MKG 300 CH 11

Public warehouses

- independent storing facilities -used if company doesn't have a regular need for space useful for maintaining stocks in many locations, including foreign countries

Identify a feature of public warehouses as storing facilities.

-no fixed investment -low unit cost; charges are made only for space needed -low managerial control -may lack convenience -high flexibility; easy to end arrangement

As a percentage of GDP, which of the following most likely characterizes logistic costs incurred in developing economies in Africa?

30% or higher

Considering weight, the most expensive cargo transporting mode is ________.

airfreight

Regarding alternative transporting modes, which of the following statements is TRUE?

airways offer the most expensive transporting mode

Which of the following statements concerning physical distribution trade-offs is NOT true?

an efficient physical distribution system does not have to make trade-offs for customers

Logistics costs

are very important to both companies and consumers

A major benefit of ________ is that it protects the products and simplifies handling during shipping.

containerization

Air express companies place many small packages into specially designed cylinders that conform to the interior dimensions of a cargo airplane. This practice protects the smaller packages and helps to reduce distribution costs. The air express companies are practicing ________.

containerization

Most physical distribution decisions involve trade-offs among

cost, the consumer service levels, and sales

Under the physical distribution concept, each of the following is coordinated as one system EXCEPT:

design of products

In which of the following places would the logistics costs be most likely to run between 9 and 15 percent of GDP?

developed economies in the US and Europe

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

electronic data interchange is essential to a push system

Modern one-story warehouses typically do NOT have

elevators

Which of the following statements about supply chains is FALSE?

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.

Compared to a public warehouse, a private warehouse ________.

have many low cost units if volume is high

Which of the following questions is likely to be important to a customer concerning a company's physical distribution practices?

how rapidly and dependably a firm can deliver what a customer wants or needs

To what does the physical distribution customer service level refer?

how rapidly and dependably a firm can deliver what the customer wants

Which of the following is true of physical distribution of marketing strategy?

it includes transportation mode, inventory quantities, and packing

Transportation helps to

make products available when and where they need to be at a cost; can help achieve economies in scale and make exchange easier

Compared to private warehouses, PUBLIC warehouses

may not always be conveniently available or adequate for current product line

Shipping by air

may reduce the total cost of physical distribution

As a mode of transportation, railroad freight would be least suited for ________.

perishable items

How PD functions are shared will have the greatest effect on which of the other three Ps?

price

Logistics decisions include all of the following except:

prices to charge for the delivery

A cheese processor has regular need for regional storage of a large quantity of cheese; if he is interested in getting high managerial control and high adequacy for his product line, he probably should use ________ warehouses.

private

What is the disadvantage of transportation of goods by trucks?

serving a limited number of locations

What is the likely advantage of transportation of goods by trucks?

speed, frequency, dependability, and the number of locations served

Good marketing strategy planners know that

target marketing does not limit one to small market segments

To what does the term inventory refer?

the amount of goods being stored

After evaluating all of its alternatives and the costs of each, Vegpro Kenya decided the most efficient way to quickly get its fresh vegetables from Nairobi to European cities was to use air freight. Which of the following approaches was used by the firm in making this decision?

total cost

The "physical distribution concept" is probably being used in a firm if

transporting, sorting, and product-handling are seen as interrelated parts of one PD system

A marketing manager who wants to ship small quantities (1,500 pounds) of relatively high-value products for short distances at an economical cost should use ________.

trucks

Regarding alternative transporting modes:

trucks are good for speed, frequency, dependability, and number of locations served

Considering weight, which one of the following transporting modes usually has the LOWEST cost?

water transport

Which of the following transportation modes is considered best at handling a variety of goods?

water transport

It is usually most economical to ship bulky nonperishable items, such as coal and iron ore, by:

water transport - inland waterways

Regarding transportation modes, which of the following statements is NOT true?

water transportation is the slowest shipping mode

The right physical distribution system should be based primarily on

what service level to offer based on customer expectations and needs