Chapter 12 Advanced Level Quiz

Chapter 12 Advanced Level Quiz - Chapter 12 Advanced Level...

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Chapter 12 Advanced Level Quiz 1. When planning physical distribution, the marketing manager should: A. set the customer service level so that every customer can get the product exactly when he wants it. B. minimize the cost of distribution for a given customer service level. C. minimize the cost of transportation. D. maximize the speed of delivery. E. make use of a distribution center. 2. The physical distribution concept says (or implies) that: A. transporting, storing, and product-handling are unrelated activities for cost control. B. the best distribution system is the lowest cost one. C. a firm should seek to minimize the total cost of transporting, storing, and product-handling--for a given level of customer service. D. if the transporting department minimizes its costs and the storing department minimizes its costs and the product-handling department minimizes its costs--then the total cost of physical distribution will be minimized. E. Both A and D. 3. The "total cost approach" to physical distribution management: A. seeks to eliminate the storing function. B. seeks to minimize the cost of transportation. C. might suggest a high-cost transporting mode if storing costs could be reduced enough to lower total distribution costs. D. ignores inventory carrying costs. E. All of the above. 4. Which of the following statements about just-in-time delivery is FALSE? A. Just-in-time shifts greater responsibility for physical distribution backward in the channel. B. Just-in-time reduces storing and handling costs for everyone in the channel. C. Just-in-time increases the coordination needed among channel members. D. Just-in-time reduces storing and handling costs for business customers. E.
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Chapter 12 Advanced Level Quiz - Chapter 12 Advanced Level...

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