Murphy Contemporary Logistics 10e

8/10/2019 Murphy Contemporary Logistics 10e

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PART III

EXAMINATION QUESTIONS

CHAPTER 1: AN OVERVIEW OF LOGISTICS

Multiple Choie Que!tio"!

1. Logistics clearly contributes to ___________ and ___________ utility.

a. time; place

b. form; time

c. place; form

d. possession; timee. none of the above

(a; p. 3)

2. ___________ utility refers to the value or usefulness that comes from a customerbeing able to take possession of a product.

a. ime

b. !lace

c. "ormd. !ossession

(d; p. 3)

3. ___________ utility refers to having products available #here they are needed bycustomers.

a. !ossessionb. ime

c. !lace

d. "orm(c; p. 3)

$. %ll of the follo#ing are types of economic utility& e'cept

a. ime

b. !roduction

c. !laced. !ossession

e. %ll of the above are types of economic utility

(b; p. 3)

. %ll of the follo#ing terms have been used to refer to business logistics e'cept

a. business logistics

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b. industrial distribution

c. logistics management

d. physical distributione. all of the above are correct

(e; p. $)

*. +,o# #ell a company does #hat it says it-s going to do represents ___________.

a. efficiencyb. productivity

c. leading edge logistics

d. effectiveness

(d; p. )

/. 0hat concept refers to +ho# #ell company resources are used to achieve #hat a

company promises it can do

a. fficiency

b. !roductivityc. eengineering

d. ffectiveness

(a; p. )

4. very customer getting the same type and levels of logistics service refers to

___________.

a. tailored logistics

b. mass logistics

c. effectivenessd. efficiency

(b; p. *)

5. 0hich of the follo#ing is not a reason for the increased importance of logistics

a. gro#ing po#er of manufacturers

b. reduction in economic regulationc. globali6ation of trade

d. technological advances

e. all of the above are reasons(a; pp. *75)

18. he ___________ concept suggests that there are an ever9increasing number ofmarket segments #ith distinct preferences.

a. rhochrematics

b. relationship marketing

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c. market demassification

d. niche marketing

(c; p. /)

11. 0hat t#o logistics activities make the heaviest use of the :nternet

a. 0arehousing and inventory management

b. !urchasing and transportation

c. :nventory management and purchasingd. ransportation and #arehousing

(b; p. 4)

12. ___________ refers to the removal of intermediaries bet#een producer andconsumer.

a. irect channels

b.


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1*. he movement and storage of materials into a firm refers to

a. physical distribution

b. materials management

c. materials handlingd. supply chain management

(b; p. 18)

1/. 0hat concept refers to the storage of finished product and movement to the

customer

a. :nbound logisticsb. @upply chain management

c. !hysical distribution

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a. the use of plastic versus #ood pallets

b. the mode of transportationc. shipment pricing

d. the length of production runs

(d; p. 13)

22. ___________ refers to the delay of value9added activities such as assembly&

production& and packaging to the latest possible time.

a. Auilding blocks

b. eferral

c. emurraged. !ostponement

(d; p. 13)

23. he four basic components of the marketing mi' include all of the follo#ing e'cept

a. priceb. production

c. product

d. place(b; p. 1$)

2$. Aranding alliances allo# customers to purchase products from t#o or more name9

brand retailers at one store location. 0hich of the follo#ing statements aboutbranding alliances is false

a. hey offer potential customers convenience by satisfying multiple needs atone place

b. hey boost brand a#areness

c. hey don-t create any logistical challengesd. hey increase customer spending per transaction

e. %ll of the above are true

(c; p. 1$)

2. Landed costs refer to

a. a product that is shipped via surface transportb. a product that is Buoted cash on delivery (=C)

c. a prepaid shipment

d. a price that includes both the cost of the product plus transportation to thebuyer

(d; p. 1)

2*. ____________ refers to being out of an item at the same time there is demand for it.


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a. :ntensive distribution

b. @tockoutc. hochrematics

d. @upplier indifference

(b; pp. 1$91)

2/. 0hich of the follo#ing is not part of the marketing channel

a. the logistics channel

b. the negotiations channel

c. the promotion channel

d. the finance channele. all are part of the marketing channel

(e; p. 1)

24. he o#nership channel consists of all parties e'cept

a. customersb. manufacturers

c. #holesalers

d. retailers(a; p. 1*)

25. 0hich channel covers the movement of title to the goods

a. promotions

b. logistics

c. financed. o#nership

(d; p. 1*)

38. ____________ is bringing together similar stocks from different sources.

a. %ccumulating

b. %ssortingc. %uditing

d. %llocating

(a; p. 1*)

31. ____________ refers to breaking a homogenous supply into smaller lots.

a. @orting out

b. %llocating

c. %ccumulating

d. %ssorting

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(b; p. 1/)

32. =hannel intermediaries

a. assume temporary o#nership of the goods

b. fill nichesc. disappear as the market becomes organi6ed

d. tend to lack focus

(b; p. 1/)

33. 0hich of the follo#ing is not a logistics9related activity

a. =ustomer serviceb. :nternational logistics

c.


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3. Logistics clearly contributes to time and form utility. ("alse; p. 3)

$. he current definition of logistics& as promulgated by the =ouncil of @upply =hain


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15. he finance department tends to measure inventory in terms of units #hile logistics

tends to measure inventory in terms of its cost E value. ("alse; p. 12)

28. Long production runs sometimes result in e'cessive inventory of products #ith

limited demand for them. (rue; p. 13)

21. !ostponement is the delay of value9added activities such as assembly& production& and

packaging to the latest possible time. (rue; p. 13)

22. Logistics offers many companies an important route for creating marketing

superiority. (rue; p.1$)

23. Landed costs refer to the price of a product at the source. ("alse; p. 1$)

2$. @tockouts refer to a situation #here a company is out of an item at the same time that

there is demand for that item. (rue; p. 1$)

2. Logistical decisions tend not to be impacted by marketers- gro#ing emphasis onoffering sustainable products. ("alse; p. 1)

2*.


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3. %dvertising agencies are a channel intermediary that might be found in the

promotions channel. (rue; p. 1/)

3*. % commonly used logistics intermediary is the freight for#arder. (rue; p. 1/)

3/. emand forecasting is not considered to be a logistics9related activity. ("alse; p. 14)

34. ransportation represents the most costly logistics activity in many organi6ations.

(rue; p. 14)

35. :t is better for a logistics manager to be a generalist rather than a specialist. ("alse; p.

15)

$8. here are relatively fe# opportunities for employment in the logistics sector. ("alse;

p. 28)

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PART IV

CASE SOLUTIONS

CASE 1$1 (I))IELAN) AN) THE SUPER G*M

Que!tio" 1:List and discuss the advantages and disadvantages of purchasing a t#o9#heeled trailer for each store to use for delivering @uper Dyms.

Aecause the stores are in a number of states& one #ould have to check the motorvehicle and insurance reBuirements of each state. %n advantage is that deliveries

#ould be under the control of each store. % disadvantage may be labor costs&

especially if t#o #orkers are needed to make the delivery. %lso& once at the site&

the store-s employees might be asked to assist in the assembly of the gym.

Que!tio" +:List and discuss the advantages and disadvantages of having local trucking

companies deliver the @uper Dym from the retail stores to the customers.

here are probably no disadvantages to using a local trucking company to make

the delivery. % decision #ould have to be made ho# to handle the trucking firm-scharges.

Que!tio" ,:List and discuss the advantages and disadvantages of stocking @uper Dymsat the distribution centers and then having the truck that make deliveries from the

distribution center to the retail stores and also make deliveries of @uper Dyms to

individual customers.

he problem here focuses on the si6e of eBuipment; the large tractor9trailer

combinations are not suited to making home deliveries. he actual costs to

FiddieLand of using trucks this #ay might be very high. here might be somesavings in inventory costs by stocking the gyms at the distribution center rather

than at each retail store.

Que!tio" -:List and discuss the advantages and disadvantages of charging the customer

for home delivery if they are unable to carry the @uper Dym home.

!erhaps the one advantage to charging for home delivery is that FiddieLandrecoups the associated costs. ,o#ever& because charged home delivery #ill add to

the customer-s total purchase price& there could be a reduction in demand or this

could generate customer dissatisfaction.

Que!tio" .: 0hich alternative #ould you prefer 0hy

he student can choose any alternative. ,o#ever& the te't of the case seems to

prefer the use of a local trucking company and charging the customer for home

delivery.

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Que!tio" /:raft a brief statement (catalog copy) to be inserted in the firm-s

springEsummer brochure that clearly e'plains to the potential customers the policy that isrecommended in Buestion .

he brochure is intended for use in all stores& so #hatever copy is prepared must

be #idely applicable. % sentence might read +he @uper Dym comesunassembled and is packed in three bo'es one #eighing ____ pounds& is ____

inches by ____ inches by ____ inches; the second #eighs ____ pounds& is ____

inches by ____ inches by ____ inches; and the third #eighs ____ pounds& and is____ inches by ____ inches by ____ inches. %ssembly reBuires the follo#ing

tools ____; ____; ____; and ____.

Que!tio" 0::n the first meeting oth asked about @GHs but there #as no further mentionof them. ,o# #ould you follo# up on his Buery

%nyone in the group could ans#er that sport utility vehicles have more carrying

capacity than autos and many also have trailer9hitches. @GHs are sufficientlypopularIparticularly in the Gnited @tatesIthat almost every buyer of the @uper

Dym eBuipment #ould either have a @GH& or be able to borro# one.

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Murphy Contemporary Logistics 10e

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