MKT 304 Ch 11

Under which of the following circumstances would a just-in-time (JIT) delivery system most likely not be the best physical distribution approach?

A supplier's savings through large-scale production and shipping offset the distribution system's total inventory and handling costs.

Which of the following statements is true of logistics?

Developed economies spend a lower percent of GDP on logistics-related costs compared to developing economies.

Which of the following is true of public warehouses?

They are useful when manufacturers must maintain stocks in many locations, including foreign countries.

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?

how quickly needed parts are delivered

Willamette Sprouts packages seeds that are distributed and sold all around the world. When might the company want to use public warehouses?

if they expect to have low inventory for a large portion of the year

The amount of goods being stored is referred to as

inventory.

The total cost approach to selecting a PD system

involves evaluating each possible PD system and identifying all of the costs of each alternative.

The physical distribution customer service level is important because it

is a measure of how rapidly and dependably a firm delivers what its customers want.

The storing function of marketing

is necessary because production does not always match consumption.

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

logistics.

A just-in-time (JIT) delivery system is not always the best approach because it

may be more economical for a supplier to produce and ship in larger quantities.

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?

air transportation

According to the "physical distribution concept,"

all transporting, storing, and product-handling activities of a business and a whole channel system should be coordinated as part of one system.

When they want to protect their products and simplify handling during shipping, many companies use ______, which is when individual items are grouped into an economical shipping quantity and sealed in a protective container for transport.

continerization

A business attempting to apply the broad physical distribution concept would be most likely to

coordinate all storing, shipping, and product-handling activities within a single system.

Transporting costs

usually do not add much to the final cost of products that are already valuable relative to their size and weight.

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?

water transportation

Firms use private warehouses

when a large volume of goods must be stored regularly.

Electronic data interchange (EDI)

- 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.

Which of the following is true of railroad transportation in the United States?

It is the workhorse of the U.S. transportation system.

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?

reduced costs of storing floral inventory

Just-in-time (JIT) delivery systems

require that a supplier have extremely high quality control in every physical distribution (PD) activity.

Which of the following is likely to have the highest transportation costs calculated as a percent of selling price?

sand and gravel

A distribution center is designed to

speed the flow of goods and avoid unnecessary storing.

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

supply chain.