TEST BANK
CHAPTER 1: AN OVERVIEW OF LOGISTICS
Multiple Choice Questions (correct answers are bolded)
1. Logistics clearly contributes to ___________ and ___________ utility.
2. ___________ utility refers to the value or usefulness that comes from a customer being able
to take possession of a product.
3. ___________ utility refers to having products available where they are needed by
customers.
4. All of the following are types of economic utility except:
5. “How well a company does what it says it’s going to do” represents ___________.
6. What concept refers to “how well company resources are used to achieve what a company
promises it can do”?
7. Every customer getting the same type and level of logistics service refers to ___________.
8. Which of the following is not a reason for the increased importance of logistics?
9. Widespread reductions in economic regulation of U.S. transportation carriers occurred in
___________.
10. The ___________ concept suggests that the customer desires a product offering that is highly
tailored to the customer’s exact preferences.
11. Approximately ___________ percent of U.S. families with children reports that both parents
work.
12. ___________ refers to the removal of intermediaries between producer and consumer.
13. ___________ are stores with large amounts of both floor space and product for sale.
14. An example of ___________ involves ordering something online and then picking it up at a
bricks-and-mortar store.
15. World trade has grown at an average annual rate of approximately ___________ percent
since 1990.
16. The ___________ approach indicates that a company’s objectives can be realized by
recognizing the mutual interdependence of major functional areas.
17. The movement and storage of materials into a firm refers to ___________.
18. Which concept refers to the storage of finished product and movement to the customer?
19. Logistics managers use the ___________ approach to coordinate materials management and
physical distribution in a cost-efficient manner.
20. A cost trade-off is a situation where:
21. The ___________ department often measures inventory in terms of its cost or value in
dollars whereas ___________ tends to measure inventory in terms of units.
22. A common interface between production and logistics involves:
23. ___________ refers to the delay of value-added activities such as assembly, production, and
packaging to the latest possible time.
24. The four basic components of the marketing mix include all of the following except:
25. Landed costs refer to:
26. ___________ refers to being out of an item at the same time there is demand for it.
27. Enticing customers with the promise of a low-priced product, only to find that it is
unavailable, but having a higher-priced substitute product readily available refers to
___________.
28. Which of the following is not part of the marketing channel?
29. The ownership channel consists of all parties except:
30. Which channel covers the movement of title to the goods?
31. ___________ is bringing together similar stocks from different sources.
32. ___________ refers to breaking a homogeneous supply into smaller lots.
33. Channel intermediaries:
34. Brokers are intermediaries that are commonly associated with the ___________ channel.
35. The costliest logistics activity in many firms is ___________.
True-False Questions
1. Absolute and relative logistics costs in relation to gross domestic product (GDP) vary from
Application; AACSB Category 3: Analytical thinking]
economic impacts of logistics; Easy; Application; AACSB Category 3: Analytical thinking]
4. The current definition of logistics, as promulgated by the Council of Supply Chain
Management Professionals (CSCMP), suggests that logistics is part of supply chain
5. Logistics is only concerned with forward flows—that is, those directed toward the point of
7. In mass logistics, groups of customers with similar logistical needs and wants are provided
8. Humanitarian logistics represents an emerging application of logistics to not-for-profit
9. Reductions in economic regulation allowed individual transportation companies flexibility in
Application; AACSB Category 3: Analytical thinking]
10. Market demassification suggests that the customer desires a product offering that is highly
logistics; Moderate; Concept; AACSB Category 3: Analytical thinking]
11. Disintermediation refers to the removal of intermediaries between producer and consumer.
10
12. Superior logistics is an essential component of corporate strategies for many big-box
AACSB Category 3: Analytical thinking]
the increased importance of logistics; Easy; Application; AACSB Category 3: Analytical
thinking]
14. The systems approach indicates that a company’s objectives can be realized by recognizing
the systems and total cost approaches to logistics; Easy; Concept; AACSB Category 3:
Analytical thinking]
15. A stock-keeping unit (SKU) refers to a line item of inventory offered for sale by a company.
AACSB Category 3: Analytical thinking]
the systems and total cost approaches to logistics; Easy; Concept; AACSB Category 3:
Analytical thinking]
17. Interfunctional logistics attempts to coordinate materials management and physical
distribution in a cost-efficient manner that supports an organization’s customer service
Moderate; Application; AACSB Category 3: Analytical thinking]
18. The key to the total cost approach is that all relevant cost items are considered
approaches to logistics; Easy; Application; AACSB Category 3: Analytical thinking]
19. The finance department tends to measure inventory in terms of units whereas logistics tends
within the firm; Easy; Application; AACSB Category 3: Analytical thinking]
20. Long production runs sometimes result in excessive inventory of products with limited
Easy; Application; AACSB Category 3: Analytical thinking]
21. Postponement is the delay of value-added activities such as assembly, production, and
within the firm; Easy; Concept; AACSB Category 3: Analytical thinking]
22. Logistics offers many companies an important route for creating marketing superiority.
Application; AACSB Category 3: Analytical thinking]
23. Dual distribution refers to an alliance that allows customers to purchase products from two or
relationships within the firm; Easy; Concept; AACSB Category 3: Analytical thinking]
logistical relationships within the firm; Easy; Concept; AACSB Category 3: Analytical thinking]
25. Stockouts refer to a situation in which a company is out of an item at the same time that there
firm; Easy; Concept; AACSB Category 3: Analytical thinking]
26. Logistical decisions tend not to be impacted by marketers’ growing emphasis on offering
Easy; Application; AACSB Category 3: Analytical thinking]
27. Many promotional decisions, such as pricing campaigns that lower the price of certain items,
logistical relationships within the firm; Easy; Application; AACSB Category 3: Analytical
thinking]
1.6: To introduce you to marketing channels; Easy; Application; AACSB Category 3:
Analytical thinking]
To introduce you to marketing channels; Easy; Application; AACSB Category 3: Analytical
thinking]
introduce you to marketing channels; Moderate; Synthesis; AACSB Category 3: Analytical
thinking]
31. The most significant contribution that the logistics channel makes to the overall channel
Application; AACSB Category 3: Analytical thinking]
Moderate; Application; AACSB Category 3: Analytical thinking]
introduce you to marketing channels; Easy; Application; AACSB Category 3: Analytical
thinking]
34. Intermediaries assume ownership of goods while those goods are in the marketing channel.
12
1.6: To introduce you to marketing channels; Easy; Concept; AACSB Category 3: Analytical
thinking]
introduce you to marketing channels; Moderate; Application; AACSB Category 3: Analytical
thinking]
provide a brief overview of activities in the logistics channel; Easy; Application; AACSB
Category 3: Analytical thinking]
brief overview of activities in the logistics channel; Moderate; Application; AACSB Category 3:
Analytical thinking]
1.7: To provide a brief overview of activities in the logistics channel; Moderate; Application;
AACSB Category 3: Analytical thinking]
40. The job market for logisticians and supply chain managers continues to be strong at the
careers; Easy; Application; AACSB Category 3: Analytical thinking]