Chapter 1 - Overview

Question 1

form utility

Answer 1

a product’s being in a form that can be used by the customer and is of value to the customer

Question 2

place utility

Answer 2

having products available where they are needed by customers

Question 3

time utility

Answer 3

having products available when they are needed by customers

Question 4

logistics

Answer 4

logistics management is that part of supply chain management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information

Question 5

mass logistics

Answer 5

one size fits all logistics in which every customer gets the same type and levels of logistics service

Question 6

tailored logistics

Answer 6

groups of customers with similar logistical needs and wants are provided with logistics services appropriate to those needs and wants

Question 7

humanitarian logistics

Answer 7

an emerging application of logistics to not for profit situations

Question 8

disintermediation

Answer 8

removal of intermediaries between producer and consumer

Question 9

big box retailers

Answer 9

stores with large amounts of both floor space and products for sale

Question 10

container

Answer 10

uniform sealed reusable metal box in which goods are shipped

Question 11

systems approach

Answer 11

a company’s objectives can be realized by recognizing the mutual interdependence of the major functional areas of the firm, such as marketing, production, finance and logistics

Question 12

stock keeping units

Answer 12

line items of inventory offered for sale by many companies

Question 13

materials management

Answer 13

movement and storage of materials into a firm

Question 14

physical distribution

Answer 14

storage of finished product and movement to the customer

Question 15

total cost approach

Answer 15

coordinate materials management and physical distribution in a cost efficient manner

Question 16

cost trade offs

Answer 16

changes to one logistics activity cause some costs to increase and others to decrease

Question 17

postponement concept

Answer 17

the delay of value added activities such as assembly, production, and packaging until the latest possible time

Question 18

co-branding

Answer 18

an alliance that allows customers to purchase products from two or more brand retailers at one store location

Question 19

landed costs

Answer 19

the price of the product at the source plus transportation costs to its destination

Question 20

stockouts

Answer 20

being out of an item at the same time there is demand for it

Question 21

sustainable products

Answer 21

products that met present needs without compromising the ability of future generations to meet their needs

Question 22

marketing channels

Answer 22

a set of institutions necessary to transfer the title to goods and to move goods from the point of production to the point of consumption, and as such consists of all the institutions and all the marketing activities in the marketing process

Question 23

sorting function

Answer 23

bridges the discrepancy between the assortment of goods and services generated by the producer and the assortment demanded by the consumer

Question 24

economic utility

Answer 24

value of usefulness that comes from a customer being able to take possession of a product