602 DIM / Module 9 - Ch. 14 Quiz

A shipper moving expensive goods of small size from Boston to Seattle would likely use:

Air

Which mode of transportation would provide the fastest service capability over long distances?

Air

Which of the following is true?

Air transport is the most expensive mode.

Consolidating shipments will reduce which of the following costs?

All of the above

As more warehouses are added to the physical distribution system, we can expect the cost of:

All the above

Which of the following statements is false?

Distribution can operate separately from marketing and production

Which of the following statements is false?

Goods are stored in a distribution warehouse for long periods of time

Which of the following statements is best?

NOT - A & C NOT - Packaging costs increase as the number of warehouses increases Materials handling costs are relatively constant as warehouses are added but after a point will start to rise

Which of the following statements regarding channels of distribution is true?

NOT - Intermediaries can perform either transaction or distribution channel services, but not both. NOT - There can only be two members in any distribution channel.

Which of the following is FALSE?

NOT - Shipping costs will be higher with common carriers than contract carriers

All of the following are elements of the cost of carriage EXCEPT ________________________.

Packaging

In which mode of transportation can product move in only one direction?

Pipeline

Which of the following types of transportation will provide the best service capability?

Private

Which of the following activities is NOT considered a function of physical distribution?

Production control

Which of the following statements is false?

Replenishment orders to replace distribution center inventory will not affect production.

Total line-haul costs will vary directly with:

The distance moved

Which mode of transportation would cost the LEAST per ton mile?

Water

The particular path materials move through the supply chain will depend upon:

all of the above

To decrease shipping costs, a shipper will:

consolidate the shipments

The two criteria for establishing a particular physical distribution system are:

cost of the system and service level desired

Which of the following is NOT an element of transportation cost?

freight unitization

The distances in today's supply chains produce:

higher costs, longer transit times, and more disruptions

Which of the following is NOT an important function of warehouses?

in-transit inventory

Of the five modes of transportation, which one requires the lowest capital investment?

motor carrier / road

Considering the service desired and the relative cost of the item, which of the following would you most likely ship by truck?

regular shipments of cut flowers

A contract carrier provides:

service according to a contractual agreement

A shipper wishing to reduce transportation costs will:

ship bulk commodities by rail

The market boundary is:

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