Question 1

More freight is carried more miles _____ than any other mode of transportation.
A) by railroads
B) by air
C) by pipeline
D) by trucks
E) over water

Accepted Answer

Railroads carry more freight over more miles than any other mode.

Question 2

Regarding railroads,
A) full carload rates are lower than less-than-carload rates.
B) rail shipments usually move much faster than truck shipments.
C) they transport the same products in less-than-carload lots faster than full carload shipments.
D) they handle products only if they are shipped in full carload lots.
E) None of these alternatives is true.

Accepted Answer

Less-than-carload (LCL) shipments move more slowly and at a higher price per pound than carload shipments.

Question 3

The transporting cost as a percentage of selling price is highest for:
A) Factory machinery.
B) Electronic equipment.
C) Cabbage.
D) Manufactured food.
E) Sand and gravel.

Accepted Answer

Transporting costs can be a large part of the total cost for heavy products of low value like raw materials.

Question 4

Which of the following statements about supply chains is FALSE?
A) A supply chain includes all the activities involved in procuring materials, transforming them into products, and distributing them to customers.
B) A supply chain includes one or more channels of distribution.
C) The primary aim of any firm in a supply chain is to contribute to customer value by minimizing its own distribution costs.
D) Few firms are willing to give "outsiders" access to information in their computer systems, so it is likely to be quite some time before computers have the impact on managing a supply chain that they have had in other areas of business.
E) None of these statements about supply chains is FALSE.

Accepted Answer

Physical distribution decisions will continue to improve as more firms are able to have their computers "talk to each other" directly and as websites help managers get access to up-to- date information whenever they need it. Consulting services are also available from outside experts.

Question 5

The transporting function adds value by:
A) making products available where they're needed.
B) making JIT the best approach.
C) making products available when they're needed.
D) making products available when AND where they're needed.
E) making the storage function obsolete.

Accepted Answer

Transportation makes products available when and where they need to be at a cost.

Question 6

Which of the following statements about the transporting function is TRUE?
A) Among transportation modes, an advantage of air transport is its ability to handle a variety of goods.
B) Because transportation costs are less than 1 percent of costs for most products, marketing managers do not need to consider them when making strategy decisions.
C) Pipelines are generally one of the fastest modes of transportation.
D) In most countries, government plays little role in transportation.
E) Transporting costs can be a large part of the total cost for heavy products that are low in value.

Accepted Answer

Transporting costs can be a large part of the total cost for heavy products that are low in value, like sheet aluminum.

Question 7

Electronic data interchange (EDI):
A) Puts information in a standardized format that can be shared between different computer systems.
B) Improves information flow between buyers and suppliers.
C) Allow customers to transmit orders directly to a supplier's computer.
D) Replaces many of the paper documents previously used for purchase orders and shipping reports.
E) All of these alternatives about EDI are correct.

Accepted Answer

Electronic data interchange (EDI) puts information in a standardized format that is shared between different computer systems. In many firms, EDI has replaced many paper documents like purchase orders and shipping reports. It allows customers to transmit orders directly to the supplier's computer.

Question 8

Transportation helps to
A) make products available when they're needed.
B) achieve economies of scale in production.
C) make products available where they're needed.
D) make exchange easier.
E) all of these alternatives are correct.

Accepted Answer

Transportation makes products available when and where they need to be at a cost; it can help achieve economies of scale in production and make exchange easier.

Question 9

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.
A) supply chain
B) physical distribution group
C) logistics partnership
D) just-in time group
E) none of these alternatives is a good answer

Accepted Answer

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

Question 10

Transporting cost as a percentage of selling price is lowest for:
A) Sand
B) Factory machinery
C) Pharmaceuticals
D) Chemicals
E) Cabbage

Accepted Answer

The cost of transportation adds little to the total cost of products, like pharmaceuticals, that are already valuable relative to their size and weight.

Question 11

Which of the following products would have the lowest transporting costs as a percentage of the selling price?
A) Electronic equipment.
B) Chemicals and plastics.
C) Pharmaceuticals.
D) Sand and gravel.
E) Manufactured food.

Accepted Answer

The cost of transportation adds little to the total cost of products, like pharmaceuticals, that are already valuable relative to their size and weight.

Question 12

Good marketing strategy planners know that:
A) transporting costs may limit a marketing manager's possible target markets.
B) the transporting costs for some bulky or low-value products may be greater than their manufacturing costs.
C) transporting is vital for mass distribution and modern urban life.
D) the cost of shipping some "high-value" products to users is less than 5 percent of their selling prices.
E) All of these alternatives are correct.

Accepted Answer

Transporting costs limit the target markets a marketing manager can serve. Without low-cost transportation, there would be no mass distribution. Transport costs add little to the cost of products that are valuable relative to their size and weight, but are a large part of the total cost for heavy products of low value.

Question 13

Which of the following statements about transporting by rail is True?
A) Rail transportation is the slowest mode of transportation.
B) Rail transportation is the least expensive mode of transportation.
C) Rail transportation is good for long-distance transportation of heavy, bulky items.
D) Railroads are most efficient at handling less-than-carload (LCL) shipments.
E) All of these statements about transporting by rail are correct.

Accepted Answer

Railroads carry heavy and bulky goods such as coal, steel, and chemicals over long distances at relatively low cost.

Question 14

Regarding a "chain of supply":
A) All of the firms in the chain of supply should work together to meet the needs of the customer at the end of the chain.
B) Logistics functions are not shifted or shared among the firms in the chain of supply.
C) Firms never outsource the whole job of planning and implementing their logistics systems.
D) It always includes at least two channels of distribution.
E) None of these alternatives about "chain of supply" is correct.

Accepted Answer

All of the firms in the supply chain should work together to meet the needs of the customer at the very end of the chain.

Question 15

Most ethical issues in the area of physical distribution are concerned with:
A) New-product development.
B) Product availability.
C) Location of retail stores.
D) Planned obsolescence of products.
E) Channel conflict.

Accepted Answer

In one way or another, many ethical issues that arise in the PD area concern communications about product availability.

Question 16

A supply chain:
A) is part of a broader network of relationships called a channel of distribution.
B) is most effective when the objectives of the manufacturer at the beginning of the chain guide the activities of all other firms in the chain.
C) requires skill in coordinating activities among different firms, and this has prompted many firms to seek help from outside experts.
D) focuses on procuring materials needed for production, so its main weakness is that it ignores customer needs.
E) concerns only direct relationships between producers, but a channel of distribution may involve intermediaries.

Accepted Answer

Coordinating all the elements of PD in a single firm is a challenge. Trying to coordinate orders, inventory, and transportation throughout the whole supply chain is even tougher. Companies, like Marsh and IBM, provide consulting services and software to help firms manage complex supply chains.

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?
A) Piggyback
B) EDI
C) Containerization
D) JIT
E) Contractual

Accepted Answer

With EDI, a customer transmits its order information directly to the supplier's computer and the supplier's computer immediately processes the order and schedules production, order assembly, and transportation.

Question 18

A supply chain:
A) focuses on making services available whereas a channel of distribution focuses on making goods available.
B) may involve many firms, but only one manufacturer.
C) includes all the activities involved in procuring materials, transforming them into products, and distributing them to customers.
D) is easier to coordinate than a channel of distribution.
E) none of these alternatives about a supply chain is correct.

Accepted Answer

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

Question 19

Which of the following is NOT true about the supply chain for Ford Motor Company?
A) The supply chain includes the Ford dealers that sell its cars to consumers.
B) The supply chain does not include production plants where Ford cars are built.
C) The supply chain includes a tire supplier to Ford's production plants.
D) The supply chain includes a company that sells rubber to Ford's tire supplier.
E) The supply chain includes trucks that deliver cars to Ford dealers.

Accepted Answer

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

Question 20

Which of the following statements about electronic data interchange is FALSE?
A) Inventory information is automatically updated.
B) EDI has not yet spread to international markets.
C) A customer transmits its order information directly to the supplier's computer.
D) EDI is very common in the United States.
E) EDI puts information into a standardized format.

Accepted Answer

Most international transportation firms rely on EDI links with their customers.

Quiz 11: Distribution Customer Service and Logistics

More freight is carried more miles _____ than any other mode of transportation.

Regarding railroads,

The transporting cost as a percentage of selling price is highest for:

Which of the following statements about supply chains is FALSE?

The transporting function adds value by:

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

Electronic data interchange (EDI) :

Transportation helps to

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 cost as a percentage of selling price is lowest for:

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

Good marketing strategy planners know that:

Which of the following statements about transporting by rail is True?

Regarding a "chain of supply":

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

A supply chain:

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?

A supply chain:

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

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