IMM 13

Which of the following activities is NOT considered a function of physical distribution? A) production control B) order processing C) transportation D) warehousing E) distribution inventory

A) production control

A shipper moving expensive goods of small size from Boston to Seattle would likely use: A) water. B) air. C) motor. D) rail. E) none of the above

B) air.

A network of companies that participate in the flow of goods and services from producer to final consumer is a: A) supply flow. B) channel of distribution. C) logistics supply chain. D) transportation channel.

B) channel of distribution.

The terms which specify who owns and pays for the cost of the transportation are: A) incoterms. B) freight on board (FOB) terms. C) both A and B D) neither A nor B

C) both A and B

Considering the service desired and the relative cost of the item, which of the following would you most likely ship by truck? A) regular shipments of grain B) regular shipments of iron ore C) regular shipments of cut flowers D) A and B above E) B and C above

C) regular shipments of cut flowers

TOTAL line haul costs will vary directly with: A) the density of the goods. B) the weight moved. C) the distance moved. D) A and B above E) B and C above

C) the distance moved.

The consolidation of several units into larger units for fewer handlings is called: A) cube utilization. B) consolidation. C) unitization. D) packaging. E) materials handling.

C) unitization.

Which mode of transportation would cost the LEAST per ton mile? A) rail B) air C) water D) motor (truck)

C) water

Which mode would provide the slowest service capability? A) air B) rail C) water D) motor

C) water

Which of the following statements is true? A) Physical distribution provides a bridge between marketing and production. B) Physical distribution contributes towards creating demand. C) Replenishment orders to replace field warehouse stocks will not affect production. D) A and B are true E) B and C are true.

D) A and B are true

Which of the following statements is true? A) The objective of distribution management is to provide the required level of service at least cost. B) There will be cost trade-off between the various activities in physical distribution. C) Distribution can operate separately from marketing and production. D) A and B are true E) B and C are true.

D) A and B are true

Which of the following is a basic role of packaging in distribution? I. Identify the product. II. Contain and protect the product. III. Contribute to physical distribution efficiency. IV. Be an important part of the marketing program. A) I, II, III and IV B) II, III and IV only C) I, II and IV only D) I, II and III only E) none of the above

D) I, II and III only

Which of the following statements is true regarding goods in a reverse logistics system? A) They travel through the same terminals as the forward logistics system. B) Volumes are equal to the forward logistics system. C) Little product information is required. D) The goods tend to be small in quantity. E) All of the above are true

D) The goods tend to be small in quantit

Consolidating shipments will reduce which of the following costs? A) pickup and delivery B) billing and collecting C) terminal handling D) all of the above E) none of the above

D) all of the abov

As more warehouses are added to a physical distribution system we can expect the cost of: A) TL and CL shipments to increase. B) LCL and LTL shipments to decrease. C) total transportation costs to decrease. D) all of the above E) A and B above

D) all of the above

The particular way materials move will depend upon: A) the channels of distribution the firm is using. B) characteristics of the product. C) types of markets served. D) all of the above E) none of the above

D) all of the above

Which of the following are elements in transportation cost? A) pickup and delivery B) line haul C) terminal handling D) all of the above E) none of the above

D) all of the above

Which of the following is correct? A) Line haul cost per hundredweight can be reduced by increasing the weight shipped. B) Shipping costs will be higher with common carriers than contract carriers. C) Consolidating shipments reduces billing and collecting costs. D) all of the above E) none of the above

D) all of the above

The LTL costs a product moving through a supply chain are $1 per mile and there is a warehouse 200 miles from central supply. Truckload costs to the warehouse are $50 and the warehouse handling and storage costs are $10. The cost to ship the product to the warehouse is $50. The market boundary for this supply chain is: A) 50 miles. B) 125 miles. C) 260 miles. D) 100 miles. E) 130 miles

E) 130 miles

In which case(s) would you use contract carriers instead of common carriers? A) regular shipment of paper from a mill to its warehouse B) shipment to customers by a mail order house C) regular delivery by a food chain to its stores D) A and B above E) A and C above

E) A and C above

Which of the following statements is FALSE? A) Pipeline capital costs are high in comparison with other modes. B) Water transport is slower than rail. C) Rail transport is more suited to bulky low value items than road transport. D) Truck transport is suitable for distribution of small volume goods to a dispersed market. E) Air cargo is generally used for low value bulky items.

E) Air cargo is generally used for low value bulky items.

Which of the following are elements in the cost of carriage? I. Ways II. Vehicles III. Terminals A) I, II and III B) II and III only C) I and III only D) I and II only

A) I, II and III

In which case(s) would you use common carriers instead of contract carriers? A) shipment to customers by a mail order house B) regular delivery by a food chain to its stores C) regular shipment of paper from a mill to its warehouse D) A and B above E) A and C above

A) shipment to customers by a mail order house

Which of the following statements are true regarding material handling in distribution systems? I. One objective of material handling is to increase cube utilization. II. Material handling can increase the service level. III. Gasoline powered industrial trucks are used indoors. A) I, II and III are true. B) I and II are true. C) I and III are true. D) I only is true. E) II and III are true.

B) I and II are true.

The rate charged by a carrier will vary with: I. the value of the goods. II. the density of the goods. III. the color of the goods. A) I, II and III B) I and II only C) II and III only D) I and III only E) I only

B) I and II only

To decrease shipping costs, a shipper will: I. increase the weight shipped. II. consolidate shipments. III. use a common carrier rather than contract carrier. A) I, II and III B) I and II only C) I only D) I and III only E) II and III only

B) I and II only

Which management area does NOT normally have transportation responsibility? A) Purchasing B) Manufacturing C) Logistics D) Marketing E) All of the above normally have responsibility for transportation.

B) Manufacturing

Which of the following statements is true? A) Inventory costs remain constant as the number of warehouses increase. B) Material handling costs will start to rise when nonunitized loads are shipped. C) Packaging costs increase as the number of warehouses increase. D) A and B are true E) A and C are true.

B) Material handling costs will start to rise when nonunitized loads are shipped.

The two criteria for establishing a particular physical distribution system are: A) cost of transportation and materials handling. B) cost of the system and service level desired. C) service level and cost of carrying inventory. D) cost of transportation and cost of warehousing. E) cost of warehousing and cost of inventory.

B) cost of the system and service level desired.

The term used for placing the responsibility on the supplier to dispose of packaging or restricted materials is called: A) vendor-managed inventory. B) green reverse logistics. C) fourth party logistics. D) sustainability.

B) green reverse logistics

Which of the following types of transportation will provide the best service capability? A) contract B) private C) common D) All of the above are equal. E) none of the above

B) private

The market boundary is: A) a legal limitation placed on the delivery of goods. B) the line between two or more supply sources where the landed cost is the same. C) a location beyond which a source cannot supply. D) the extent of a market area. E) an agreed-upon boundary beyond which competition will not sell.

B) the line between two or more supply sources where the landed cost is the same.

A service provider that provides product warehouse and delivery services is known as a: A) distribution partner. B) third party logistics provider. C) freight forwarder. D) freight broker.

B) third party logistics provider.

Which of the following is true? A) Because of high capital cost, rail must have a large volume of traffic to justify the expense. B) Water transport requires low rates of energy per ton mile moved. C) Operating costs per ton mile tend to be low for trucks. D) A and B above E) B and C above

D) A and B above

Which mode would provide the fastest service capability? A) motor B) rail C) water D) air

D) air

Which of the following is NOT an important role of distribution centers? A) product mixing B) customer service C) break-bulk storage D) transportation consolidation E) in-transit inventory

E) in-transit inventory

Which of the following statements is true regarding distribution channels? A) There are only two members in any distribution channel. B) The transaction channel is concerned with transfer of ownership. C) The distribution channel is concerned with the transfer of goods. D) All of the above are true. E) B and C only are true.

E) B and C only are true.

Which of the following statements is true? A) Road transport is the least flexible of all the modes. B) Air cargo should be used for fast service over short distances. C) Railways are best at moving small volumes of bulky goods over short distances. D) All of the above are true. E) None of the above is true.

E) None of the above is true.

Which of the following costs is NOT included in the total laid down cost of a product shipped through a regional warehouse? A) TL to warehouse B) warehousing cost C) product cost D) warehouse cost E) market boundary cost

E) market boundary cost

Of the five modes of transportation, which one requires the lowest capital investment? A) water B) rail C) pipeline D) air E) motor

E) motor

A contract carrier provides: A) published rates. B) a scheduled service. C) a service available to the general public. D) all of the above E) none of the above

E) none of the above

A shipper wishing to reduce transportation costs will: A) ship only in small quantities. B) use trucks for all his shipments. C) ship to LTL lots. D) all of the above E) none of the above

E) none of the above