At the annual managers' planning conference, Jackie Conrad asks the other managers to consider her proposal to increase the quantity of inventory to a five-week supply in order to increase the percentage of completely filled customer orders from 85 percent to 90 percent. She states that she is willing to trade off the ___________ incurred for the positive effect of better customer service.
a) lower response time
b) higher warehousing costs
c) higher transportation costs
d) higher order processing costs
e) higher performance levels
Answer: b) higher warehousing costs
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Marketing Chapter 15
- If Anheuser-Busch refused to allow Jackson Distributing to carry its product if the distributor also carried Miller Brewing products, the company would have been engaging in which of the following channel management practices?
- If an intermediary wants to carry Tide detergent and Procter & Gamble agrees only if the supplier purchases P&G's entire line of detergents as well, the company is engaging in which of the following channel management practices?
- Dell Computers is a nationally recognized manufacturer of computers for the small business and home markets. If Dell were to order one of its wholesalers not to carry any computer products other than those made by Dell, this arrangement would be called
- Tying agreements occur when a
- The main reason a manufacturer will prohibit intermediaries from selling its products outside designated sales territories is to
- Ralph Lauren sells Polo products through department stores as well as in its own specialty shops. The designer uses ___________ as a channel strategy.
- In which of the following situations is dual distribution likely to be determined illegal?
- Dual distribution is characterized as
- Using a freight forwarder usually
- Freight transportation companies that offer several different shipment methods are called
- Which of the following organizations consolidates shipments from several firms into more efficient lot sizes?
- What two modes of transportation are used when containers are shipped by piggyback?
- Piggyback, fishyback, and birdyback are terms usually associated with gaining efficiency in shipping through
- ________ is the combining and coordinating of two or more modes of transportation to take advantage of benefits offered by each of the different types of carriers.
- 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
- 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?
- 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.
- 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?
- 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.
- Which mode of transportation hauls more freight than any other?
- Which major mode of freight transportation provides the most flexible schedules and routes?
- _________ adds time and place utility to a product by moving it from where it is made to where it is purchased and used.
- What is the most expensive physical distribution function?
- 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?
- A public warehouse is a