Question 1

A major benefit of _____ is that it protects the products and simplifies handling during shipping.

Accepted Answer

Containerization protects the products and simplifies handling during shipping.

Question 2

A footwear company specializing in the production of ballet shoes normally produces shoes only in women's and girl's sizes. The company is hired by several customers to produce shoes in men's and boy's sizes. Which of the following should the manufacturer consider in order to achieve economies of scale in shoe production?

Accepted Answer

Economies of scale in production may be achieved by manufacturers who choose to produce a single type or size of item at one time in large quantities, and then store the unsold items, rather than producing small quantities for immediate sale.

Question 3

When Sony manufactures and packages DVD players in Japan, stores them in large 8'x8'x20' "boxes," and then ships these boxes to Los Angeles by boat, this is an example of:

Accepted Answer

Containerization is grouping individual items into an economical shipping quantity and sealing them in protective containers for transit to the final destination.

Question 4

A tire manufacturer currently produces tires in small quantities as they are ordered. The company learns that it can reduce costs significantly by producing one type of tire at a time in large quantities and storing its unsold tires for later sale. Should the company switch to large quantity production?

Accepted Answer

It's often cheaper to produce large quantities of one size, and store the unsold quantity, than to have shorter production runs. Thus, storing goods allows the producer to achieve economies of scale in production. Large quantity production may or may not increase the per-item production speed.

Question 5

Air express companies place many small packages into specially designed cylinders that conform to the interior dimensions of a cargo airplane. This practice protects the smaller packages and helps to reduce distribution costs. The air express companies are practicing:

Accepted Answer

Containerization is grouping individual items into an economical shipping quantity and sealing them in protective containers for transit to the final destination.

Question 6

The railroad service which picks up truck trailers at a producer's location, loads them onto rail flatcars, hauls them close to the customer, and then delivers them to the buyer's door is:

Accepted Answer

Piggyback service means loading truck trailers on railcars to provide both speed and flexibility. Railroads pick-up truck trailers at the producer's location, load them onto specially designed rail flatcars, and haul them as close to the customer as rail lines run. The trailers are then hooked up to a truck tractor and delivered to the buyer's door.

Question 7

Regarding alternative transporting modes, which of the following statements is TRUE?

Accepted Answer

The most expensive cargo transporting mode is airplane.

Question 8

Inventory refers to

Accepted Answer

Inventory is the amount of goods being stored.

Question 9

Why would Coca-Cola want to encourage its customers to store product in their homes?

Accepted Answer

If consumers "store" the product, more of it may be used or consumed. That's why Breyer's likes customers to buy its half-gallon packages. The "inventory" is right there in the freezer-and ready to be eaten-whenever the impulse hits.

Question 10

A train carries truck trailers long distances. The trailers are then offloaded, attached to truck tractors, and the tractor-trailer combinations are driven to their final destination. This practice is known as:

Accepted Answer

Piggyback service means loading truck trailers on railcars to provide both speed and flexibility. Railroads pick-up truck trailers at the producer's location, load them onto specially designed rail flatcars, and haul them as close to the customer as rail lines run. The trailers are then hooked up to a truck tractor and delivered to the buyer's door.

Question 11

Jackie works in transportation for a company that ships expensive, high quality fish all across the United States. The perishable nature of her product, the value of freshness, and the high prices she charges would lead you to recommend which transportation mode?

Accepted Answer

High-value, low-weight goods, and perishable products are often shipped by air.

Question 12

Regarding alternative transporting modes, which of the following statements is TRUE?

Accepted Answer

Water transportation is usually the lowest-cost way of shipping heavy freight. The fastest cargo transportation mode is airplane. Pipelines are used primarily to move oil and natural gas. Trucks can travel on almost any road and serve the most locations of any mode.

Question 13

Using airfreight instead of some other mode of transporting may result in:

Accepted Answer

Valuable benefits of airfreight's speed are less spoilage, theft, and damage. Using planes may reduce the cost of packing and unpacking, and though the transporting cost of air shipments may be higher, the total cost of distribution may be lower.

Question 14

What is the best way to ship Spring tulips from Amsterdam, Netherlands, to Rome, Italy?

Accepted Answer

High-value, low-weight goods, and perishable products are often shipped by air. Flowers, for example, now are jet-flown to points all over the world.

Question 15

Storing:

Accepted Answer

Storing is necessary when production of goods doesn't match consumption.

Question 16

Piggyback service means

Accepted Answer

Piggyback service means loading truck trailers on railcars to provide both speed and flexibility.

Question 17

Airfreight

Accepted Answer

Airplanes may help a firm reduce inventory costs by eliminating outlying warehouses.

Question 18

Chrysler manufactures cars in Detroit and loads them on truck trailers at the factory. Burlington Northern Santa Fe (BNSF) picks up the truck trailers, loads them on specially designed rail flatcars, and ships them to St. Louis. There they are delivered by truck to local dealers. This transportation process is:

Accepted Answer

Piggyback service means loading truck trailers on railcars to provide both speed and flexibility. Railroads pick-up truck trailers at the producer's location, load them onto specially designed rail flatcars, and haul them as close to the customer as rail lines run. The trailers are then hooked up to a truck tractor and delivered to the buyer's door.

Question 19

Containerization:

Accepted Answer

Japanese firms, like Sony, ship stereos by boat. When they arrive at the dock, they are loaded on trains, sent across the country, and delivered to a wholesaler by truck or rail. Loading and unloading goods several times used to be a real problem and many of these problems are reduced with containerization.

Question 20

Regarding transportation modes, which of the following statements is NOT true?

Accepted Answer

Airfreight rates are on average three times higher than trucking rates.

Quiz 11: Distribution Customer Service and Logistics

A major benefit of _____ is that it protects the products and simplifies handling during shipping.

When Sony manufactures and packages DVD players in Japan, stores them in large 8'x8'x20' "boxes," and then ships these boxes to Los Angeles by boat, this is an example of:

Air express companies place many small packages into specially designed cylinders that conform to the interior dimensions of a cargo airplane. This practice protects the smaller packages and helps to reduce distribution costs. The air express companies are practicing:

The railroad service which picks up truck trailers at a producer's location, loads them onto rail flatcars, hauls them close to the customer, and then delivers them to the buyer's door is:

Regarding alternative transporting modes, which of the following statements is TRUE?

Inventory refers to

Why would Coca-Cola want to encourage its customers to store product in their homes?

A train carries truck trailers long distances. The trailers are then offloaded, attached to truck tractors, and the tractor-trailer combinations are driven to their final destination. This practice is known as:

Jackie works in transportation for a company that ships expensive, high quality fish all across the United States. The perishable nature of her product, the value of freshness, and the high prices she charges would lead you to recommend which transportation mode?

Regarding alternative transporting modes, which of the following statements is TRUE?

Using airfreight instead of some other mode of transporting may result in:

What is the best way to ship Spring tulips from Amsterdam, Netherlands, to Rome, Italy?

Storing:

Piggyback service means

Airfreight

Containerization:

Regarding transportation modes, which of the following statements is NOT true?