Chapter 11 & 12: Distribution, Logistics, and Channel Strategy

1. What is the marketing function of moving goods called?

• Storing

• Transporting

• Handling

• Inventory management

1. The physical distribution concept says that all transporting, storing, and product-handling activities of a business and a whole channel system should be:

• Outsourced to the lowest bidder

• Coordinated as one system

• Handled by the sales department

• Ignored to reduce costs

1. What is the most important aspect of customer service in physical distribution?

• Low prices

• Fast delivery

• Dependable delivery

• Both B and C

1. Which transportation mode is typically the lowest cost for shipping heavy freight?

• Truck

• Rail

• Airplane

• Water

1. What is the term for the amount of goods being stored?

• Logistics

• Inventory

• Distribution

• Throughput

1. Which of the following is a key advantage of JIT systems for business customers?

• Increased inventory costs

• Reduced PD costs, especially storing and handling

• Less need for supplier quality control

• Longer order lead times

1. What is the primary role of a distribution center?

• To store goods for extended periods

• To speed the flow of goods and avoid unnecessary storing costs

• To provide a wide variety of products

• To manufacture products

1. What is a key trend in transportation?

• Decreased use of technology for efficiency

• Increased environmental concerns

• Less emphasis on speed and reliability

• A shift away from intermodal transport

1. Which of the following is a potential ethical issue in physical distribution?

• Ensuring products are delivered on time

• Communicating accurate product availability

• Offering customers a variety of shipping options

• Reducing transportation costs

1. How do some companies use AI in logistics?

• To decrease customer service levels

• 1. To predict when customers might make future purchases

• 1. To automate routine warehouse tasks

• 1. To determine the cheapest transportation mode regardless of other factors