Question 1

The terms "transportation" and "physical distribution" can be used interchangeably because these terms carry the same meaning.

Accepted Answer

While transportation is a part of physical distribution, physical distribution also includes activities such as warehousing, inventory management, order processing, and packaging. Therefore, the terms cannot be used interchangeably.

Question 2

The terms "logistics" and "supply chain management" are used interchangeably because they are essentially the same thing.

Accepted Answer

Logistics is a component of supply chain management that focuses specifically on the movement and storage of goods, whereas supply chain management encompasses a broader range of processes including procurement, production, distribution, and logistics.

Question 3

Logistics is the process of contracting trucks, trains, planes, and ships for transport of goods and services.

Accepted Answer

Logistics involves not only contracting transportation methods like trucks, trains, planes, and ships but also encompasses the planning, implementing, and controlling of the efficient, effective forward and reverse flow and storage of goods, services, and related information from point of origin to point of consumption to meet customer requirements.

Question 4

What is it called when a logistics manager combines several unitized loads into a standard shipping box?

Accepted Answer

The answer of What is it called when a logistics...

Question 5

What are two factors that have made "unitizing" more feasible and popular?

Accepted Answer

Unitizing has become more feasible and popular due to the widespread use of pallets and advancements in shrink packaging technology, which facilitate the handling and transportation of goods by grouping them into single units.

Question 6

Distribution channels perform four main functions: facilitate exchange, sort products based on demand, standardize exchange transactions, and facilitate buyer/seller product and information searches.

Accepted Answer

Distribution channels indeed perform these four main functions to streamline the process of moving goods from producers to consumers, enhancing efficiency and effectiveness in the market.

Question 7

Physical distribution refers to a broad range of activities aimed at efficient movement of finished goods from the end of the production line to the consumer.

Accepted Answer

Physical distribution involves activities such as transportation, warehousing, inventory management, and order processing to ensure timely delivery of products to customers.

Question 8

One of the goals of any marketing strategy should be to establish efficient logistical systems that, in conjunction with customer service, enhance the customer relationship.

Accepted Answer

Efficient logistical systems are crucial in ensuring timely delivery and inventory management, which, when combined with effective customer service, can significantly enhance customer satisfaction and strengthen the customer relationship.

Question 9

Marketing channels facilitate the exchange process by increasing the number of market contacts necessary for a sale to take place.

Accepted Answer

Marketing channels facilitate the exchange process by reducing the number of market contacts necessary for a sale to take place, making transactions more efficient.

Question 10

What is the system that involves unitizing and containerization referred to as?

Accepted Answer

Materials handling systems involve the processes of unitizing and containerization to efficiently manage the storage and transportation of goods.

Question 11

A marketing channel is an organized system of marketing institutions and their interrelationships. It promotes the physical flow and ownership of products from producer to consumer or business user.

Accepted Answer

A marketing channel, indeed, consists of an organized system of marketing institutions (such as distributors, wholesalers, and retailers) and their interrelationships that facilitate the movement and transfer of ownership of products from producers to consumers or business users.

Question 12

What physical distribution element determines how a firm should handle requests for goods?

Accepted Answer

Order processing is the element that determines how a firm should handle requests for goods, as it involves the steps necessary to fulfill orders received from customers.

Question 13

Relative to the size of a warehouse operation, when do facilities and materials-handling costs on a per-unit basis decrease?

Accepted Answer

Facilities and materials-handling costs on a per-unit basis decrease when volume increases due to economies of scale. As the volume of goods processed increases, the fixed costs of the warehouse (such as rent, utilities, and salaries for permanent staff) are spread over more units, reducing the cost per unit.

Question 14

Kellogg's, General Mills, and Post ship pallets of cereal to a food wholesaler's warehouse. The pallets are warehoused until the next day when an order from a grocery store is fulfilled. At this point, one-third of the cartons on each of the pallets are combined and loaded on a single pallet destined for the grocery store. The retailer will now have an assortment of cereals from different manufacturers, and the wholesaler will have completed the sorting function.

Accepted Answer

The wholesaler has indeed completed the sorting function by combining different types of cereals from various manufacturers (Kellogg's, General Mills, and Post) into a single pallet for the grocery store, thereby providing an assortment of products. This process exemplifies the sorting function in distribution, where products from different sources are grouped together to meet the retailer's or consumer's needs.

Question 15

Logistics and customer service have an adversarial relationship in most organizations.

Accepted Answer

Logistics and customer service often work closely together in organizations to ensure that products are delivered to customers efficiently and satisfactorily, aiming to enhance customer satisfaction and loyalty.

Question 16

What is the form of intermodal coordination in which motor carriers deliver shipments to air carriers that transport them between airports and then turn them over to motor carriers for local delivery?

Accepted Answer

Birdyback is the form of intermodal coordination where motor carriers deliver shipments to air carriers for transport between airports, and then motor carriers handle local delivery.

Question 17

Distributors adjust for discrepancies in the market's assortment of goods and services via a process known as suboptimization.

Accepted Answer

Distributors adjust for discrepancies in the market's assortment of goods and services through a process known as assortment discrepancy adjustment, not suboptimization. Suboptimization refers to a situation where a decision or strategy optimizes the outcome for a subunit or particular aspect of an organization at the expense of the organization's overall performance.

Question 18

What is the major difference between a storage warehouse and a distribution warehouse?

Accepted Answer

Storage warehouses are primarily used to balance supply and demand by holding goods until they are needed, whereas distribution warehouses focus on the rapid movement of goods to retail locations or directly to customers.

Question 19

What is a cost that influences where a warehouse should be located?

Accepted Answer

Delivery costs are a primary consideration in warehouse location decisions because they directly affect the efficiency and cost-effectiveness of transporting goods to and from the warehouse.

Question 20

What are the three forms of intermodal coordination?

Accepted Answer

Piggyback refers to the transportation of truck trailers on rail flatcars, fishyback involves the shipping of containers on ships, and birdyback refers to the use of air transport for containers or trailers, illustrating different methods of intermodal coordination where two or more modes of transportation are used in carrying goods from origin to destination.

Quiz 12: Marketing Channels and Supply Chain Management