Chapter 11:
Amazon.com offers speedy distribution options to its customers. These customers are willing to pay a premium for this quick delivery. In these situations, Amazon.com should use ______ as a transport method.
airfreight
In general, government regulation of transportation systems is ______ around the world.
decreasing
While it is true that the transporting cost of air shipments may be higher than other forms of delivery, the total cost of ____ may be lower.
distribution
A _____ is a type of storage facility that minimizes storing costs by expediting the flow of goods.
distribution center
In order to address problems with sharing information between different computer systems, many firms rely on ______ to create a standardized data format.
electronic data interchange (EDI)
Jonah Products operates an Internet site. They have received customer complaints because they often accept orders for products that are not available for shipping. This is a(n) ______.
ethical issue
Electronic data interchange is designed to ______.
facilitate the sharing of information along an entire supply chain
The roads and railways required for a company to transport its' goods are a reminder of how ____ can influence transportation of products.
government
In coordination efforts of physical distribution, ______ sharing is most important in finding solutions to the problems that tend to arise.
information
Physical distribution happens primarily away from customers' attention. In other words, physical distribution is typically ______ to most customers.
invisible
One thing that storing always does is ______.
involve costs
Transporting, storing, and handling goods in ways that match target customers' needs with a firm's marketing mix is called _____.
logistics
For some companies, it is possible to reduce inventory costs and maintain high levels of customer service if they can ______.
minimize the time it takes to replace items that are sold
Even though most customers desire very good service at a very low price, marketing managers must understand that it usually costs ______ to provide higher levels of service.
more
It has been estimated that, on average, ______ of a firm's total carbon emissions come from transportation.
more than 50 percent
One of the significant advantages of just-in-time inventory systems for business customers is that it reduces their ______ costs.
physical distribution
In the United States, Shell Oil primarily uses ______ to transport its crude oil and natural gas from its oil fields to its refineries.
pipelines
A firm that owns or leases a storage facility for its own use is using a ______ warehouse.
private
When firms utilize a just-in-time system, it is critical that the supplier has high ______ in all physical distribution activities.
quality control
Dow Chemical is a provider of plastics, chemicals, and agricultural products. These heavy and bulky goods need to be shipped over long distances within the United States and at a moderate cost regardless of the time it takes them to reach their destination. Dow should use ______ as a transporting method.
railroads
By using the physical distribution concept, firms focus on offering targeted levels of ______ while diminishing costs.
service
Tyler Industries coordinates its channel system to ensure that members focus on the needs of the end user (customer). The overall goal is to provide a targeted level of ______ while minimizing costs.
service
Amazon.com incurs costs every time goods are put in storage and then, again, when the goods are removed to be shipped to customers. This physical handling is considered a ______ cost.
storing
Best Buy places appliances on display to entice customers to buy. Each of these appliances carries the interest expense of the money used to purchased it. The appliances require costly insurance to cover the risk of fire or theft. All of these costs are associated with ______.
storing
Maintaining a supply of goods so they are available when they are needed is called ______.
storing
Although more expensive than using distribution centers, shipping finished goods directly to retail stores has several benefits, including ______. (Check all that apply.)
stronger relationships with retailers improved understanding of customer needs faster delivery times
The complete set of firms, facilities, and logistics activities that contribute to the production and distribution of finished or intermediate products is called the ______.
supply chain
An important development that has helped firms to coordinate activities throughout the entire supply chain has been increasing use of ______ to share information.
the Internet
The ______ approach involves evaluating each possible physical distribution system and identifying all of the costs of each alternative.
total cost
Physical distribution functions must be coordinated within the channel. Marketing managers in charge of this coordination effort must decide who will ______ the goods. (Check all that apply.)
transport store handle
When a product is valuable relative to its size and weight, ______ adds little to the overall cost.
transporting
The physical distribution concept argues that logistical activities, including transportation, storage, and handling of products, should be ______.
treated as a single system to minimize the costs of maintaining a given customer service level
Dole Food Company is the largest producer of fruits and vegetables in the world. The company needs a mode of transportation that is able to handle relatively small quantities of goods over the short distances from its distribution centers to its customers. Dole should use ______ as a transportation method.
trucking
The lowest-cost, but also the slowest, method of shipping heavy freight is by ______.
water
Honda Motor Company needs to ship its heavy freight (i.e., cars, trucks, and SUVs) over great distances from Japanese manufacturing facilities to international markets. Honda should use ______ as a shipping method.
water transport
Just-in-time systems have gained popularity because they allow firms to ______. (Check all that apply.)
- cut inventory costs - maintain target levels of customer service - minimize the amount of time it takes to replace inventory that has been sold
The total cost approach considers physical distribution costs that might otherwise be ignored, including ______. (Check all that apply.)
- the cost of lost sales due to poor customer service. - inventory carrying costs.
Which of the following transportation methods is more expensive than other modes?
Airfreight
Which of the following factors are bringing improvements to physical distribution practices? (Check all that apply.)
Coordination among firms Improved technology Efficient new distribution centers More competitive markets
There are trade-offs involved in physical distribution decisions. Which of the following are included in those trade-offs? (Check all that apply.)
Costs Sales Customer service level
Which of the following best defines storing?
It is a component of the marketing function that involves holding goods until they are needed.
Which of the following says that logistics should be treated as a single system intended to minimize the cost of distribution for a given customer service level?
Physical distribution concept
Storing facilities owned or leased by companies for their own use are called ______ warehouses.
Private
Storage facilities that are not owned or leased by a single goods-producing firm are known as __________ warehouses.
Public
Kim's company makes teddy bears that sing Christmas songs and during the busy season, the company needs short-term storage space. What type of facility would be best for her company to use?
Public warehouse
Which of the following transportation methods carries more freight in the United States than any other mode?
Railroads
What are two characteristics of a distribution center? (Check all that apply.)
Speeds the flow of goods from producer to purchaser Minimizes storing costs
A distribution channel is part of a broader network of relationships known as a(n) ___________________________ that participates in the production, distribution, and sales of a product.
Supply chain
When Target entered the Canadian market, it struggled with deliveries and customers were disappointed by the empty shelves at the store. What was Target's reaction to this situation?
The company could not recover and closed all Canadian stores.
Logistics requires transporting, storing, and handling goods in ways that match customer needs with ______.
a firm's marketing mix
Pipelines are used by ______.
oil-producing and oil-consuming countries
The marketing function of moving goods is called ______.
transporting
When moving small quantities of goods over short distances, ______ provide the most flexibility and speed.
trucks
What can companies use to improve efficiency and add value for the customer when providing a large number of products?
Data analytics
Which of the following best describes the physical distribution customer service level?
It refers to how quickly and reliably a company can provide inventory to customers.
What are three major benefits of shipping products via air? (Check all that apply.)
Less damage Lower theft rates Less spoilage
The final customer only becomes aware of physical distribution when it is ______.
inefficient
In order to improve the advantages of physical distribution, there must be ______ all the members of the channel.
cooperation among
The Coca-Cola bottling company uses thousands of route drivers to ship beverages directly to retail stores. This allows for the company to deliver products more quickly, however, ______ are generally higher with this type of direct delivery.
costs
A firm that consistently delivers customers' goods quickly and accurately exhibits a high ______.
customer service level
Which of the following statements about transporting costs are true? (Check all that apply.)
- Costs associated with transporting can influence which target markets a company can serve. - Transporting costs can in some cases significantly increase costs.
True or false: Physical distribution options should not vary endlessly in a marketing mix and in a channel system because there is one optimal solution.
False
When operating within normal parameters, which of the following transportation methods has the least amount of impact on the environment over a long distance?
Trains
Which marketing function is responsible for making products available when and where the customer needs them?
Transporting
Which three of the following help reduce the cost of physical handling in storing? (Check all that apply.)
Using power-operated lift trucks Bar codes, UPC codes, and RFID tags Locating storing facilities away from downtown traffic
Use Exhibit 11.5 to rank the different methods of transporting in terms of cost, from lowest (at the top of the list) to highest (at the bottom of the list).
Water pipeline rail Truck air
Use Exhibit 11.5 to rank the different methods of transporting in terms of delivery speed, from slowest (at the top) to fastest (at the bottom).
Water Pipeline Rail Truck Air
A common ethical issue for Internet retailers regarding physical distribution practices concerns ______.
communicating product availability.