Question 1

What concept refers to the storage of finished product and movement to the customer?
A)Inbound logistics
B)Supply chain management
C)Physical distribution
D)Materials management

Accepted Answer

Physical distribution refers to the storage and movement of finished products to the customers. Inbound logistics involves the movement of raw materials and goods from suppliers to the firm's production facilities. Supply chain management refers to the coordination and management of all activities involved in producing and delivering a product to the final customer. Materials management includes all activities involved in the acquisition and management of raw materials and other inputs used in production.

Question 2

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)total cost

Accepted Answer

The systems approach emphasizes how different functional areas (such as marketing, production, and finance) are interdependent and must work together for the company to achieve its objectives. It recognizes that changes in one area can impact the entire system, and that decisions need to be made with consideration of the holistic impact on the organization.

Question 3

All of the following terms have been used to refer to business logistics except:
A)business logistics
B)industrial distribution
C)logistics management
D)physical distribution
E)all of the above are correct

Accepted Answer

All the terms listed (business logistics, industrial distribution, logistics management, and physical distribution) have been used to refer to aspects of business logistics.

Question 4

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

Accepted Answer

A cost trade-off refers to a situation where there are trade-offs between different costs. As such, some costs increase while others decrease. This can occur, for example, when a company decides to invest in more expensive but more efficient machinery to reduce labor costs over time. In this scenario, the cost of the new machinery may increase while the cost of labor decreases, resulting in a cost trade-off. Option A pertains to inflation, while option B relates to percentage variations. Option D discusses elimination of costs but not cost trade-offs.

Question 5

World trade grew at an average annual rate of approximately ___________ percent between 1997 and 2007.
A)10
B)8
C)6
D)4

Accepted Answer

According to the information given in the statement, world trade grew at an average annual rate between 1997 and 2007. The only option that mentions a percentage close to this timeline (1997-2007) is Option C, i.e., 6 percent. Therefore, the correct answer is Option C.

Question 6

What two logistics activities make the heaviest use of the Internet?
A)Warehousing and inventory management
B)Purchasing and transportation
C)Inventory management and purchasing
D)Transportation and warehousing

Accepted Answer

Purchasing and transportation are the two logistics activities that make the heaviest use of the internet. Online platforms and software are widely used for procuring goods and services, tracking orders, and managing payments. Similarly, transportation companies use the internet to optimize routes, track shipments, and communicate with customers. Both activities rely on real-time data exchanges and require collaborative networks of suppliers, carriers, and intermediaries, making them ideal for digitalization and automation.

Question 7

___________ refers to the removal of intermediaries between producer and consumer.
A)Direct channels
B)Market demassification
C)Consolidation
D)Disintermediation

Accepted Answer

Disintermediation refers to the removal of intermediaries between producer and consumer. It often occurs through the use of e-commerce and other technology-driven channels that allow the producer to sell directly to the consumer without the need for intermediaries such as wholesalers or retailers.

Question 8

___________ 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

Accepted Answer

Possession utility is the value or usefulness that comes from a customer being able to take possession of a product. This includes the physical transfer of the product, as well as the ability to use it and have control over it.

Question 9

"How well a company does what it says it's going to do" represents ___________.
A)efficiency
B)productivity
C)leading edge logistics
D)effectiveness

Accepted Answer

The term "effectiveness" is defined as the degree to which a company is successful in achieving its objectives and goals. Therefore, "how well a company does what it says it's going to do" is a measure of its effectiveness. Efficiency refers to the ability to complete tasks in a timely manner and with minimal waste, while productivity measures the output a company generates in relation to its input. Leading edge logistics refers to the use of advanced techniques and technologies in the field of supply chain management.

Question 10

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

Accepted Answer

Finance department often measures inventory in terms of its cost or value in dollars, whereas logistics tends to measure inventory in terms of units. Marketing and production departments may also measure inventory in different ways, but they are not as strongly associated with the specific measurement methods mentioned in the question.

Question 11

___________ are characterized by large market share and low prices.
A)Category killers
B)Mass merchandisers
C)Power retailers
D)Do-it-yourself

Accepted Answer

The answer of ___________ are characterized by large market share...

Question 12

Logistics clearly contributes to ___________ and ___________ utility.
A)time; place
B)form; time
C)place; form
D)possession; time
E)none of the above

Accepted Answer

Logistics helps to provide time utility by delivering goods to the desired location at the desired time. It also helps to provide place utility by ensuring that goods are available at the desired location.

Question 13

The ___________ concept suggests that there are an ever-increasing number of market segments with distinct preferences.
A)rhochrematics
B)relationship marketing
C)market demassification
D)niche marketing

Accepted Answer

Market demassification is the concept that suggests there are an ever-increasing number of market segments with distinct preferences. This means that mass marketing is no longer effective, and companies must focus on targeting specific niche markets to meet their needs and preferences. Rhochrematics is not a marketing concept, while relationship marketing and niche marketing are related but do not capture the idea of the proliferation of market segments. Therefore, C is the best choice.

Question 14

Every customer getting the same type and levels of logistics service refers to ___________.
A)tailored logistics
B)mass logistics
C)effectiveness
D)efficiency

Accepted Answer

Mass logistics refers to providing the same type and level of logistics service to all customers in a cost-effective manner. Tailored logistics, on the other hand, involves customized logistics solutions for each customer's unique needs. Effectiveness and efficiency are general terms not specific to logistics.

Question 15

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

Accepted Answer

The four types of economic utility are time, place, possession, and form. Production is not considered a type of economic utility.

Question 16

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

Accepted Answer

The answer of What concept refers to "how well company...

Question 17

The movement and storage of materials into a firm refers to:
A)physical distribution
B)materials management
C)materials handling
D)supply chain management

Accepted Answer

The term "materials management" encompasses the movement and storage of materials within a firm, as well as the acquisition and sourcing of those materials. Physical distribution refers to the movement of finished products and goods out of a firm. Materials handling is a component of materials management, focused specifically on the physical movement and transportation of materials within a facility. Supply chain management includes the coordination and management of all activities involved in the production and delivery of a product, including materials management, logistics, and demand planning.

Question 18

___________ utility refers to having products available where they are needed by customers.
A)Possession
B)Time
C)Place
D)Form

Accepted Answer

Place utility refers to having products available where they are needed by customers, such as having a grocery store located in a neighborhood for easy access to groceries. Possession utility refers to making the product easy to buy, such as accepting multiple forms of payment or offering financing options. Time utility refers to making the product available at a convenient time, such as offering extended store hours. Form utility refers to the product's design or features meeting the needs and wants of the customer, such as a phone with a long battery life or a car with good gas mileage.

Question 19

Logistics managers use the ___________ approach to coordinate inbound logistics,materials management,and physical distribution in a cost efficient manner.
A)total cost
B)supply chain
C)mass logistics
D)interfunctional

Accepted Answer

The total cost approach in logistics management focuses on minimizing the overall cost of logistics activities by considering all related costs together, rather than optimizing individual components separately.

Question 20

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

Accepted Answer

The growing power of manufacturers is not a reason for the increased importance of logistics. In fact, logistics plays a significant role in reducing the power of manufacturers by creating a more competitive marketplace. The other choices, reduction in economic regulation, globalization of trade, and technological advances, are all reasons for the increased importance of logistics.

Quiz 1: An Overview of Logistics

What concept refers to the storage of finished product and movement to the customer?

The ___________ approach indicates that a company's objectives can be realized by recognizing the mutual interdependence of major functional areas.

All of the following terms have been used to refer to business logistics except:

A cost trade-off is a situation where:

World trade grew at an average annual rate of approximately ___________ percent between 1997 and 2007.

What two logistics activities make the heaviest use of the Internet?

___________ refers to the removal of intermediaries between producer and consumer.

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

"How well a company does what it says it's going to do" represents ___________.

The _ department often measures inventory in terms of its cost or value in dollars,whereas _ tends to measure inventory in terms of units.

___________ are characterized by large market share and low prices.

Logistics clearly contributes to _ and _ utility.

The ___________ concept suggests that there are an ever-increasing number of market segments with distinct preferences.

Every customer getting the same type and levels of logistics service refers to ___________.

All of the following are types of economic utility,except:

What concept refers to "how well company resources are used to achieve what a company promises it can do?"

The movement and storage of materials into a firm refers to:

___________ utility refers to having products available where they are needed by customers.

Logistics managers use the ___________ approach to coordinate inbound logistics,materials management,and physical distribution in a cost efficient manner.

Which of the following is not a reason for the increased importance of logistics?