Marketing Channels Delivering Customer Value (Part 5)

135) Reusing, recycling, refurbishing, or disposing of broken, unwanted, or excess products returned by consumers or resellers is known as ________. A) cross merchandising B) reverse logistics C) disintermediation D) diverse logistics E) inbound logistics Answer: B 136) ________ management refers to the management of upstream and downstream valueadded flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers. A) Cross B) Price C) Supply chain D) Product cycle E) Customer Answer: C 137) Which of the following is NOT a major logistics function? A) inventory management B) product designing C) warehousing D) transportation E) packaging Answer: B 138) Logistics has grown in importance for all of the following reasons EXCEPT that ________. A) companies that become channel members want to continue to grow and expand. B) companies can gain a powerful competitive advantage by using improved logistics to give customers better service or lower prices. C) improved logistics can yield tremendous cost savings to both a company and its customers. D) more than almost any other marketing function, logistics affects the environment and a firm's environmental sustainability efforts. E) the explosion in product variety has created a need for improved logistics management. Answer: A 139) Major logistics functions are logistics information management, inventory management, transportation, and ________. A) advertising B) product design C) financial projections D) warehousing E) customer sales Answer: D 140) ________ are large and highly automated warehouses designed to receive goods from various plants and suppliers, take orders, fill them efficiently, and deliver goods to customers as quickly as possible. A) Loading docks B) Open warehouses C) Distribution centers D) Shipping platforms E) Product platforms Answer: C 141) ________ or smart tag technology helps companies locate a product's exact position within its supply chain. A) RFID B) PRM C) VMS D) BCODE E) 3PL Answer: A 142) Which of the following is true of using trucks as a transportation mode? A) Transportation via trucks is costlier than by rail or air. B) Trucks are a specialized means of shipping petroleum, natural gas, and chemicals from sources to markets. C) Trucks provide in-transit services such as the diversion of shipped goods to other destinations en route. D) Trucks are highly flexible in their routing and time schedules. E) Trucks are the slowest mode of transportation and most affected by the weather. Answer: D 143) Which of the following is true of transporting goods via railroads? A) Railroads are ideal for the transportation of digital technology. B) Railroads are a specialized means of shipping petroleum, natural gas, and chemicals from sources to markets. C) Railroads are a cost-effective way to ship large amounts of bulk products over long distances. D) Railroads are the most flexible mode of transportation in their routing and time schedules. E) Railroads are the slowest mode of transportation and are the most affected by the weather. Answer: C 144) Which of the following is true of shipping goods via water transportation? A) Water transportation is an efficient way to ship perishable merchandise over long distances. B) Water carriers are highly flexible in their routing and time schedules. C) Water transportation provides in-transit services, such as the processing of goods en route. D) Water transportation is ideal when time is short and speed is needed. E) Water transportation is the slowest mode of transportation and the most affected by the weather. Answer: E 145) ________ are a specialized means of shipping petroleum, natural gas, and chemicals from sources to markets. A) Air tunnels B) Rail flatcars C) Steam ships D) Pipelines E) Airlines Answer: D 146) Which of the following is true about using air carriers as a transportation mode when shipping products? A) Air carriers are the most cost-effective way to ship non-perishable goods over short distances. B) Air carriers are the slowest and least reliable modes of transport. C) Air carriers provide in-transit services such as the processing of goods en route. D) Air carriers are ideal when time is short and speed is needed. E) Air carriers are a specialized means of shipping chemicals from sources to markets. Answer: D 147) In intermodal transportation, which of the following describes the use of both rail and trucks for transportation? A) fishyback B) drawbar C) trainship D) piggyback E) airtruck Answer: D 148) In intermodal transportation, which of the following describes the use of both water and trucks for transportation? A) fishyback B) drawbar C) trainship D) piggyback E) airtruck Answer: A 149) Which of the following is the most effective way for a company to ship bulky, nonperishable products if its key requirement is low price? A) pipelines B) air transport C) trucks D) water carriers E) piggyback Answer: D 150) Heart of Midnight sells blue orchids to major florists around the world. Their key requirement is speed. Which of the following modes of transport will help them? A) rail transport B) air carriers C) trucks D) piggybacks E) water transport Answer: B 151) Using ________, retailers can share real-time data on sales and current inventory levels with suppliers. A) automated storage and retrieval systems (ASRS) B) vendor-managed inventory (VMI) systems C) transportation management systems (TMS) D) warehouse management systems (WMS) E) distribution center management systems (DCMS) Answer: B 152) ________ management is the logistics concept that emphasizes teamwork—both inside the company and among all the marketing channel organizations—to maximize the performance of the entire distribution system. A) Logistics inventory B) Integrated logistics C) Logistics information D) Independent logistics E) Group logistics Answer: B Refer to the scenario below to answer the following question(s). Giant Beanstalks is a company based in Maryland that processes and cans vegetables. It has contracts with several large farms in Riverdale, 80 miles away from the factory, that agree to sell their produce to Giant Beanstalks. The company's products are available to the public only through Greenleaf, a grocery chain with 38 stores in the country. 153) Roland is the logistics manager of Giant Beanstalks. Which of the following is NOT an area of responsibility for him? A) the transportation of the canned vegetables to Greenleaf B) the storage of the unprocessed vegetables C) the advertising of the final product D) product inventory management E) the packaging of the final product Answer: C 154) Which of the following modes of transport should Roland choose to transport the unprocessed vegetables from Riverdale's farms to the Giant Beanstalks' factory quickly and with minimum cost? A) air carrier B) pipeline C) truck D) oil tanks E) air tunnels Answer: C Refer to the scenario below to answer the following question(s). Kimberly's Crown sells and designs jewelry. Despite the jewelry's popularity, products are available only through a few shopping stores across the country. 155) What distribution strategy does Kimberly's Crown use? A) exclusive B) intensive C) selective D) inclusive E) extensive Answer: C 156) When one of the stores complains that the jewelry they're being given is inferior to the jewelry Kimberly sells to other stores, Kimberly experiences ________ conflict. A) horizontal B) multitiered C) vertical D) intensive E) subjective Answer: C 157) Kimberly decides to alter its distribution strategy so that its jewelry is accessible to the public only through one distributor. The strategy they're considering is known as ________ distribution. A) elusive B) extensive C) exclusive D) selective E) elective Answer: C 158) What mode of transport should Kimberly use to ship its goods over long distances as quickly as possible? A) flatcars B) water transport C) air transport D) trucks E) railroads Answer: C 159) Marketing logistics involves planning, implementing, and controlling the physical flow of goods, services, and related information from points of origin to points of consumption to meet customer requirements at a profit. Answer: TRUE 160) Reverse logistics refers to the moving of products and materials from suppliers to the factory. Answer: FALSE 161) Environmental sustainability is an important factor in supplier selection and performance evaluation, as designing sustainable supply chains has become the right thing to do. Answer: TRUE 162) In contrast to distribution centers, storage warehouses are designed to move goods rather than just house them. Answer: FALSE 163) Air carriers transport digital products from producer to customer via satellite, cable, phone wire, or wireless signal. Answer: FALSE 164) Intermodal transportation refers to the combination of two or more modes of transportation. Answer: TRUE 165) Electronic data interchange is the digital exchange of data between organizations, which primarily is transmitted via the Internet. Answer: TRUE 166) How can a company benefit through a just-in-time logistics system? Answer: With just-in-time logistics systems, producers and retailers carry only small inventories of parts or merchandise, often only enough for a few days of operations. This creates substantial savings in inventory carrying and handling costs. 167) What does the concept of integrated logistics management advocate? Answer: This concept recognizes that providing better customer service and trimming distribution costs require teamwork, both inside the company and among all the marketing channel organizations. Inside, the company's various departments must work closely together to maximize its own logistics performance. Outside, the company must integrate its logistics system with those of its suppliers and customers to maximize the performance of the entire distribution network. 168) Why are companies increasingly turning to third-party logistics providers (3PLs)? Answer: A third-party logistics provider is an independent company that performs any or all of the functions required to get a producer's product to market, helping clients to tighten up sluggish, overstuffed supply chains, slash inventories, and get products to customers more quickly and reliably. Companies use third-party logistics providers because getting the product to market is the main focus of 3PLs, so they can often do it more efficiently and at a lower cost. Second, outsourcing logistics frees a company to focus more intensely on its core business. Finally, integrated logistics companies understand increasingly complex logistics environments. For example, third-party logistics partners can be especially helpful to companies attempting to expand their global market coverage.