Carl is in charge of making sure his company's products are transported, stored, and handled in ways
that match target customers' needs with his company's marketing mix. In other words, Carl is in
charge of his company's - Answers logistics.
Which of the following statements is true of logistics? - Answers Developed economies spend a lower
percent of GDP on logistics-related costs compared to developing economies.
The physical distribution customer service level is important because it - Answers is a measure of how
rapidly and dependably a firm delivers what its customers want.
Which of the following elements of physical distribution customer service is most likely to matter to
an airline that purchases parts from an aviation supplier on an emergency basis? - Answers how
quickly needed parts are delivered
According to the "physical distribution concept," - Answers all transporting, storing, and product-
handling activities of a business and a whole channel system should be coordinated as part of one
system.
A business attempting to apply the broad physical distribution concept would be most likely to -
Answers coordinate all storing, shipping, and product-handling activities within a single system.
The total cost approach to selecting a PD system - Answers involves evaluating each possible PD
system and identifying all of the costs of each alternative.
Just-in-time (JIT) delivery systems - Answers require that a supplier have extremely high quality
control in every physical distribution (PD) activity.
A just-in-time (JIT) delivery system is not always the best approach because it - Answers may be more
economical for a supplier to produce and ship in larger quantities.
A floral delivery company uses JIT delivery systems throughout its entire distribution channel. Which
of the following is most likely to be experienced by the company as a result? - Answers reduced costs
of storing floral inventory
Under which of the following circumstances would a just-in-time (JIT) delivery system most likely not
be the best physical distribution approach? - Answers A supplier's savings through large-scale
production and shipping offset the distribution system's total inventory and handling costs.
Pro Ion Inc., a consumer electronics company, procures its component parts from various
independent manufacturers and distributors in the United States. It has assembling and production
units both in the United States and Asia. Once the finished product arrives at the headquarters, they
go through an in-house quality control and the firm's logistics partners ship the products to the
franchise stores around the globe. This complete set of firms and facilities and logistics activities that
share a broad network of relationships is best referred to as a - Answers supply chain.
Electronic data interchange (EDI) - Answers - makes inventory information more accessible.
- facilitates better coordination of physical distribution (PD) activities.
- puts information in a standardized format.
- replaces paper documents with computerized reports.
Transporting costs - Answers usually do not add much to the final cost of products that are already
valuable relative to their size and weight.
Which of the following is likely to have the highest transportation costs calculated as a percent of
selling price? - Answers sand and gravel
Which of the following is true of railroad transportation in the United States? - Answers It is the
workhorse of the U.S. transportation system.
United Calba and Fernsland, two bordering countries, are connected through a good transportation
system that includes airways, roadways, and waterways. A manufacturer in United Calba wants to
transport heavy equipment to Fernsland at the lowest possible cost and it has sufficient time before
the agreed delivery date. Which of the following transporting alternatives is most suitable in this
situation? - Answers water transportation
Kaikoura is in charge of logistics for a Canadian company that manufactures filters used at
desalinization plants. The filters need to be replaced every two weeks, so the plants need
replacement filters delivered regularly. One of her company's biggest customers has a desalinization
plant in South Africa that uses the filters. Because this customer is so important to Kaikoura's
company, the cost of shipping can be high as long as the filters get to their destination frequently and
quickly. What type of distribution should Kaikoura use? - Answers air transportation