Question 1

Which of the following logistics functions refers to the series of activities that occurs between the time an order comes into the organization and the time a product goes out the door on its way to a customer?

Accepted Answer

Order processing refers to the series of activities that occur between the time an order comes into the organization and the time a product goes out the door on its way to a customer. Warehousing refers to the storage of goods, materials handling refers to the movement of goods within a facility, transportation refers to the movement of goods between facilities or to customers, and inventory control refers to managing the levels and movement of inventory within a facility or throughout the supply chain.

Question 2

The fastest and most expensive mode of transportation is ________.

Accepted Answer

Air transportation is the fastest mode of transportation as it can cover long distances in a matter of hours. It is also generally the most expensive mode due to the high cost of fuel and maintenance for aircraft.

Question 3

To balance inventory capabilities and production capacity constraints, some companies use a practice called ________, which involves the use of a consistent production schedule, both during and beyond times of peak demand.

Accepted Answer

Level loading involves balancing inventory capabilities and production capacity constraints by using a consistent production schedule, both during and beyond times of peak demand. Just in time (JIT) and stock outing are inventory management practices, logistics management refers to the management of the flow of goods and services, and enterprise resource planning (ERP) is a software system used for managing various business processes.

Question 4

A firm that brings in outside companies to accomplish supply chain activities is using ________.

Accepted Answer

Outsourcing is when a company brings in outside firms to handle specific aspects of its business, such as supply chain activities. Insourcing refers to the opposite practice of handling such activities in-house. Level loading refers to scheduling production in a way that evens out the workload over time, while intensive distribution refers to making a product available to as many outlets as possible. Exclusive distribution, on the other hand, restricts the number of outlets allowed to sell the product.

Question 5

To reduce inventory management costs, many companies use a system called ________, which involves carrying only small inventories of parts or merchandise, often only enough for a few days of operation.

Accepted Answer

The system described is just-in-time (JIT), which is focused on reducing inventory holding costs by ordering and receiving items just in time for production or sale. This allows for a small inventory holding period, and reduces the risk of overstocking and excess stock remaining unsold.

Question 6

Which stage of activity in logistics involves waste disposal and recycling?

Accepted Answer

Reverse logistics involves the process of handling waste disposal and recycling, which is the reverse movement of products or materials from their final destination back to their origin.

Question 7

Which of the following integrates information from across the company in order to automate order processing?

Accepted Answer

An enterprise resource planning system (ERP) integrates information from across the company in order to automate order processing.

Question 8

Through the use of ________, a company is able to know exactly where a product is located within the distribution channel.

Accepted Answer

RFID (Radio Frequency Identification) technology allows for the tracking of products through the supply chain by using radio waves to transmit data from a tag attached to the product. This allows for real-time visibility into the location of a product within the distribution channel, improving inventory management and supply chain efficiency. ERP (Enterprise Resource Planning) systems are more focused on managing internal company operations rather than tracking products through the supply chain. PRM (Partner Relationship Management) and VMS (Vendor Management System) are also not directly related to tracking product location. JIT (Just-in-Time) is a manufacturing strategy for minimizing inventory levels and maximizing efficiency, but does not involve tracking product location within the distribution channel.

Question 9

Marketing logistics involves which of the following types of distribution flows?

Accepted Answer

Marketing logistics involves outbound flows (from the producer to the consumer), inbound flows (from suppliers to the producer), and reverse flows (from the customer back to the producer, such as with returns or repairs). Therefore, the best choice is B, which includes all three types of distribution flows.

Question 10

Why might a manufacturer choose to not select a large and powerful retailer as a channel partner?

Accepted Answer

The answer of Why might a manufacturer choose to not...

Question 11

The difference between distribution centers and storage warehouses is that distribution centers are designed to ________.

Accepted Answer

Distribution centers are primarily used for performing additional functions such as breaking bulk, sorting, packaging, and preparing orders for shipment. Storage warehouses, on the other hand, are typically used for storing goods for longer periods of time. Capacity and ownership can vary for both types of facilities, and automation can be implemented in either type. However, the primary difference is in their purpose and function.

Question 12

Which of the following logistics functions refers to the moving of products into, within, and out of warehouses?

Accepted Answer

Materials handling refers to the short-distance movement within the confines of a building or between a building and a transportation vehicle. This includes the moving of products into, within, and out of warehouses, which is essential for efficient storage, retrieval, and transportation of goods.

Question 13

How might a channel leader stimulate channel cooperation?

Accepted Answer

The answer of How might a channel leader stimulate channel...

Question 14

Through ________, a company receives materials it needs to manufacture its products.

Accepted Answer

Inbound logistics refers to the process of receiving and storing inputs such as raw materials, components, and other supplies that are necessary for a company to produce goods or services.

Question 15

Which of the following is the process of designing, managing, and improving the movement of products through the supply chain?

Accepted Answer

The process described in the question is logistics. Logistics is the process of designing, managing, and improving the movement of products through the supply chain. Warehousing, materials handling, inventory management, and distribution strategy are all components of logistics, but logistics encompasses a broader scope.

Question 16

Which of the following is a logistics activity that involves developing and implementing a process to ensure the firm always has sufficient goods available to meet customers' demands, no more and no less?

Accepted Answer

Inventory control involves managing and regulating a firm's inventory levels to ensure the company has the right amount of goods available to meet customer demand. This includes developing and implementing processes and systems to manage inventory levels and prevent overstocking or understocking.

Question 17

What type of utility does warehousing provide to consumers by holding onto products until consumers need them?

Accepted Answer

Warehousing provides the utility of time by holding onto products until consumers need them. This allows consumers to have access to products when they need them, without having to worry about storing them themselves.

Question 18

What types of products are selectively distributed?

Accepted Answer

The answer of What types of products are selectively distributed?...

Question 19

Why would a manufacturer want to prevent its products from being sold in the gray market?

Accepted Answer

The answer of Why would a manufacturer want to prevent...

Question 20

Which of the following includes all the activities necessary to convert raw materials into a good or service and put it in the hands of the consumer or business customer?

Accepted Answer

The supply chain includes all the activities necessary to convert raw materials into a good or service and put it in the hands of the consumer or business customer. This includes sourcing raw materials, manufacturing or production, transportation, distribution, and ultimately, retailing or delivery to the end consumer. Vertical marketing systems, channel of distribution, retailer chains, and industrial networks are all part of the supply chain, but do not encompass all the necessary activities.

Quiz 11: Deliver the Goods: Determine the Distribution Strategy