MAR chp 11

Storing allows mass producers to

Achieve economies of scale

Which of the following transportation methods is more expensive than other modes?

Airfreight

--warehouses are storing facilities owned or lease by companies for their own use, while-- warehouses are independent storing facilities.

Blank 1: Private Blank 2: public

Logistics is also known as-- distribution.

Blank 1: physical

Storage facilities that are not owned or leased by a single goods-producing firm are known as-- warehouses.

Blank 1: public

The Montage Co. has misunderstood their suppliers ' capabilities, resulting in production delays and unhappy customers. This is a(n)-- --problem.

Blank 1: supply Blank 2: Chain

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.

Blank 1: supply Blank 2: chain

International shipments often travel by several different-- modes.

Blank 1: transportation , travel, shipping, or transport

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 best describes the physical distribution customer service level?

It refers to how quickly and reliably a company can provide inventory to customers.

True or false: Public warehouses can provide all the services that a company's own warehouse can provide.

True

Click and drag on elements in order 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

Logistics requires transporting, storing, and handling goods in ways that match customer needs with ______.

a firm's marketing mix

To better respond to customers' needs, intermediaries should ______ stock at convenient locations.

store

A common problem with mass-produced goods that can be addressed by storing is that ______.

production does not match consumption

Joseph Enterprises Inc. produces "Chia Pets" during the holiday season in the United States. The company does not have a need for storage space on a regular basis. Joseph Enterprises should make use of a ______.

public warehouse

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

Select all that apply Which of the following factors are bringing improvements to physical distribution practices? (Check all that apply.)

-Coordination among firms -More competitive markets -Efficient new distribution centers -Improved technology

Select all that apply Which of the following are expenses that contribute to total inventory costs? (Check all that apply.)

-Costs of risks such as theft and fire -Handling costs -Cost of maintaining storage facilities -Costs of inventory becoming obsolete

Select all that apply What are two benefits of containerization? (Check all that apply.)

-Increased protection of goods -Simplified handling process

Select all that apply What are three major benefits of shipping products via air? (Check all that apply.)

-Less damage -Less spoilage -Lower theft rates

Select all that apply Which three of the following help reduce the cost of physical handling in storing? (Check all that apply.)

-Locating storing facilities away from downtown traffic -Bar codes, UPC codes, and RFID tags -Using power-operated lift trucks

Select all that apply What are two characteristics of a distribution center? (Check all that apply.)

-Minimizes storing costs -Speeds the flow of goods from producer to purchaser

Select all that apply What are some examples of common transportation infrastructure challenges in developing countries? (Check all that apply.)

-Rail systems may be limited. -Roads are often poor. -Ports may be undeveloped.

Select all that apply There are trade-offs involved in physical distribution decisions. Which of the following are included in those trade-offs? (Check all that apply.)

-Sales -Customer service level -Costs

Select all that apply Which of the following items have been replaced by electronic data interchange (EDI) in some companies? (Check all that apply.)

-Shipping reports -Purchase orders

Select all that apply Which two of the following are possible drawbacks of private warehouses? (Check all that apply.)

-Some space may go unused. -Purchasing or leasing a space may be expensive.

Select all that apply Which of the following statements about transporting costs are true? (Check all that apply.)

-Transporting costs can in some cases significantly increase costs. -Costs associated with transporting can influence which target markets a company can serve.

Select all that apply 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

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.)

-handle -store -transport

Select all that apply Although more expensive than using distribution centers, shipping finished goods directly to retail stores has several benefits, including ______. (Check all that apply.)

-improved understanding of customer needs -faster delivery times -stronger relationships with retailers

Select all that apply The total cost approach considers physical distribution costs that might otherwise be ignored, including ______. (Check all that apply.)

-inventory carrying costs. -the cost of lost sales due to poor customer service.

What can companies use to improve efficiency and add value for the customer when providing a large number of products?

Data analytics

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

True or false: Storing only affects the activities of the firm holding the goods.

False

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

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

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.

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

Storing allows mass producers to ______.

achieve economies of scale

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

Ideally, a product will spend ______ on distribution center shelves.

almost no time

Inventory refers to the ______ of goods being stored by a firm.

amount

A common ethical issue for Internet retailers regarding physical distribution practices concerns ______.

communicating product availability.

Transporting a group of goods in a single protective container, also known as ______, greatly simplifies the physical distribution process.

containerization

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

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

Galveston Machinery produces large quantities of its component parts for the oil and gas industry in Galveston, Texas. The company then ships the parts to its customers worldwide. The savings from producing in one location more than offset the added cost of transporting the parts to customers. This is an example of ______.

economies of scale

Some companies will try to centralize production by having fewer manufacturing plants that each produce in larger quantities. This requires more transporting, but offers ______.

economies of scale in production

Patricia purchases a box of Kellogg's Corn Flakes at a Publix supermarket. When the cereal is scanned, the Publix inventory system automatically sends a purchase order to Kellogg's. An automatic shipping order is then sent to the warehouse inventory system and an invoice is sent to the Publix accounting system. This is an example of ______.

electronic data interchange

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

To boost sales growth, Procter & Gamble's shampoo brand, Head & Shoulders, will target remote villages in India. One of the challenges the company faces is the lack of good roads to reach the targeted consumers. The route calls for less-efficient modes of transportation. Procter & Gamble understands that transportation ______ can cost more.

in developing regions

The final customer only becomes aware of physical distribution when it is ______.

inefficient

In coordination efforts of physical distribution, ______ sharing is most important in finding solutions to the problems that tend to arise.

information

A firm that counts the amount of goods it has stored in its warehouse is taking stock of its ______.

inventory

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

Pipelines are used by ______.

oil-producing and oil-consuming countries

Another common name for logistics is ______.

physical distribution

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

Storing facilities owned or leased by companies for their own use are called ______ warehouses.

private

Silver Eagle Distributors is the sole owner of a storage facility where it stores long-term, excess inventory from its manufacturing plant. This is an example of a ______.

private warehouse

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

John Deere is the leading manufacturer of agricultural machinery in the world. To meet the needs of its customers, Deere's management must coordinate delivery of parts needed to build its tractors, harvesters, and sprayers. Deere must also coordinate deliveries to the dealers that stock and sell its products. John Deere would rely on its ______ to coordinate all of these activities.

supply chain

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

Efficiency in distribution centers is primarily based on ______.

technology

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 roads and railways required for a company to transport its goods are a reminder of how ____ can influence transportation of products.

the government

When choosing between transportation options, marketers should look for ______.

the lowest cost alternative that provides the required level of service

The ______ approach involves evaluating each possible physical distribution system and identifying all of the costs of each alternative.

total cost

Interest expense, costs of storage facilities, and costs of risks and damage are all ______ costs.

total inventory

The ______ function depends on the product, other physical distribution decisions and the service level that the company wants to provide.

transporting

The marketing function of moving goods is called ______.

transporting

When a product is valuable relative to its size and weight, ______ adds little to the overall cost.

transporting

Through the course of transportation from producer to consumer, shipments often ______.

travel by several modes of transport

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

When moving small quantities of goods over short distances, ______ provide the most flexibility and speed.

trucks

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