Question 1

___________ 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

Accepted Answer

Possession utility refers to the value or usefulness that a customer gains from owning a product and being able to use it. This type of utility is created through the process of transferring the product's ownership from the seller to the buyer, enabling the buyer to use the product as they see fit.

Question 2

The movement and storage of materials into a firm refers to ___________.
A)physical distribution
B)materials management
C)supply chain management
D)materials handling

Accepted Answer

Materials management refers to the movement and storage of materials into a firm, focusing on the internal processes related to procurement, handling, and storage of materials until they are needed in the production process.

Question 3

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

Accepted Answer

Physical distribution specifically refers to the activities involved in moving the finished product from the company to the customer, including storage, inventory management, and transportation.

Question 4

The four basic components of the marketing mix include all of the following except:
A)price.
B)production.
C)place.
D)promotion.

Accepted Answer

The four basic components of the marketing mix are price, place, promotion, and product. "Production" is not considered a basic component of the marketing mix.

Question 5

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.

Accepted Answer

Landed costs include all charges associated with getting a product to the buyer, including the cost of the product itself and all transportation fees.

Question 6

___________ refers to the removal of intermediaries between producer and consumer.
A)Direct channel
B)Market demassification
C)Consolidation
D)Disintermediation

Accepted Answer

Disintermediation refers to the process of removing intermediaries in a supply chain, allowing producers to sell directly to consumers.

Question 7

Logistics managers use the ___________ approach to coordinate materials management and physical distribution in a cost-efficient manner.
A)total cost
B)supply chain
C)balanced
D)intrafunctional logistics

Accepted Answer

Logistics managers use the total cost approach to coordinate materials management and physical distribution in a cost-efficient manner. This approach considers the entire cost of logistics activities together to minimize the total cost, rather than optimizing individual functions which might lead to higher overall costs.

Question 8

The ___________ approach indicates that a company's objectives can be realized by recognizing the mutual interdependence of major functional areas.
A)systems
B)supply chain
C)physical distribution
D)materials management

Accepted Answer

The systems approach emphasizes the importance of understanding how different parts of an organization work together. It suggests that a company's objectives can be achieved by recognizing the interdependence of its major functional areas, such as marketing, finance, operations, etc., and how they contribute to the overall system.

Question 9

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.

Accepted Answer

A cost trade-off occurs when some costs increase while others decrease, often as a result of a decision or change in operations, strategy, or technology.

Question 10

Widespread reductions in economic regulation of U.S.transportation carriers occurred in ___________.
A)the 1960s and 1970s
B)the 1970s and 1980s
C)the 1980s and 1990s
D)only the 1990s

Accepted Answer

Widespread reductions in economic regulation of U.S. transportation carriers primarily occurred in the 1970s and 1980s, starting with initiatives like the Airline Deregulation Act of 1978, which significantly reduced federal control over the airline industry, followed by deregulation efforts in other transportation sectors.

Question 11

___________ refers to being out of an item at the same time there is demand for it.
A)Postponement
B)Tailored logistics
C)Stockout
D)Supplier indifference

Accepted Answer

Stockout refers to the situation when an item is not in stock at the moment there is a demand for it, indicating an inventory shortage.

Question 12

___________ refers to the delay of value-added activities such as assembly,production,and packaging to the latest possible time.
A)Building block
B)Lean manufacturing
C)Deferral
D)Postponement

Accepted Answer

Postponement refers to the strategy of delaying value-added activities such as assembly, production, and packaging until the latest possible time to better match demand, reduce inventory costs, and increase customization.

Question 13

An example of ___________ involves ordering something online and then picking it up at a bricks-and-mortar store.
A)supply chain management
B)finance
C)omnichannel retailing
D)big-box retailing

Accepted Answer

This is an example of omnichannel retailing, which integrates different methods of shopping available to consumers (e.g., online, in a physical store).

Question 14

Logistics clearly contributes to ___________ and ___________ utility.
A)time; place
B)form; time
C)place; form
D)possession; time

Accepted Answer

Logistics contributes to time and place utility by ensuring that goods are available when and where they are needed. Time utility involves having products available at the right time, and place utility involves having them available in the right location.

Question 15

Approximately ___________ percent of U.S.families with children reports that both parents work.
A)70
B)60
C)50
D)40

Accepted Answer

Approximately 60 percent of U.S. families with children report that both parents work, reflecting the commonality of dual-income households in the United States.

Question 16

World trade has grown at an average annual rate of approximately ___________ percent since 1990.
A)6
B)5
C)4
D)3

Accepted Answer

Since 1990, world trade has grown at an average annual rate of approximately 5 percent, reflecting the increasing globalization and interdependence of the world economy.

Question 17

___________ 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

Accepted Answer

The answer of ___________ are stores with large amounts of...

Question 18

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

Accepted Answer

The "customized customer" concept is about tailoring products or services to fit the exact preferences of individual customers, rather than offering a one-size-fits-all solution.

Question 19

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

Accepted Answer

The finance department measures inventory in terms of its cost or value in dollars, while logistics tends to measure inventory in terms of units.

Question 20

A common interface between production and logistics involves:
A)the types of materials handling equipment.
B)the length of production runs.
C)the use of plastic versus wood pallets.
D)the mode of transportation.

Accepted Answer

The length of production runs is a common interface between production and logistics as it affects inventory levels, scheduling, and the flow of goods through the supply chain.

Quiz 1: An Overview of Logistics

___________ utility refers to the value or usefulness that comes from a customer being able to take possession of a product.

The movement and storage of materials into a firm refers to ___________.

Which concept refers to the storage of finished product and movement to the customer?

The four basic components of the marketing mix include all of the following except:

Landed costs refer to:

___________ refers to the removal of intermediaries between producer and consumer.

Logistics managers use the ___________ approach to coordinate materials management and physical distribution in a cost-efficient manner.

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

A cost trade-off is a situation where:

Widespread reductions in economic regulation of U.S.transportation carriers occurred in ___________.

___________ refers to being out of an item at the same time there is demand for it.

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

An example of ___________ involves ordering something online and then picking it up at a bricks-and-mortar store.

Logistics clearly contributes to _ and _ utility.

Approximately ___________ percent of U.S.families with children reports that both parents work.

World trade has grown at an average annual rate of approximately ___________ percent since 1990.

___________ are stores with large amounts of both floor space and product for sale.

The ___________ concept suggests that the customer desires a product offering that is highly tailored to the customer's exact preferences.

The _ department often measures inventory in terms of its cost or value in dollars whereas _ tends to measure inventory in terms of units.

A common interface between production and logistics involves: