Question 1

Which mode of transportation hauls more freight than any other?

Accepted Answer

Railroads haul the largest amount of freight compared to any other mode of transportation. They are particularly efficient at hauling heavy cargo, such as coal and grain, over long distances. In the US, railroads transport around 40% of total freight, according to the Association of American Railroads.

Question 2

Assuming everything else equal,the most cost-efficient way for British Petroleum to transport crude oil from remote oil drilling sites in central Alaska to shipping terminals on the Alaskan coast would be

Accepted Answer

Out of the given options, pipelines would be the most cost-efficient way for British Petroleum to transport crude oil from remote oil drilling sites in central Alaska to shipping terminals on the Alaskan coast. Pipelines have a much higher capacity for transporting oil than any other method of transportation and require much lower operating costs. Additionally, pipelines have a minimal environmental impact as compared to other forms of transportation, making them the most feasible option for long-term and sustainable transportation of crude oil.

Question 3

Managers and consultants at Colgate-Palmolive are meeting to discuss better ways to package its products to reduce damage and make loading more efficient.The primary function they are trying to improve is

Accepted Answer

The meeting is focusing on ways to package products to reduce damage and make loading more efficient, indicating a focus on materials handling.

Question 4

Garcia Wholesale Plumbing has seen its sales in the Southeast triple in the past two years.Materials handling director Barb Peterson announces plans to the board for an Atlanta facility that will combine shipments received from Garcia's 25 suppliers for nearly immediate shipment to plumbing stores and contractors in the region.This new facility would be best classified as which of the following?

Accepted Answer

The facility described in the scenario is a distribution center because it is designed to combine shipments from multiple suppliers and quickly distribute them to customers in the region. A public warehouse typically provides storage space for multiple clients, but does not combine shipments in this way. A field public warehouse is a temporary storage facility set up at a job site, and a bonded warehouse is a facility that allows imported goods to be stored before customs duties are paid. A sales office is not a facility for handling and distributing physical products.

Question 5

Which of the following physical distribution functions involves design and operation of facilities for storing goods?

Accepted Answer

Warehousing involves the designing and operation of facilities to store goods.

Question 6

Morgan Steel Company leases a warehouse in Jacksonville,Alabama to serve Deep South markets that were large enough and stable enough to make a long-term commitment to fixed facilities.This is a

Accepted Answer

The answer of Morgan Steel Company leases a warehouse in...

Question 7

Magnetic Springs wants to ship its bottled water with the most flexible schedules and routes of all transportation modes.Magnetic Springs should use ____ as its transportation mode.

Accepted Answer

Trucks provide the most flexibility in schedules and routes compared to other transportation modes such as railroads, waterways, pipelines, and airways. With trucks, Magnetic Springs can choose the most direct and efficient routes to get their bottled water to their destinations on time. They also have the ability to adjust schedules quickly if needed, making trucks the best choice for this situation.

Question 8

____ adds time and place utility to a product by moving it from where it is made to where it is purchased and used.

Accepted Answer

Transportation is the process of moving goods from one location to another. This process adds time and place utility by bringing the product closer to the customer at the right time, making it available when and where it is needed.

Question 9

Which major mode of freight transportation provides the most flexible schedules and routes?

Accepted Answer

Trucks offer the most flexible schedules and routes as they can travel on a vast network of roads and highways, allowing for door-to-door delivery and adjustments in routes and timing.

Question 10

A public warehouse is a

Accepted Answer

A public warehouse is a facility that leases storage space and related facilities to businesses that need temporary or permanent storage space for their products. The warehouse owner is responsible for maintaining the facility and ensuring that the goods in storage are secure and protected. Public warehouses are used by a wide range of businesses, from small retailers to large manufacturers.

Question 11

Johnson Controls hires a consultant to assess its materials handling procedures.The consultant recommends the implementation of ____ if they want easier movement of items between internal destinations in the warehouse.

Accepted Answer

The answer of Johnson Controls hires a consultant to assess...

Question 12

What is the most expensive physical distribution function?

Accepted Answer

Transportation is typically the most expensive physical distribution function due to the cost of fuel, maintenance, and labor associated with moving goods from one location to another.

Question 13

What function of physical distribution enables companies to compensate for dissimilar production and consumption rates and stabilize prices and availability of seasonal items?

Accepted Answer

Warehousing allows companies to store products until they are needed, which helps to balance out the differences in production and consumption rates. This function is crucial for managing seasonal items, ensuring that they are available when demand is high and helping to stabilize their prices by allowing for storage during off-peak times.

Question 14

Kolder Inc.is using a new just-in-time inventory management system that requires ordering smaller quantities of parts more frequently.The success of its business depends significantly on receiving these parts very quickly,so like many other companies using just-in-time,Kolder Inc.is relying more on the ____ mode of transportation despite its expense.

Accepted Answer

The passage mentions that Kolder Inc. needs to receive its parts quickly, and using air transportation is the best way to achieve this goal. While the other modes of transportation may be less expensive, they are not as fast and reliable as air transportation when it comes to just-in-time inventory management. Therefore, airway is the most suitable choice for Kolder Inc.

Question 15

When companies operate their own facilities for storing and shipping products,these facilities are known as

Accepted Answer

Private warehouses are facilities owned and operated by the company itself. They are different from public warehouses, which are run by independent companies and are available for rent to any company that needs storage and/or distribution services. Therefore, private warehouses would be the best choice to answer this question.

Question 16

Fansteel manufactures parts used in jet engines,which it sells to companies such as Boeing.When shipping products to Boeing,Fansteel seals the parts in 8' $\times$ 8' $\times$ 40' boxes for shipping to decrease loss and damage.This method of materials handling is

Accepted Answer

The method of sealing the parts in 8' F1F1F1S1F1F1F10 8' F1F1F1S1F1F1F10 40' boxes for shipping is known as containerization. This involves using standardized containers to transport goods, which helps in reducing losses and damage during transit.

Question 17

Air-Tech management learns that last month's production run of heaters at its Newark plant is defective and announces a recall of the specific models produced.To handle the large number of products it expects to receive for replacement of the defective thermostats,Air-Tech will probably need to add a ____ to its distribution network.

Accepted Answer

The answer of Air-Tech management learns that last month's production...

Question 18

The Diamond Salt Company needs to transport 20 tons of salt from Baton Rouge,Louisiana,to Cincinnati.Which of the following methods would be the cheapest for transporting this cargo?

Accepted Answer

Waterways would be the cheapest method for transporting salt as it is a heavy cargo and can be easily transported by barges or ships through rivers, canals, or coastal routes at a lower cost compared to other modes of transportation that require more fuel and hauling costs.

Question 19

Federal Mogul places several boxes of products or materials on pallets in order to load them efficiently using forklifts.This system of materials handling is called

Accepted Answer

Unit loading is the system of materials handling where the products or materials are placed on pallets or other standard containers to load and unload them efficiently using forklifts or other handling equipment. This system reduces handling time, labor costs, and the risk of damage to products or materials.

Question 20

If a microchip in a computer in New York failed,which method of transportation would be most appropriate to use to replace the chip immediately if one could get the new chip only from Silicon Valley,California?

Accepted Answer

Air transportation would be the most appropriate method to replace the chip immediately since it is the fastest mode of transportation, allowing the chip to arrive in New York in a matter of hours. Meanwhile, other modes of transportation like waterways, pipelines, truck, or railroad would take a longer time to deliver the chip, delaying the repair process.

Quiz 14: A Supply Chain Management and Marketing Channels