Inventory and Physical Distribution

Topics: Logistics, Inventory, Supply chain management Pages: 162 (19490 words) Published: November 6, 2013
Student: ___________________________________________________________________________


The railroad service which picks up truck trailers at a producer's location, loads them onto rail flatcars, hauls them close to the customer, and then delivers them to the buyer's door is: A. truck service.

B. fast freight.
C. trailer service.
D. piggyback service.
E. pool car service.


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: A. Containerization.

B. Piggybacking.
C. Freight forwarding.
D. Cylinderization.
E. None of the above.


A major benefit of _____ is that it protects the products and simplifies handling during shipping. A. fast freight
B. truck service
C. containerization
D. airfreight
E. piggyback


Piggyback service means
A. loading truck trailers on railcars to increase flexibility. B. linking truck trailers to save fuel.
C. providing door-to-door service in cities.
D. special handling of important farm equipment.
E. combining small shipments of many shippers into more economical quantities.


Regarding alternative transporting modes, which of the following statements is TRUE? A. Waterways usually provide the lowest cost way of shipping heavy freight. B. Airways are quickest.
C. Pipelines offer reliability in moving oil and natural gas. D. Trucks serve the most locations.
E. All of the above are true.


A. is widely used by railroads, but has not caught on with other modes. B. makes it easier to load and unload products, but it increases the risk of damage. C. has increased competition between railroads and water shippers since both offer this service. D. is commonly used for international shipments from Japan.

E. None of the above is true.


Whenever Product includes a physical good, Place requires logistics decisions. True


Logistics focuses on the handling of goods along a channel of distribution but not within individual firms. True




For many physical goods, firms spend half or more of their total marketing dollars on physical distribution activities.


10. Physical distribution is the part of marketing that is visible to most customers. True


11. A marketing manager should never increase the total cost of distribution--even if this would result in a better customer service level for his target market.


12. In countries where physical distribution systems are inefficient, consumers face shortages of the products they need.


13. Most physical distribution decisions involve trade-offs between costs, the customer service level, and sales. True


14. Information technology involves a tradeoff because it cannot improve service levels and cut costs at the same time.


15. Better information flows make it easier to coordinate activities, improve efficiency, and add value for the customer.


16. The physical distribution concept seeks to minimize the cost of distribution for a given customer service level.


17. The physical distribution concept is based on the idea that selecting the lowest cost transporting alternative and the lowest cost storing alternative will result in the lowest total distribution cost. True


18. The PD concept seeks to maximize the profit for a given customer service level. True


19. The physical distribution concept focuses on lower costs and better service to increase customer value. True


20. With the PD concept, firms decide what specific service level to provide their customers. True


21. Retailers selling a new product that is in hot demand -- like the latest DVD release or a best selling...
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