Question 1

Fansteel manufactures parts used in jet engines, which it sells to companies such as Boeing. When shipping products to Boeing, Fansteel seals the parts in 8' × 8' × 40' boxes for shipping to decrease loss and damage. This method of materials handling is

Accepted Answer

Fansteel seals the parts in boxes that meet ISO specifications (8' × 8' × 40'), which is the standard size for shipping containers. This method is called containerization, which refers to the system of intermodal freight transport using standardized containers.

Question 2

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

Air transportation would be the fastest method to transport the new chip from New York City to the Pentagon. Although a government vehicle or truck may also be fast, they would have to navigate through traffic and other obstacles. Waterways and railroads would take much longer to transport the chip, making air transportation the best option in this scenario.

Question 3

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 a storage facility that is owned or leased by a company for its exclusive use, to serve specific markets or operations, as described in the scenario.

Question 4

Aaron attends a seminar on just-in-time inventory management. Excited about the idea, he returns to his office at Atlanta Auto Supply to start designing such an inventory system. Which of the following steps must Aaron take as he institutes this change?

Accepted Answer

Just-in-time (JIT) inventory management focuses on reducing inventory levels and increasing efficiency by ordering goods only as they are needed. Increasing order frequency (D) is a key step in implementing JIT, as it allows for smaller, more frequent orders that align with immediate production needs, reducing the need for large inventories.

Question 5

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. This function is crucial for managing seasonal items, ensuring that they are available when demand is high and helping to stabilize their prices by allowing for storage during off-peak times.

Question 6

Garcia 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 Garcia'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

The facility described in the scenario that combines shipments for immediate shipment to customers in the region is best classified as a distribution center. Distribution centers are typically used to store and distribute products from multiple suppliers to customers in a specific geographic area.

Question 7

Johnson Controls hires a consultant to assess its materials handling procedures. The consultant recommends the implementation of ____ if they want easier movement of items between internal destinations in the warehouse.

Accepted Answer

Unit loading involves consolidating multiple items into a single unit, making it easier to move items between internal destinations in a warehouse.

Question 8

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 used for storing goods.

Question 9

Kawasaki places several motorcycles in "pods" in order to load them efficiently using forklifts. This system of materials handling is called

Accepted Answer

Unit loading is a system of handling materials in which articles are grouped into suitable quantities, called units, and placed in a compatible manner for ease in handling, movement, and storage. Kawasaki places motorcycles in "pods," which are essentially unit loads, and uses forklifts to load them efficiently. Therefore, D (unit loading) is the correct answer. The other options are not relevant or do not accurately describe the system being used by Kawasaki.

Question 10

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

Packaging and loading products are part of materials handling, which involves the movement, storage, and control of materials during the manufacturing process. The focus on reducing damage and improving loading efficiency indicates a need to improve materials handling.

Question 11

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

Accepted Answer

Transportation of the product is likely the most expensive physical distribution function associated with the WTA product, as the large blades require special transportation equipment and handling, and may need to be shipped long distances to wind turbine sites.

Question 12

Madison is responsible for the freight transportation of products sold by Richland Tech, a producer of cooking oils sold to large institutions. Since Madison 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 provide the most flexible schedules and routes compared to other modes of transportation. They can reach almost any location and can offer multiple delivery options such as same-day delivery or next-day delivery. Warehousing may provide storage facilities for the products, but it does not provide transportation. Waterways, pipelines, and railroads have fixed routes and schedules, which may not be flexible enough for Madison's needs.

Question 13

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

Accepted Answer

A public warehouse would provide the necessary space and flexibility to handle the temporary increase in inventory due to the recall.

Question 14

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 offer the most flexible schedules and routes of all transportation modes. They can reach almost any destination and can make multiple stops along the way, making them ideal for a bottled water company that needs to make frequent deliveries to different locations. Railroads, waterways, and pipelines have more limited routes and schedules, while airways are generally more expensive and have stricter regulations on the transportation of liquids.

Question 15

____ 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 products from their place of origin to their final destination. This adds time and place utility by making the product available where it is needed at the right time. Warehousing, containerization, distribution, and materials handling are related aspects of transportation but do not provide the actual movement between locations.

Question 16

What is the primary determinant in deciding how materials will be handled?

Accepted Answer

The primary determinant in deciding how materials will be handled is the product characteristics. The size, weight, fragility, and other properties of the product will determine the most effective and efficient method of handling and transportation. Unit loading, containerization, customer preference, and cost reduction may also play a role in the decision-making process, but the product characteristics are the most important factor to consider.

Question 17

A public warehouse is a

Accepted Answer

A public warehouse is a business that leases storage space and related facilities for distribution to other firms. It is a facility where companies can store their inventory for a fee, rather than investing in their own warehouse space. Unlike a company-operated facility for storing and shipping products, a public warehouse is operated as a separate business entity serving a variety of customers.

Question 18

Which mode of transportation hauls more freight than any other?

Accepted Answer

According to the Bureau of Transportation Statistics, railroads haul more freight than any other mode of transportation, accounting for approximately 40% of freight ton-miles in the United States.

Question 19

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

Accepted Answer

Since Kolder Inc. requires receiving the parts very quickly and the question specifically mentions that the company is relying more on the transportation system despite its expense, airway transportation is the best choice. Airway transportation is known to be the fastest but also the most expensive mode of transportation. The other modes of transportation such as truck, waterway, pipeline and railroad are comparatively slower and cannot always guarantee timely delivery of goods.

Question 20

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

ClearChem operates its own facilities for storing and shipping its products, which suggests that they are private warehouses. Public warehouses are typically used for storing products that belong to various companies, while distribution centers are used for receiving, stocking, and distributing products. Product storehouses and mega warehouses are not standard industry terms.

Quiz 14: Marketing Channels and Supply Chain Management