Chapter 11 Logistics and Distribution Customer Service

Chapter 11 Logistics and Distribution Customer Service -...

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Chapter 11: Logistics and Distribution Customer Service True-false Questions 1. For many physical goods, firms spend half or more of their total marketing dollars on physical distribution activities. | Ans: True | Easy | LO: 1 | Pg. 276 | Definition | 2. 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. | Ans: False | Easy | LO: 2 | Pg. 277-28 | Definition | 3. The physical distribution concept seeks to minimize the cost of distribution for a given customer service level. | Ans: True | Easy | LO: 3 | Pg. 279 | Definition | 4. 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. | Ans: False | Easy | LO: 3 | Pg. 279 | Definition | 5. With the PD concept, firms decide what specific service level to provide to their customers. | Ans: True | Easy | LO: 3 | Pg. 279 | Definition | 6. The "total cost approach" to physical distribution management involves evaluating all the costs of alternative physical distribution systems, including transporting, storing, and handling costs. | Ans: True | Easy | LO: 3 | Pg. 281 | Definition | 7. Most marketing functions can be shared in a channel, but the storing function is almost always handled by the producer. | Ans: False | Easy | LO: 4 | Pg. 282 | Definition | 8. Just-in-time delivery reduces storing and handling costs for business customers. | Ans: True | Easy | LO: 4 | Pg. 282 | Definition | 9. Just-in-time delivery systems typically shift more responsibility for PD activities to the customer rather than the supplier. | Ans: False | Easy | LO: 4 | Pg. 282 | Definition | 10. Every firm should try to use the just-in-time approach to physical distribution. | Ans: False | Easy | LO: 4 | Pg. 282 | Definition | Chapter 11: Logistics and Distribution Customer Service 11 - 1
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11. A channel of distribution is part of a broader network of relationships called a supply chain. | Ans: True | Easy | LO: 4 | Pg. 282 | Definition | 12. A channel of distribution is part of a supply chain. | Ans: True | Easy | LO: 4 | Pg. 282 | Definition | 13. The term "supply chain" can be misleading because the chain typically involves only two firms: a vendor (selling firm) and a customer (buying firm). | Ans: False | Easy | LO: 4 | Pg. 282 | Definition | 14. A supply chain includes all the activities involved in procuring materials, transforming them into products, and distributing them to customers. | Ans: True | Easy | LO: 4 | Pg. 282 | Definition | 15. A channel of distribution for a product involves more firms than a supply chain for the same product. | Ans:
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This note was uploaded on 10/17/2011 for the course BUSINESS 023 taught by Professor Hisyam during the Spring '11 term at Universiti Teknologi Malaysia.

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Chapter 11 Logistics and Distribution Customer Service -...

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