Q&A Hero

Q: Logistics clearly contributes to time and form utility.

Q: The four general types of economic utility are production, possession, time, and place.

Q: Absolute and relative logistics costs in relation to Gross Domestic Product vary from country to country.

Q: U.S. News & World Report suggests that logistics employment should increase by ____ percent through 2018. a. 10 b. 15 c. 20 d. 25

Q: The most costly logistics activity in many firms is ____ a. industrial packaging b. transportation management c. order management d. warehousing management

Q: Brokers are intermediaries that are commonly associated with the ____ channel. a. promotions b. finance c. ownership d. negotiation

Q: Channel intermediaries: a. assume temporary ownership of the goods b. tend to lack focus c. fill niches d. tend to disappear as the market becomes organized

Q: ____ refers to breaking a homogeneous supply into smaller lots. a. sorting out b. allocating c. accumulating d. assorting

Q: ____ is bringing together similar stocks from different sources. a. accumulating b. assorting c. auditing d. allocating

Q: Which channel covers the movement of title to the goods? a. promotions b. logistics c. finance d. ownership

Q: The ownership channel consists of all parties except: a. customers b. manufacturers c. wholesalers d. retailers

Q: Which of the following is not part of the marketing channel? a. the logistics channel b. the negotiations channel c. the promotion channel d. the finance channel e. all are part of the marketing channel

Q: ____ refers to being out of an item at the same time there is demand for it. a. intensive distribution b. tailored logistics c. stockout d. supplier indifference

Q: Landed costs refer to: a. the costs of a product shipped via surface transport b. the costs of a product that is quoted cash on delivery (COD) c. the costs of a prepaid shipment d. a price that includes both the cost of the product plus transportation to the buyer

Q: Co-branding allows customers to purchase products from two or more name-brand retailers at one store location. Which of the following statements about co-branding is false? a. they offer potential customers convenience by satisfying needs at one place b. they boost brand awareness c. they create relatively few logistical challenges d. they increase customer spending per transaction e. all of the above are true

Q: The four basic components of the marketing mix include all of the following except: a. price b. production c. place d. promotion

Q: ____ refers to the delay of value-added activities such as assembly, production, and packaging to the latest possible time. a. building blocks b. lean manufacturing c. deferral d. postponement

Q: A common interface between production and logistics involves: a. the types of material handling equipment b. the length of production runs c. the use of plastic versus wood pallets d. the mode of transportation

Q: The ____ department often measures inventory in terms of its cost or value in dollars, whereas ____ tends to measure inventory in terms of units. a. marketing; logistics b. finance; production c. marketing; production d. finance; logistics

Q: A cost trade-off is a situation where: a. all costs react according to their individual degrees of inflation in the economy b. all costs are reflected as a percentage variation from standard costs c. some costs increase and some costs decrease d. some costs are eliminated by efficient management controls

Q: Logistics managers use the ____ approach to coordinate materials management and physical distribution in a cost-efficient manner. a. total cost b. supply chain c. interfunctional logistics d. intrafunctional logistics

Q: Which concept refers to the storage of finished product and movement to the customer? a. supply chain management b. business logistics c. physical distribution d. materials management

Q: The movement and storage of materials into a firm refers to: a. physical distribution b. materials management c. supply chain management d. materials handling

Q: The ____ approach indicates that a company's objectives can be realized by recognizing the mutual interdependence of major functional areas. a. supply chain b. systems c. interfunctionality d. rhochrematics

Q: World trade grew at an average annual rate of approximately ____ percent between 1991 and 2011. a. 5.5 b. 4.5 c. 3.5 d. 2.5

Q: ____ are stores with large amounts of both floor space and product for sale. a. mass merchandisers b. power retailers c. big-box retailers d. do-it-yourself (DIY) retailers

Q: ____ refers to the removal of intermediaries between producer and consumer. a. direct channels b. market demassification c. consolidation d. disintermediation

Q: Approximately ____ percent of US adult women are currently in the workforce. a. 70 b. 60 c. 50 d. 40

Q: The ____ concept suggests that the customer desires a product offering that is highly tailored to the customer's exact preferences. a. market demassification b. relationship marketing c. customized customer d. niche marketing

Q: Widespread reductions in economic regulation of US transportation carriers occurred in ____. a. 1960s and 1970s b. 1970s and 1980s c. 1980s and 1990s d. only the 1990s

Q: Which of the following is not a reason for the increased importance of logistics? a. growing power of manufacturers b. reduction in economic regulation c. globalization of trade d. technological advances e. all of the above are reasons

Q: Every customer getting the same type and level of logistics service refers to ___________. a. tailored logistics b. mass logistics c. effectiveness d. efficiency

Q: What concept refers to "how well company resources are used to achieve what a company promises it can do?" a. Efficiency b. Productivity c. Reengineering d. Effectiveness

Q: "How well a company does what it says it's going to do" represents ___________. a. efficiency b. productivity c. leading edge logistics d. effectiveness

Q: All of the following are types of economic utility, except: a. Time b. Production c. Place d. Possession e. All of the above are types of economic utility

Q: ___________ utility refers to having products available where they are needed by customers. a. Possession b. Time c. Place d. Form

Q: ___________ utility refers to the value or usefulness that comes from a customer being able to take possession of a product. a. Time b. Place c. Form d. Possession

Q: Logistics clearly contributes to ___________ and ___________ utility. a. time; place b. form; time c. place; form d. possession; time e. none of the above

Q: Logistics managers must be both generalists and specialists. Why is this true? Does this help to explain why there tends to be an imbalance in the supply of, and demand for, logistics managers?

Q: Discuss five activities that might be part of a company's logistics department.

Q: Briefly discuss the ownership, negotiations, financing, promotion, and logistics channel.

Q: Discuss several possible interfaces between marketing and logistics in terms of product decisions.

Q: Define what is meant by a landed cost and explain its relevance for pricing decisions.

Q: Discuss the postponement concept as it relates to the production and logistics interface.

Q: What are several areas in which finance and logistics might interface?

Q: Define what is meant by a cost trade-off. Do you believe that this concept is workable? Why or why not?

Q: Explain what is meant by the total cost approach to logistics.

Q: Distinguish between materials management and physical distribution.

Q: What is the systems approach to problem solving? How is this concept applicable to logistics management?

Q: Explain how big-box retailers are logistical trendsetters.

Q: Discuss the logistical implications associated with the increased emphasis on the convenience associated with a family's shopping experience.

Q: How has a reduction in economic regulation contributed to the increased importance of logistics?

Q: Explain how an understanding of logistics management could be relevant to your favorite charitable organization.

Q: Explain the significance of the fact that the purpose of logistics is to meet customer requirements.

Q: How can a particular logistics system be effective but not efficient?

Q: How does logistics contribute to time and place utility?

Q: Distinguish between possession, form, time, and place utility.

Q: Did it surprise you that logistics has such an important economic impact? Why or why not?

Q: An educational toy store can buy a world globe for $30. If the store owner sells the globe for $45, what is the markup based on cost? a. 15 percent b. 20 percent c. 25 percent d. 33 percent e. 50 percent

Q: The owner of specialty kitchen retail store wants to determine what price she should put on a set of mixing bowls. They cost her $7. She desires a markup of 30 percent based on selling price. Which of the following is closest to the price she should charge her customers? a. $19 b. $12 c. $15 d. $10 e. $18

Q: The difference between the retailer's cost and the selling price is the _____. a. gross margin b. markup percentage c. profit d. keystone e. breakeven profit

Q: Cowboy Malone's Electric City pays a wholesaler $700 for a television and sells it to a customer for $1,500. The markup on the television is: a. $240 b. $160 c. $700 d. $800 e. $1,500

Q: The most popular method used by wholesalers and retailers in establishing a sales price is _____ pricing. a. markup b. status quo c. formula d. marginal revenue e. break-even

Q: When a seller determines the selling price by adding to cost an amount for profit and expenses not previously accounted for, the seller is using _____ pricing. a. profit maximization b. demand-oriented c. break-even d. target return e. markup

Q: Monthly output at Leisure-Time, Inc. changed from 12 to 13 prefabricated gazebos, and the total costs changed from $9,000 to $10,500. What is the marginal cost for this company? a. $1,500 b. $2,000 c. $1,200 d. $10,000 e. $12,000

Q: _____ cost is the change in total costs associated with a one-unit change in output. a. Variable b. Intermittent c. Elastic d. Marginal e. Flex

Q: Mitch owns a pet boarding kennel. The monthly payment on the land he purchased for his kennel, the mortgage on his small office building, and his business license are all examples of _____ costs. a. marginal b. variable c. fixed d. promotional e. demand

Q: Central Bark is a dog resort where pets are pampered. Which of the following is the BEST example of one of its fixed costs? a. payment on the building used by Central Bark b. dog biscuits c. dog collars and leashes d. bubble bath e. advertisements in local magazines

Q: _____ costs do not change as output is increased or decreased. a. Asset b. Variable c. Fixed d. Symmetrical e. Status quo

Q: For a nail salon, the costs associated with the purchase of nail polish and other products like nail polish remover, sterilized equipment, laundry service for the towels, and the beverages given to customers, are all examples of _____ costs. a. marginal b. variable c. fixed d. promotional e. liquidity

Q: Which of the following is most likely to be a variable cost for an Internet retailer that sells spices, herbs, and seasonings to consumers? a. annual lease on mixer used to blend seasonings b. executive salaries c. rent for building where spices and herbs are repackaged for consumers d. workers' insurance e. postage for shipping spices and herbs

Q: A cost that changes with the level of output is called a(n) _____ cost. a. liquidity b. variable c. fixed d. asset e. elastic

Q: The two types of costs a marketer needs to consider when setting prices are: a. primary and secondary b. variable and fixed c. marginal and absolute d. short-term and long-term e. elastic and inelastic

Q: Chad has calculated the sales volume at which his lemonade stand's costs equal revenue. Over dinner he announced to his family that he only needed to sell 50 glasses of lemonade at $5 per glass to cover all his costs (lumber and nails for the stand, lemons, sugar, etc.). Which important factor has Chad excluded from his analysis? a. fixed and variable cost determination b. consumer demand c. target return pricing d. break-even analysis e. market share

Q: Behavioral targeting technology is being used by Internet retailers to offer different prices and promotional offers to different customers based upon their Internet and browsing habits. One potential downside to this practice is: a. lack of profits b. consumer privacy c. cost d. reliability of the system e. competitive pressure

Q: Which of the following statements about yield management systems (YMS) is true? a. The first use of YMS was in the U.S. car industry as it looked for ways to compete with imports. b. YMS eliminate the problem of simultaneous production and consumption from services. c. YMS cannot be used by any other businesses but services. d. YMS are complex pricing systems used to set equilibrium pricing points. e. YMS are mathematically complex systems to make use of underutilized capacity and reduce the cost of perishability.

Q: Allstate has more than 1,500 price levels that are determined by a complex algorithms that analyzes 16 credit report variables, including late payments and card balances. Allstate is using a _____ to set prices. a. yield management system b. capacity correlation system c. service forecasting tools d. service management system e. capacity maintenance tool

Q: _____ use complex mathematical software to profitably fill unused capacity. a. Yield management systems b. Capacity correlation systems c. Service forecasting tools d. Service management systems e. Capacity management software

Q: Yield management systems are used to: a. determine the availability of product substitutes in complex industries that are experiencing rapid change b. profitably fill unused capacity c. predict necessary service levels to achieve revenue goals d. determine whether it is financially more feasible to buy a new product or repair a broken one e. create elastic demand for low-involvement products

Q: If a product has high pricing power this would indicate a situation of: a. unitary demand b. inelastic demand c. elastic demand d. constant demand e. revenue maximization