Chapter 13: Physical Distribution

Question 1

Physical distribution is:
A) The movement and storage of goods from production to customer
B) The movement and storage of goods from customer to production
C) The movement and storage of goods from suppliers to manufacturing
D) The movement and storage of goods from manufacturing to suppliers

Answer 1

The movement and storage of goods from production to customer

Question 2

The\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ is concerned with the transfer of ownership. Its function is to negotiate, sell, and contract.
A) transaction channel
B) distribution channel
C) reverse logistics channel
D) physical distribution channel

Answer 2

transaction channel

Question 3

The reverse flow of goods (reverse logistics) is due to: A) Increased quality demands of customers B) Financial pressures on distributors to reduce slow-moving inventories C) Financial pressures on distributors to reduce unwanted inventories
D) All of the above

Answer 3

All of the above

Question 4

Goods are returned because they are: A) Damaged or defective B) Seasonal
C) Out-of-date
D) All of the above

Answer 4

All of the above

Question 5

Returned goods:
A) Cannot be sold in alternate markets
B) Can be returned to inventory
C) Cannot be broken down into reusable components
D) Cannot be refurbished

Answer 5

Can be returned to inventory

Question 6

_____________ is the single highest cost in distribution, usually accounting for 30% to 60% of distribution costs.
A) Distribution
B)Transportation C) Warehousing
D) Materials handling

Answer 6

Transportation

Question 7

Global distribution will:
A) Decrease in the future B) Become harder
C) Allow companies to manufacture goods at competitive rates
D) Force companies to sell products only in their own market

Answer 7

Allow companies to manufacture goods at competitive rates

Question 8

_______ are costs that do not change with the volume of goods carried. A) Fixed costs B) Variable costs C) Vehicle costs D) Terminal costs

Answer 8

Fixed costs

Question 9

Economic regulation has centered on:
A) Regulation of rates and control of routes B) Regulation of rates, control of routes and service levels, and control of market entry and exit
C) Control of routes and service levels and control of market entry and exit
D) Regulation of rates and control of market entry and exit

Answer 9

Regulation of rates, control of routes and service levels, and control of market entry and exit

Question 10

Consolidation shipments can:
A) Decrease billing and collecting costs
B) Decrease the number of parcels C) Decrease terminal-handling costs
D) All of the above

Answer 10

All of the above