions
b. finance
c. ownership
d. negotiation

Question 39

____ refers to the delay of value-added activities such as assembly, production, and packaging to the latest possible time.
a. building blocks
b. lean manufacturing
c. deferral
d. postponement

Question 40

Which of the following is not part of the marketing channel?
a. the logistics channel
b. the negotiations channel
c. the promotion channel
d. the finance channel
e. all are part of the marketing channel

Question 41

Humanitarian logistics represents an emerging application of logistics to not-for-profit organizations.

Question 42

Landed costs refer to the price of a product at its source.

Question 43

Postponement is the delay of value-added activities such as assembly, production, and packaging to the latest possible time.

Question 44

The finance department tends to measure inventory in terms of units while logistics tends to measure inventory in terms of its cost / value.

Question 45

Reductions in economic regulation allowed individual transportation companies flexibility in pricing and service.

Question 46

Long production runs sometimes result in excessive inventory of products with limited demand for them.

Question 47

Market demassification suggests that the customer desires a product offering that is highly tailored to her/his exact preference.

Question 48

The key to the total cost approach is that all relevant cost items are considered simultaneously when making a decision.

Question 49

Disintermediation refers the removal of intermediaries between producer and consumer.

Question 50

In mass logistics, groups of customers with similar logistical needs and wants are provided with logistics services appropriate to those wants and needs.

Question 51

Logistics offers many companies an important route for creating marketing superiority.

Question 52

The systems approach indicates that a company's objectives can be realized by recognizing the mutual interdependence of the major functional areas of a firm.

Question 53

Physical distribution is synonymous with materials management.

Question 54

Stockouts refer to a situation where a company is out of an item at the same time that there is demand for that item.

Question 55

Interfunctional logistics attempts to coordinate materials manage?ment and physical distribution in a cost efficient manner that supports an organization's customer service objectives.

Question 56

Logistics has played a minor role in the growth of global trade.

Question 57

Superior logistics is an essential component of corporate strategies for many big-box retailers.

Question 58

The purpose of logistics is to maximize customer service.

Question 59

Logistical decisions tend not to be impacted by marketers' growing emphasis on offering sustainable products.

Question 60

Dual distribution refers to an alliance that allows customers to purchase products from two or more name-brand retailers at one store location.

Question 61

Many promotional decisions, such as pricing campaigns that lower the price of certain items, require close coordination between marketing and logistics.

Question 62

Which alternative would you prefer? Why?

Question 63

List and discuss the advantages and disadvantages of charging the customer for home delivery if they are unable to carry the Super Gym home.

Question 64

A commonly used logistical intermediary is the freight forwarder.

Question 65

U.S. News & World Report has highlighted logistician as one of the 50 best careers.

Question 66

List and discuss the advantages and disadvantages of having local trucking companies deliver the Super Gym from the retail stores to the customers.

Question 67

The sorting function takes place between retailers and the consumer.

Question 68

Transportation represents the most costly logistics activity in many organizations.

Question 69

A broker is a type of intermediary often associated with the negotiations channel.

Question 70

The most significant contribution that the logistics channel makes to the overall channel process is the sorting function.

Question 71

Packaging can have both a marketing and logistical dimension.

Question 72

There is no linkage between the promotions and logistics channels.

Question 73

List and discuss the advantages and disadvantages of stocking Super Gyms at the distribution centers and then having the truck that makes deliveries from the distribution center to the retail stores also make deliveries of Super Gyms to individual customers.

Question 74

List and discuss the advantages and disadvantages of purchasing a two-wheeled trailer for each store to use for delivering Super Gyms.

Question 75

It is better for a logistics manager to be a generalist rather than a specialist.

Question 76

The financing channel handles a company's credit and payment for goods.

Question 77

The ownership channel is the one where buy and sell agreements are reached.

Question 78

Demand forecasting is not considered to be a logistics-related activity.

Question 79

Intermediaries assume ownership of goods while they're in the marketing channel.

Question 80

The sorting function has four steps.