Question 1

A company ships dog houses fully assembled to luxury dog hotels. The average line- haul cost per shipment is $12.50 per mile and the truck carries 100 assembled large dog houses. The company decided to ship the houses unassembled and figures it can ship 500 in a truck. Calculate the line- haul cost per assembled and unassembled dog house. If the average trip is 300 miles, calculate the potential savings per dog house.

Accepted Answer

Line- haul cost assembled = $12.50/100 = $0.125 per dog house per mile Line- haul cost unassembled = $12.50/500 = $0.025 per dog house per mile
Savings per mile = $0.125 - 0.025 = $0.10
Trip savings = 300 * $0.10 = $30.00 per dog house

Question 2

Memphis is 360 miles from Chattanooga, TN. The product cost for an item is $10 per cwt., and the transportation cost per mile per cwt. if $0.20. What is the laid- down cost per cwt.?

Accepted Answer

LDC = $10 + $0.20 X 360) = $82 per cwt.

Question 3

A company normally ships to a customer by rail at a cost of $500 per load. The transit time is 14 days. The goods can be shipped by truck for $700 per load and a transit time of 4 days. If transit inventory cost is $35 per day, what does it cost to ship each way?

Accepted Answer

Rail $990; truck $840.

Question 4

For a particular commodity, the line- haul cost is $2.50 per mile. FOr a trip of 500 miles and a shipment of 600 cwt., what is the cost of shipping per cwt.? If the shipment is increased to 1,000 cwt., what is the savings in cost per cwt.?

Accepted Answer

The answer of For a particular commodity, the line- haul...

Question 5

What is a channel of distribution?

Accepted Answer

The answer of What is a channel of distribution?...

Question 6

Discuss some of the variables that determine the specific way in which materials move.

Accepted Answer

The answer of Discuss some of the variables that determine...

Question 7

A company normally ships a product by trail. Transportation cost is $200 and the transit time is 10 days. However the goods can be moved by air at a cost of $1,000 and will take only one day to delivery. The cost of inventory in transit for a shipment is $100 per day. What are the costs involved in their decision.

Accepted Answer

The answer of A company normally ships a product by...

Question 8

The more________ the item, the greater the weight that can be carried in a given vehicle.
A) perishable
B) dense
C) packaged
D) valuable

Accepted Answer

Dense items have more mass per unit volume, allowing more weight to be carried in a given space.

Question 9

Discuss the total- cost concept.

Accepted Answer

The answer of Discuss the total- cost concept....

Question 10

As distribution centers are added:
A) the cost of truckload shipments increase
B) the cost of truckload shipments decrease
C) the total cost of transportation increases
D) the costs of LTL shipments to customers increase

Accepted Answer

The answer of As distribution centers are added:
A) the cost...

Question 11

What are the advantages and disadvantages of air transport?

Accepted Answer

The answer of What are the advantages and disadvantages of...

Question 12

________is the consolidation of several units into large units so there is less handling.
A) Utilization
B) Palletizing
C) Packaging
D) Centralization

Accepted Answer

The answer of ________is the consolidation of several units into...

Question 13

The ________warehouse has a dynamic purpose of movement and mixing.
A) finished goods
B) WIP
C) dynamic
D) general

Accepted Answer

The answer of The ________warehouse has a dynamic purpose of...

Question 14

Operating costs ________as the number of distribution centers________ .
A) increase, increase
B) decrease, increase
C) increase, decrease
D) stay the same, increase

Accepted Answer

Operating costs generally increase as the number of distribution centers increases due to higher expenses related to staffing, maintenance, and logistics.

Question 15

Discuss the categories of reverse logistics and why these costs are increasing.

Accepted Answer

The answer of Discuss the categories of reverse logistics and...

Question 16

An objective of material handling is:
A) to decrease cube utilization
B) increase cube utilization
C) not to consider the height of the building
D) increase the need for aisle space

Accepted Answer

The objective of material handling is to increase cube utilization, which means making the most efficient use of space, including vertical space, in a warehouse or storage facility.

Question 17

If shipments to customers are________ , the total transportation cost is________ by establishing a distribution center in the area.
A) TL, reduced
B) LTL, reduced
C) TL, increased
D) LTL, increased

Accepted Answer

Less-than-truckload (LTL) shipments are typically more expensive per unit than full truckload (TL) shipments. By establishing a distribution center, shipments can be consolidated, reducing transportation costs.

Question 18

Shipping patterns depend on:
A) the customer order size
B) the number of customers
C) the geographic distribution of the customers
D) all of the above

Accepted Answer

Shipping patterns are influenced by various factors including the size of customer orders, the number of customers, and their geographic distribution, making all the options relevant.

Question 19

The package must:
A) identify the product and protect the product
B) identify and contribute to a product's physical distribution efficiency
C) protect and contain the product
D) all of the above

Accepted Answer

The package serves multiple purposes: it identifies the product, protects and contains it, and can also contribute to distribution efficiency.

Question 20

________are devices that move material horizontally or vertically between two fixed points in a fixed route.
A) Industrial trucks
B) Cranes
C) Hoists
D) Conveyors

Accepted Answer

Conveyors are designed to transport materials along a fixed path, either horizontally or vertically, between two fixed points.

Quiz 13: Physical Distribution

Memphis is 360 miles from Chattanooga, TN. The product cost for an item is $10 per cwt., and the transportation cost per mile per cwt. if $0.20. What is the laid- down cost per cwt.?

A company normally ships to a customer by rail at a cost of $500 per load. The transit time is 14 days. The goods can be shipped by truck for $700 per load and a transit time of 4 days. If transit inventory cost is $35 per day, what does it cost to ship each way?

For a particular commodity, the line- haul cost is $2.50 per mile. FOr a trip of 500 miles and a shipment of 600 cwt., what is the cost of shipping per cwt.? If the shipment is increased to 1,000 cwt., what is the savings in cost per cwt.?

What is a channel of distribution?

Discuss some of the variables that determine the specific way in which materials move.

The more________ the item, the greater the weight that can be carried in a given vehicle.

Discuss the total- cost concept.

As distribution centers are added:

What are the advantages and disadvantages of air transport?

________is the consolidation of several units into large units so there is less handling.

The ________warehouse has a dynamic purpose of movement and mixing.

Operating costs as the number of distribution centers .

Discuss the categories of reverse logistics and why these costs are increasing.

An objective of material handling is:

If shipments to customers are , the total transportation cost is by establishing a distribution center in the area.

Shipping patterns depend on:

The package must:

________are devices that move material horizontally or vertically between two fixed points in a fixed route.